Whenever you sign up for a rakeback deal you know you’re getting into a fold that’s going to reward you much better than any sign-up bonus ever could. A rakeback setup will offer you the same benefits a sign-up bonus does, only for an unlimited time. Most rakeback deals do not even exclude additional sign-up or loyalty bonuses, so for a while there (for as long as you work on unlocking your bonus) you’ll be earning double benefits.

How exactly do you earn rakeback though? What’s the exact calculus behind the money you get transferred into your poker account every month (or week, depending on the poker room)?

The poker room takes a rake off each real money pot that is awarded to a winner. Rakeback (which is usually around a 30% industry standard) is a set percentage of that rake, which finds its way back to the player’s pockets. Who gets the credit for the contributed rake though, and implicitly: who is entitled to receive the rakeback?

Most beginners think that since the rake comes off the pot, it is actually paid by the winner of the hand, and therefore it is the winner who gets the rakeback too. This concept is flawed. The rake is not paid by the winner it is paid by the pot, which is a separate entity until it is awarded to the winner. The rake however is taken off the pot Before the winner receives it.

In conclusion, the rake is paid by all those players who put money into the pot. Those who put more money into it (regardless of whether or not they end up winning it) pay more rake, those who put less money in there, pay less.

Poker rooms use several different methods to calculate players’ rake contributions and implicitly the rakeback they should receive.

One method is the dealt rake method. In a poker room which uses this method to calculate player contributions everyone who gets dealt into the hand earns an equal amount of rake contribution. Yes, if you happen to fold your hand before you see any sort of action, you’ll still earn rake contribution.

Such poker rooms are excellent for tight passive players (those who play few hands and generally avoid putting too much money into the pot) because they’ll be earning rakeback on each of the hands they fold too. The same cannot be said about their loose aggressive counterparts though, who end up generating rakeback revenue for the rocks and calling stations. This is why it is extremely important that you read your share of rakeback articles and learn these apparently insignificant details about every poker room before you commit.

Other poker rooms use more accurate rake distribution methods. Some poker rooms will distribute the resulting rake equally, but only among those players who actively take part in the hand (you have to call at least 1 BB to be considered).

While this one is a much more accurate rake and rakeback calculation method, it still represents a disadvantage for those who play many hands and are not afraid to push chips into the pot.

Another rake contribution method is the one which allots players generated rake based on how much money they contributed to the pot. This method is called “contributed rake” calculation, and it is by far the most accurate method. Loose aggressive players get exactly as much rakeback as they’re supposed to, while tight passive players get no free rides in these poker rooms.

Make sure you know what type of player you are, and what rake contribution method your poker room uses. If you reckon you’re entitled to more rake than what you’re getting, the problem may well be with the method the poker room uses to calculate your contribution.