Thursday, March 24, 2011

Understanding Exactly How Rakeback Works

By Thomas Kearns


Sitting down at a real world casino in Las Vegas to play Texas Hold'em, you'll often see more players re-depositing funds rather than cashing out. While differentials in skills explain some of the distribution issues, it's also important to note the role of the rake. Rake is the percentage of a poker pot which is claimed by the house as a fee, and it can add up to significant amounts over time.

Most of the poker rooms will take both a fixed percentage from each winning pot, as well as a sliding scale of rake up to a maximum level, so as the game continues around the table the house take continues to grow. Because of this at the poker table there is a difference between break even play and break even return. Your ability to close this gap through a combination of rackeback and skilled play can move you from a scratch player 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.

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

You can play in the poker room of your choice at the table of your selection and earn rakeback with the right signup structure. Unlike traditional bonuses which may restrict your play, rakeback provides you with rebates on rake based upon your Monthly Gross Revenue (MGR) to the poker room. As a result, you can play any type of game from Hold 'em to stud to Omaha, and even tournaments at some sites, with strong results.

The revenues the player generates for the poker room's tables is the basis on which rebates are paid. The rebates result in player loyalty. It's a win-win situation. Simply stated rakeback offers the player a discount on their cost of online poker play. Those players relying on online tables for income find a benefit in overall returns from rakeback programs.

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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