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Dealt vs Contributed Rakeback
When calculating the amout of rakeback due to a player, the poker site must first calculate the player's monthly gross revenue also known as MGR. The formula for rakeback due is:
Total Rakeback = Monthly Gross Revenue x Rakeback %
Monthly Gross Revenue = (Total Rake – Deductions)
Some poker sites subtract certain things from a players MGR. Examples of these are poker bonus, deposit fees and withdrawal fees. Deposit and withdrawal fees are charges incurred by the poker room when a player deposits or withdraws money. When a player uses an online wallet like Neteller or Moneybookers or a credit card, the poker site is charged a commission of up to 4%. When a player has a rakeback deal sites often pass these charges onto the player in the fom of deductions.
To illustrate how to calculate rakeback we can use an example at Full Tilt Poker.
Player A deposits $10000 using Neteller. The charge for this transaction is 2% - $200. He rakes $5000 in his first month and clears Full Tilt Poker's first deposit bonus of $600.
To caclulate his rakeback we use the formula above:
Monthly Gross Revenue (MGR) = (5000 - 600 – 200) = $4200
Total Rakeback = 4200 x 27% = $1134
There are two methods used do determine a players rake. These methods are called the dealt rake method and the calculated rake method.
The dealt rake method sums the total rake from every pot in which a player was dealt hands. This number is then divided by the total number of players in each hand to obtain the player's rake figure. The dealt rake method favours tighter players as a player is attributed rake in spite of not having played in a hand. Examples of sites that use the dealt rake method are Full Tilt Poker and Cake Poker.
The contributed rake method calculates a player's total rake based on his direct contribution to the pot. If a player contributes $5 to $25 pot, the rake is $1. The players total rake for this pot will be $0.20. The contributed rake method rewards a looser style of play. Examples of the contributed method are Absolute Poker Rakeback, Opoker Rakeback and NOIQ Rakeback.
One other thing to note comparing dealt vs contributed rakeback, is that Holdem Manager and other tracking software are only accurate for the dealt method although they plan to provide accurate rake figures for the contributed in future versions of the software.
Full Tilt Poker is the most popular online poker room that currently offers rakeback. Be sure to get Full Tilt rakeback prior to signing up. |
