A Look at How Poker Rooms Rake in Profits

 Take a look at how Poker Rooms Make Profits



Q: How can poker rooms make money?


A: You might have this question if you're new to the game.


How do poker rooms make money?

Poker rooms make money through "rake", which is basically a charge to play in a "cash" game or enter a tournament.


Let's get started with tournaments.


Let's assume your favorite online poker site is hosting a guaranteed $100,000 tournament with a buy in of $109.


This $109 will be divided into $100 for the prize pool and $100 for the poker rooms. The remaining $9 will go to the "fee" of the poker room.


The event will make them a profit of $9 per entry.


This is the same system for "Sit and Go's": if you pay $30 to enter a SNG then $30 will go into a prize pool. While the poker room will keep an additional $3, it will likely be worth $30.


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Cash games have a slightly different way of making their money.


Most poker rooms online will only charge a fixed percentage per player. The cap is based on the number players.


Let's suppose that you play $2/$4 No Limit Hold'em Pokerstars.


Based on their current rake structures, the % rake would be 5.0%. If there are less than four players at the table, then the rake will be $1.50.


The rake is capped at $3.00 for five or more players.


In exchange for hosting the Cash Game on their website, Pokerstars would get this amount.


Higher stakes can lead to an increase in the rake charge, which is usually 5%.


The type of game (Fixed Limit Vs. No Limit) as well as the stakes will affect the percentage of rake. Rake is usually between 2% and 5% depending upon the stakes and the game type.


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High prices for food and drink will add to their traditional brick-and-mortar casinos' income.


Hosting "live events" at online casinos can help to increase their revenue. Partypoker hosts many live events throughout the year.


A few online poker rooms also license their technology out to casinos (we've seen this in certain US markets). Online poker software is very costly to develop. Many casinos will simply license the software and host their own sites that use the licensed software. How to Make Money With Poker

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