Rakeback Methods

This article will explain the three different poker Rakeback Methods used by poker rooms to calculate our poker rakeback players Monthly Gross Revenue (MGR). MGR is the amount of net rake you are credited with each month. This is the figure used when calculating your rakeback, so it is important to understand how the poker room comes up with this number. If you have a 30% rakeback deal, this means you are getting 30% of your MGR back in the form of a rake rebate.

If you can maximize your MGR contributed you can maximize your rakeback. It is also important to note that poker rooms also use these same three methods to assign loyalty points and bonuses earned.

Calculating The Dealt Rakeback Method

The dealt rakeback method is where every player at the table is credited with contributing rake to a pot, as long as they are “dealt” into the hand. The amount of MGR credited to each player is the total amount rake divided by the number of players dealt into the hand. Of course, rake has to be taken from the hand, some hands no rake is taken. For example, if everyone folds preflop in Texas Hold’em, no rake is taken. So, if there are 5 players dealt into the hand, you are credited with 20% of whatever rake is taken from the pot.

Example 1a: Six players were dealt into the hand and $3 in rake was taken from the pot.

1. How much money will each player’s MGR be credited with, from this hand? Since all six players were dealt into the hand, they split the $3, six ways.

2. What percentage of the rake taken does each player earn when 6 players are dealt in?

This method favors the player who is tighter than the average player at the table. This is because he or she is credited with contributing more rake then they actually put into the pots.

Calculating The Contributed Rakeback Method

The contributed rakeback method is the most common method used to calculate MGR and rakeback. This method only credits a player’s MGR with rake contributed if they actually put money into the pot. The rake taken is divided equally among the players who contributed to the pot.

Example 1a Continued: Additional information. Only two of the six players contributed to the pot. How much did each player earn?

This method favors the player who is looser than the average player at the table. This is a more accurate method than dealt, but not as accurate as the next method.

Calculating MGR and Rakeback using the Weighted Contributed Method (WCM)

Like the previous method, you also have to contribute to the pot to be credited with MGR and rakeback. The amount of MGR credited is in direct proportion to the amount of money you put into the pot. To calculate how much MGR is earned for a single hand, take the amount of money that you actually contributed to the pot and divide by the amount of total money in the pot. Then take this number and multiply by the amount of total rake taken. This is the least common and most accurate method. The weighted method favors the looser players even more than contributed does.

We will show an example of the Weighted Contributed Method in a future article that will be published soon.

Summary

When evaluating rakeback deals or searching for the best rakeback deals that use these different rakeback calculating methods; players should first identify if they are tighter or looser than the average player at that poker room. The farther you are from the average, the more of an impact it has on your play. It also depends on what games you play, your playing style, and many other variables. Other articles like this one, “Best Rakeback Method for No Limit Full Ring Players” will discuss this subject in more detail and share some strategies for getting the most out of your rakeback based on the games you play at.