Global Sports: Understanding Exactly How Rakeback Works

Saturday, February 26, 2011

Understanding Exactly How Rakeback Works

By Thomas Kearns


In a real world Las Vegas casino Texas Hold'em table situation you will frequently observe players re-depositing money rather than cashing out. Different levels of skill can explain some of distribution issues, but the role of the rake is also important here. Rake is the portion of a poker pot that the house claims. This fee can total a significant number over time.

Most poker rooms take a fixed commission from each winning pot, as well as a sliding scale of rake up to a capped level - as the game continues around the table, the house take continues to increase. As a result, there is a gap between break even play and break even return at the poker table - closing this gap through a combination of rakeback and improved play can take you from a scratch player to a +EV player at the table.

Real world poker rooms offer traditional "comps" to their players. In a similar way on line poker sites offer rakeback as a loyalty bonus for their players. The system isn't complicated. The site automatically tracks your contribution to the rack as you play, and these amounts can add up over time. When you sign up through a rakeback site, a portion of these fees are rebated regularly to your account or as a bonus. Usually you must sign up with a partner to be able to receive rakeback bonuses. Initially, while a player may not qualify for the highest deposit bonus,a variety of reload bonuses may be qualified for thereby reducing your rakerate as time goes on.

With automated tracking, you can generally check your rakeback on a daily or real-time basis, helping you to better understand your performance over time. Proper rake back structures can help you to become a profitable player in less time, shifting your earnings from poker into high gear.

How Rebates are Earned Through Rakeback Programs

With the right signup structure the player can play the poker room and table of choice and still earn rakeback. While traditional bonuses tend to restrict play, rakeback rebates are based on the player's monthly gross revenue (MGR) to the poker room. The result is players are able to play any type of game from stud to Omaha to Hold'em and in some cases even tournament play, all with strong returns.

Rakeback sets up a win-win for the player and the poker room. The poker rooms are providing rebates based on the revenue you generate for their tables the rebates in turn encourage site loyalty from the player. In its simplest form, rakeback represents a discount on the cost of playing online poker. Those players who count online tables as a source of income rakeback permits you to maximize overall returns.

Rakeback sites credit rebates on a regular schedule, weekly or monthly generally although rebates are offered on a even more regular basis by some sites. Special rakeback rates are available for high volume players, allowing them to move closer to being a +EV player bringing home real money from their poker activities.




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