RAKE IN POKER – HOW CASINOS MAKE MONEY

Casinos and card rooms will carry a pot rake to cover overheads and other costs associated with running poker games.

They are an essential part of cash games, and without a cash game rake, then online poker rooms and land-based casinos would cease to exist such is the expense in order to keeping them going.

Casinos calculate rake depending on the level of the stakes involved, so the entry fee for an online poker tournament may be much higher than for ordinary cash games.

The rake is a basic starting point for when you play poker, and the onus is on players to ensure they check to see what tournament fees are or the rake cap is for live poker games before they get involved.

In the following sections, we will get to grips with rake in poker, assess the differences between online poker rake and rake for live games, and answer a few FAQs at the end. Stay with us to find out more.

WHAT IS RAKE IN POKER

If you haven’t made frequent visits to poker rooms, then you may be questioning what rake is and how much rake is required to participate in live cash games.

To make things simpler, the rake should be viewed through the lens of the house fee that casinos impose as a way of covering operating costs for accommodating poker players around the table.

In some cases, rake structures can entail charging players for joining up, and after a buy in amount is set for a game, and then further payment or more rake will be set for players to participate.

For any given game, the set fee or rake amount will be displayed, so players know what is required, but if they are unsure while playing at poker sites, they can leaf through the terms and conditions section.

And sometimes, an online poker room will have loyalty programs in place to reward players, and there may be further rakeback deals, so that players don’t have to contribute too much in rake to get involved.

In the forthcoming sections, we will look at how rake is calculated at poker tables, and how much rake poker rooms will take.

WHAT DEPENDS ON THE AMOUNT OF RAKE IN A POKER ROOM?

Ultimately, the rake for a poker game will be determined by the stakes involved, so for high stakes cash games, the rake paid will be much higher than those who like to casually play at online sites.

In general, higher limit games will lower your EV (Expected Value), and this is something that all players will have to take into consideration before they buy in.

If anything, higher raked poker cash games will have an impact on poker strategy. For example, some players may choose to be more cautious and be tighter in range to defend themselves against their opponents in the big blind.

This will be the case in the pre flop and post flop stages. It’s now time to take a closer look at rake contributions and how casinos go about collecting rake.

The rake cap will also be set depending on how many poker players are taking part. So, the more players in a poker room will increase if more players buy in.

CALCULATING RAKE IN POKER

On average, online poker sites and live cash games will set their own rake in accordance with poker industry expectations, but typically, 2.5-10% of the pot rake will be taken by the casino to cover the costs of running a poker game.

There will also be a rake cap in place, and the rake structure will vary for No Limit Hold’Em and Pot-Limit Omaha online games. You might see an entry fee for blinds that start as low as $0.01 and go up to $10 for a paid rake, which can be quite favourable.

Let’s use an example to calculate the rake in poker. So, if you were playing a $0.50/$1 No-Limit Hold’Em cash game, then you will never pay more than $3 rake regardless of the pot’s size if there are 5-10 poker players in the hand.

This will be reduced to a maximum of $2 for 3-4 active players in a poker room, while it could be as little as $1 if only two players receive hole poker hands.

For poker tournaments, the rake cap might be higher depending on the blinds structure. So, if the entry fee was listed as $20+$2, then the +$2 element is the rake paid for this particular tournament.

Next, we will take a closer look at how casinos collect rake for live games.

HOW DO CASINOS TAKE THE RAKE IN POKER?

Apart from keeping chips in a secure box, the way in which casinos collect rake will depend on the type of poker games played, and the most rake will be reserved for poker tournaments, especially if there is a big tournament prize pool involved.

For example, in a $10,000 WSOP (World Series of Poker) Main Event, not all of the tournament fee is dedicated to the tournament prize pool.

In a 2023 event, just under 5% of the tournament buy in will be withheld as an entry fee, while a further 2% will be given to casino dealers and the staff.

TYPES OF RAKE IN POKER

Casinos will have a rake cap in place, and it is collected chiefly in the following three ways:

Dead Drop

Some traditional land-based poker rooms will have a dead drop fee, which equates to players paying the same to join a poker game.

With a dead drop, the dealer button will usually pay a maximum rake amount before the first hand is played. Therefore, this ensures a level playing field in terms of how the rake paid is calculated no matter whether a player in question wins or loses.

Timed Collection

Another way casinos will try to generate revenue through rake is to have a timed collection. In years gone by, cash players would be allowed to play at a poker site or multiple poker sites for hours without having to pay an additional rake.

The purpose of a timed collection is that players will be charged for every half hour they have played. And that applies if a poker player has only joined a table for 30 minutes.

Timed collections help take a fee from every player in high raked games, and they are a profitable way to collect rake.

Pot Rake

This is the most well known form of rake collection in a poker room. As mentioned, the percentage rake or casino’s rake for the game will fall in the 2.5-10% range.

The maximum amount will be predetermined, and a casino won’t rake until after the flop is dealt, hence the “no flop no drop” rule.

With the “no flop no drop”, players will scoop money if they can raise pre flop and can effectively take down the subsequent blinds.

RAKE IN CASH GAMES

With the rake in cash games, this involves the dealer taking chips or collecting rake, but what may surprise you, is that not every pot has a poker rake that is taken.

If a poker player wins the pot during the preflop, then the house may not take the rake back in a poker room.

For example, a poker player could raise $10, and a second player could then three-bet which would equate to $60. A third player could then swoop in a “flop no drop” situation, whereby they take the pot which could be worth $300. If the remaining players chose to fold at this point, then the player who is all-in would win $70 without having to pay any rake.

RAKE IN POKER TOURNAMENTS

With poker tournaments, the rake will be settled through the buy-in, which is also known as the entry fee.

This will usually be a fixed fee, and there will be a rake amount that is set aside for dealers and casino staff.

We have produced a table outlining the stake amount and rake charged for No Limit and Pot limit games. Tournaments reward players who have a higher bankroll, but we have produced a couple of tables for Limit cash games and No Limit cash games.

These illustrate the lowest rake and maximum amount. From the below information, you can see which category you would slot into if you wished to opt in.

Limit Cash Games

Limits	Number of Players	Rake	Maximum amount
$0.02/$0.04 & $0.05/$0.10	2-10	$0.01 per $0.20 pot	$0.50
$0.10/$0.20 & $0.15/$0.30	2-10	$0.01 per $0.20 pot	$0.50
$2/$4	5-10	$0.25 per $5.00 pot	$3.00
$50/$100 to $250/$500	3-10	$1.00 per $100.00 pot	$5.00

No Limit Hold’Em Cash Games

Limits	Number of Players	Rake	Maximum amount
$10/$20	2	$0.05 per $1 pot	$6
$25/$50	3-4	$0.05 per $1 pot	$10
$50/$100 to $200/$400	5-10	$0.05 per pot	$40

RAKE IN ONLINE POKER

If you are playing at online poker sites, then a percentage of the rake will be taken and this will change depending on the overall pot size.

Some players at poker sites can use specific tracking software which will figure out how much rake is paid in the big blinds. This will be per 100 hands, and it will give an indication of how much poker rake needs to be paid by those playing online moving forward.

This shouldn’t be confused with rake back, as these rewards players for their ongoing loyalty to a poker site. You will be able to find a specific rakeback program catered to your needs and requirements, such as cash back, so when you play online, you will be treated when you do so.

ONLINE POKER RAKE VS LIVE POKER RAKE

Whether you are playing online poker or live poker games, there are some similarities and differences between the two when it comes to the rake, which we have discussed below.

DIFFERENCES

1. Rake for live games is generally higher

In live games, the rake will generally be higher, and there will be a fixed fee in place. In some cases, there will not be a rake taken for community games, so players can profit if they win big in the pot. As previously mentioned, you may come across “no flop no drop” games when playing Texas Hold’Em.

2. More rake options available at online poker sites

Unlike land-based casinos where there are a set number of tables hosting poker games which can’t be duplicated, online poker sites afford more freedom to players, and therefore they can make more from the rake they pick up.

Different stack lengths

In online poker, you may find a buy in fee of 100bb for deep-stacked games, whereas with live poker contests, the buy-in limits can soar to 200bb, and some may even have unlimited caps to suit high rollers.

SIMILARITIES

1. Fast gameplay

While this might be scrutinised, when you have put in the rake for online or live poker, you will notice that rounds can be conducted quickly.

You can play at a poker site at your own convenience, whereas, there is more of a dash to get a seat at a table in a physical poker room.

2. Both are highly competitive

While the rake might be higher for games taking place in a land-based poker room, you can be assured that poker sites will also provide a competitive environment for poker tournaments, so it will also suit more experienced players.

POKER RAKE LIMITS ONLINE POKER SITES

The tournament fee and rake limits in general will vary depending on which online poker sites you sign up for.

However, at some sites, 5% of the pot will be raked, and the rake will usually be capped at $5 to $10 per player.

LOWEST RAKE POKER GAMES

It shouldn’t be too difficult to find some low rake poker tables, and we have listed some of them below:

• $0.02/$0.04 Fixed Limit
• $0.04/$0.08 to $0.05/$0.10 Fixed Limit
• $0.10/$0.20 Fixed Limit
• $0.25/$0.50 Fixed Limit
• $0.50$1 Fixed Limit
• $1/$2 Fixed Limit
• $2/$4 Fixed Limit
• $3/$6 to $5/$10 Fixed Limit

CONCLUSION

The rake in poker is a critical aspect of the game, and naturally, there will be a distinction when you play online or in a physical land-based casino.

We have demonstrated how rake can be applied, and depending on how brave or experienced you are, will influence which poker tables you play at. If you are just getting started, you should begin with the low raked tables before stepping things up.