Formula and example
Rakeback = bet turnover x house edge x rakeback rateTurnover of €10,000, a game with a 3% house edge, 10% rakeback: the player gets €30.
Turnover x house edge is the casino's theoretical revenue from the player's bets. Rakeback returns part of it.
Rakeback vs cashback
| Rakeback | Cashback | |
|---|---|---|
| Depends on | play volume | losses |
| Player in profit | paid | not paid |
| For the casino | a predictable cost | a cost that grows with the player's losses |
What it costs
10% rakeback is 10% of the player's theoretical revenue. Actual revenue swings around the theoretical figure, so in a month of big wins rakeback can cost more than the player brought in. Include it in Bonus Rate together with other rewards.
Common mistakes
- Taking the rate on turnover instead of house edge. 1% of turnover on a slot with a 4% house edge is already 25% of the casino's revenue.
- The same rate for all games. On low-edge games, rakeback based on turnover eats all the revenue.