Poker rake vs house edge: compare the cost, not just the percentage
Understand cash-game rake, tournament entry fees and casino house edge with worked hypothetical examples and primary game-rule references.
A 5% rake is not a 5% house edge
Rake is a charge for running a poker game. House edge is an expected loss calculated from a game's outcomes and payouts, expressed against a defined amount wagered. Both can be described with percentages, but the denominator and the way the cost arises are different.
In player-versus-player poker, opponents contest the pot and the room applies its stated charge. That does not make a player profitable after fees: individual results also depend on play, opponents and variance. A casino table game can instead pay directly according to its rules, with a mathematical advantage built into that paytable. This article compares the accounting mechanisms, not the quality or availability of any operator.
Cash-game rake: follow the cap
Consider a hypothetical room that charges 5% of a qualifying pot, capped at $3. A $20 pot produces a $1 charge. A $100 pot reaches the $3 cap rather than producing a $5 charge. The second charge is 3% of that pot. Neither calculation establishes a 3% or 5% expected loss on every dollar an individual player puts into the game.
Actual schedules can depend on stakes, game type and the number of players dealt into the hand. PokerStars' Portuguese table-rake page makes those distinctions and describes its treatment of hands that finish before the flop in the games covered by that page. This is a Portugal-specific example of a published schedule, not a US offer or a promise that every room uses the same rule.
Before comparing two schedules, hold the example constant: same variant, stakes, players, pot and cap. A lower headline percentage with a higher cap can cost more in a large pot. A cap quoted in another currency cannot be compared by simply dropping the currency sign.
Tournament fees use a different base
Imagine a tournament entry split into $20 for the prize pool and a $2 fee. The fee is 10% of the prize contribution but about 9.09% of the $22 paid. Both percentages describe the same hypothetical entry. Neither means that exactly 10% of each subsequent hand is removed.
In this example, the $2 charge belongs to the entry calculation, not to each subsequent hand. Check an actual event's structure for its prize contribution, fees and any additional terms; a cash-game table-rake schedule does not answer that question.
House edge comes from outcomes and payouts
The Nevada regulator's published single-zero Live Roulette rules describe 37 pockets and a 35-to-1 straight-up payout. For a hypothetical $1 straight-up wager, expected net return is (1/37 × $35) + (36/37 × −$1), or −$1/37. That corresponds to a house edge of about 2.70% of the amount wagered under those rules.
The calculation is an expectation over repeated outcomes, not a bill charged after each spin or a guaranteed session result. It also should not be applied to a different roulette variant without checking that variant's wheel and payouts. Our expected-loss guide develops that distinction.
A practical comparison sheet
- For cash poker, record the percentage, cap, qualifying-hand rule and players dealt in.
- For a tournament, separate the prize contribution from registration and other charges.
- For a casino game, record the variant, paytable and denominator used for the edge.
Rewards or rebates belong on another line because eligibility and effective value can differ. No fee schedule or hypothetical example here establishes an achievable return, a winning strategy or an invitation to register.
Sources and checks
- PokerStars Portugal: table-rake schedules and player-count definition · Checked 2026-10-21
- Nevada Gaming Control Board: single-zero Live Roulette rules and paytable · Checked 2026-10-21