How does Rakeback work at an online casino?
A cashback is something which many people are familiar with. With a cashback you simply get a set cash amount or percentage back when you spend money somewhere. But in the world of online casinos, you might also come across the term rakeback. So how does that work?
Well, a rakeback is kind of like a cashback but the way of calculation is different. A cashback is calculated based on your losses, while a rakeback is calculated based on your total amount of bets.
In this article I will explain what the benefits are of playing at an online casino that offers rakeback. In addition to this I will show you examples of how rakeback works in real life situations. Finally, I will recommend you some online casinos that offer a rakeback promotion.
Best NZ online casinos with the highest rakeback
In this guide I have used Qbet and Betonred Casino as examples of online casinos that offer rakeback, but there are plenty more online casinos that offer rakeback. Below I will list the bet online casinos that offer the highest rakeback levels. Play at any of these online casinos to receive money back on every bet you make!
What is rakeback?
Many websites refer to rakeback as a way of passive earning. In my opinion this is a bit of a too bright description since you will always need to make an effort to get rakeback. At an online casino you will for example need to bet money on casino games to get rakeback. This of course is a risk since you can lose money while playing these games. Because if this rakeback is not really a passive form of earning in my honest opinion.
How does an online casino calculate your rakeback?
The principle behind rakeback is normally always the same, you will get a share back from all bets that you place. Nowadays this is quite common on casino games, but back in the days this was mainly something that you would encounter while playing online poker.
But how the rakeback is calculated always depends on the casino where you are playing. In addition to this it can also depend on your player status.
Normally a casino will calculate your rakeback by taking all your bets in a certain period and multiplying it by the rakeback percentage that you will get. At Qbet Casino they for example calculate your rakeback by using the following formula:
Rake = stakes x 1% x rakeback percentage
Depending on your player status you can receive up to 20% rakeback at Qbet.
How much rakeback can I earn at an online casino?
Well, this question also depends per casino, but basically you can earn an unlimited amount of rakeback. The simple principle is that the more you bet, the more rakeback you will get. So, by placing more bets, or higher bets, you can earn more rakeback. Additionally, you can earn more rakeback by entering higher VIP levels, which will get you’re a higher rakeback percentage.
At Betonred Casino you will for example get a monthly rakeback of 2% when you enter the Silver VIP level. This monthly rakeback is calculated by taking all your bets and multiplying it by 1% and then 2%.
Example: You have wagered $15,000 during the month. Based on the 2% rakeback percentage you will get the following amount of rakeback: 15.000 x 1% x 2% rakeback = $3.
Although this might not seem like a lot it can still be interesting. If you manage to increase your rakeback percentage then it will become much more rewarding. And this is not all, when you reach higher loyalty levels you can also receive instant rakeback, daily rakeback, or weekly rakeback.
At Betonred players in the highest VIP tier will enjoy the following benefits:
- Up 18% cashback on all losses
- 4% monthly rakeback
- 5% weekly rakeback
- 8% instant rakeback
Let’s make a new calculation. Let’s say you have played for 4 days in a month and betted $20.000 per day. Each of these days you have lost $250 of a $1000 deposit. In this case you will get the following amounts returned.
- $45 in daily cashback for each day you have played ($180)
- $32 in monthly rakeback (80.000 x 1% x 4%)
- $10 in weekly rakeback (20.000 x 1% x 5%)
- $16 in instant rakeback (20.000 x 1% x 8%)
In this scenario you will get back a total of $238 based on all your activities that month. And in most cases cashback and rakeback is paid as real cash. This means you can withdraw it instantly. You can also try to use it in the casino and multiply it and then request a withdrawal. Who knows you get lucky and win back all your losses of that month?
Important things to mind while playing to earn rakeback
As you can see rakeback can be very interesting. But there are of course also things you need to mind. Below I will list the most important things which you need to remember while playing for rakeback.
- To receive rakeback you will need to place bets on casino games. By doing this you will risk your funds. Always only play with money that you can risk losing. Never play with money you really need in real life.
- Most online casinos only offer rakeback on slots. Some casinos also offer rakeback on live dealer games or poker, but this is certainly not always the case.
- Many online casinos have a minimum claimable cashback which is for example $5 or $10. If you do not reach this limit, you won’t get rakeback credited to your account.
- Sometimes there is also a maximum amount of rakeback that you can generate per period. If such limit exists, you will find it in the promotional terms and conditions.
- Rakeback that you receive is often only usable for a certain period. Make sure you wager your rakeback before it expires.
- It can take a lot of effort to gain a small amount of rakeback, especially when you are in the lower VIP tiers. In my opinion it doesn’t make sense to simply play for the rakeback, you should just consider it as a nice extra.
- At some online casinos you will need to activate rewards or promotional offers before you can collect rakeback. If you are unsure about this, you can always contact the customer support team of the casino in question.
Pros & Cons of Rakeback
Pros
- Receive money back on any bet you make in the casino.
- Depending on your VIP tier you can get up to 20% rakeback at some online casinos.
- You can get rakeback on a daily, weekly, and monthly basis. Which can become very rewarding for players that stake a lot of money.
- Rakeback will often be paid out as real money, which you can withdrawal instantly.
Cons
- Normally only available on certain casino games (mainly slots).
- Not available at all online casinos.
- Only available while playing with real funds (no bonus).
- You will need to risk your real money to generate rakeback.
- Rakeback will sometimes only be credited once per month.
What is better, cashback or rakeback?
Some online casinos offer cashbacks, others offer rakeback, and some offer both. But what type of bonus is better?
In my opinion it is more interesting to get rakeback than cashback. The main reason for this is that cashbacks require losses, while rakeback only requires bets. By playing low risk bets you can easily earn rakeback, which could potentially increase your chances of winning.
To get cashback, you will always need to lose money. This means you should bet more in the casino then the games return to you. In the end this always means you will have a negative result.
In the end it is the most interesting to play at an online casino that offers cashbacks as well as rakeback, such as Betonred. At these casinos you will receive money back whether you win or lose. This offers you the best chances to get additional funds from the casino.
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