How Rake Works In Online Poker & Why It Matters

What Is Rake?

Rake is the “house fee” taken from poker pots or tournament entries.

Poker is different from table games because players compete against each other, not the house. So instead of a built-in house edge, the site makes money by charging rake.

There are two main rake types:

  • Cash game rake (taken from pots)
  • Tournament fees (taken from your buy-in)

If you want the full foundation first, start with Online Poker Guide: Rules, Strategy & Tips. This article explains rake in plain English, how it’s charged in cash games and tournaments, and the simplest ways to reduce its impact without doing anything shady.

Cash Game Rake: How It Works

In online cash games, rake is usually taken from the pot when:

  • there is a flop (in many rooms)
  • and the pot reaches a minimum size

The rake is typically:

  • a percentage of the pot (example: 5%)
  • capped at a maximum amount (example: up to $3)

So even if the pot gets huge, the rake won’t increase forever because of the cap.

Why “Rake Cap” Matters

A higher cap means the room can take more money from bigger pots. At small stakes, that can be a big deal because:

  • pots reach the cap often
  • your edge per hand is small
  • the rake becomes a large percentage of your win rate

Tournament Rake: Entry Fee And Prize Pool

Tournaments usually show your buy-in like this:

  • $10 + $1
  • $10 goes to the prize pool
  • $1 is the fee (tournament rake)

So your real cost is $11, but only $10 is used to pay winners.

Why Tournament Fees Hurt More Than They Look

Tournament variance is already high, and many players are close to break-even. Fees can turn “almost profitable” tournament play into losing play over time.

Why Rake Matters: It Shrinks Your EV

Remember EV: expected value is your long-run profit per decision.

Rake reduces EV because:

  • every pot you win is slightly smaller
  • every tournament you enter is slightly more expensive

So you need to:

  • win a bit more often

  • or win a bit bigger
    just to break even.

This is why some players feel like:

  • “I’m playing okay, but I’m not winning”
    They might be beating opponents slightly, but rake is eating the edge.

If you want the decision lens behind this, revisit Understanding Expected Value (EV) In Poker Moves.

Rake And Win Rate (A Simple Way To Think About It)

In cash games, your long-run results are often measured in big blinds per 100 hands (bb/100).

Rake is like a tax on your win rate.

If you’re a small winner, rake can:

  • reduce your win rate to tiny
  • or turn you into a break-even player

This is why low stakes can feel “hard” even when opponents are weak.

Rake Is Toughest At Micro Stakes

Micro stakes often have:

  • high rake relative to pot size
  • many multiway limped pots that get raked
  • lots of small edges

That’s why “just play tight and wait” can be too slow. You need to win enough pots and extract enough value to overcome rake.

How To Reduce Rake Impact (Legit, Practical Methods)

You can’t avoid rake completely, but you can reduce how much it hurts.

1) Choose Sites With Better Rake And Rakeback

Different rooms have different rake structures and rewards.

Some offer:

  • rakeback
  • loyalty points
  • cash rewards
  • bonus releases tied to volume

Even small rakeback can matter if you play often.

2) Avoid Small, Marginal Pots Out Of Position

When you play weak hands in bad spots, you:

  • lose more

  • and pay rake when you do win small pots

A common leak is calling too much preflop “to see a flop.” That creates many raked pots where you don’t win enough.

3) Value Bet Better (Win Bigger Pots When You’re Ahead)

Because rake takes a cut, you want your winning hands to earn more.

Beginner improvement:

  • value bet more cleanly
  • avoid slowplaying too much
  • get paid by worse hands

4) Reduce Multiway Spew

Multiway pots get raked and are harder to bluff.

Against multiple players:

  • your fold equity drops
  • your mistakes cost more

A simple adjustment:

  • play tighter multiway
  • focus on value hands and strong draws

5) Don’t Chase Low-EV Spots

A spot that is “slightly +EV” in theory can become neutral after rake.

This is especially true for:

  • thin calls
  • small bluffs
  • weak draws without implied odds

If you need a leak checklist, you already covered beginner mistakes earlier in the series.

Rakeback: What It Is And Why It Matters

Rakeback is when the site returns part of the rake you paid, usually through:

  • cashback
  • points conversion
  • VIP tiers
  • bonuses

It effectively lowers the rake you pay, which can be a big deal for frequent players.

Important: rakeback is not a “guaranteed profit.” It’s just reducing the tax.

Common Rake Mistakes Beginners Make

  • ignoring rake completely
  • playing too many small pots with weak hands
  • overcalling in raked environments
  • assuming “tight is enough” at micro stakes
  • chasing volume for rewards while playing badly

Rewards only help if your decisions stay solid.

Quick Takeaways

  • Rake is the fee poker sites take from cash pots or tournament entries
  • Rake reduces EV, so you must win more to profit
  • Micro stakes often feel tougher because rake eats small edges
  • Rake caps and tournament fees matter more than most beginners realize
  • Smart ways to reduce rake impact: better site selection, cleaner preflop, stronger value betting, fewer marginal spots
  • Rakeback can help, but only if your fundamentals are solid

Mini FAQ

Do All Online Poker Sites Charge The Same Rake?

No. Rake structure and caps vary a lot by site and game type.

Is Rake Taken Every Hand?

Usually only when a pot is contested (often when there is a flop) and meets minimum pot rules.

Should I Chase Rakeback And Bonuses?

Only if you can keep decision quality high. If chasing volume makes you play worse, it’s not worth it.

Where To Go Next

You’ve now seen why rake matters and how it quietly changes your EV—especially at low stakes.

If you want to reinforce this, the best next move is to learn how to adjust your strategy against different opponent types, because the easiest way to beat rake is to extract more value from the players who make the biggest mistakes.

Continue with How To Adjust Strategy Against Loose Players.

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4. Claim Your Welcome Offer & Play

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