Rakeback and rake contribution methods
Signing up for a rakeback deal seems like a fairly straightforward and simple process, and it is too, if you know what to look for in order to determine the value of a deal.
The % of rakeback offered is a good clue to start with, though it definitely doesn’t tell you everything you need to know about the deal. Sometimes, settling for the smaller rakeback % on a different type of deal makes more sense than going for the higher % regardless of the other terms of the deal.
Like it or not, your playing style has a huge word to say in the amount of rakeback you’ll be able to pocket. If you’re a loose aggressive player, you should probably look for a different deal than a tight-passive rock. If you are tight passive, you’ll probably be able to earn some rakeback off the backs of loose aggressive maniacs. Here’s why:
Different poker rooms use different methods to calculate the MGR (the rake contribution) of their players. Since your rakeback is a set % of the MGR, that directly influences your rake rebate as well.
Some poker rooms use the dealt rake method. The dealt rake method consists in the equal distribution of the resulting rake among all those who are dealt into the hand. This means you can just sit there and fold your hand when the action comes around to you, and you’ll still earn rakeback. You’ll make your money off the action that the more aggressive players generate. If you are an aggressive player yourself, the dealt rake method will give you no advantages and you’ll be confined to generating MGR and rakeback for others.
The contributed rake method is one step in the right direction as far as the accuracy of the MGR calculus goes. Rooms which use this method only allot MGR to players who actually take an active part in the hand. The only problem is, the resulting rake is still equally divided among those who put money into the pot, regardless of the amount of money they contribute. This way, those who play loose but like to keep their contributions small for whatever reason, will still make rakeback on the backs of those who are not shy about building up a pot.
The weighted contributed rake calculation method is the most accurate and fair. This method only awards MGR to those who actively take part in the hand and it calculates players’ individual MGRs in a directly proportional manner with the amount of money they put into the pot. The more money you get in there, the bigger % of the rake you’ll be credited for. Loose aggressive players get a fair amount of rakeback this way and they’ll no longer end up generating value for others.
Fair or not, if you’re a tight-passive player or even a tight aggressive player, you won’t enjoy any sort of advantages in poker rooms using this MGR method.
Make sure you know the rake contribution method used by your poker room when you sign up for a rakeback deal. Many of these rooms offer you real time rakeback tracking, which gives you a valuable tool for double checking on their algorithm.
Also don’t forget to check on whether your poker room deducts your sign-up bonus from the rakeback you generate.
The same goes for poker prop rooms. Poker propping is basically earning a huge rakeback % in exchange for undertaking certain obligations.
