Jun 24, 2012
Long-term Value of Rakeback
By RTR Dennis
We wouldn’t be telling most online poker players anything new in saying that rakeback deals are extremely beneficial. After all, it’s pretty obvious that having your rake fees cut by 40% - as is the case with Minted Poker rakeback – is going to help out with your overall poker earnings quite a bit.
But even with this being said, some players fail to secure a rakeback deal either because they don’t know anything about the subject, or they don’t realize how much money can be saved. So in order to show the major impact that rakeback has on poker profits, we decided to illustrate how much long-term money players can expect to earn through these deals.
Let’s assume that you sign up at Virgin Poker through RakeTheRake, which would get you a 30% rakeback deal. If you consider that most online poker rooms take 5% rake out of each cash game pot, you could expect to pay $5 in rake fees for every $100 you wagered on the poker tables; factoring in the 30% rakeback deal, you’d get $1.50 back (5 x 0.30).
Now let’s say that you play $1/$2 NLHE stakes, the average pot size is $20, and it’s a full 6-max table. If 100 hands were dealt per hour, that’d be $2,000 in total money wagered (100 x 20) and $100 taken in rake (2,000 x 0.05). With six players in the game, you’d be credited for $16.67 of this rake and would receive $5 in rakeback per hour (16.67 x 0.30).
Sure $5 per hour won’t turn you into a millionaire, but seeing as how you’re only playing $1/$2 NLHE and single-tabling, this isn’t a bad hourly rakeback rate. Assuming you logged six hours on the tables daily, this would be $30 in rakeback earnings alone! If you’re already making some profits on the tables, this money really helps to further your win rate.
What’s especially nice about rakeback is that there are no drawbacks or hidden catches for players. Furthermore, getting the best rakeback deal is extremely easy since you only need to sign up at poker rooms through RakeTheRake. If you’re going to play online poker anyway, it only makes sense to sign up where you can also get a rakeback deal too.