Poker Rake Explained: The Hidden Cost of Playing Poker
Every poker player pays rake, but understanding how it works—and how it impacts your profitability—separates informed players from those bleeding money unknowingly. This guide explains everything you need to know about the economics of poker.
What Is Poker Rake?
Poker rake is the fee charged by casinos and online poker rooms for hosting poker games. Unlike blackjack or baccarat where you play against the house, poker pits players against each other. The venue doesn't care who wins—they profit by taking a small cut from every pot or charging a time-based fee.
Think of rake as the cost of "renting" your seat at the poker table. The venue provides the dealer, cards, chips, security, and infrastructure. Rake is how they cover these costs and generate profit. According to the American Gaming Association, poker rooms represent a significant portion of casino revenue, with rake being the primary income source.
Why Rake Matters
- 📊 Profit Reality: Without accounting for rake, you don't know your true winrate
- 💰 Game Selection: Different games and stakes have vastly different effective rake
- 📈 Beatable Threshold: Some games are nearly impossible to beat due to high rake
- 🎯 Rakeback Value: Understanding rake helps you maximize promotional returns
The fundamental economic reality of poker is simple: rake flows out of the player pool constantly. At a 9-handed table, if everyone played perfectly neutral strategy, everyone would slowly lose money to rake. For players to profit, they must win enough from weaker players to overcome both their own losses and the rake.
Types of Rake Structures
Poker rooms use several different methods to collect rake. Understanding these structures helps you evaluate which games offer the best value for your play style.
1. Pot Rake (Percentage-Based)
The most common rake structure takes a percentage of each pot, typically 2.5% to 10%, up to a maximum cap. For example, a room might take 5% of the pot up to a $4 maximum. This is the standard structure for most Texas Hold'em and Omaha cash games.
Notice how the effective rake percentage decreases dramatically in larger pots due to the cap. This is why higher stakes games—where average pot sizes are larger—have a lower effective rake as a percentage of money in play.
2. Time-Based Collection (Time Rake)
Some poker rooms, particularly those with higher-stakes games, charge a flat fee per time period instead of taking from each pot. Players might pay $6-$15 every half hour. This structure is favored by aggressive players who see many large pots, as they pay the same amount regardless of pot sizes won.
Time collection has advantages: you know exactly what you'll pay per hour, there's no incentive for the casino to encourage large pots, and it's often cheaper for action players. However, tight players who see few hands per hour may find pot rake more economical.
3. Tournament Fees
Tournaments charge a one-time entry fee, typically expressed as "buy-in + fee" (e.g., $100+$15). As explained by the World Series of Poker rules, the fee goes to the house while the buy-in portion goes into the prize pool. Tournament fees typically range from 5-15% of the buy-in.
Tournament Fee Examples
- 🏆 $100+$10: 10% fee — Standard small tournament
- 🏆 $500+$50: 10% fee — Mid-stakes tournament
- 🏆 $1,000+$100: 10% fee — Major tournament
- 🏆 $10,000+$600: 6% fee — WSOP Main Event (lower fee at high stakes)
4. Dead Drop / Seat Charge
Some rooms use a "dead drop" where the button player posts a fixed rake amount each hand (often $1-$3) regardless of pot size. This is similar to time rake but charged per hand instead of per time period. It creates predictable costs but can feel punitive when you win small pots.
5. No-Flop-No-Drop
Most poker rooms follow a "no-flop-no-drop" policy, meaning no rake is taken if the hand ends before the flop. This benefits tight players and encourages action—if everyone folds to one player's raise, no rake is collected.
Online Poker Rake vs. Live Casino Rake
The rake structures differ significantly between online and live poker, with each format having distinct advantages and disadvantages.
While online rake percentages appear lower, the higher hand volume means you can actually pay more total rake online if you're a volume player. A player seeing 300 hands per hour across four tables pays rake on far more pots than a live player seeing 30 hands per hour. However, online rakeback programs can offset this significantly.
Hidden Costs in Live Poker
Live poker often has additional costs beyond the stated rake:
- Dealer Tips: $1-$2 per pot won is customary (can add up to $10-20/hour for winning players)
- Bad Beat Jackpot Drop: Many rooms take an extra $1 per hand for jackpot promotions
- Promotional Drops: Additional $0.50-$1 for various casino promotions
- Travel and Time: Getting to the casino, parking, food—these have real costs
When you add dealer tips and promotional drops, live poker's true cost can exceed the stated rake by 50-100%. A game with a "$5 max rake" might actually cost you $7-$10 per pot won when all costs are included.
Calculating Your Effective Rake
Understanding how much rake you actually pay helps you evaluate game profitability. There are several ways to measure effective rake.
Rake Per 100 Hands (bb/100)
The most useful metric for cash game players is rake expressed in big blinds per 100 hands. This allows direct comparison with your winrate. If you win at 5bb/100 but pay 3bb/100 in rake, your actual profit is only 2bb/100.
Estimating Rake in bb/100
A rough estimate for typical 6-max online games:
- 💵 Micro stakes (2NL-10NL): 8-15 bb/100 (high relative to stack sizes)
- 💵 Low stakes (25NL-50NL): 5-8 bb/100
- 💵 Mid stakes (100NL-200NL): 3-5 bb/100
- 💵 High stakes (500NL+): 2-3 bb/100
Use your poker tracking software or the room's hand history to calculate exact rake paid. Divide total rake by hands played, multiply by 100, then convert to big blinds. Tools like the Session Tracker can help you monitor this over time.
Understanding "Contributed" vs. "Dealt" Rake
Some poker rooms use different methods to calculate your rake for rewards purposes:
- Dealt Rake: Rake is divided equally among all players dealt into the hand. Even if you fold preflop, you're credited with paying rake.
- Contributed Rake: Only players who put money in the pot are credited with paying rake, proportional to their contribution.
- Weighted Contributed: Similar to contributed, but weighted toward larger contributors.
These distinctions matter primarily for rakeback calculations. Tight players benefit from "dealt" systems, while aggressive players prefer "contributed" systems.
How Rake Impacts Poker Strategy
Rake doesn't just cost you money—it should actively influence how you play. Game theory analysis, including research published in journals indexed by ScienceDirect, shows that optimal strategies shift in raked games.
Tighter is Better in High-Rake Games
In heavily raked games, marginal hands become unprofitable. Hands that might show a small theoretical profit in a rake-free environment become losers once rake is deducted. This suggests playing tighter, especially from early positions.
Avoid Small Pots
The rake cap system means small pots are proportionally more expensive. If you win a $20 pot with a $3 cap hit, you're paying 15% rake. Win a $200 pot with the same $3 cap, and you're paying only 1.5%. This mathematical reality suggests:
- Avoid limping into many small pots
- Play for stacks rather than making small bets
- Use larger sizing when you do play, especially as discussed in our bet sizing guide
- Value thin value bets less in high-rake environments
Position Becomes More Valuable
Because rake punishes marginal situations, and position helps you navigate marginal spots more profitably, position's value increases in raked games. This reinforces the importance of playing more hands in position and fewer out of position.
Rake-Adjusted Strategy Summary
- ✅ Play tighter overall, especially at micro stakes
- ✅ Emphasize position even more than theory suggests
- ✅ Use larger bet sizes to build bigger pots when you play
- ✅ Avoid marginal spots that barely show profit pre-rake
- ✅ Consider rake when calculating pot odds and expected value
Rakeback and Loyalty Programs
Rakeback is the poker room's rebate on rake you've paid. It's essentially a discount on playing, and maximizing rakeback can significantly improve your bottom line. The National Council on Problem Gambling notes that while rakeback can benefit players financially, it's important to not let chase for rakeback lead to playing more than you should.
Types of Rakeback Systems
- Flat Rakeback: A fixed percentage (e.g., 30%) of all rake paid is returned. Simple and predictable.
- Tiered VIP Programs: Higher volume players earn higher rakeback percentages. Might start at 10% and reach 50%+ for high-volume grinders.
- Points-Based Systems: Earn points for rake paid, redeem for cash or bonuses. Flexibility but often worse value than flat rakeback.
- Cashback Promotions: Temporary offers providing extra rakeback during specific periods.
Calculating Rakeback's Impact
Let's say you play 50,000 hands per month at $1/$2 online and pay an average of 4bb/100 in rake. That's 2,000 big blinds ($4,000) in rake monthly. Different rakeback rates dramatically change your results:
A break-even player with 40% rakeback is actually a winning player. This is why rakeback deals are so important for grinders—they can literally transform a losing or break-even player into a profitable one. Use our Bankroll Calculator to factor rakeback into your stakes decisions.
Strategies to Minimize Rake Impact
While you can't avoid rake entirely, smart players minimize its impact through several approaches.
Game Selection
- Play higher stakes when properly bankrolled: The rake cap becomes a smaller percentage of average pots
- Choose lower-rake sites: Some poker rooms have significantly better rake structures
- Consider heads-up or short-handed: Often have lower rake caps than full ring
- Avoid high-rake promotions: Some "jackpot" games take extra drops that make them unprofitable
Maximize Rakeback
- Research and compare rakeback deals before choosing a poker room
- Meet VIP tier requirements to unlock higher rakeback percentages
- Use affiliate deals that offer additional rakeback
- Track your rake paid to ensure you're getting proper credit
Play Style Adjustments
- Play fewer marginal hands that barely show profit
- Focus on situations with clear edge rather than thin spots
- When you play, aim for larger pots where rake is proportionally smaller
- Take advantage of "no-flop-no-drop" by not over-defending blinds
Common Rake-Related Mistakes
Frequently Asked Questions
What is poker rake?
Poker rake is the fee charged by casinos or online poker rooms for hosting poker games. Unlike casino games where the house has a built-in edge, poker is player-versus-player, so the rake is how the venue makes money. It's typically a small percentage of each pot (usually 2.5-10%) or a time-based fee.
How much is the typical poker rake?
Online poker typically charges 3-5% of the pot with caps ranging from $1-$5 depending on stakes. Live casinos usually charge 5-10% with caps of $4-$7. Some rooms use time-based collection ($6-$15 per half hour) instead of pot rake.
Does rake affect my winrate?
Yes, rake significantly impacts your effective winrate. A player winning at 5bb/100 before rake might actually be closer to 2-3bb/100 after rake, depending on the structure. Understanding rake is crucial for calculating your true profitability and determining if a game is beatable.
What is rakeback?
Rakeback is a promotional offer where poker rooms return a percentage of the rake you've paid. This can range from 10-50% or more, significantly improving your effective winrate. Many online rooms offer loyalty programs that function as rakeback.
Which games have the lowest rake?
Higher stakes games typically have lower effective rake because of pot caps. Heads-up and short-handed games often have lower caps. No-flop-no-drop policies mean you pay less rake in tight games. Tournaments have fixed fees (usually 5-15% of buy-in) regardless of hands played.