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What is rakeback?
When you sign up with a poker room through above link, you will receive a refund for every $1.00 that you pay in rake. This refund is known as rakeback. No matter what limits you play, whether you are a professional or just play poker for fun, receiving rakeback will greatly increase your win-rate, and allow you to make more money.
Rakeback is a poker player rewards method that began in 2004, whereby some online poker sites or their affiliate partners return part of the rake or tournament entries a player pays as an incentive for them to continue playing on that site.
Rakeback in cash games can be calculated using two different methods: dealt and contributed.
The dealt method awards the same amount of rakeback to each player dealt into a hand, and the contributed method rewards players based on their actual contribution to the pot.
In poker tournaments, rakeback is deducted from cardroom's entry fee. Rakeback is similar to comps in "brick and mortar" casinos.
Not every online poker room offers rakeback. Some poker sites allow affiliates to offer rakeback as a direct percentage of rake and tournament entries paid back to the players.
Some online card rooms forbid affiliates to give rakeback. Instead they offer in-house loyalty programs that gives cash and other rewards to poker players based upon how much they play.
What is rake?
The 'rake' is the amount the poker room removes from each pot, as a fee, for hosting or offering the poker game. The amount taken from each pot varies by limits, but is generally anywhere from $1-$3 on average per hand.
Rake is the scaled commission fee taken by a cardroom operating a poker game. It is generally 5 to 10 percent of the pot in each poker hand, up to a predetermined maximum amount, but not only can this percentage be anything, there are other non-percentage ways for a casino to take the rake.
Some cardrooms will not take a percentage rake in any community card poker game like Texas hold 'em when a hand does not have a flop. This is called "no flop, no drop".
Poker is a player-versus-player game, and the house does not wager against its players (unlike blackjack or roulette), so this fee is the principal mechanism to generate revenues.
It is primarily levied by an establishment that supplies the necessary services for the game to take place. In online poker it covers the various costs of operation such as support, software and personnel.
In traditional brick and mortar casinos it is also used to cover the costs involved with providing a dealer (though in many places tips provide the bulk of a dealer's income) for the game, support staff (from servers to supervisors), use of gaming equipment, and the physical building in which the game takes place.
To win when playing in poker games where the house takes a cut, a player must not only beat opponents, but also the financial drain of the rake.
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