Rake is the commission fee taken by the poker room or casino from each pot in cash games or from tournament buy-ins. It’s how the house makes money from poker games, typically ranging from 2.5% to 10% of the pot in cash games with a predetermined cap.
In the poker ecosystem, rake represents the primary revenue model for both live and online poker rooms. Cash games typically use a percentage-based rake structure, where the house takes a small portion of each pot that reaches the flop, usually capped at a specific dollar amount. Tournament rake works differently, charged as a flat fee on top of the buy-in. For example, a “$100+$10” tournament means $100 goes to the prize pool and $10 goes to the house as rake.
The impact of rake on player profitability cannot be overstated. In a typical $1/$2 live game with a 10% rake capped at $5, the house might collect $30-$40 per hour from the table. This means that collectively, players at the table need to overcome this constant drain just to break even. Online games generally feature lower rake due to reduced operational costs, but the faster pace means more hands and potentially more rake paid per hour.
How Does Rake Work in Cash Games?
In cash games, rake is typically collected in one of three ways:
Pot Rake (Most Common): The dealer takes a percentage of the pot, usually after the flop is dealt. No flop = no drop is a common rule, meaning if the hand ends preflop, no rake is taken.
Time Collection: In higher stakes games, players pay a set fee per half-hour or hour regardless of how many pots they play. This is common in games like $5/$10 and above.
Dead Drop: Each player on the button posts a fixed rake amount before cards are dealt. Less common but seen in some California card rooms.
Typical Rake Structures
| Stakes | Rake % | Cap | Example | |
|---|---|---|---|---|
| ,, | ,, | , | ,, | |
| $1/$2 | 10% | $5 | $50 pot = $5 rake | |
| $2/$5 | 10% | $6 | $60 pot = $6 rake | |
| $5/$10 | 5% | $10 | $200 pot = $10 rake | |
| $10/$20+ | Time | $7-10/half hour | Fixed fee per time |
Rake Calculation Example
You’re playing $1/$2 with 10% rake, $5 cap. The pot grows to $47. The house takes 10% of $47 = $4.70, rounded to $5 (most rooms round up). If the pot was $200, the rake would still be $5 due to the cap.
How Does Rake Work in Tournaments?
Tournament rake is more straightforward, it’s a fixed fee added to your buy-in. The notation “$100+$10” means:
- $100 goes to the prize pool
- $10 goes to the house as rake
- You pay $110 total
Online tournaments typically charge 6-10% rake, while live tournaments often charge 10-20% due to higher operational costs. Some live tournaments hide additional fees in “staff fees” or “admin fees” on top of the stated rake.
Where Does the Rake Go?
Rake covers the poker room’s expenses:
- Live Poker: Dealer wages, floor staff, security, utilities, casino overhead
- Online Poker: Software development, servers, customer support, licensing, payment processing
- Promotions: Bad beat jackpots, high hand bonuses, and rake races are often funded by taking an extra $1 from pots
Rakeback and Rake Races
Many online poker sites offer rakeback, returning a percentage of your paid rake as a loyalty reward. Common structures include:
- Direct Rakeback: 20-40% of rake paid returned weekly/monthly
- VIP Programs: Points earned based on rake that can be exchanged for cash or bonuses
- Rake Races: Compete against other players for prizes based on rake generated
Pro Tip: If you’re a regular player, always play on a site with rakeback. A 30% rakeback deal can be the difference between being a breakeven player and a winning player.
Impact on Your Winrate
Rake significantly affects required winrates. Consider:
- Without rake: You need to win >50% of the money you put in the pot to profit
- With rake: You need to win substantially more than 50%
- A player who breaks even before rake might lose 3-5 big blinds per 100 hands to rake
This is why game selection matters. A $1/$2 game with $5 cap rake is much tougher to beat than one with $4 cap, even though it seems like a small difference.
Hear It at the Table
“They just raised the cap from $5 to $6. Time to find a new room.”
Key Takeaway
Rake is an unavoidable cost of playing poker that significantly impacts your bottom line. While you can’t eliminate rake, you can minimize its impact by choosing games with better structures, playing in rooms with rakeback, and being aware of how much you’re paying. In lower stakes games especially, beating the rake is often harder than beating the other players.
