Why Do Casinos Impose Rakes?
In most casino table games — such as blackjack, craps, or baccarat — players compete against the house. They place bets on a certain outcome (e.g. pass line bet) and get paid if they win the wager. The casino earns money from these games thanks to the so-called house edge or casino advantage, which is built into the rules of the game. For example, a dozens bet in roulette has 31.58% true odds, but the winnings are awarded based on 2:1 payout odds.
On the other hand, land-based and online casinos cannot directly profit from the outcome of pot-based games like Texas Hold’em, since the players do not compete against the dealer. To make administering these popular games financially viable, the casinos have to enforce a rake on the pot. The typical casino pot rake ranges between 2% and 10% of the pot. High-roller tables with high max bets will typically have 2%-3% rakes, while low-roller tables tend to have 7-10% rakes. As pot rakes guarantee a profit for the house, hosting pot-based poker games is actually very lucrative for casinos.
- The commission taken by the gambling venue for administering a game.