Re: Why is rake so high, and why isn\'t competition driving it down?
the OP's original question is very simple, and noone has really addressed it:
Poker sites have a huge profit margin, why hasn't competition driven down our cost to play?
-Partygaming posted net profit of $350.1 million in 2004 and revenues of $601.6 million.
-In the first quarter of 2005 net profit was $117.4 million and revenues were $222.6 million.
i don't know how the other medium/big sites are doing financially, but you can bet your ass that big companies in other industries (General Moters, Dell etc) don't have profit margins like this. Why? Because competition doesn't allow it. That leads us back to the same question, why hasn't this happened in the online gaming industry yet?
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