Online poker software is terribly expensive to develop, so many casinos will simply license out the software and run their own branded sites using the licensed software.GGPoker was the first major poker site in getting a Dutch poker license. In addition, some online poker rooms will license out their technology to casinos (we have seen this in some US markets). partypoker, for instance, hosts numerous live tournaments throughout the year.

Online casinos will sometimes supplement their income by hosting 'live' events. Traditional 'brick and mortar' casinos will supplement their income by charging high prices for drinks, food, etc. Rake usually ranges from 2% up to 5%, depending on the type of game and the stakes. The percentage of rake will vary depending on the type of game (Fixed Limit vs No Limit, for instance) and the stakes.

The percentage of rake charged will generally increase with higher stakes, up to a maximum, usually of 5%. So, this is the money that Pokerstars would make in exchange for hosting the cash game on their site. If there are five or more players at the table, the rake would be capped at $3.00. If there are 4 or less players at the table, the rake would be capped at $1.50. Let's say that you are playing $2/$4 No Limit Hold'em on Pokerstars.īased on their current rake structure, the % rake for the hand would be 5.0%. Most online poker rooms will simply charge a fixed percentage per hand, with a cap based on the number of players. This is the same structure for 'Sit and Go's' - if you pay $33 to enter a SNG, $30 will likely go into the prize pool, while the poker room will keep the additional $3 as their fee.Ĭash games are a bit more variable in terms of how the poker room makes their money.

So, this $9 per entry that is collected will end up being their profit for the event. Of this $109, $100 will go into the prize pool, while the poker room will keep the other $9 as their 'fee'. Let's say that your favourite online poker room is hosting a $100,000 guaranteed tournament with a buy-in of $109. Poker rooms make money via 'rake', which is when they essentially charge a fee to play a hand of a 'cash game' or to enter a tournament. A Look at How Poker Rooms Rake in ProfitsĪ: If you are new to the game of poker, you might have the following question:

Can you make money with online poker