What is the Rake in Poker? A Complete Guide to How a Casino Makes a Profit

What is the Rake in Poker: What You’ll Learn

• Definition of Rake: Readers will understand that a rake is the fee collected by casinos or poker rooms for hosting poker games, integral to their business model.

• Forms of Rake: The article explains various ways rake can be implemented, such as a percentage of the pot, hourly rates, club dues, dead drops, and fixed fees.

• Impact on Players: Readers will learn how rake affects players, highlighting the challenge of overcoming this fee in addition to succeeding at the poker table to make a profit.

• Legal Considerations: The article touches on the legal implications of rake in home games or underground settings, emphasizing the importance of understanding local gaming laws.

• Industry Practices: Readers will gain insights into how casinos and online poker rooms strive to keep rake rates reasonable to maintain player engagement and ensure the tables remain active.

Poker is one of the few games in a casino where there isn’t a built-in house edge. Gamblers aren’t playing against the house, but instead battling it out with other players at the table. Casinos definitely aren’t in the business of losing money, so they have devised ways to spread poker games while still making money for the house in the process.

“Rake” is how the casino accomplishes this. Simply put, the rake is a fee that all players pay to play and is usually referenced more in regard to cash games.

This is how the casino pays to keep the poker room running including the salaries of dealers and staff, utilities, and more – not to mention those free beverages that some players enjoy while hitting the tables in Las Vegas.

Online poker operators also charge a rake to pay for the cost of running the platform, marketing, player promotions, and other expenses. Keep reading to learn all about the rake in poker.

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How Does a Rake Work in Poker?

Rake, also sometimes referred to as a “fee” or “commission”, helps keep poker rooms running and pays dealers and staff employees.

If a casino can’t make a profit on the game, then there would be no games. But exactly how do casinos collect the rake as the action plays out? Most poker rooms collect a certain amount from each pot, depending on the size.

As players bet and call, the dealer keeps track of the size of the pot and sets aside a few poker chips that will go to the house. There is usually a metal box attached to the table and the dealer will place the chips in this box (aka “the drop”) at the conclusion of each hand.

When playing online, the platform’s software will collect rake automatically from each pot. Tournament fees may also be considered rake and help pay for the cost of running the tournament (more on that below)

How is Rake Calculated?

How rake is calculated depends on the casino or online platform. Relevant laws may also have an effect on how the house collects the fee from players for getting in the game. Here’s a quick look at a few types of rake in poker.

• Pot rake – This is one of the most common forms of rake, in which the house takes a percentage of each pot, usually between 2.5% and 10%. Most casinos also have a predetermined maximum amount charge per pot as well, so that this amount doesn’t get exorbitant – often in the range of $4 to $5. The higher the rake, the more it affects the players. Some casinos may not even take a rake if there is no flop (known as “no flop no drop”) – a nice rule for players.

• Fixed fee – Some poker rooms have a fixed amount they collect from each pot, no matter the size.

• Dead drop – When using this rake method, the house simply charges a fixed amount to the player on the button before each hand.

• Time collection – Some properties, especially higher-stakes games, charge players an hourly fee for being in the game.

• Membership and seat fees – In jurisdictions that allow poker only as part of a social club (a similar setup as seen in golf country clubs), players may be charged daily, monthly, or annual membership dues in lieu or a traditional rake. These venues may also charge a “seat fee” to play in these games and these are some of the ways poker clubs in places like Texas use instead of a traditional rake.

• Tournament fees – While “rake” is traditionally associated with cash games, the term can often be used in association with poker tournament fees. For example, a $100 + $10 tournament buy-in implies that $100 from each player goes into the prize pool white $10 from each player is a rake (tournament fee). That $10 goes toward the costs associated with putting on the tournament.

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The Impact of Rake on Players

Players in a poker cash game face two things that can drain their bankrolls – opponents and the rake. When facing higher rakes, players may want to tighten up their games because they are losing more money over time.

Playing more pots means dealing with more rake as well as more chips at risk. Each time the dealer button rotates around the table, the player is losing more money when engaging in pots.

Poker rooms or online operators with smaller rakes make it more profitable for players to see more flops as they are faced with losing less money in the form of money.

Overall, however, just sitting and waiting for the best poker hands is not advised as well. Lower-raked games may entice players to open up their ranges and play more marginal hands in hopes of connecting on the flop.

Short-handed tables may mean players also will often be involved with more pots, so are paying more rake in the long run as well. The higher the rake a player faces, the bigger your win rate needs to be to beat the rake.

Influence on Game Selection

The higher the rake, the less a player can win on each pot. So ideally a player will seek out games with less rake. That may be an option for players with limited options, but should be kept in mind when selecting a game to play.

Locations like Las Vegas, where there are numerous poker rooms to choose from, may see casinos that are more competitive when it comes to rake and players can often find more favorable games than places that may only have a few casinos and poker rooms to choose from.

Online poker platforms often feature lower rake, as well as lower stakes for newer players, than in brick and mortar casinos. This may be something to remember when looking for more favorable games to jump in.

Managing Rake in Poker Strategies

Considering the rake may be important when adjusting your strategy. The goal is to beat the other players as well as the rake. A few tips to overcome the rake include:

• Limiting your starting hands – Playing too many hands mean you lose to opponents more often and also see more of your chips drained away in the form of rake. However, those who are too tight will be affected as well by the rake because they have fewer chances to win pots but still pay the rake when they do.

• Bigger pots mean a lower effect of rake – When you have a strong hand, don’t let the rake influence how large you build the pot. A bigger pot means you win more and the rake will have a smaller effect on your profits.

• Be more involved in short-handed games – The rake becomes a bigger factor in short-handed games as you’ll be involved in more pots. Being more aggressive and loosening up may mean more winning pots and a better chance of overcoming the rake in the long term.

• Expect a bigger effect of the rake in limit games – Because players can only bet a certain amount in limit games, this means rake can be a bigger percentage of each pot than in no limit. By contrast, no limit can produce much larger pots with rake becoming a smaller percentage in the process.

While players should always be aware of their opponents at the table, making note of the rake and how it affects their chip stack over time is critical. Adjust your strategy as needed and hopefully more of those chips will be heading your way.

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Tipping Dealers & Membership Fees

While tipping dealers is optional, many players drop a chip or two to the dealer when collecting a large pot. This is another expense for winning that might be considered part of the rake. If you prefer to tip that hard-working or friendly dealer, be aware that this cuts into your ability to profit in the game in a  similar manner as the rake.

That chip might as well be considered part of the rake, but it’s also important to realize that this is how dealers make their money. This also goes for dealer tips in tournaments. A player making a nice tip after a big score in a tournament has cut into his overall winnings and added to the rake beyond simply paying the tournament fee.

Players don’t have to worry about tipping dealers when paying online and generally will face lower tournament fees and rake than they might find in a live casino.

For poker clubs that charge members, such as those in Texas and some other U.S. states, players must realize that they definitely aren’t playing rake-free poker. These games may not have a rake at the table, but players have paid membership fees, daily dues, hourly seat rates, and other similar fees that can also be considered rake and help fund the poker club.

What is Rakeback?

Rakeback is a promotion in which players receive a certain portion of the amount they pay in rake returned to them by the poker operator. This feature is often found at online platforms, which use these types of promotions to reward loyal players.

Percentages vary by platform, and are often available to players who participate in higher-stakes games. However, even small-stakes players can earn some rakeback on some sites. Some platforms may even offer more rakeback during certain times of day or run monthly events offering even more cash back for players.

 Rakeback programs offer players some incentive to keep playing at that site because the price to get in the action is lower in the long run.

Legal Considerations of Poker Rake

Local jurisdictional regulations and compliance may have some influence on the amount of rake a poker room can charge.

In many jurisdictions, only licensed casinos or poker rooms can take a rake – in essence, allowed to profit from dealing and running games and tournaments. These establishments will be required to pay taxes and any other associated fees on any revenue derived from running these games.

In many locations and states in the U.S., running poker games for profit without a license (or club memberships in some cases) can result in charges related to illegal gambling. Taking a rake for a home game generally violates gaming law in most jurisdictions and can come with some legal consequences.

In some cases, these underground games may get raided by law enforcement, with players and operators even arrested and money confiscated. Knowing where your game stands and not running afoul of the law is advised to avoid legal entanglements.

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When Rake Becomes Problematic

As noted, some underground and home games may take a rake as well. This can be problematic and tip the scales in some jurisdictions from legal home games to illegal gambling. Some bigger home games may have the game runner cut a rake to help pay for the cost of running the room or club. This can be a thorny issue with players and law enforcement at times.

Gaming laws vary by jurisdiction (and states in the U.S.), meaning that it’s important to know the law in your area before raking a game in the basement or kitchen table.

Some players may also balk at games that have too high of a rake, so keeping a standard fair rate is a good idea to keep players staying in the action. Casinos and poker rooms generally try to keep the rake reasonable so that the tables stay full.

The more tables running means more rake for the house. The casino or online platform collects the rake no matter what, so keeping tables running enables the house to bring in more money – no matter who wins or loses.

Raking in the Money

Rake is the fee that a casino collects for running poker games. Most poker rooms collect a percentage of each cash game pot to pay for running the game, salaries, marketing, and more. Online poker sites also collect a rake to help pay for similar fees including software, employees, and other expenses to keep the platform running.

Rake can also come in other forms, such as hourly rates, club dues, dead drops, fixed fees, and other methods to make sure that the house can profit from the game. In tournament play, the fee to play the tournament can be considered a rake as well.

Online poker rooms also collect a rake, but this can be lower for cash games and tournaments than what you might find in a brick and mortar casino or poker club. Players must realize that they not only beat the game at the table to profit, but must also beat the rake in the long run.

Title Image Credit: Gelner Tivadar/Shutterstock