Online Poker Rakeback

Rake is the percentage (commission) that the poker site takes out of every pot played for real money. Normally this ranges between $0.05 and a cap of $3 per pot. The rake paid to the poker site operator is what ensures the profitability of the poker companies.

Rakeback is a reward system implemented by various poker sites whereby an online poker player receives a set percentage of the rake he has paid to the site back. This payment is usually paid once a month into the players poker account.

Rakeback is calculated using one of two methodologies:

1. Dealt Method

A players monthly gross revenue (MGR) is calculated by adding the sum of the rake from each hand in which the player was dealt divided by the number of hands

2. Contributed Method

A players MGR is determined based on the players contribution to the pot. If a player has put $4 into a $20, the rake is $1. The player receives 20c, as this is his contribution to the pot

The amount of rakeback a player receives starts at 25% and can now go as high as 100%.

Not all online poker sites offer rakeback though most offer some form of comparable VIP schemes using deposit bonuses and other added value promotions in lieu of rakeback.

The history of online poker rakeback can be traced back to 2004 when online poker was still in its infancy. The owners of the site poker-strategy.org first developed the idea when they proposed the idea of giving part of their affiliate commission back to the players who signed up through them. Naming their idea "rake rebate", they proposed the idea to several poker operators. Absolute Poker who had only been in the industry for one year at the time, took up the offer and the Absolute Poker Rake Rebate program began in April 2004. After large amounts of user takeup, the concept quickly spread and by the end of the year rake rebates were offered at several poker sites and were promoted by greater numbers of affiliates.