Rakeback
Rakeback is a reward that usually pays back a small part of the house edge on every bet you place, whether the bet wins or loses.
Also called rake back
The word comes from poker, where the room takes a fee called rake from each pot and gives part of it back. Crypto casinos use it for a reward that returns a share of the house edge on each bet. It is usually part of a VIP programme.
Example. Say a casino offers 10% rakeback, worked out on the house edge. You stake 1,000 in total on a game with a 1% edge. The casino's expected take is 1,000 × 1% = 10. Your rakeback is 10% of that, which is 1. Your expected loss falls from 10 to 9.
What people get wrong. 10% rakeback is not 10% of your bets, and it is not 10% of your losses. At many casinos it is a share of the edge, so it is a tiny fraction of what you stake. Some casinos work it out on a different base, so read how theirs is defined.
Rakeback lowers the cost of playing a little. It never turns the edge in your favour, and betting more to earn more rakeback costs more than it returns. Compare it with cashback, which is paid on net losses.
Related terms
- House edge
The house edge is the share of each bet a casino expects to keep on average over the long run, equal to 100% minus the game's RTP.
- Cashback
Cashback is a reward that returns a set share of your net losses over a period, such as a day or a week.
- VIP programme
A VIP programme is a casino loyalty scheme that moves players up levels and gives them bigger rewards the more they bet.