The cost of poker

[Bosox]

with all the BS surrounding the Partygaming's IPO, the stats finally came out that they expect to make $660 million or more next year. Jesus H Christ. Think of that in view of all those posts about whether poker is a drain on society. That looks a little like a black hole for money headed straight to gibralter!

Why do I feel priviledged to get my $800 back each month from rakeback when they're keeping $2400 anyways?

[yoadrians]

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It costs be more a month to play poker than to run my house and car combined.

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Do you know how much you will pay total over the life of your mortgage?

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I do, and it makes me want to puke ... even at 5.25 percent. Over 30 years!?!?! Yuck. But hey, I have a house in the suburbs ... I must've really made it!!

[stone_7]

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The poker sites would make a very nice profit with half, or even a fourth; of the rake.

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That is not quite true. Party poker made 350 million on 600 million in revenue. If they cut the rake in half they would make only 50 million last year. While this seems like a lot there are very real risks in their business that they must be compensated for. Plus I would prefer that poker sites have solid profits if they are going to be holding my money in an unsecured account. $1 million a day goes a long way to ensuring my deposit is safe.

[dondarias]

I know it doesn't cost me $2000 a month so if I continue playing poker for life of my mortgage I will have paid substially more in rake than mortgage repayments.

[dondarias]

Is it reasonable to assume that Rakeback is charged as an expense in Parties accounts??

If so if for the sake of argument say Party paid a 100 Million in Rakeback (16% of turnover) it would mean they generated 500 million of turnover on 150 million of true expenses.

Im sure a company operating with 250 million turnover (50% cut in true rake paid) on 150 million of true expenses would still be a more than viable proposition.

I should also imagine a lot of capatilised development costs are included in the expense figure which should drop out of the equation at some point. Granted there may be some ongoing development cost incurred in improving the operation of the site but the rules arent likely to change.

[Rascal]

What a great thread. Never totalled up the cost of rake till i got in with RTR. Just glad im gettin a slice of the pie back. That guys right bout marketin n fish etc...
Well thought out post A-

[cursha]

Am I the only one who thinks that DonDarias is being a tad on the miserable side ?

I read his post and think he saying something along the lines of:- "I won the lottery last week, you know, the £15m superdraw, but I'm gutted, someone else won too so i only got £7.5m"

Count your blessings rich boy, $2000 rake, mean you must be in profit... get some happy pils and be thankful for what you get !

[sfer]

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I know it doesn't cost me $2000 a month so if I continue playing poker for life of my mortgage I will have paid substially more in rake than mortgage repayments.

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The ratio of interest/equity will likely be substantially more than rake/winnings unless you're a net loser in poker. Oh wait, is that the problem?

[dondarias]

Do these ratio's have any significance?

Surely interest is a function of time… How can this be compared to rake which is not? Maybe it's me but I find it hard to follow your logic.

As I previously stated as an absolute figure the cash cost of poker is more than the cost of my mortgage. Luckily I didn't mortgage myself to the hilt so my salary is large enough to cover this payment in rake and my losses. I sometimes think I should find a cheaper hobby though.....

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Because people don't care

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Classic capitalism. The market charges what people will bear. There are alternatives, it's not like a monopoly is gouging. There are lots of sites or live play for many folks.

I'd love to have a lower rake. I'd love to pay less for my car, my house, phone, etc, but oh well.