Thread: Prima break-up
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  #36  
Old 08-27-2005, 07:12 PM
sumdumguy sumdumguy is offline
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Join Date: Dec 2003
Location: Canada
Posts: 89
Default Re: Prima break-up

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By going solo they will collect a bigger share of the rake their players generate.

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My information on this is at least 2 years old. Back then, a major Prima room received 80% of the rake and Prima ran/paid for the security/collusion teams and central server for it's 20%.

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Some other things to consider:

- Because of heavy TV marketing, they have a lot of new customers. But when the newbies lose their money, large parts of the loss ends up in the pockets of the better players from the other skins, thus Expekt will not rake these dollars again. I would think that Expekt see that the benefits of bringing in new players will be larger in a stand alone Expekt poker room than in the Prima network and that the company can generate more rake from their player base in their own room.
- As the Expekt players get better, a lot og them start to look for rakeback deals. And when they get the 35% deal, they will leave Expekt and start to play at some other sites in the Prima network. Expekt probably see that they will hold on to the customers longer in a stand alone Expekt room. Maybe Expekt even can have some kind of rebate for the most valued customers in their own room. The competition with other Prima skins in terms of bonuses and rakeback is probably cutting into the profits of Expekt.

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Rakeback is a major issue to the ongoing success of a standalone or a member of a network of cardrooms.
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