Rake: Deal With It

In the “real” world we tend to debate the same topics over and over and over again. Things like health care, job creation/loss, taxes, the war on terror. When the media gets tired of one, they go to the next. Eventually, the subjects get recycled and we have the same discussions all over again.

The same holds true in the poker world. We tend to talk about one issue, such as online poker security, until we have exhausted all angles, and then move on to the next. One topic that comes up time after time is the rake poker rooms charge. While many people don’t really care about the rake, there are plenty who do. And they think it is way too high. But is there anything we can do about it? Yes and no. We can always contact the poker rooms and present a case for lowering the rake. If enough people do, then changes might be made. But it is going to be an uphill battle. The reality is that the rake probably won’t go down for quite some time. Here’s why.

Ignorance

There are many players for whom poker is a serious pursuit. They play for hours upon hours a day, talk poker on the internet, read poker books, and watch poker training videos. Because they derive all or much of their income from poker, rake is a big deal to them. Every cent of rake is a cent out of their pockets. So of course they want the rake lowered at online poker rooms.

The thing is, though, serious poker players make up the minority in the internet poker world. Most customers of online poker rooms are just casual players, players who like to play for a few bucks after dinner a couple nights per week. For these people, what the poker rooms take out of the pot typically does not even enter their consciousness. They just deposit their money and play.

Thus, why would a poker room voluntarily reduce its prices when most of its customers won’t even notice? The only way I could see this working would be if the poker room made the entire poker community fully aware of the rake cut, including educating casual players about how much money they would be saving by switching to/sticking with that poker room. But even then, it might all seem too complicated for many to understand.

Bonuses

While lower rake does not attract casual players, the ones who make up the bulk of a poker room’s customer base, poker bonuses and other promotions do. The impact of deposit bonuses on a player’s bankroll is much easier for a casual player to understand than the impact of the rake. And the more bells and whistles, the better. Special promotions, loyalty programs, contests, and unique game features make things more fun and interesting for the casual player. Even when some of those things incorporate rake, casual players do not see rake as a cost to them. Rather, they see it as a way to earn that bonus, complete that promotion, or hit that next loyalty level.

Even experienced grinders are often satisfied with a healthy dose of promotions and VIP bonuses, as they provide a side revenue stream for them, helping offset the rake.

Competition

Traditionally, the lower the rake gets, the worse the games get. Why? Because, as I have already stated, the casual players don’t care about the rake. Pros and serious amateurs do. Therefore, the people that will migrate to the low rake poker rooms will be the “sharks” and the “nits.” In other words, the people you don’t want filling your tables. I mean, who enjoys playing at boring tables with no action or tables filled with players who can easily drain your wallet? And if players don’t like the games, they aren’t going to sign up, and then poker room isn’t going to make money.

World Poker Exchange actually reduced its rake to zero at one point (technically, it gave its players 100 percent rakeback), hoping to attract players by the droves. It worked for a short time, but eventually the games dried up because the same players who were so eager to play at a no-rake site were the same players they all hated competing against.

Costs

Finally, let’s not forget that it does cost money to run an online poker room. Sites like Full Tilt Poker, PokerStars and others need to hire programmers, security staff, customer service reps, poker room managers, and other employees. It needs to pay for its servers, marketing, and office space. There are tons of other expenses, as well – I think you get the point. Nobody is claiming that the top poker rooms are just squeaking by, but they do need to charge a rake in order to continue to operate.

The sites also have the right to turn a profit. They are businesses, after all. And they do provide us poker players with the means to enjoy the game we love. It’s not like they just take our money without actually doing anything to earn it.