Online poker sites do not bet against the players. The poker sites generate money by charging the players fees for using the server to play poker. There are two kinds of fees: rake collected from cash game pots and tournament entry fees.

The normal rake charged in a cash game is 5% of the pot, capped at a maximum of $3. In a tournament the normal fee is 10% of the buy-in, although most sites charge less than 10% for higher buy-in tournaments. There are some minor differences between poker sites in the way that rake is collected from cash games. The rate at which rake is collected is typically posted in a table known as the rake schedule. Most poker sites don't charge any rake if everybody folds before the flop. This is frequently referred to as "no flop no drop".

Playing higher limit cash games allows you to win more money from the other players, but it also causes you to pay more in rake. If you are playing $5/10 limit holdem, maximum rake $3 is collected from most pots. If there are 10 players at the table, you are paying nearly $0.30 per hand (on average) to play poker. If you are playing $0.25/0.50 limit holdem, the site is raking only 15 - 20 cents (on average) from each pot. Keep in mind that the site is supplying the same service to each table (server time), so the profit for the site is much higher at the higher limit tables.

You will also pay higher rake at short-hand tables. If you are playing $5/10 limit with just 6 at the table, when the house rakes $3 from the pot, your share was $0.50 vice $0.30 as it was with 10 players. These are average numbers, of course, but over time your results will closely parallel the averages.

We believe in reducing the rake whenever possible. Getting bonuses and rakeback are essential to doing this. A monthly rake race is also a great way to pay less to play poker!