Rakeback Versus Bonuses

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Rakeback Versus Bonuses

The comparison of Rakeback versus bonuses used to be a tedious decision-making process for online poker players. Rakeback deals generally ask the player to input a specific code in the box that was normally available for a welcome bonus. Now days, most Rakeback bonus codes award both the Rakeback and a hefty bonus offer.

Of course, it's rarely as easy as all that. Not many online poker rooms are perfectly content to pay Rakeback and a large bonus without some kind of catch. The catch, in this case, is known as a "bonus deduction".

The standard bonus deduction is a percentage equal to the Rakeback percentage. For example, if you earn 30% Shared Rakeback, 30% of your bonus will be deducted from your Rakeback earnings. So a $500 bonus would take $150 from your Rakeback. Once the $150 was earned in Rakeback, the player would then start earning regular Rakeback profits.

This may seem like a disadvantage, but actually, it's a great way to clear your bonus substantially faster and then further increase your profits with Rakeback. In order to become better than a break-even process, you'll need to be earning Rakeback at a higher rate than you earn your bonus.

This method is easiest to shown by example, so we'll use Full Tilt Poker's bonus system and 27% Dealt Rakeback. Bonuses are cleared by earning points, and points are awarded at a ratio of 1 point for every $1 raked, so long as you are dealt in the hand. Partial points can also be awarded, such as 2.25 points for a $2.25 rake. Every point is worth $0.06 of the bonus, so you'll need about 17 points for each bonus $1.

The 27% Dealt Rakeback pays players Rakeback for every raked hand they are dealt in, so every time you are eligible for points, you are also eligible for Rakeback. The more players dealt into a hand, the less Rakeback you will actually receive, so keep this in mind when choosing a table.

We'll run two examples - one at a 6-seat table and one at a heads-up table, to show the difference.

Example 1 - 6 players

At a 6-seater table that averages a $40 pot, the rake would be $2. We then divide the $2 rake by the 6 players dealt in the hand, which comes to about $0.34 in contributed rake per player. Your 27% Dealt Rakeback is taken from this $0.34 contributed rake amount 27% of $0.34 is about $0.09.

The problem with this scenario is that you would earn 2 points, which is equal to $0.12 of your bonus, and only $0.09 in Rakeback. As we mentioned above, in order for a Rakeback + bonus offer to be truly profitable, the Rakeback must exceed the bonus in terms of accumulation speed. Let's try the heads-up example...

Example 2 - Heads-Up (2 players)

With only 2 players at the table and an average $20 pot, the rake would be $1. The rake is divided by dealt-in players, which comes to $0.50 contributed rake per player. 27% of $0.50 is about $0.13. (It's actually 13.5, so for every two hands you'd get $0.27, not $0.26.)

By raking only $1, you earn just one point, worth $0.06 of the bonus, but you're more than doubling that in Dealt Rakeback with about $0.13 per hand. If you up the stakes to average $40 per hand in heads-up, the rake double to $2, the Rakeback doubles to $0.27, and the points double to 2 per hand.

As you can see, playing heads-up is the best way to make the most of your Rakeback and bonus at most online poker rooms. Plus, heads-up cash games are much faster, which cuts the time needed to clear the bonus way down, thereby speeding up your Rakeback profits as well.

It should be noted that not all online poker rooms even require a bonus deduction. Cake Poker is known for its excellent 33% Rakeback program and absolutely no bonus deductions applied. Then again, Cake Poker doesn't have quite the same features as Full Tilt Poker and other major poker rooms. The traffic and game selection are considerably lower, for example.

Choosing the best combination of poker room, Rakeback and bonus is something that you will need to consider and decide for yourself as to what will profit you most in the long run. Be sure to include what type of player you are - loose or tight and passive or aggressive - as each Rakeback program can greatly benefit different player types.

To learn more about choosing Rakeback deals and the best Rakeback strategies for each type, please continue reading more of our online poker Rakeback articles.

Choosing the Right Rakeback Deal