Party's anit-rakeback stance

[mcozzy1]

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If not, will there be any real consequences for Party?

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Online poker is a very dynamic industry. There is constant change. It would be a mistake for IGM to assume that they will continue to be the dominant force.

IGM is still making a lot of money off people with rakeback deals; and it works out for affiliates and players as well. If IGM completely eliminates rakeback, that creates an opportunity for another site to bring in a lot of new business. If UB got a few more pros on board and they all decided to mount an aggressive ad campaign, they certainly could catch up to Party.

Players don't have any loyalty to Party Poker. They're either going to go where they get the best deal. I certainly will do my best to convince fish to play sites other than Party if there is no rakeback.

[Rudbaeck]

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I guess the question is, will Party replace what rakeback became (frequent player reward) with something even remotely comparable? If not, will there be any real consequences for Party?

I've always claimed they will, but sadly the economists amongst us seem to say otherwise.

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I think they will. Once a place like Games Grid takes off Party has to take notice. It's simply not possible to maintain a near monopoly with that kind of profit margin.

As the fish will never understand rake cuts or 'rake free' sites bonuses, hourly payments, freerolls galore etc etc is the way to go.

If Party started giving back 75% of the rake in various forms as those listed above they'd still be a very profitable company by any measurement. And it's pretty much has to happen. If Party doesn't then someone will (hopefully) do to Party what they did to Paradise.

When you sell a $12.99 service for $4000 someone will undercut you.

[i wanna be me]

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When you sell a $12.99 service for $4000 someone will undercut you.

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This is absolutely correct. The ONLY advantage Party currently has is its marketing - along with the exhibition of economies-of-scale (i.e. the brand recognition/cost saving/promotion range that comes with having such a huge clientele.

This is a great short-term advantage, but when people: a. eventually get frustrated at extremely high rakes relative to their competition, b. get a service taken away from them (rakeback) they are used to receiving, and can receive from a competitor, or c. realize (through word-of-mouth and advertising) that there are actually better alternatives to Party - which will inevitably happen - Party's comparative advantage within the industry will dwindle.

the poker industry will become a perfectly competitive industry with time. you heard it here first.

[StellarWind]

This would not be a bad time for the U.S. government to wake up and legalize online poker.

I'm a little tired of watching the huge American market being handed to foreigners while U.S. gambling businesses watch helplessly. It's a lot of jobs and a huge dent in the trade balance.

[AncientPC]

But the government has a moral incentive to protect us from bad things!

*sigh*