Tuesday, March 8, 2011

How Does Rakeback in Online Poker Work?

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.

A fixed commission from each winning pot is usually assessed by the house, along with a slidingh scale of rake up to a capped level. The house take continues to grow as the game progresses around the table. Because of this factor there is a gap between break even play and break even return. Unilizing a combination of rakeback coupled with improved play can move a scratch player from a scratch to a +EV player.

Just like the traditional "comps" systems at real world poker rooms, online poker rooms offer rakeback as a loyalty bonus for their players. The system is simple - the site automatically tracks your contribution to the rake in each pot, and those amounts can add up over time. By signing up through a rakeback site, you get a percentage of these fees back as rebates on a regular basis directly to your account or as a bonus. Generally, rakeback requires you to sign up with a partner in order to qualify for the rakeback bonuses. Importantly, while a player may not be able to qualify for the highest initial deposit bonuses, you can qualify for a variety of reload bonuses which can further reduce your rake rate over time.

Because tracking is automated, checking rakeback is easy. Status can generally be checked on a daily or even real-time basis. This provides a better understanding of performance over time. Appropriate rakeback provisions can move an individual to the realm of profitable player in a shorter period, increasing earnings substantially.

How Are Rakebacks Earned?

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.

Poker rooms provide rebates on the revenue you generate for their tables which instills loyalty and provides a win-win for players as well. Essentially, rakeback is offering you a discount on the cost of playing online poker. For players who rely upon online tables for income, rakeback programs allow you to benefit greatly in terms of 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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