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How
Online Poker Rooms Calculate Rakeback



Many poker players can become
confused when trying to calculate the amount of rakeback
they have earned. Even when not trying to manually figure
this out, they might not understand how their rakeback is
calculated. There are currently three different methods
that a particular poker room will use to calculate
rakeback. The following is an explanation of all three of
these methods, with examples, that should make a poker
playerÃ¢â‚¬â„¢s understanding of rakeback much
clearer.
Before explaining the three methods individually
understanding what Ã¢â‚¬Ëœmonthly gross rake (MGR)Ã¢â‚¬â„¢
is very important. In a nutshell, MGR is the gross profit
a poker room earns from a poker player. Rakeback is based
on this amount. If a poker roomÃ¢â‚¬â„¢s method
of calculating MGR shows a player has earned them $1000
and the player receives 35% rakeback, then the player will
receive $350. In a sense, then, this article is not really
about how rakeback is calculated, but how MGR is
calculated, since the poker player receives this rakeback
based on their MGR.
The first method that a poker room might use to calculate
MGR is the Ã¢â‚¬ËœdealtÃ¢â‚¬â„¢ method.
This is the most simple of the three to understand. If
there is rake taken from the pot and a player was dealt in
the hand, they will earn MGR, and hence rakeback, on that
hand. This is calculated using the following forumula:
($amount raked from pot) / (amount of players dealt in) =
MGR. The player will then receive X% (Ã¢â‚¬ËœXÃ¢â‚¬â„¢
being their rakeback percentage) in rakeback.
If, for example, there is a poker hand where 10 players
are dealt in and the pot is raked $3, then for that hand
the MGR will be $0.30. It is important to remember that as
long as the player received cards, under this method, the
player will earn MGR, and hence rakeback, on this hand.
Another method of MGR/rakeback calculation is the Ã¢â‚¬Ëœaverage
contributedÃ¢â‚¬â„¢ method. Not only does a
player have to be dealt in, but they also have to
contribute to the pot in some way (even if they fold the
small blind). This method, along with the final method, is
much easier to explain with an example.
If 10 players are dealt in a hand, but only 6 contribute
to the pot and the pot is raked $3.00, each player will
earn $3.00/6 players ($.0.50). The formula the poker room
uses for this method is ($amount raked) / (amount of
players contributed to the pot) =MGR.
The final method is very similar to the Ã¢â‚¬Ëœaverage
contributedÃ¢â‚¬â„¢ method above. This method,
Ã¢â‚¬Ëœweighted contributedÃ¢â‚¬â„¢,
differs in that MGR is figured in direct proportion to the
amount of money a player puts in the pot. For example, 10
people are dealt in the hand and 8 of them contribute to
the pot, but Player A folds on the flop, after he
contributed $20 to the pot. If at the end of the hand
there is $300 in the pot, then Player A has contributed
6.67% of the $300 pot. If $3 was raked from the pot,
Player AÃ¢â‚¬â„¢s MGR is (.067) * ($3.00) =
$0.20. The formula is then (amount contributed to the pot
/ $ amount of pot ) * ($ amount raked) = MGR.
Each method has its benefits as well as its drawbacks, but
these benefits and drawbacks are somewhat subjective and
is not the purpose here. It also needs to be mentioned
that a poker room always uses the same method to how they
calculate rakeback. The only time it has changed in the
past is when a poker room is bought by another company.
Once a player knows the formula used for each method, they
will find that calculating their rakeback manually is
quite simple. At the same time, this will most likely not
even be necessary to do, but knowing how to do this can
create a deeper understanding of how much the rake affects
their bottom line and why rakeback is





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