Wednesday, March 16, 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 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.

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.

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 provides rebates on a set schedule, generally weekly or monthly, although some sites offer rebates on a more regular basis. For high volume players, special rakeback rates are available, further putting you in better position to become a +EV player and start bring home some real money from your poker experiences.




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