Who gets the rake?

skitzo444 · #1 09-22-2005, 11:46 PM

I was wondering about something.

If there are multiple sites that use the same server. Who gets the rake for the pots? whoever wins = what site their from?
How does it work?

Pokeraddict · #2 09-23-2005, 01:50 AM

For the sake of argument lets say Party Poker gets 50% from the skins. There is a 6 handed game and all 6 skins have 1 player in it. The rake is theoretical. It is rake/# of dealt players. If the rake is $2 Party keeps $1 and the other $1 is split among the other 6 players (in this example all 6 skins get a chunk)and this is 16 2/3 cents is the share the home poker room gets regardless of who won the pot. The numbers are just hypothetical to prove the point.

Sniper · #3 09-25-2005, 08:56 AM

The exact split is considered proprietary and confidential, its actually blacked out of legal financial fillings.

The best estimate based on the numbers available place the split somewhere around 90%skin/10%host and 80%/20%, based on volume.

Uglyowl · #4 09-25-2005, 09:35 AM

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The best estimate based on the numbers available place the split somewhere around 90%skin/10%host and 80%/20%, based on volume.

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Wow, that really surprises me that the skin takes that much, especially in the case of Party, where they would seem to have the upperhand on who needs who more.

Arnfinn Madsen · #5 09-25-2005, 11:06 AM

The main cost of running a poker site is marketing, the main value in poker is having players signing up through your skin, so from a general business perspective I would guess the skins (provided good negotiation) is able to get a very large share of the rake their players generate.

Sniper · #6 09-25-2005, 05:29 PM

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Wow, that really surprises me that the skin takes that much, especially in the case of Party, where they would seem to have the upperhand on who needs who more.

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The largest expense of running a poker site is the player acquisition costs (ie Marketing).

Its worth noting that when you start out and trying to grow quickly, skins and affiliates help to spread the marketing costs around. Party's growth rate was very high not only because their marketing was successful, but also Empires and their affiliates.

Now that Party holds 50% of the poker market share, these same things that helped them grow are actually hurting them. Which is why they have rethought the whole skin and affiliate concepts, stating there will be no more party skins, and within the last year buying out one of their skins (pokernow) and one of their largest affiliates. (and considering buying out empire)