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Old 11-05-2005, 12:02 AM
Sniper Sniper is offline
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Join Date: Jun 2005
Posts: 704
Default Re: Why there will never be a rake war (longwinded)

There already is a rake war going on!!!...right under our noses, but as you correctly point out, most players are oblivious to it!

The war is for knowledgable & high volume players... with the incentives being refunds of their rake via rakeback, bonus, vip/point programs, and other incentives.

Party and Ultimate's recent actions only highlight some of the recent skirmishes in this War!

Neteller, has proudly proclaimed that this war is of great benefit to them, as players are shifting more $$$ around from site to site chasing these opportunities, which substantially increases Neteller's revenue stream.

A recent Citigroup Global Markets analyst report asks this question... "How bad is it if you run out of Plankton?... To continue the fishy metaphor — it is bad news if you are a whale and you run out of plankton. The bear case on PartyGaming is that the business model is based on very active successful players feeding off what we have termed Plankton and that the supply of Plankton is limited. The risk under this scenario is that the poker industry runs out of people who to try poker, lose a little, get bored and stop. Similarly the players we have termed ‘Fish’ may have an interest in playing for only a limited time. PartyGaming has an additional problem in that there are many aggressive competitors for the supply of such players and that it is a challenge to maintain market share."

The war is on... the poker room winners will be those who have reduced the true net effect of rake to the knowledgable high volume players (those players that will still be around when the plankton run dry).
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