4 December 2024 
12 min 
158 views In today’s competitive online poker market, it’s essential for operators to leverage features that increase engagement and revenue while distinguishing themselves from competitors. One effective feature, gaining traction among successful operators, is the Bad Beat Jackpot. At tables with a Bad Beat Jackpot, the rake generation is noticeably more effective. According to the results of EvenBet’s recent study, such tables generate an additional 3-6% of rake in different rooms.
This article explains how the Bad Beat Jackpot works, outlines strategies for implementing it, and highlights the potential benefits for your poker room.
Legal Considerations for Using a Jackpot in Poker
The principle of winning a jackpot differs from a standard poker win. In poker, the outcome predominantly depends on the players’ skills, to varying degrees depending on the type of game. However, winning a jackpot is entirely determined by chance.
This distinction can impact the legal status of a poker room in different jurisdictions. For example, in certain states in India, games of skill and games of chance are regulated differently. When a jackpot is introduced in a poker room, the licensing procedure may vary, or it might even be the case that using a jackpot is prohibited in that jurisdiction.
Therefore, before implementing a jackpot feature in your poker room, it is essential to carefully review the legal nuances associated with its use.
What’s a Bad Beat Jackpot?
The Bad Beat Jackpot is a thrilling feature designed to reward players even in the most unfortunate moments. But what does a Bad Beat Jackpot mean? In poker, a “bad beat” refers to a scenario where a player with a strong hand loses to an even stronger hand. With Bad Beat Jackpot, a portion of the jackpot is awarded to the unlucky player, while the winner and other players at the table receive smaller shares. In some networks, a part of the jackpot even goes to players across various tables, making this a highly engaging feature for everyone involved.
The jackpot pool is funded by a small portion of the rake added to each hand at Bad Beat Jackpot tables. This dynamic adds excitement to regular gameplay and keeps players invested in every hand, fostering longer sessions and greater engagement.
Why Implement Bad Beat Jackpot Tables?
Implementing Bad Beat Jackpot directly or indirectly impacts numerous metrics within a poker room, ultimately increasing its profitability. Directly, Bad Beat Jackpot use affects the following:
- Attract New Players: Bad Beat Jackpot tables appeal to players who love the prospect of high-stakes rewards. The feature adds a unique layer of excitement, making it an ideal promotional tool to draw new users.
- Enhance Player Retention: Bad Beat Jackpot tables encourage existing players to return more frequently, as they aim to qualify for the jackpot. This consistent activity increases room loyalty, leading to higher revenue over time.
- Boost Table Metrics: By tracking Bad Beat Jackpot-specific metrics (e.g., total rake, average hands per player), poker room operators can effectively monitor the impact of the feature and make data-driven adjustments.
It’s important to note that improper Bad Beat Jackpot configuration could lead to financial losses for the room instead of the intended positive impact. Therefore, it’s essential to approach this feature with great caution, consulting with experts from the software provider beforehand.
How Does the Bad Beat Jackpot Work?
To ensure the Bad Beat Jackpot feature functions smoothly and maximises contributions to the jackpot, consider these aspects:
- Adjust Rake Contributions: Establish distinct rake rules for Bad Beat Jackpot tables. For example, if the standard rake is 6%, adding 10% of the standard rake to fund the Bad Beat Jackpot pool increases it to 6.6%, enhancing revenue from these tables.
- Set Optimal Trigger Conditions: Different formats of poker benefit from tailored Bad Beat Jackpot triggers. For instance, in Hold’em, the Bad Beat Jackpot could trigger when a player loses with a hand of AAATT or better. Customising triggers keeps the game balanced and engaging for players of all formats.
- Distribute the Prize Pool Strategically: The prize distribution can be customised to suit your chosen strategy.
The Bad Beat Jackpot will be effective if it occurs not too frequently — allowing the prize pool time to build up — and not too rarely, so that players remain excited and thus interested in playing at jackpot tables. To achieve this, it is essential to consider the probability of hands occurring and select an optimal hand combination as the trigger for jackpot payout.
Effective Bad Beat Jackpot Practices & Proven Strategies
By linking the jackpot to different types of poker, you can cater to all player segments. However, you should consider the chance of a Bad Beat Jackpot across different games. We have calculated theoretically and confirmed experimentally, based on our clients’ experience, the minimum hand combinations required to trigger the Bad Beat Jackpot across different types of games:
- Hold’em: Lose with AAATT or better
- Omaha: Lose with 22223 or better
- Omaha5: Lose with 88882 or better
- Omaha6: Lose with JJJJ2 or better
- Short Deck: Lose with 66662 or better
Typically, the Bad Beat Jackpot is distributed among players in varying proportions, with a portion potentially allocated to forming a new prize pool. Additionally, there is an option for the room to take a percentage as a fee. However, we do not recommend charging a fee on jackpot winnings, as this reduces payout amounts and, consequently, the appeal of playing at such tables.
Implementing the Bad Beat Jackpot feature requires selecting a strategy that aligns with your goals. Here are two proven strategies.
Acquisition-Oriented Strategy
This strategy allocates the majority of the jackpot when it’s triggered. It is used at a stage when your room’s management is focused on attracting as many new players as possible. It serves as a strong promotional tool for attracting new players who are motivated by substantial one-off rewards.
The recommended prize-pool distribution for the acquisition-oriented strategy:
- 35% goes to the player who lost the hand
- 15% goes to the player who won the hand
- 15% goes to the other players at the table
- 35% goes to the new jackpot fund
For an acquisition-oriented strategy, consider a 10% additional rake part to the default rake for the Bad Beat Jackpot fund at lower stakes:
| Stakes | Default Rake | Additional Rake Part
(% of the default rake) |
Total Rake |
| $0.1/$0.25 | 5% | 10% | 5.5% |
| $0.25/$0.5 | 5% | 5% | 5.25% |
| $0.5/$1 | 5% | 2.5% | 5.125% |
| $1/$2 | 5% | 1.25% | 5.0625% |
Retention-Oriented Strategy
This strategy is applied when your room has already built a substantial user base, and you aim to increase their activity and engagement in the game. Industry leaders favour this approach, distributing a smaller portion of the jackpot when triggered and retaining most of it for future pools. This method sustains the jackpot appeal over time, encouraging ongoing player engagement.
For the retention-oriented strategy we’d recommend the following prize pool distribution:
- 10% goes to the player who lost the hand
- 3% goes to the player who won the hand
- 0.8% goes to the other players at the table
- The rest goes back to the pool.
For a retention-oriented strategy, consider a 3% additional rake part to the default rake for the Bad Beat Jackpot fund at lower stakes:
| Stakes | Default Rake | Additional Rake Part
(% of the default rake) |
Total Rake |
| $0.1/$0.25 | 5% | 3% | 5.15% |
| $0.25/$0.5 | 5% | 1.5% | 5.075% |
| $0.5/$1 | 5% | 0.75% | 5.0375% |
| $1/$2 | 5% | 0.375% | 5.01875% |
Monitoring Bad Beat Jackpot Efficiency
To evaluate the Bad Beat Jackpot’s performance, we recommend regular measurement of key metrics at Bad Beat Jackpot tables:
- Total rake and rake per hand
- Total hands played
- Average hands and rake per player
These indicators provide valuable insights into Bad Beat Jackpot’s impact, helping operators make informed decisions about scaling, adjusting configurations, or modifying prize distribution.
We recommend opening Bad Beat Jackpot tables with a 1:1 ratio to identical regular tables as it allows players to choose whether they want to play Bad Beat Jackpot or regular tables. It enables managers to compare players’ metrics and room income over a certain period. This analysis can help determine if there is a need for adjustments, such as scaling Bad Beat Jackpot tables or changing configurations.
In order to make table management more efficient, we suggest using the table auto manager, which allows for the automatic opening and closing of tables based on the number of available seats at existing tables.
Why Bad Beat Jackpot is Right for Your Poker Room
Implementing Bad Beat Jackpot tables has been shown to increase both engagement and income in poker rooms. By offering players a chance to win substantial prizes in the face of a loss, you create a memorable gaming experience that encourages repeat play, fosters loyalty, and generates higher revenue.
If you are planning to launch poker games as part of your product or are exploring different poker platform options, we would be happy to discuss any questions and offer the optimal solution. Simply provide your contact information, and our managers will be in touch with you shortly.
It’s important to note that the Bad Beat Jackpot is just one of many tools for attracting and retaining players. It will only be effective when used as part of a broader system alongside other methods and tools. You can learn more about these in our blog. We also invite you to follow us on social media or subscribe to our email newsletter to stay updated with new insights and valuable materials from the experts at EvenBet Gaming.
