What is Rake in Poker?

Rake in Poker

Rake is the fee that a poker room or casino charges for hosting a game. This allows a poker site to cover its operating costs and earn a profit. Without rake, the site couldn’t afford to host games. Online poker players simply try to find sites that charge low rake fees, while rakeback programs can also reduce your costs.

Understanding How Poker Rooms Take Rake

Poker sites, cardrooms, and casinos make their money by charging rake. They only take rake on poker cash games. If you compete in a poker tournament, you’ll pay an entry fee instead.

Most online poker rooms take a pot rake. For example, Bovada and Ignition Poker take a flat 5% rake on cash games, which is capped at $0.50, $1.50, $2, or $3, depending on the game and the number of players.

However, there are a few other types of rake: time rake, dead drop, and fixed rake. The concept is always the same, as it’s simply the cut that the house takes for hosting a game, but the fee structure will vary.

Types of Rake

You’ll typically pay a pot rake when taking part in cash games at online poker sites. However, some poker rooms use different models, such as a time rake or dead drop, so it’s worth familiarizing yourself with the different types of rake in poker.

Pot Rake

This is the most common type of rake in poker. The house takes a percentage of the pot after a hand ends. Poker sites will typically only take a pot rake if there’s a flop or betting action.

The rake could be anywhere from 2.5% to 10% of the pot, depending on which online poker site you visit. It will usually be capped at a certain limit, such as $3

For example, BetOnline usually takes a 5% pot rake. There is always a maximum rake, which varies from $0.50 to $8 depending on the game, the number of players, and the stake level. Here’s an example:

• You’re sitting at a No Limit Hold’em table alongside five other players. The stake is $0.50 / $1.
• The pot rake is 5%, and the maximum rake at this table is $3.50.
• If there’s a $50 pot, the rake will be $2.50, which is 5% of $50.
• Meanwhile, if there’s a $200 pot, the rake will be $3.50. While 5% of $200 is actually $10, the $3.50 cap ensures the house only takes a $3.50 cut on that $200 pot.

Pros:

• Pot rake is only paid when there’s real action.
• This type of rake scales with pot size, but it’s always capped.

Cons:

• Pot rake can eat into your winnings, especially in relatively small pots.

Time Rake

Time rake refers to a fixed fee paid at set intervals. Each individual player may be required to pay a fee. For example, you may need to pay $10 per hour.

Alternatively, the fee could be paid collectively by the table, such as $60 per hour. Once again, the fee will vary depending on which poker room you visit.

Time rake is reasonably common in live, high-stakes cash games. However, it’s far less prevalent than a pot rake when you play online poker.

Pros:

• More predictable for prolific players.
• Encourages fast, high-volume play.

Cons:

• You pay regardless of whether you win or lose.
• Can be expensive during cold streaks or quiet tables.

Dead Drop

A dead drop is a fixed fee paid by a designated player before each hand begins. The button (the player in the dealer position) usually pays the dead drop. However, the UTG player (sitting immediately to the left of the big blind) pays the dead drop on certain games.

This is a reasonably fair way to collect rake, as the player that pays the fee will rotate clockwise with each hand. For example, you might pay a $2 drop, and then the player sitting to your left will pay the $2 drop on the next hand. Dead drops are rare at poker sites, but they’re sometimes taken at live cardrooms.

Pros:

• A simple and consistent type of rake in poker.
• A dead drop is easy to manage.

Cons:

• Can feel unfair to the payer, especially if the hand goes nowhere.

Fixed Rake

A fixed rake is a flat fee per hand, regardless of the pot size. For example, it could be $2 per hand. Fixed rake is taken in some lower-stakes cash games.

Pros:

• Fixed rake in poker is very predictable.
• This type of rake is easy to understand and track.

Cons:

• Can be disproportionately high in small pots.
• May discourage conservative or tight play.

Rake vs Tournament Fees

You’ll only pay rake when you take part in cash games. If you enter a poker tournament, you’ll pay a fee instead.

For example, let’s say a tournament is listed as $50 + $5. That means $50 goes to the prize pool, and $5 goes to the house. That $5 is the house’s fee for hosting the tournament.

No further fees are taken during tournament play. Tournament fees typically range from 5% to 10%, but they vary depending on the site, casino, or cardroom you visit. Here’s a breakdown of the difference between rake in poker and tournament fees:

Rakeback and No-Rake Games

Finding a poker site with a generous rakeback program can boost your long-term chances of success. You may also be able to compete in no-rake games, which means the site doesn’t take a house edge.

Rakeback

Some poker sites will offer to reimburse a percentage of the rake you pay. This is known as rakeback, and it can improve your effective win rate.

For example, Everygame offers 36% rakeback. That means you’ll get 36% of the rake you pay back into your account. This rakeback is paid in $10 increments on a daily basis. It applies to cash game rake and tournament fees.

Here’s an example of how the rakeback at Everygame might work:

• You pay $200 in rake on a particular day. That means you’ll be entitled to $72 rakeback.
• The following day, you’ll receive 7 x $10, credited to your player account.
• The remaining $2 will roll over until the next day in which you reach at least $10 in rakeback.

Rakeback is valuable, as it lowers the overall costs of playing poker at a particular site. For example, if you’re paying 5% rake, but you get 30% rakeback, it means the real cost drops to just 3.5%. Rakeback is especially beneficial to high-volume poker players, as you’ll receive regular cash payments in your account.

No-Rake Games

Occasionally, you may find that the house doesn’t take a cut of the pot. This is known as a no-rake game. It means you keep 100% of your winnings.

Alternatively, the house might decide not to charge an entry fee for a tournament, so all the money is distributed in prizes. However, no-rake games and no-fee tournaments are rare.

If you host a poker game at home, you may decide not to take a rake. However, running a poker site incurs costs – servers, energy, staffing costs, licensing, security measures, and so on. Poker sites cannot cover their costs if they don’t charge a rake, so you’re unlikely to find no-rake games online. Some sites occasionally run the odd rake-free game in a bid to attract new players, but most of the action will incur a rake.

Some land-based cardrooms are also prevented from taking a rake. For example, private clubs in Ohio and Oregon can offer poker games and tournaments, provided they don’t charge a rake. Instead, they make their money by charging players membership fees or imposing cover charges. That means you’ll still pay a fee for the privilege of playing poker, but it will be taken in a different format.

Summary

Rake is simply the cost of playing poker online. You can’t avoid rake, but understanding how it works can give you an edge. Choose games with low rake caps, take advantage of rakeback programs, and avoid tournaments with high fees. This can significantly increase your profitability.

Now you know how rake in poker works, it’s time to apply your knowledge. Check out the best online poker sites, find games with low rake charges, and start playing from the comfort of your own home.