The Complete Guide to Poker Rakeback and Cashback Rewards
Rake and rakeback are two of the most poorly understood terms in poker, yet they are among the most important. Players who agonise over whether their play was profitable and battle to improve their big blind win rate often spend no time understanding rake or rakeback.
Here we explain what rakeback is in poker, why it's so important, and what to look out for when choosing an online poker site’s cashback deals. By the end of this guide, you will understand the meaning of rakeback, how to use rakeback to your advantage, and how to be a human rakeback calculator.
What is rake and rakeback in poker?
To understand rakeback, you need to understand rake.
Rake is a mandatory fee which poker players pay in cash games and tournament poker.
Rakeback is a reward system whereby time and money spent at the table is rewarded with a percentage of the rake a player pays being given back to them. It is an incentive to attract players to online poker sites and live cardrooms (if you're lucky enough to find one with a rakeback deal) and can be the difference between being a break-even player and a winner.
Types of rakeback
There are two types of rakeback made available to players - the contributed rakeback and the dealt rakeback.
The contributed rakeback:
Calculated by how much money you have put into the pot. Rakeback will be a percentage of the amount you have put in.
Example:
A site might offer a 30% rakeback on a site that has a 5% rake. Here’s how that is calculated:
5% rake on £25 = £1.25.
30% rakeback of your £1.25 rake is £0.37.
The dealt rakeback:
This is far less common. This system calculates the total rake paid by all players at the table. You don't need to play the hand, or win the hand, you just need to be dealt into the hand.
Example:
5% rake of a £60 pot is £3.
£3 rake is divided by 8 players is £0.37.
30% rakeback of the £0.37 is £0.11.
Which is better?
Most would agree that the contributed rakeback is fairer and encourages more action at the table. The dealt rakeback method means players not risking money are still entitled to an even-share of the rakeback, which encourages tighter play and a worse game as a result.
However, both methods are likely to result in you earning a similar amount of rakeback over the longer term, unless you intend to play very conservatively.
Opt-ins
Make sure if you're playing on a poker site offering a rakeback/cashback deal, and you want to receive the benefit, that you have opted-in properly. Despite rakeback being something that every player would benefit from, because many players don't understand it, they aren't aware it is on offer, and miss out.
Tiers
Rakeback deals are tiered so that as you spend more money in rake, the percentage you earn back is increased. Every online poker site offering these incentives have slightly different schemes, with some tiers having a colour system, while others might use numbers, animals, even fish, to signal progress through the ranks.
Time limits
Most online poker rakeback schemes have a time limit which is reset each week, month or year. Often you have a certain amount of time to play enough poker (spending a certain amount of rake) to remain in the same tier bracket or to move up. Failure to play enough poker and contribute enough rake will result in you moving down to the next tier.
However, it's important not to allow a tier goal to influence the amount you play or the stakes you play. Before opting in to a rakeback, make sure you understand the time limits so that you can work out if this is the right scheme for you.
Rakeback versus Reward Programmes
Some poker sites do not offer rakeback directly but have incentive programmes which reimburse players through points which can be exchanged for money or tournament tickets.
It could be argued that this is a form of rakeback, but the poker sites who use these alternative incentive programmes prefer not to describe them as such.
Key tips
The different rakeback and cashback deals on offer can appear confusing at first. This makes it difficult to compare which site has the best deals. The most important thing is to make sure that you've opted in and you understand the time limit on the scheme’s tiers. That way you won't miss out on any rakeback that you're entitled to or close to unlocking.
Poker prudence
Rakeback and cashback can be a good way to limit your loses through rake and can help supplement your success at the poker table. Please remember that rakeback is a bonus and it shouldn’t stop you from playing poker responsibly and you mustn't play more poker or higher stakes than you otherwise would.
Please gamble responsibly and remember that Be Gamble Aware is there if you ever need to talk to someone about your gambling.