Gross Revenue vs Net Revenue

The commission in poker - also called rakeback in poker dictionary

Do you realize that every poker hand means a commission paid? To understand why let’s clarify how poker rooms make money. The poker room usually takes a percentage of each pool played, we are talking about circa 5%, but then again each and every room may have its own set of rules and fees.

We had prepared a simple scenario which can help you understand this process. During a game, each player has to pay a commission based on the percentage that the money they invested was part of the pot. Let's imagine that on a 6-max table, half of the players folded and the other half decided to watch the flop for $1 each. One player moved all-in for another $ 3.5, the next player folded and the last player called for $ 3.5, creating a pot of $ 10. When the hand is over, the poker room takes 5% ($ 0.50) rake.) Fortunately, the vast majority of poker rooms offer their players that it will pay back a part of the commission in the form rakeback. Type of rakeback can vary and below you will find a description of the two most popular - Gross Revenue and Net Revenue.

PokerKing

• Rakeback up to 65%
• Deposit bonus 2000 $

+ cryptocurrency / Bitcoin payments
+ high traffic 24/7 including US players
+ plenty of promos including up to 65% Rakeback

- support takes a long time to answer
- mobile app only has Blitz (aka Zoom) and Jackpot Spins
- many regular players

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Review

What is gross revenue?

When gross revenue is paid, all income goes to players. There is no consideration for any expenditures like fees. Monthly rakeback will always be the same because any factors won’t impact on his volume. In a gross revenue share deal, you’ll get a percentage of whatever you pay in form rake. So, if you generate $100 in rake in a month and you have a 15% gross revenue share deal, you’ll get $15. Gross revenue is offered on poker rooms from Winning Poker Network like PokerKing, Americas Cardroom, and Black Chip Poker

What is net revenue?

Net revenue means a type of commission which is paid after deducting fees (e.g transaction-related fees) from 2% to 8%, bonuses (prizes in leaderboards, first depo bonus) from 10 to 15% or operator costs from 10% to 15%. Monthly rakeback can vary because it will depend on all of these factors. To give you an example:
If you pay $100 in rake during a month and your deal is 35% net revenue share, you might think you’d get $35. Unfortunately, this is not the case. The poker room will firstly apply various deductions like for example all bonuses and promotions 15%, deposit fees 8%, operator fees 10%, and various other deductions 7%. So, looking at these percentages, you can expect around 40% to be deducted from the gross revenue. Finally you’ll get 40% of $60 instead of the earlier $100 paid rake. Net revenue is offered on poker rooms from Ipoker Network like GUTS, Bestpoker and Betfair.

The difference between Gross and Net Revenue

Usually the amount of rakeback depends on the amount of paid rake. When your rakeback is based on your net rake contribution to the poker room, then bonuses and fees have an impact on your rakeback volume. To put it bluntly, these factors will make your rakeback smaller. However, if your rakeback is based on gross rake contribution, then bonuses and fees have no effect on the amount of paid rakeback. It's the most important difference between Net and Gross Revenue.

Our role is to make sure that you get the most from your rakeback. Whether it is net or gross revenue, you will increase your poker earnings with DonkHunter.com.