What Is Rakeback And How Do Online Poker Rooms Calculate Rakeback?
Everytime you play a hand of poker online or enter a poker tournament, the house (the poker site) takes a small percentage of the pot or the tournament entry cost as a fee. This fee is known as the rake. By signing up to online poker sites through poker affiliates such as DoylesRoomRakeback.org, you can get special deals whereby you get some of this rake back. This is in essence what a rakeback deal is.
So, by signing up through DoylesRoomRakeback.org, you can get the highest possible rakeback deal at Doyles Room, which is 33% rakeback. This means for every $1 in rake (cash tables or tournament fees) that you pay, you will get $0.33 straight back into your account. This may not sound like much, but regular poker players can earn many thousands of dollars in rakeback per month. As a result, this can flip you from being a break-even or losing poker player into a big winner. This is on top of the best poker bonus that you get when signing up to Doyles Room.
Many online poker players are becoming confused the moment they try to calculate the total amount of rakeback that they earned in a certain month. By signing up for a rakeback deal with Doyles Room Poker your rakeback will be calculated automatically and you will be able to log into this site everyday and see updated stats of how much you have earned.
Even though you don'd need to start manually calculating your rakeback, it’s always best that you understand exactly how it is being calculated.
There 3 different methods that are being used by online poker room to calculate the rakeback. Doyles Room uses the "dealt rakeback" method which as you will see is the best! In this article we are going to give you a detailed explanation of all 3 methods, so that you will understand why this is the case and how your rakeback is being calculated.
Before you actually start understanding how to calculate your rake, you must first understand what the “MGR” is (Monthly Gross Rake). To simplify the concept, the MGR is the total gross profit that an online poker room is going to earn from a player in a certain month. The rakeback that you will receive from any online poker room is going to be calculated based on the MGR amount. For example if an online poker is using the MGR rakeback method to calculate rakeback and a player paid $1,000 in rake in a certain month, if that player signed up for a 33% rakeback deal, he will then receive $330.
The Dealt Rakeback method
This is the simplest rakeback method and the method that is used by Doyles Room. It’s going to be easy for you to understand how to calculate it. The player will earn MGR and receive rakeback at a certain hand if there is rake taken from the pot and that player was dealt cards on that hand.
Thanks to the fact that this rakeback method is simple it can all be reduced to the following formula:
MGR = (Amount of money taken as rake from the pot) / (Number of players that are dealt in)
This way with the dealt rakeback method, the player is going to receive the % of the MGR, which is being calculated this way. You must remember that a player is going to receive rakeback as long as he is going to have the cards dealt.
The “average contributed” rakeback method
At the average contributed rakeback method, a player not only he will have to be dealt in, but he will also have to make a bet. Even if he pays only the small blind and fold afterwards, he will still be earning rakeback out of that hand. To make this simpler we are going to give you an example.
If there will be 8 players dealt in a certain hand, but out of 8 only 6 of them are going to pay some rake, the other two will just fold their cards as they see it, and the pot rake is $3.00, each player will gain to their MGR $0.50 ($3/6 players = $0.50).
Things couldn’t be simpler. So we are going to give you the formula for this method so that you can calculate the rake on your own:
MGR = (Amount of money taken as rake from the pot) / (Number of players that contributed to the pot)
The “Weighted contributed” rakeback method
This rakeback calculation method is very similar to the “Average Contributed” rakeback method. This method is considered by most online poker players to be the fairest method. Each player will get the amount of rakeback that they deserve since it’s going to be calculated based on the proportion that they have contributed to the pot. So if a player is going to fold before the flop he will get nothing and the player which selects the all in will get the maximum amount of rakeback from that hand.
Tight online poker players are finding this method not favorable, since they are going to get a rather low amount of online poker rakeback since these players tend to give less to the pot on average. However the loose/aggressive players are usually involved in a pot a lot more and they will get the share that they deserve.
The formula used to calculate the rakeback with this method is very simple:
MGR = (Amount contributed by a player to the pot / Total amount of money taken as rake from the pot) * (Amount Raked)
Now that you know exactly how to calculate the rakeback with the 3 methods and you do have a good perspective over all the methods, you can finally make a choice on the online poker room which uses the right rakeback method for your current poker style. Doyles Room uses the dealt contribution method which as you have seen is the best all round method. It is the simplest to calculate and will generate the most rakeback!
