Microgaming Changes Rake Structure

The Microgaming Poker Network has changed the rake structure for its online poker rooms, allowing the rooms to collect more money from their players. 

On the surface, it does not necessarily look like a big change, but the little adjustment will add up.  Previously, the rake structure varied based on the stakes.  While the rake was 5 percent of the pot, there were levels at which the rake would increase.  For example, at $0.50/$1 and $1/$2 fixed limit tables, the rake would not kick in until the pot reached $5.  At that point, 25 cents were taken in rake.  At $10, another 25 cents went to the house, and so on every $5 until the maximum rake of $1.50 was reached.  While the rake increments, pot levels, and max rake were different at different stakes and game types (fixed/no/pot limit), the concept was the same. 

Now, at all tables Microgaming rooms will rake 1 cent per 20 cents in the pot.  So, the rake is still 5 percent, but it now comes out of the pot earlier than it did before. 

Why is this bad?  Because for low stakes players, particularly those who play at $1/$2 fixed limit and lower, rake is now taken from the smallest of pots and more rake is taken from medium and larger pots.  Using $0.50/$1 and $1/$2 fixed limit as an example again, the rake starts at a 20 cent pot now instead of a $5 pot.  The rake also doesn’t wait to increase until the next $5 increment.  All it takes is another 20 cents again.  Thus, if you were to win a $4 pot, rather than pulling in the entire $4, you would now only win $3.80.  That’s a 5 percent hit.  Over the long-term, it can be hard for a low stakes player to overcome a consistent 5 percent hit. 

For high stakes players, this should make almost no difference at all.  The rake is maxed out on most hands, so the increments at which it is taken are inconsequential.