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 What is it rakeback ?

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PostSubject: What is it rakeback ?   Sat Apr 13, 2013 2:34 am

Rakeback is a player rewards method that began in 2004, whereby some online poker sites or their affiliate partners return part of the rake or tournament entries a player pays as an incentive for them to continue playing on that site.[5]
Rakeback in cash games can be calculated using two different methods: dealt and contributed. The dealt method awards the same amount of rakeback to each player dealt into a hand, and the contributed method rewards players based on their actual contribution to the pot. In poker tournaments, rakeback is deducted from cardroom's entry fee. Rakeback is similar to comps in "brick and mortar" casinos.
As online poker becomes more mainstream online poker professionals have begun using rakeback as a means of increasing profits or cutting their losses. Depending upon the stakes the player is playing, how many tables they are playing at once, and the number of hours played daily, online poker pros can earn thousands of dollars in rakeback every month. This gave rise to so-called rakeback pros, players using a less intensive losing strategy at many tables simultaneously while offsetting their losses through rakeback.
Not every online poker room offers rakeback. Sites such as Full Tilt Poker, Cake Network and UltimateBet allow affiliates to offer rakeback as a direct percentage of rake and tournament entries paid back to the players. Other card rooms such as PokerStars, PartyPoker, Ongame Network and the iPoker Network forbid affiliates to give rakeback. Instead they offer in-house loyalty programs that gives cash and other rewards to players based upon how much they play.[6] At such networks, rakeback deals are sometimes cut between an affiliate and a player without the poker operator's knowledge. Such deals, if discovered, tend to result in the expulsion of either offending party, and, sometimes, in penalties for the poker operator, if they are part of a bigger poker network.
In brick and mortar rooms, the floorperson may offer a rake reduction or rake-free play to players willing to start a table shorthanded.
[edit]Legality

In most legal jurisdictions, taking a rake from a poker table is explicitly illegal if the party taking the rake does not have the proper gaming licences and/or permits. The laws of many jurisdictions are written in such a manner that they do not prohibit the playing of poker for money at a private dwelling, so long as nobody is taking a rake.
[edit]See also

Rake free
Some online poker websites have done away with the rake altogether. These "rake free" poker rooms generate revenue by increasing traffic to the company's other profitable businesses (such as a casino or sportsbook) or by charging monthly membership or deposit fees. Some sites are only completely rake-free for frequent players, while offering reduced rake instead for other customers. Due to high fixed costs of operating a poker room, such as marketing, few online poker rooms have been successful in offering rake-free game, often going bankrupt or sustaining themselves by exploiting loopholes in offshore jurisdictions to refuse to honor players' cash withdrawals. However, some financially sound poker rooms have on occasion offered rake-free games to entice new sign-ups or to encourage players to try out new game formats.
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