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In a report published to eGaming Review Magazine online Friday, it was noted that the controversy related to online poker affiliate rakebacks has at least two big name companies at odds with one another.
PKR chief Malcolm Graham defended the role of rakeback affiliates today, joining the debate about the use of rakeback by affiliates, and declining an offer by William Hill online COO Peter Marcus for online poker operators to "get together and be strict" on preventing affiliates and poker skins offering the rewards model.
A number of rakeback affiliates accused Marcus of hypocrisy.
RakeTheRake's Karim Wilkins also chimed in claiming it is rogue (poker) skins, not rakeback affiliates, who are responsible for the problems associated with rakeback rewards.
Rake is the percentage (commission) that the poker site takes out of every pot played for real money. Normally this ranges between $0.05 and a cap of $3 per pot. The rake paid to the poker site operator is what ensures the profitability of the poker companies.
Rakeback is a reward system implemented by various poker sites whereby an online poker player receives a set percentage of the rake he has paid to the site back. This payment is usually paid once a month into the players poker account.
The amount of rakeback a player receives starts at 25% and can now go as high as 100%
The history of online poker rakeback can be traced back to 2004 when online poker was still in it's infancy. The owners of the site poker-strategy.org first developed the idea when they proposed the idea of giving part of their affiliate commission back to the players who signed up through them. Naming their idea "rake rebate", they proposed the idea to several poker operators. Absolute Poker who had only been in the industry for one year at the time, took up the offer and the Absolute Poker Rake Rebate program began in April 2004. After large amounts of user takeup, the concept quickly spread and by the end of the year rake rebates were offered at several poker sites and were promoted by greater numbers of affiliates.
It should be noted that Absolute Poker does offer online poker rakebacks for players and customers alike. Both are leading Gambling911.com sponsors. You can check out the Absolute Poker affiliate program here
Christopher Costigan, Gambling911.com Publisher
