What is Online Poker Rakeback?

Rakeback is a guaranteed way to increase your poker ROI (return on investment). When you open a rakeback account, a percentage of the rake that you already pay will be refunded to your account. No matter which game you play, or whether you play cash games or tournament poker, rakeback will put more money in your pocket.

Not Familiar with Rakeback?
All of the online poker rooms charge “rake”. This is how they make money. Rake is basically a fee that the online poker rooms charge for setting up the software, support, security, etc., and creating a place where players can gather to play poker online.

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Cash Game Rakeback

When playing cash games, this fee is taken from each pot that you play in. The percentage of the pot that is “raked” is dependent on the site and usually the size of the pot. The average rake for cash games is 5-10%. There is usually a higher percentage of rake taken at lower stakes games. When you open your rakeback account, you’ll be reducing your rake paid by up to 30%, effectively increasing your profit.

Tournament Poker Rakeback

The rake for a tournament player is usually seen as an entrance fee. Poker sites will usually show two numbers in the tournament lobby for buyin amounts; the portion of money that goes into the prize pool, and the rake. For example, a 10-player $10 tournament can have a $1 entrance fee. $100 will go into the prize pool when the tournament is fully seated, and $10 ($1 from each player) will be kept by the poker site.

Tournament poker rakeback is especially helpful when playing SNGs. Profit margins are generally low at SNGs, so the refund on the entrance fee can increase overall ROI by a significant percentage.

Tournament Poker Rakeback Example

John Doe plays 1000 $10-1 SNGs per month, and earns 28% rakeback. He pays $1000 per month in rake.

If John earns a 10% ROI his profit before rakeback is $1100. If you add the 28% of the rake that he paid back into his account, his profit becomes $1380. His total ROI is now 12.5%.

John increased his ROI by 25%. He didn’t have to change the way he played, read any books, or do anything different. All he did was open a rakeback account, and play as he normally would.

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*Pokerstars offers a VIP Program, which is similar to rakeback. Learn more at Pokerstars VIP.