What is Shared Rakeback and how do you Calculate It?
Shared Rakeback is one of several online poker rakeback offers you can choose from. Rakeback is a combination of dealt rakeback and contributed rakeback. For those that are familiar with rakeback you know that rakeback is earned by raked ring games.
When players contribute to the rake they are awarded a percentage of their contributed rake in rakeback. In order to get shared rakeback the player will have to at least put one chip into a raked pot in order to get any rakeback.
This means that you have to participate in the hand. You will need to be dealt cards and you can’t just fold that hand right off you will need to at least wager one chip to get shared rakeback.
Keep in mind that with shared rakeback the amount a player contributes doesn’t have anything to do with the rakeback earnings they receive. Shared rakeback takes in account the total rake and then divides it among all the players that participate in the hand and then pays a rakeback percentage that is based on the average rake amount.
The average shared rakeback deal pays around 30 percent.
Here is an example on how Shared Rakeback works. You’re playing in a $2/$4 No Limit Hold’em table with 6 players. It’s your turn at the small blind so you have to put in $2 dollars. You then get your cards and their not worth going after, so you fold. But since you put $2 dollars into the pot as your blind you have still contributed to the pot.
The hand then continues on with 3 players one being the player that paid the big blind and the pot ends at $60 dollars. Now if you take the standard rake of 5% up to $3 dollar maximum and divided the $60 dollar pot by 5%, then the rake of that hand is $3 dollars.
Then since this is shared rakeback we have to divide the $3 dollar rake by the 4 players to get a contributed rake of $0.75 and then since the average shared rakeback deal pays 30 percent you have to take the contributed rake of $0.75 by 30% to come up with the final payday of roughly $0.23 for the hand.
Now if you take in mind that you initially contributed $2 dollars to the pot you are still losing $1.77 since you lost your small blind when you folded your hand. But it’s not really a loss because without shared rakeback you would have lost the entire $2 dollars.
Since even the best players know that sometimes you have to fold you have to expect to have some losses as well as wins. But with shared rakeback you can cut your losses on a hand that you have folded.
Shared rakeback also increases the amount of money on hands that you win. Say you get dealt a great pocket pair and win the hand and the $60 dollar pot. You have to take in what you contributed to the pot plus you would get the $0.23 in Shared Rakeback. Shared rakeback allows players to decrease their losses and get larger profits.
