Rake in poker is the small fee a poker room takes from cash-game pots. It is how the house earns, because players play against each other, not against the house. For a player, rake is a cost. For an operator, it is the main source of revenue, along with tournament fees and time fees. This guide explains how rake works, how time fees replace it in some places, how tournament fees earn money, and how operators share revenue back through rakeback, agents and affiliates.
How does rake work in poker?
The platform takes a percentage of each pot, up to a maximum called the cap. Operators set three things:
- The percentage. Rake is usually 2.5% to 10% of the pot; 5% is a common setting.
- The cap. The most the house takes from one pot, often set in big blinds, for example 2 or 5 big blinds.
- When rake starts. Many rooms use “no flop, no drop”: if the hand ends before the flop, no rake is taken.
Example: in a $1/$2 game with 5% rake and a 2 big blind cap, a $60 pot pays $3 in rake. A $200 pot pays $4, because the cap stops it at 2 big blinds.
On an online platform the software does this automatically for every hand, so the operator only chooses the settings per table or stake.
What is a time fee, and when do operators use it instead of rake?
A time fee charges each player a set hourly rate for their seat, not a share of the pot. The rate is usually taken in small steps, for example every 6 minutes, and it rises with the stakes. The operator decides the rate and the interval.
In some places, rake is not allowed. In Texas, poker clubs generally charge time or seat fees instead of taking a share of the pot. Hijack Poker, a Texas online poker club running on Creatiosoft’s platform, works this way: it splits an hourly rate into 6-minute charges. At the time of writing (November 2026), at $1/$2 blinds the rate is $7.50 an hour, so $0.75 is taken every 6 minutes (see their pricing). Rules differ by state and country, so operators should confirm with a local gaming lawyer whether poker rake or time fees are allowed.
How do poker tournaments make money?
Tournaments earn through a tournament fee added to the buy-in. A tournament listed as $25 + $5 costs the player $30: the $25 goes into the prize pool and the $5 fee goes to the house. The operator sets the fee for each tournament.
Example: 200 players enter a $25 + $5 tournament. The prize pool is $5,000 and the operator earns $1,000 in fees.
The fee works the same way across formats:
- Multi-table tournaments (MTTs) and Sit & Go: every entry pays the fee.
- Re-entries and rebuys: each re-entry or rebuy can carry the fee again, which adds revenue in busy tournaments.
- Satellites: players win seats into bigger tournaments; the satellite itself carries a fee.
- Freerolls: no fee and no buy-in; operators run them to bring in and keep players.
If an operator guarantees a prize pool and fewer players join than needed, the operator pays the difference (the “overlay”). Setting realistic guarantees protects the fee income.
So a poker room has three ways to earn: rake from cash-game pots, time fees where rake isn’t used, and tournament fees. Rakeback and rewards, below, are how operators share part of that back.
What is rakeback?
Rakeback returns part of the rake to the people who generate it. Operators use it to win and keep players and partners. It usually takes one of three forms:
- Through agents and affiliates. Agents and affiliates who bring players to the platform receive a share of the rake those players generate. In the market today this share is often 50–60%.
- Directly to players. Without an agent, some operators pay rakeback straight to players as cash or bonus balance.
- As rewards. Instead of cash, operators turn rake into tournament tickets, live-event packages, trips or VIP prizes.
How do poker rooms make money after rakeback?
After paying 50–60% back through agents, affiliates or players, many operators keep around 30–50% of the rake, depending on how much they return. In return, rakeback brings more players, and more players mean fuller tables and more rake.
Example: a room that collects $10,000 in rake in a month and pays 60% back keeps $4,000, before platform and running costs.
What should operators look for in their poker software?
- Rake and time-fee settings per table and stake, including caps and “no flop, no drop”
- Tournament fees set per tournament for multi-table tournaments, Sit & Go, satellites, re-entries and rebuys
- Agent and affiliate management, so rake shares are tracked and paid without spreadsheets
- Reports on rake by game, player, agent and period
Creatiosoft’s white label poker software includes all of these in the back office: rake and time-based fees, tournament fees, and agent and affiliate management. See how our pricing works: no setup fee, $1,000 a month plus 9% of rake and tournament fees. If you run tournaments, see our poker tournament software.
FAQ
Is rake legal?
It depends on where you operate. Some places allow rake, some allow only time or seat fees, and some do not allow real-money poker at all. Check with a local gaming lawyer.
What is a normal rake percentage?
Rake is usually between 2.5% and 10% of the pot. Many rooms use around 5% with a cap of 2 to 5 big blinds, but each operator sets its own.
What does “no flop, no drop” mean?
If a hand ends before the flop, no rake is taken.
What is a tournament fee?
The part of a tournament buy-in that goes to the house. In a $25 + $5 tournament, $25 goes to the prize pool and $5 is the fee.
