How do poker rooms make money?

I mean, how do they really make a profit?

In a nutshell, whenever you play poker online for real money, they will take a small portion of the bet, no matter who wins.

In a short paragraph:
Well, poker rooms make money in 2 ways, depending on the type of poker game you are playing.  Firstly, the person has to be playing with real money (called a real money player or RMP) in either a cash game or a tournament.  Poker companies take a small commission on each played hand of a cash game.  This commission is called rake.  and rake sucks.

As Edward Norton’s character in Rounders once quoted:  “in the poker game of life, women are the rake”.  Interpret this any way you want, but rake is not a good thing for a player.

Tournament fees are what a RMP pays when they want to enter a tournament.  They might pay $10 entry, which goes to the prize pool, but also a small fee on top.  This Tournament fee is the revenue for the poker room.

The percentage of commission they take really isn´t a great deal , but it all adds up.  Fractions of a cent muliplied by thousands of hands each day equals lot of profit for poker rooms.

Poker rooms have different methods of collecting rake and this is covered HERE.  these different methods of rake collection can affect how profitable a poker player.

 

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