What is Rakeback in Gambling?

Rakeback is a system in online poker where online poker rooms and casinos provide players with a portion of the rake paid by the players back to their account. This percentage of the rake is returned to the player as a reward for their loyalty and continued play.

The concept emerged in the early 2000s during the online poker boom. Initially, it was offered by third-party affiliates. Poker rooms soon recognized its value and started offering rakeback directly.

In 2006, many major poker sites banned third-party such deals. They introduced their own loyalty programs instead. These programs often included similar rewards for players.

Today, it remains a key feature in online poker. It has evolved into various forms, including instant rewards and tiered loyalty systems.

In cash games, rake is typically a percentage of each pot, usually capped at a maximum amount per hand (e.g., 5% up to $5).

For tournaments, rake is typically incorporated into the buy-in or a percentage of the prize pool. This ensures the poker site earns revenue regardless of the tournament outcome.

Table of Contents

rakeback featured image

How is rakeback calculated?

While being a winning player is great, having additional rakeback drastically increases your winnings from online poker. We will explain to you the different Calculation methods there are in online poker. You can also use our dedicated rakeback calculator to find the best deals.

Rakeback example calculation

  • You play 10,000 hands in a month
  • Average rake per hand: $1
  • Total rake paid: $10,000
  • Rakeback rate: 30%
  • Your rakeback: $10,000 * 30% = $3,000

Contributed Rake

Contributed rake calculates rakeback based on the money a player puts into the pot. Players receive a percentage of the rake they contribute. For example, if a player contributes $100 to a pot with $5 rake, and the site offers 30%, they would get ~ $1.50 back.

Dealt Rake

Dealt rake is calculated by the number of hands you are dealt, regardless of how much rake is taken per hand.

Each hand you play counts towards your rakeback, whether the rake on that hand is $0.50 or $5.00. This method benefits online poker players who play many hands, even if the rake per hand is low.

Weighted Contributed Rake

Common rakeback percentages range from 20% to 40%6. Some examples include:

  • 30% is good offer
  • High-volume players may receive 50% or even more
  • Some sites offer tiered percentages, increasing with player activity

What is a Rake Cap?

This only happens if the pot has exceeded a certain size. If not, you won’t be charged. No rake is taken if there is no flop. There is also a cap, which is set by the online poker room or casino.

Types of Rakeback Deals

Rakeback programs come in various forms, each designed to reward players differently. Understanding these types helps you choose the best option for your playing style and goals.

Flat Rakeback

Flat rakeback gives players a fixed percentage of their rake back. For example, a site might offer 30%. If you pay $100 in rake, you get $30 back. Simple and straightforward. No need to worry about playing more to get better rates.

Tier-Based VIP Programs

These programs reward high-volume players. The more you play, the higher your amount. For instance:

  • Bronze: 10%
  • Silver: 20%
  • Gold: 30%
  • Platinum: 40%

You move up by generating more rake. Grind hard, get paid more.

Time-Limited Promotions

Poker sites sometimes run special online poker rakeback deals. They might offer 50% for a week. It’s a way to get players excited and playing more. Keep an eye out for these promos – they can be a goldmine.

Affiliate Rakeback Deals

Poker affiliates are like middlemen. They bring players to poker sites. In return, they get a cut of the rake. Some affiliates share this with players. You might get 70% of the affiliate’s rake share. It’s a win-win-win situation.

Reward Point Systems

You earn points as you play. These points work like rakeback. For example:

  • 100 points = $1
  • You earn 10 points per $1 in rake
  • Effectively, this is 10% rakeback

The cool part? You can often use these points for tournament poker entries or merchandise too.

Does Rakeback Help You To Earn Money?

It significantly boosts player win rates. A 30% deal can add about 1BB/100 hands to a player’s winrate. For example, a breakeven player can oftentimes earn a living wage from rakeback alone.

A player winning 2BB/100 hands could increase their winrate to 3BB/100. This extra income can turn marginal winners into solid performers.

Rakeback’s Role in Bankroll Management

It can help players manage their bankrolls more effectively. It provides a consistent income stream, reducing variance. For instance, a player with $1,000 monthly rake could receive $300 back with a 30% deal. This extra money allows players to:

  • Move up stakes faster
  • Withstand downswings better
  • Reinvest in their poker education

Pro players use it to:

  • Increase overall profitability
  • Offset losses during downswings
  • Justify playing more tables simultaneously

For example, a pro playing 12 poker tables with a 1BB/100 win rate plus 1BB/100 from rakeback can match the profits of playing 6 tables at 3BB/1004. This allows pros to maximize volume and earnings.

It is crucial for long-term sustainability in online poker. It turns break-even players into winners and boosts the income of winning players significantly

Rakeback Deals from Major Poker Sites

Major poker sites provide you with highly appealing deals, which we will explain to you.

Poker SitePercentageTerms
CoinPoker33%Flat rate, requires CHP balance, paid weekly
WPT Global20% – 40%Based on table stakes, paid weekly
GGPoker20% – 60%Fish Buffet system
Americas Cardroom27% flat or Elite BenefitsChoice between flat rate or loyalty program

CoinPoker

CoinPoker offers a straightforward 33% rakeback deal. Players must have a CHP balance to receive it. The money is paid weekly on Mondays. CoinPoker uses blockchain technology for secure transactions and offers games in USDT to avoid volatility.

Find out more about CoinPoker in our in-depth VIP-Grinders CoinPoker review.

coinpoker games and traffic

WPT Global Poker

WPT Global introduced the “Table Starter Boost” promotion. Players get cashback for starting empty cash game tables:

  • 40% for high stakes tables (minimum $25/50/100 or 100/200/400 CNY NLHE, $25/50 PLO, 200 CNY SD)
  • 20% for mid, low, and micro stakes tables

It applies to the entire session, with breaks up to 5 minutes allowed. Payments are made every Monday at 2 PM CET.

Get more details about WPT in our WPT Global review.

wpt global taiwan

GGPoker

GGPoker provides so-called cashback ranging from 20% up to 60%. The site is known for high traffic and regular promotions. GGPoker uses a Fish Buffet system with frequent promotions such as rake races.

Get all the details in our GGPoker review.

ggpoker tables

Americas Cardroom

Americas Cardroom offers two rakeback options:

  • 27% flat
  • Elite Benefits loyalty program

The site provides a 100% bonus up to $2,000 for new players. Find out more about Americas Cardroom in our ACR review.

ACR-tourney

Strategies for Maximizing Rakeback Benefits

Maximizing your rakeback benefits can significantly enhance your online poker profitability. Here are effective strategies to help you get the most out of your cashback programs.

Choosing the Right Poker Site

Pick poker sites with high percentages. Match the site’s terms to your playing style. Consider these factors:

  1. Rakeback percentage
  2. Payment frequency
  3. Game variety
  4. Traffic levels

Example: If you play high volume, choose a site with weekly payments and a flat rate like CoinPoker’s 33%.

Understanding VIP Programs and Tiers

VIP programs and tiered systems reward players based on their monthly rake contributions. By participating in these programs, you can unlock higher rates and additional rewards. Here’s how to make the most of VIP programs:

  • Track Your Progress: Monitor your rake contributions to know when you move up tiers.
  • Meet Requirements: Play enough to reach higher tiers, which offer better percentages.
  • Leverage Rewards: Take advantage of extra perks like exclusive bonuses, freerolls, and enhanced support available to VIP members.

Our Tip: Some sites offer up to 60% cashback for top-tier players. Check GGPoker’s Fish Buffet system for details.

Volume vs. Rakeback Percentage: Finding the Balance

Balance your play volume with rates:

  • High volume + lower percentage: Good for grinders
  • Low volume + higher percentage: Better for casual players

Do the math: 100 hands at 40% might beat 1000 hands at 20%.

Multi-tabling Strategies for Increased Rakeback

Multi-tabling boosts your earnings. Try these tips:

  1. Start with 2–4 tables
  2. Use a HUD for quicker decisions
  3. Play similar stake levels across tables
  4. Gradually increase table count as you improve

Warning: Don’t sacrifice win rate for volume. Quality play matters.

Optimizing the amount of rake you pay

Maximize earnings during special promos:

  1. Follow poker sites on social media for alerts
  2. Plan your sessions around “Happy Hours” with boosted percentages
  3. Participate in leaderboard races for extra revenue

Example: WPT Global’s “Table Starter Boost” offers 40% for starting high-stakes tables.

Rakeback vs. Poker Bonuses

Rakeback is a popular feature in online poker, but several myths and misunderstandings surround it. Rakeback and poker bonuses are often confused, but they serve different purposes:

RakebackPoker Bonuses
You receive a percentage of the rake you pay continuously.Rewards you earn by meeting specific requirements.
The more rake you contribute, the more you earn.You might need to deposit money to qualify.
Depending on the site and your play volume.Bonuses are usually unlocked as you play more.
Regular payouts based on your rake contributions.A $1,000 bonus might require playing 10,000 hands or more to clear.

Rakeback comes from the fees you pay during play, while bonuses are funded by the poker site as incentives.

Cashback is an ongoing benefit based on your play, whereas bonuses are often one-time rewards.

Rakeback directly reduces your playing costs, while bonuses can be used to enter tournaments or increase your bankroll.

Our Tip: poker sites usually run lots of promotions. We are constantly checking new offers for you and recommend making use of our exclusive poker bonus codes to claim the juiciest bonuses.

The Myth of “Rakeback Pros”

Some think certain players only care about maximizing cashback, hurting their poker skills. Let’s bust this myth:

  • Smart players use cashback to boost profits, but still focus on playing well.
  • Good poker skills matter most. Bad players lose money, even with rewards.
  • More hands don’t always mean more profit. Losing 100 tables is worse than winning.
  • Rewards enhance earnings but don’t replace winning at the tables.

Reality: Most profitable players integrate rakeback into their overall strategy, using it to boost their income while maintaining strong gameplay.

Top players blend rewards into their strategy, boosting income while staying sharp. A 5% winner with 30% cashback beats a breakeven player with 50%. It’s a tool, not a job.

C. Rakeback and Game Integrity

Some worry rewards harm fair play. Here’s why that’s wrong:

  • Rewards don’t change game outcomes. They’re based on fees, not how you play.
  • They encourage consistent play and loyalty.
  • Legit sites have clear, regulated systems.
  • The house cut stays the same, with or without rewards.

Fact: Poker sites made $5.2 billion in 2022. Rewards didn’t kill the industry. They just thank regular players without messing with fairness.

Global Online Poker Market Growth
Global Online Poker Market Growth, Source: https://www.custommarketinsights.com/report/online-poker-market/

Conclusion: Rewards do not affect how games are played or their outcomes. It is simply a way to reward players for their participation and loyalty without compromising the integrity of the poker games.

Rakeback and Poker Strategy

Returns can shape how you approach your poker game. Here’s how to use them to enhance your strategy without compromising your play.

How It Influences Game Selection

Returns change how you choose your games. Here’s the deal:

  • Higher Stakes = More Rake = More Returns: Playing higher stakes games usually generates more rake, leading to higher returns. For example, playing $1/$2 with 30% returns instead of $0.50/$1 with 20% can make you more money, even if you’re breaking even.
  • Game Tightness: Tight games generate less rake because fewer hands are played. Playing tight might make you miss out on opportunities to earn more.
  • Game Looseness: Loose games with many pots generate more rake. Active play means more rake collected, increasing your returns.

Smart Move: Choose $1/$2 games with higher return rates to maximize your earnings over lower stakes with lower returns.

Adjusting Your Play Style to Maximize Rakeback

Want more rakeback? Try these tricks:

  • Play More Hands: Increase your VPIP (Voluntarily Put Money In Pot) from 20% to 25%. Playing more hands generates more rake, leading to higher cashback.
  • Call More River Bets: Each call on the river generates rake, boosting your cashback.
  • Straddle Occasionally: Straddling can create bigger pots, which means more rake and more returns.

Warning: Don’t be an idiot. Playing bad just to generate cashback will cost you more than you gain. Focus on playing strong hands and making smart moves to ensure your efforts are profitable.

Balancing Cashback Hunting with Skill Development

Cashback is nice, but skill pays the bills. Here’s how to balance:

  • Spend 80% of Your Time Improving: Focus the majority of your efforts on honing your poker skills while using strategies to boost your earnings.
  • Use cashback as a Bankroll Booster: Treat it as a way to enhance your bankroll, not as your main source of income.
  • Study One Hour for Every Four Hours You Play: Allocate time to study strategy, analyze hands, and practice regularly to improve your game.
  • Real Talk: A 5bb/100 winner at NL500 makes way more than a cashback grinder at NL50. Focus on improving your skills to maximize long-term profitability.
  • Pro Tip: Use it to move up in stakes. As you move to higher stakes, focus on crushing those games with your improved skills.

The Debate: Is Rakeback Good for Poker?

Let’s break down the arguments for and against rakeback and see how it fits into the bigger picture of online poker.

ProContra
✅Players receive a portion of the rake, increasing their earnings❌Creates an imbalance favoring high-volume players
✅Boosts player profitability and loyalty❌Hurts casual players who don’t generate enough rake
✅Sites benefit from increased player activity and retention❌It can cut into site profits, limiting improvements
✅Attracts new players with competitive offers
✅Bankroll boost for new players helps them stay in the game longer

Balancing Player Incentives with Poker Ecosystem Health

To ensure rakeback programs benefit everyone without harming the poker ecosystem, poker sites and players need to find a balance:

  • Fair Policies: Sites should offer transparent and fair terms that reward genuine play without encouraging irresponsible behavior. Clear rules help maintain trust and integrity.
  • Cap Percentages: Limiting it to 30-40% prevents sites from offering excessively high rates that could undermine their profitability and sustainability.
  • Offer Cashback to All Players: Providing cashback to all players, not just high-volume grinders, promotes fairness and inclusivity. This approach ensures that both casual players and grinders benefit.
  • Mix it with Other Rewards: Combining cashback with other rewards like bonuses, loyalty points, and tournament entries caters to different player preferences and prevents over-reliance on any single incentive.
  • Encourage Skill Development: Sites should promote skill development alongside cashback programs. Players should focus on improving their poker skills to ensure long-term success and maintain game integrity.
  • Time-Based Cashback: Implementing time-based rewards playing activity, not just raking, can encourage consistent and responsible play.
  • Regular Reviews and Adjustments: Poker sites should regularly review and adjust their systems based on player feedback and industry trends to ensure they remain fair and effective.

Smart Move: GGPoker’s Fish Buffet system rewards all players and scales with volume, providing a balanced approach that benefits both casual players and grinders.

Bottom Line: Rakeback can be good for poker if done right. It needs to help everyone, not just the pros. A healthy poker ecosystem needs both fish and sharks, and cashback should feed both without disrupting game fairness.

Conclusion

Rakeback is free money, plain and simple. It’s a chunk of the rake you pay back in your pocket. We’re talking anywhere from 10% to 60% of what you’ve already spent. Sites like CoinPoker offer a flat 33%, while GGPoker can go up to 60% if you’re a high roller.

Now, why should you give a damn about it? Because it’s the difference between breaking even and turning a profit. A mediocre player with good cashback can outperform a slightly better player who ignores it. It’s like getting paid to play poker.

But here’s the kicker – cashback isn’t a magic bullet. It’s a tool, not a strategy. Don’t be that guy who plays like crap just to generate rake. That’s a one-way ticket to Brokeville.

Instead, use it to boost your game. Pick sites with good deals, sure, but don’t forget to actually improve your skills. Use that extra cash to move up in stakes or pad your bankroll. Don’t ignore game selection just because a site has great cashback.

FAQ

What is Rakeback in Gambling?

In poker, rakeback is a rebate of the rake paid by players. For example, with a 27% rakeback deal, if you pay $1,000 in rake over a month, you get $270 back.

What is the Difference Between Rake and Rakeback?

Rake is the fee taken by the poker room from each pot. Rakeback is a percentage of that rake returned to the player.

Why Did Molly Have to Take a Rake?

In “Molly’s Game,” Molly started taking a rake to cover potential losses from players unable to pay their debts. She initially took 2% uncapped from each pot.

Do Casinos Make Money off Poker?

Yes, casinos profit from poker through rake. They typically take a small percentage (less than 10%) from each pot up to a certain limit.

What is the Percentage of Rakeback?

Rakeback percentages vary, but typically range from 10% to 60%. Some deals offer around 27%, while others can go up to 40% or more.

What is a Poker Ante?

An ante is a forced bet that all players must place before cards are dealt. It ensures there’s always a minimum amount in the pot and encourages action.

Does PokerStars have rakeback?

Yes, PokerStars offers rakeback through its PokerStars Rewards program. You earn 100 Reward Points for every $1 in rake or tournament fees paid and rakeback is paid in cash through Chests, which you unlock by accumulating Reward Points.

Filed Under: Poker Strategy

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