Understanding RakeBack

Understanding RakeBack

Posted on October 31st, 2008. Filed Under Rakeback (Edit Post)

Winning with RakeBack While keeping your Bankroll Even

Rakeback offers provide online poker players the opportunity to receive a percentage of the rake they contribute to each pot back at the end of every month. These rakeback offers vary by online poker room, but they all have one thing in common. You don’t have win in order to make money while playing your online poker rake back account.

Yes, this is the truth. Online poker players are playing every day with the objective of winning money at online poker tournaments and ring games without understanding the fact that by just playing you are generating money for yourself via the rakeback offer you have signed up for.

Rakeback is as simple as this: Your Rake Back = Monthly Gross Revenue X Rakeback %

Now we need a couple definitions.

1. What is rake and how is rake calculated:

The rake is the fee that every online poker player pays to the “house” or in this case the online poker room for playing in a hand at their online poker room. This fee is different from poker room to poker room. The rake is calculated in one of two ways, the dealt method and the contributed method. The dealt method is calculated by totaling up all of the rake in a hand and then dividing that amount between all players who were dealt cards in the hand. The contributed method is calculated based on the total amount each player pays into the pot. The dealt method gives an edge to those players who play fixed limit games. While the contributed method can add up to greater rake for No Limit poker players and thus earning greater rakeback.

2. What is Monthly Gross Revenue (MGR)

Monthly Gross Revenue is the total amount of rake you generate while playing at the online poker room. This amount includes all rake contributed while playing ring games as well as tournament entry fees. Some online poker rooms do not pay rakeback on tournament entry fees so you should check with the poker room before signing up. So now that we have these rakeback definitions down, we can calculate how much theoretical rakeback you can earn in a month. A player who generates $1000 in MGR over the month and is signed up to a 40% rakeback deal now will receive $400 in rakeback at the end of the month.

$1000 X 40% = $400 to your pocket.

Now this $400 is going to be paid to you wether or not you win $5,000 or lose $100 playing online poker. The rakeback is always going to be there and is only dependant upon how much you play, not how much you win. Now let’s take a look at yet an other example of how rakeback can make you a profitable online poker player.

Like all poker players you are going to go through hard times and find it difficult to even just break even. In our above example, you don’t even have to break even at the table in order to still earn a profit. As long as you generate the $1,000 in monthly gross revenue, you now have a $400 cushion to work with. So even if you happen to end the month down $200, you are still going to end the month up $200 after you receive your rakeback payment.

As you can now see, if you didn’t before, the importance of playing online poker with a rakeback deal in place for yourself. You can find many rakeback offers at Treasure Hunter Poker by visiting any of our rakeback pages.

Don’t throw your money into the muck with your cards any more. Start making money while your are making money at the online poker table today.