What is dealer commission or “rake”?
Dealer commission, commonly known as the "rake" in the iGaming and casino industry, is a fee collected by the house or casino for facilitating certain types of games, particularly those involving multiple players, such as poker. Unlike typical games where the house has a built-in advantage, dealer commission is applied as a percentage of the pot or as a fixed fee, ensuring the casino profits from each game without directly betting against the players.
How does dealer commission work?
In games like poker, the casino takes a small percentage (usually around 5% but varying by venue) from each pot as the dealer commission. This commission may also be collected on a per-hand basis or even as an entry fee in some online tournaments. The fee is typically capped to ensure it doesn’t become disproportionately high as pots grow, maintaining fairness in gameplay.
Why is dealer commission used?
Dealer commission is a crucial revenue stream for casinos, allowing them to offer games without competing directly against players. This method encourages a more social and competitive gaming environment, where players compete against each other rather than against the house, while still ensuring profitability for the casino or iGaming platform.
Advantages of dealer commission.
- Revenue for the casino: Dealer commission provides a steady income stream without relying on player losses to the house.
- Fairness in games of skill: Games like poker remain more skill-based since players are only indirectly affected by the house through the rake, rather than playing against the casino.
- Sustainability for long games: With capped commissions, both casual and high-stakes players can enjoy extended gameplay without excessive deductions from their winnings.
Tips for managing dealer commission.
For iGaming operators and industry professionals:
- Optimize commission structures: Adjusting the rake percentage and cap to match player stakes and game types can balance profitability with player satisfaction.
- Promote commission-free games occasionally: Offering games with no commission for limited times can attract new users and retain existing players.
- Monitor competitor commission rates: Regularly analyzing competitors' rates helps ensure your commission structure remains competitive, attracting more players to your platform.
For players:
- Look for commission caps: Playing in games with a cap on the dealer commission can help maximize net winnings over time.
- Participate in rakeback programs: Some online casinos and poker platforms offer a rakeback system, returning a portion of the rake to loyal players.