Rakeback deals are based on the amount of monthly gross revenue (MGR) that you generate for a particular poker room. The amount of monthly rake you bring in will determine how much monthly revenue you create for the poker room. Understanding how your MGR is calculated is a critical part of understanding how rakeback works.
Understanding the Dealt Rakeback Method
Different poker rooms will employ different methods for calculating your MGR. It’s important that you understand what method is used by your poker room. If your poker room uses the dealt method, then you will receive credit for generating rake in every hand that you are given. If there are six players in a texasholdem hand, and the rake was $3.00, every player will generate $0.50 in rake. This generated rake amount will accumulate over time. Each month, you will get a portion of your MGR back, based on the amount of rakeback percentage that specific to your offer.
Understanding the Contributed Rakeback Method
When poker rooms use the contributed method, you will have to contribute to a pot before you can receive credit for generating rake in that pot. Let’s say the rake for a Texas Hold'em pot is $3. If there are six players, but only three players contributed, then the three players that did not participate will not get a portion of the rake. The $3 rake will be credited to the three players that stayed in the hand. If you are one of these players, you will have $1 added to your MGR.
Understanding the Weighted Contribution Method
Similar to the contributed method, the weighted contributed method does not give rake credit to players that do not participate in the pot. Let’s say that you just participated in a multi-way pot that had a $2 rake. If you’ve only contributed 25 percent of the pot, you will only receive credit for 25 percent of the rake, or $0.50. Let’s say one of the other players involved in the hand contributed half of the pot. This player would then be credited with half of the rake, and $1 would be added to his or her MGR.
Factoring Bonuses and Tournaments into Your MGR
Make sure you carefully read the terms and conditions of any rakeback offer so that you know how your MGR will be calculated. Some poker rooms won’t include your tournament fees in your MGR, but most sites do. Many sites will subtract your bonus earnings from your MGR, but there are other sites that won’t. If you read the fine print, you’ll know exactly what you’re getting yourself into.
Rakeback is not the easiest concept to explain, but it’s not impossible to wrap your mind around it. If you can understand the factors that are included in your MGR, you’ll understand exactly how your rakeback payments are being calculated. And if you wish to manage your bankroll in a good way, rakeback is necessary.
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