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Who Needs Contributed Rakeback

February 25, 2009

Contributed Rakeback deals are those that pay online poker Rakeback in accordance to the actual amount a player contributes to the rake. The players that can profit most from a Contributed Rakeback deal are the loose aggressive poker players who see more Flops and typically put more poker chips into the pot than their opponents when the cards fall in their favor.

We’re going to put together an example hand below to better explain how Contributed Rakeback is more beneficial to loose/aggressive poker players than a Shared Rakeback deal.

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Example Hand – Short-Handed $2/$4 NL Texas Hold’em

You are in Seat 1, earning Contributed Rakeback.

Seat 1: Under the Gun – Bet $5
Seat 2: Fold
Seat 3: Fold
Seat 4: Button – Call $5
Seat 5: SB $2 – Call $3
Seat 6: BB $4 – Call $1

The Pot = $20

After the Flop…
Seat 1: Bet $20
Seat 2: [Out]
Seat 3: [Out]
Seat 4: Call $20
Seat 5: Fold
Seat 6: Fold

The Pot = $60

After the Turn…
Seat 1: Bet $20
Seat 2: [Out]
Seat 3: [Out]
Seat 4: Fold
Seat 5: [Out]
Seat 6: [Out]

Because online poker rooms do not generally recalculate the pot until the end of each betting round, and the only remaining opponent Folded, your final $20 bet is not going to count towards the rake. The pot ends at $60 to be raked.

The standard rake at online poker rooms is 5% up to $3 max. 5% of $60 is $3 ($60 x 0.05 = $3) – yes, we did that on purpose to achieve max rake – so the online poker room rakes $3 from the pot.

If we add up your total bets (minus the last $20 that was not applied), you contributed $25 to the pot. $25 is 41% of the total $60 pot. So, you contributed 41% to the total rake. Next we need to find 41% of the $3 raked.

$3 x .41 = $1.23

We now know that you contributed $1.23 to the raked poker hand. The next step is to find out how much of that you’ll be getting in Rakeback. Since the average online poker Rakeback is 30%, we’ll multiply $1.23 by 30%.

$1.23 x .30 = $.37
[The actual answer is 0.369, but we’ll round that up to $.37]

So we now know that you’ll be earning $.37 by utilizing a Contributed Rakeback Deal. But how do we know that playing a loose/aggressive style of poker is more profitable as Contributed Rakeback than other programs, like Shared Rakeback?

Let’s calculate what you would have gotten under a Shared Rakeback deal. 4 players contributed to the pot, which reached $60 and raked $3. So we divide the rake by 4 players…
$3 / 4 = $.75

Now to figure up your Shared Rakeback at 30%…
$.75 x .30 = $.23
[Actually 0.225, rounded up to $.23]

By comparing the totals, we find that you earn $.14 more by signing up for a Contributed Rakeback Deal than you would with a Shared Rakeback Deal. ($.37 – $.23 = $.14)

The choice is obvious – if you are a loose/aggressive poker player, you need to earning Contributed Rakeback!

Written by Rob · Filed Under Rakeback Guides 

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