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Online poker rooms charge a small fee from each pot reaching a predetermined amount This is commonly known as the rake and it’s the primary source of income for most online poker rooms. Usually the rake is a few percent of the pot with a cap at $3 in cash games. For tournaments there is a somewhat different system in place, where the rake is replaced by a small fee added to the buy-in.

Rakeback acts as a refund to the players by returning a percentage of the paid rake. The amount the player takes back varies, though usually it’s between 25 to 35 percent of the contributed rake, depending on the deal. That’s where affiliates come in to play. Affiliate sites act as liaisons between the player and the poker room. in return for driving players to the poker room the affiliate receives a percentage of those players’ rake, the majority of which they are then able to pass on to the players. The affiliate is the one offering the deals and making sure the player receives his or her rakeback.

Rakeback is commonly viewed as a being way of getting the most out of online poker for everyone involved. For poker rooms it’s an affordable way of attracting more players with the help of affiliate sites, and for the players it’s a fairly hassle free way to reduce the effect of the rake.