Party Poker\'s Income
First post, so if this has been discussed before (did'nt find it using search) I apologize...And if this belongs in another forum, I'm open to suggestions.
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While grinding it out on Party, I noticed that they are up well over 60K players tonight. Recalling all of the posts about how Party takes advantage of its position in the marketplace (which I simply call competetive advantage - what do they owe us?), I got to thinking - just HOW MUCH money do these monkies make?
Assumptions/Facts:
1. Current peak usage appears to be about 8,000 tables/65K players.
2. Including off-peak times, Party averages about 5,000 tables/40K players.
3. Ring/Tourney split is about 45% / 55%.
4. Rake structure is 5% up to $3 per hand at all limits.
5. Avg. rake per hand $1 (may be WILDLY off mark, but I think conservative - low limits weight this WAY down).
6. PP turns about 65 hands per second at ring tables.
7. 1000 SnG tables at any given time turned .8 times per hour (estimating average of time to complete single table SnG and mutli-table SnG).
8. Avg. fee of $5 per SnG. (Again, a complete guess, but should be on the LOW side...).
I counted up the ring games in play, the # of SnG's, etc. and punched in some numbers and came up with $2,500,000,000 per year at their CURRENT usage levels.
Not gonna bother posting my numbers unless someone asks. But I think it is interesting in the sense that PP is not likely to concern itself to greatly with "giving back" to its customers until another site starts to steal players and drive their marketing costs related to sign-up and retention WAY up. Right now they are money press. Think Microsoft (PP) v. Apple (PS).
Thoughts? Flames?
PS: My general impression of those posters on 2+2 who do nothing but flame and berate other posters is that these are the guys with what I like to call "internet muscles".
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