One of the most frequent misconceptions about rakeback is that only folks who are highly active and who win a lot really reap its benefits. The root of this idea is that people simply do not understand how the poker rake (of which rakeback is a function) is collected. They understand the rake comes off the pot, so they assume that every time a pot gets raked, it's the winner of the hand who pays the rake, which is just not the case. While the winner too influences the rake, he is by no means the one who pays it entirely.
Here's what really happens: the pot - just like any individual player - is an independent entity at the table. Depending on how much money they put into it, each player has a share in the pot. If you're the one mainly responsible for stuffing the pot to its actual size, you'll have a bigger share of the pot than your opponents. After showdown, when the winner of the hand is decided, the pot is raked first and it's only warded to the winner afterwards. The conclusion: those who put money into the pot are the ones who pay the rake. The winner of course pays too, since you one can't really win a pot without putting money into it. How much rake you pay depends on how much money you put into the pot. The poker rake is generally around 5% of the pot, up to a maximum of $3. If you're responsible for say 40% of the pot, then you'll also be responsible for 40% of the 5% that gets taken as the rake. The bottom line is, you'll be paying rake and thus earning rake back even on the hands you end up losing. The conclusion: it pays to sign up for a rakeback deal even if you're an overall loser.
Here's an example to illustrate how losing players influence the amount or rake taken (and rakeback earned). Let's consider two poker players who play a heads-up game every night. They're both tight but they play well. They usually generate about the same amount of rake every time they play. One day, a third guy, a loose aggressive newbie joins them at the table. That night, the amount of rake collected from the table sky rockets to more than triple the usual amount. The third guy walks away broke, but his actions lead to a surge in pot sizes, variance and thus the poker rake too. Not only do the two winning players make more money that day, they also make more rakeback than usual too. Our loser makes some rakeback money as well, thus sweetening the sour taste of the loss a little.
Rakeback deals like the Full Tilt rakeback or the Entraction rakeback, or better yet: a generous poker prop deal will control your losses if you're an overall loser and they'll boost your winnings if you're a winner. Rakeback is always a win-win setup.
By Steve Larson
*Steve Larson is anonline poker player from Canada. Visit his site for more useful tips.
