Product
Rake
Definition
The commission a poker room takes from each cash-game pot, usually a percentage of the pot up to a fixed cap per hand, or a fee charged per hand or per time period. The room is not a party to the bets, so rake is its revenue.
Key takeaways
- Rake is the poker room’s commission on each pot, typically a percentage with a per-hand cap; tournament fees are its equivalent.
- It is the poker economy’s house edge: the rate at which money leaves the table, which only the best players overcome.
- Rake structure determines whether recreational and skilled players stay in balance, which is the room’s core problem.
- Rake needs full tables, which is why poker has consolidated onto networks with shared liquidity.
Why it matters
Poker is the one major online product where the operator does not play against the customer, and rake is how it gets paid. In a cash game the room takes a percentage of each pot, commonly around 5 per cent, capped at a fixed amount per hand so that large pots are not raked without limit; in tournaments the equivalent is the entry fee added to the buy-in. Because rake is taken from money the players put in, it is the poker economy's house edge: over time the rake removes money from the table at a rate that only the best players overcome.
Rake structure shapes the whole product. A high rake or a high cap drains recreational players faster and drives skilled players to better-value rooms; a low rake attracts skilled players who beat recreational ones faster; the room's problem is to set rake so that the ecosystem of winners and losers stays populated. Time rake, charged per period rather than per pot, suits high-stakes tables. No-flop-no-drop, under which no rake is taken if the hand ends before the flop, is a near-universal convention. Rakeback and loyalty schemes return part of the rake and are a lever on the same balance.
For the business, rake is reported as poker revenue and is small relative to casino and sports at most operators, which is why poker has consolidated onto a few networks with shared player pools. Liquidity is everything: a table that does not fill earns no rake, and the shared-liquidity agreements between European regulators exist to keep tables full.
Frequently asked questions
How much rake do online poker rooms take?
Commonly around 5 per cent of each cash-game pot with a cap per hand that varies by stake level, and a fee of roughly 5 to 10 per cent of the buy-in for tournaments. Structures vary widely by room and stake.
What does "no flop, no drop" mean?
That no rake is taken from a hand that ends before the flop is dealt. It is a near-universal convention in cash games.
Is rake the same as the house edge?
Functionally, yes. The room is not betting against players, so it does not win their money directly, but the rake removes money from the table at a steady rate, which has the same effect on players in aggregate.