[SinCityGuy]

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I do agree with your one point though, why would Party offer rakeback to everyone? Makes no sense...

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For one thing, it would make everyone feel good, even the players who don't know anything about rakeback at this point. If nothing else, Party would benefit from this being spread by word of mouth. Second, they could structure it in a way that the low volume players get a negligible percentage, but something nonetheless. The high volume players would get a higher percentage. Third, and most importantly, once they notice, a lot of players would have the incentive to start playing more hands because of this, which would generate more rake for Party.

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Crikey, this is what I suggested that PokerStars do about 3 months ago.

If party does it and succeeds, someone should hire me as an analyst.

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This is GENIUS. It seems so easy but they should do it!!

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If Party really wanted to maximize their profits, they would go to a system where they pay a one time flat fee to an affiliate for a new player signup. This would eliminate the "poaching" between the affiliates, and alleviate a lot of internal headaches for Party. The really huge benefit is that they could take the MGR that they're currently paying the affiliate, and return LESS of it to the player on a volume basis. The more hands he plays, the higher percentage he gets, capped at 25% or whatever. This would then start to feed on itself, as many players would voluntarily start playing more hands to get the extra money.

At any rate, Party would be paying out less than they used to, so they would be making more profit with the added benefit of eliminating the poaching between affiliates.