Poker Rake

The rake is the small cut a poker operator takes from each pot, or from tournament entry fees, as its charge for hosting the game.

Definition

In poker the players wager against one another rather than against the house, so the operator holds no built-in mathematical edge; instead it charges rake as its fee for running the game. In cash games the rake is typically a percentage of each pot (commonly in the region of 2.5%–10%) up to a fixed cap, and is only taken once a hand passes a threshold — the "no flop, no drop" rule. In tournaments the equivalent is an entry fee added on top of the prize-pool buy-in, quoted as buy-in + fee (for example $100 + $9). Alternative collection methods include time charges, where a fixed amount is levied per half-hour in higher-stakes live games, and dead drops.

Worked example

Cash game: at $1/$2 No-Limit Hold'em a room rakes 5% capped at $5. A hand reaches showdown with an $80 pot; 5% is $4, below the cap, so the operator withdraws $4 (the "drop") and the winner is paid $76. Had the pot reached $150, 5% would be $7.50, but the $5 cap applies, so only $5 is taken. Tournament: a $100 + $9 event routes the $100 to the prize pool and keeps the $9 as fee — with 200 entrants the operator collects 200 x $9 = $1,800, while the $20,000 in buy-ins is returned to players as prizes.

Why it matters

Rake is the economic engine of a poker room: because the house takes no side in the hands, rake and tournament fees are essentially its only source of revenue, so the structure — percentage, cap and threshold — determines both room profitability and how steadily players' bankrolls are drawn down. For operators it is the lever behind pricing, VIP schemes and rakeback offers; for players and analysts it is a real, recurring cost that separates winning play from losing play, which is why rake levels are a core factor in game selection and in judging whether a game can be beaten over time.

Related

Note: The figures here illustrate common ranges only — exact rake percentages, caps, drop thresholds and tournament fee ratios are set by each operator and vary by stake, game type and jurisdiction, and some regulators cap or separately tax poker rake. Online and live rooms also often use different collection methods, so a specific room's published rake schedule should be checked rather than assuming these numbers.