Every poker room makes its money the same way: it takes a small cut of the action. That cut, the rake, and the share of it returned to players, the rakeback, shape both the room’s revenue and each player’s results. If you plan to open a poker room, these are the first levers to understand.
What rake is and how rooms charge it
Rake is the fee a poker room charges for hosting a game. In cash games it is usually a small percentage of each pot, typically between 1% and 5%. Some rooms charge a time fee instead: a fixed amount per hour, often equal to one to three big blinds.
Each individual charge looks tiny. Across thousands of hands it becomes serious money, which is what keeps poker rooms in business. As an illustration, a player who sits at a $2/$4 limit hold’em table for two hours a day can pay around $250 a month in rake alone.
Why the house does not care who wins
Because income depends on how many hands are played rather than on their outcome, the room has no interest in whether a particular player wins or loses. Volume is what counts. That has a practical consequence: a healthy room needs balance. If strong professionals clear out recreational players too quickly, those players leave, tables empty and rake revenue falls.
Three ways to calculate rake
When rake has to be attributed to individual players, for example to work out rakeback or loyalty points, rooms use one of three methods:
| Method | Who shares the rake | Example |
|---|---|---|
| Dealt | Every player dealt into the hand carries an equal share, whatever they did | $3 rake at a 10-player table: each player is assigned 30 cents |
| Contributed | Only players who put money into the pot share the rake, in equal parts | $3 rake, 8 of the 10 players contributed: each pays 37.5 cents |
| Weighted contributed | Players share the rake in proportion to what they put into the pot | $2 rake; contributions of $20, $40 and $40: shares of 40, 80 and 80 cents |
Weighted contributed is the least common method today, although some rooms keep it because it links each player’s share most closely to their real involvement in the hand.
Rakeback: giving part of the fee back
For players, rake is a constant drain on winnings, and better terms at another room are a good reason to move. Rakeback is the operator’s answer: the room returns part of the rake a player has generated. The percentage is entirely the operator’s choice, from a token 2% to as much as 70%, with around 30% a common level. For many rooms it is the main marketing tool.
Money usually flows back to players in one of four ways:
- Rakeback: a fixed share of the rake paid back directly.
- Cashback: often used as a synonym for rakeback, but sometimes a reward unlocked after the player collects a set number of loyalty points.
- Valueback: a wider category that covers other incentives and rewards.
- Affiliate rakeback: an extra monthly payment from an affiliate, funded from the commission it earns on referred players and normally transferred from the affiliate’s account to the player’s.
Rakeback normally has to be activated. A player who never signs up for the scheme will not receive it, even if they qualify.
How tournament fees differ
Tournaments use a different model. Instead of raking every hand, the room adds an entry fee to the buy-in to cover the cost of running the event. Around 10% is standard, though the percentage tends to fall as buy-ins rise. The key difference is timing: the tournament fee is charged once, while cash-game rake is collected hand after hand.
Finding the right balance
Rake and rakeback together decide how attractive your room is and how much it earns. Set rake too high and players move to cheaper tables; give too much back and the margin disappears. Most rooms combine a competitive rake with a clear rakeback or loyalty scheme, then watch how each change affects traffic. Our glossary entry on rake and the overview of bonus and loyalty tools are good next steps.
Written and reviewed by the iGaming Software Solutions Editorial Team.
