You must first understand what rake is, in order to understand Rakeback. Online poker rooms make their money by collecting rake and tournament entry fees. Rake is the a percentage of the total pot that is deducted from most ring game pots. Usually the rake is a couple percentage points (5% is standard) of the entire pot and is capped at around $3 at most online poker rooms. Tournament fees are also a form of rake – at most rooms you will earn rakeback on these fees as well as in each “raked pot”. All multi table tournaments (MTTs) and Sit-N-Gos (SNGs) have a buy in plus a tournament entry fee. The fee is usually 10% of the buy in, for example a $10 SNG will have a $1 fee – on most rakeback deals you would receive 30% of that entry fee back for each tournament you play.

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When calculating the total amount of rake contributed by a player to determine rakeback, poker rooms use different rakeback methods. Most use MGR, which stands for Monthly Gross Revenue, and is a formula used to calculate the net amount of rake contributed each month by each player. In other words, this is the total amount of rake contributed, minus any deductions. These deductions could include bonuses earned, deposit fees, or cash-out fees.

Rakeback is a percentage, usually 27-33% of your MGR refunded to you. In most situations this rakeback is deposited directly into your poker account. If you prefer, some rakeback deals allow you to get your rakeback refund deposited directly into an e-wallet, such as Neteller. Some poker rooms make their rakeback payments daily and some pay once a month. As you can see poker rakeback is incredibly valuable for anyone who plays a significant amount of poker online.