World Poker Exchange Goes Rakeless

World Poker Exchange announced a bold move today to become the first established online poker room to completely eliminate rake. All forms of rake, in both cash games and tournaments, are being done away with entirely.

The poker software will not actually remove the rake, most likely because it’s complicated to reprogram the platform, but all players will see their rake refunded to their poker accounts weekly.

Why is World Poker Exchange doing this? Because it can. It’s sportbook business does so well and its poker room is a small enough contributor to the company’s revenue stream that it feels in the long run, this will be a beneficial move.

"We're fortunate to have a great strategic position, due to the extensive crossover between our sports betting and card room businesses,” said Managing Director Haden Ware. “While no-rake isn't an option for most companies, we're confident that free poker will deliver major new traffic to our other businesses, including sports wagering, live betting, horse racing and casino wagering. While many online players are skilled enough to break even or win against fellow players, it is difficult to reach a net win while continuously paying a rake."

Secondarily, World Poker Exchange also likes the rake-free idea to bolster the feeling of “community” at its site. It originally added poker at the request of its customers, so the management also sees this as a way to keep the community spirit alive.

Will this start a trend in the poker industry? Probably not, as many of the online poker rooms rely too heavily on poker revenues, but we can always hope.

Originally published April 4, 2006