For most online poker players, rakeback and the sign-up bonus are not only two radically different forms of loyalty rewards, but they're also somewhat against one another. That's probably because prop deals offer generous rakeback, but on the other hand they generally withdraw all bonus offers from poker props. Square rakeback deals sometimes also deduct bonuses from rakeback, which means that players will usually have to choose: they either get rakeback or they settle for the good old sign-up bonus.
Now then, are rakeback and bonuses that different indeed? No, they're not. As a matter of fact they're so similar, it's obvious they sprung up from the same stem. Let's take a closer look at why rakeback is in fact a bonus deal which never expires.
Rakeback deals reward players in a directly proportional manner with the poker rake they generate. Depending on the rakeback % offered, you get 27-30%, sometimes up to 40-50% of the rake you generate back. The Full tilt rakeback deal offers 27% rake rebate, the Betfair poker rakeback one offers 40%. Higher % rakeback deals can also be found, but these are generally special poker prop deals and these deals come with special restrictions for players.
So, the bottom line is rakeback players are rewarded for the rake they generate. Players who play to redeem their sign-up bonuses, play for the bonus. Bonus redemption however is basically the same as rakeback. Players have to play in real money games to generate FPPs (Frequent Player Points). Frequent Player Points are however awarded for the generated rake. All this means that at the end of the day, the player who redeems his bonus basically gets a % of his generated rake back. The only difference between rakeback and sign-up bonuses is that while the latter expire after a while, the former never does: it remains valid for as long as the player is active.
With that in mind, one may easily conclude that for a serious player who plans to stay loyal to his poker room for a good while, a rakeback deal is much more valuable than a square sign-up bonus, even if it happens to carry some extra value. The truth is though, that truly savvy players pick rakeback deals which do not deduct their bonuses from rake back, which means that they get both a bonus and rakeback and for a while there they play with double rake reduction.
Smooth operators know there's little point in arguing whether rakeback is better or the sign-up bonus. They secure both and laugh all the way to the bank at the end of the month, especially if they're winning players otherwise too.
By Steve Larson
*Steve Larson is an online poker player from Canada. Visit his site for more useful tips.
