What Is a Poker Rake and How Do Casinos Make Money on Poker?

If you’ve ever sat at a poker table, whether it’s live under buzzing lights or online at 2 a.m., you’ve probably seen a few chips quietly disappear from the pot.

That silent subtraction? That’s the rake, the house’s cut for hosting the game.

For newcomers asking what a rake is in poker, it’s the fee the casino or platform charges for facilitating play. It might seem small – a dollar here, a few cents there, but don’t be fooled.

Over time, it can become the difference between a profitable session and a losing grind.

Whether you’re just learning the ropes or already multi-tabling online, understanding what rake is, how it’s calculated, and how it quietly eats into your winnings is key.

Understanding the Poker Rake

Let’s get one thing straight: the poker rake is not some shady trick pulled behind the scenes.

The rake is how poker rooms, whether online or in smoky back corners of Vegas, keep the lights on and the tables running.

In fact, if you’ve ever wondered how casinos make money on poker, this is your answer.

That said, not all fees in gambling are created equal.

So, what exactly is the rake? How is it different from, say, the “vig” on a sportsbook bet or the house edge in slots? And why should you, as a player, care beyond just knowing it exists?

Below, we’ll break it all down: where the rake comes from, what is taking a rake in poker, what makes it unique, and why it plays a bigger role in your bottom line than you probably think.

The House Doesn’t Play in Poker, So It Charges You

In blackjack, roulette, or slots, the house is an active participant. It wins when you lose. That’s its business model.

But in poker, the casino isn’t a player, it just hosts the game. You’re playing against other people, not the dealer.

That’s why the house doesn’t profit by beating you; it profits by taxing the game. In other words, what is taking a rake if not the casino’s way of staying in the black without ever shuffling up a hand?

That “tax” is the rake, a small cut of the pot taken every hand, or a fee built into your tournament buy-in. It’s how poker rooms pay staff, run the tables, and make money without needing to stack the deck. Without the rake, the casino would be running poker as a charity. Spoiler: they’re not.

How Poker Rake Is Usually Set

The typical rake in a cash game is a percentage of the pot, often between 2.5% and 10%, with a cap.

Let’s say you’re playing $1/$2 No-Limit Hold’em and the pot hits $100. A 5% rake would be $5, but if the rake cap is $3, then only $3 is taken.

That cap is key, especially in higher-stakes games where pots can balloon.

Different venues tweak their rake structures, though.

Online poker rooms often have lower rake percentages, sometimes closer to 3%, but higher volume means they’re still pulling in a lot. Live rooms may take a little more per pot, but hands are slower, which evens things out over time.

Rake vs. Other Gambling Fees: Not All House Edges Are Alike

Here’s where it gets interesting: the rake is fundamentally different from other ways casinos make money. In slots, the “hold” is baked into the machine.

You’re spinning against an algorithm with a set return-to-player (RTP) rate, usually 85-95%.

In sports betting, the vig (or juice) is the cut the bookie takes from losing bets, usually 10% on either side.

But in poker, the rake is taken from the pot you and your opponents are building. It doesn’t care if you win or lose, it just wants its piece.

That means even the best player in the room is battling the rake, not just the other players.

In a way, it’s the one invisible opponent everyone shares. If you’ve ever asked what’s a rake in poker, here it is: a consistent, unavoidable fee that affects everyone at the table, winners and losers alike.

The Quiet Threat: How Rake Chips Away at Profits

What makes rake so dangerous, especially for new or casual players, is how invisible it can feel. You win a hand, collect your chips, and don’t even notice that $2 or $3 is missing. But over hundreds of hands, that’s a major leak.

In fact, for micro and low-stakes players, the rake can eat up a huge portion of potential profit. It’s the difference between being a break-even player and a losing one.

Professional grinders often track their “win rate after rake,” because it’s a clearer picture of how well they’re truly performing. Without accounting for it, though, you’re not seeing the full story.

As poker pro Daniel Negreanu once pointed out, “You can beat every player at the table and still be a long-term loser if the rake’s too high.”

Why It Matters More Than You Think

Knowing how rake works isn’t just trivia; it’s a strategic advantage. It helps you choose better games, understand your real ROI, and avoid traps that feel profitable but aren’t.

Bottom line: if you’re serious about poker – even semi-serious – you need to treat the rake as more than a background detail.

It’s a central part of the game’s economy, and learning to navigate it well is just as important as knowing when to fold pocket jacks.

Types of Rake in Poker

Not all rake is created equal.

While the word itself might conjure images of a tiny tax quietly skimming off your hard-earned chips, the way that tax is applied varies wildly depending on the game, format, and venue.

Some rake structures are more forgiving. Others, not so much. Knowing the difference between them can make the difference between breaking even and slowly bleeding out over dozens of sessions.

Below, we break down the main types of rake, each with its own quirks, pros, and gotchas. Whether you’re grinding online cash games or sitting in on a Vegas tournament, chances are you’re paying one (or more) of these.

Pot Rake: The Classic Cut

This is the most familiar form of rake: a percentage is taken directly from the pot once a hand is completed, typically capped at a certain amount. It’s straightforward, which is part of its appeal, but it can hit lower-stakes players particularly hard, since the percentage taken doesn’t scale with your skill level, only the pot size.

Pot rake is everywhere, online, live, low-stakes, nosebleeds. But the catch? If you’re playing a lot of small or marginal pots, it quietly eats away at your edge.

Time Collection: The Clock Is Ticking

More common in high-stakes live games, time collection (a.k.a. timed rake) works more like a cover charge. Instead of taking a percentage from the pot, the casino charges each player a fixed amount – say, $10 every half hour – regardless of how many hands you’ve played.

It’s brutal for nitty players who fold a lot, but ideal if you’re aggressive and churning out hands. The math flips here: the more hands you play, the less rake per hand. But if you’re card-dead and bleeding chips, it can feel like you’re just paying rent.

Dead Drop: The Dealer’s Fee

Dead drop is a fixed fee placed in front of the dealer, usually by the player on the button, before any cards are dealt. You pay just for the privilege of playing, win or lose. While this method is rare, it still pops up in some live poker rooms.

Its predictability can be a plus. But the downside is obvious: you’re taxed regardless of whether you even get past pre-flop. If you’re folding nine out of ten hands, you’re still leaking money every orbit.

Tournament Fees: The Fine Print in Your Buy-In

When you register for a poker tournament, your buy-in often looks like this: $100 + $10. That “+10” is the rake, the casino’s cut for hosting the event.

Unlike cash games, you don’t pay rake repeatedly during play; it’s front-loaded and flat.

The good news? It’s transparent. You know exactly what you’re paying. The bad? In lower buy-ins, that percentage can be steep, often 10% or more, making small-stakes tournaments tough to beat over the long haul without serious volume or a hot streak.

No Flop, No Drop: A Friendly Twist

This player-favorite policy means that if a hand doesn’t see a flop, no rake is taken. It’s mostly found in live rooms and is designed to encourage action. Fewer folds, more flops, more fun.

Strategically, this gives tight players a breather, you’re not punished for folding garbage. It also disincentivizes ultra-short stack hit-and-run tactics.

But it’s not universal, and you won’t find it in many online games.

Bad Beat Jackpot: Fun, But Costly

Some rooms offer a “bad beat jackpot” funded by taking an extra dollar or two from qualifying pots. When a player loses with an extremely strong hand – think quad eights or better – they trigger the jackpot, which can result in five- or six-figure payouts for the table.

It’s entertaining and can soften the blow of brutal losses. But make no mistake: it’s an additional rake, often in games that already have high fees.

Over time, unless you hit the jackpot (or sit when someone else does), you’re subsidizing someone else’s miracle moment.

How Rake Is Calculated

Rake is the casino’s cut, the price of playing poker without the house sitting in the game. The most common method of taking a rake is a percentage of the pot, usually around 5%, capped at a certain dollar amount (like $3 or $5).

If the pot’s small, the house takes less. But once it passes a threshold, the rake maxes out.

Online rooms often take a rake that’s slightly lower, typically between 3% and 5% – but since hands move much faster online, you’re still paying rake more often. That speed adds up. You might be paying more in total over an hour online than you would in a live game, even with better rake terms.

And here’s the kicker: rake poker hits low-stakes players the hardest.

When pots are small, the rake eats a bigger chunk of the action, making these games tougher to beat long-term. A solid player might technically win more hands than they lose, but still end up down because of constant rake bleeding.

That’s where rakeback comes in. Many poker sites offer cashback or loyalty programs that refund part of the rake you’ve paid. It won’t make you rich, but it helps offset the damage. The more you play, the more it matters.

If you’re not getting rakeback, you’re leaving value on the table.

How Rake Affects Your Winnings

• Rake quietly eats into profits: The small cut the house takes might seem harmless, but over time, it can seriously drain your winnings, especially in lower-stakes games where every chip matters more. At $0.50/$1 tables, a 5% rake capped at $2 can wipe out your edge hand after hand, turning solid strategy into break-even or worse without you even noticing.
• Your win rate can turn negative: Even if you’re consistently outplaying opponents, a high rake can drag a modest win rate below zero, slowly bleeding your bankroll while you think you’re making progress.
• It’s a common pitfall for new players: Many beginners focus on improving their gameplay but completely overlook how much rake is draining their profits from every pot.
• Smart players fight back: Savvy regulars use rakeback deals, bonuses, and loyalty programs to offset what the house skims, treating it like part of the strategy.
• Grinders benefit the most: High-volume players stand to gain significantly from even modest rakeback percentages, which can add up to hundreds per month over time.
• Success requires rake awareness: Beating the players isn’t enough—you also need to beat the structure. If you ignore rake, you’re missing a crucial part of long-term profitability.

Rake in Online vs. Live Poker

At a glance, online poker seems like the cheaper option. The rake percentages are lower, usually in the 3% to 5% range, and the caps are tighter. Compared to many live poker rooms, where rake can hit 10% with a $5 cap, the numbers online look far more player-friendly.

But here’s the twist: online games move at lightning speed. That lower cut? You’re paying it far more often.

In a single hour, you might see 80 to 100 hands online at a six-max table, more if you multi-table. Every one of those hands is taking a rake. So even if each one only chips away a dollar or two, the total starts to climb fast.

That means online players, especially volume grinders, often end up paying just as much-or even more-rake per hour than their live counterparts, despite the friendlier rates.

Live poker, on the other hand, runs at a glacial pace by comparison. Between chatting, chip-stacking, slow rolls, and manual dealing, you’re looking at maybe 25 hands per hour.

So while each pot might be taking a rake poker that’s higher in percentage terms, you’re simply seeing fewer raked hands. The total bleed is slower, which is why some players still prefer the brick-and-mortar grind, at least from a bankroll preservation standpoint.

How to Minimize the Impact of Rake

You can’t eliminate the rake; it’s the casino’s fee for letting you play.

But you can stop it from bleeding you dry.

Most players don’t think about rake until it’s already eaten into their profits, hand after hand, session after session. The good news? There are ways to push back.

Not all games, platforms, or strategies treat rake equally. Whether you’re grinding online or in a live room, making a few smart adjustments can soften the blow and give your win rate a real fighting chance.

Below are several non-obvious, practical ways to minimize the impact of rake without reinventing your game. No gimmicks, just sharper decisions.

Choose Your Games (and Sites) Wisely

Not all poker rooms take a rake in the same way. Some have steep percentages with high caps, while others are far more forgiving.

Look for sites or live rooms with lower rake structures, especially ones that offer “no flop, no drop” policies or reduced rake during off-peak hours.

If you’re not checking the rake schedule before sitting down, you’re playing blind.

Don’t Sleep on Rakeback

Rakeback is basically the house saying: “Here’s a small thank-you for all the money we took from you.” Many online rooms offer 10% to 40% back in the form of cashback or loyalty points.

If you’re a high-volume player, this can be a game-changer. Even casual players should enroll, because free money is still free money.

Avoid the Temptation of Small Pots

Here’s a sneaky truth: rake hits small pots harder. If you win a $10 pot and the rake is $1, that’s 10% gone, instantly. Larger pots tend to feel the impact less, proportionally speaking.

So if you’re in a game with aggressive rake, stop chasing crumbs and start building meals. Play hands that have real upside.

Tighten Up in High-Rake Games

Loose play can be fun, but in high-rake environments, it’s dangerous. Marginal hands that might show a tiny profit pre-rake can become losers once the house takes a rake. In these games, tighten up your range. Only play hands that have solid post-flop potential.

In short: make it count or don’t play at all.

Use Casino Promos and Bonuses to Offset the Bleed

Some online poker sites offer deposit bonuses, reload offers, or tournament tickets as part of their promo calendar. Take advantage.

While it’s not technically “rakeback,” these perks help cushion the cost of playing. Stack enough small bonuses together, and you’ve got a solid rake offset without changing your play style.

Don’t Multi-Table Just to Grind Rake

More tables mean more hands, sure, but they also mean more rake. Unless you’re playing with a good rakeback deal or serious edge, don’t fall into the trap of volume for volume’s sake.

Quality beats quantity, especially if you’re paying a tax on every hand.

Conclusion: The Rake’s Always Watching, So Play Smarter

You don’t have to fear the rake, but you’d be foolish to ignore it. It’s the one opponent you’ll face every hand, whether you’re running hot or folding garbage.

Understanding how rake works, how it’s calculated, how it stacks up between live and online games, and how it quietly eats into your profits isn’t just good practice. It’s essential to survive the long haul at the tables.

The smartest players don’t just outplay their opponents; they hunt for softer games with better rake structures, sign up for rakeback deals like their bankroll depends on it, and tighten up their play when the tax gets too high.

Poker might be a game of skill, but if you’re not factoring in the cost of playing, you’re not playing the full game.