High rake online poker a good business model?

[daveymck]

In business you look to do two things to grow adding customers and getting more from the customers you have already. We are seeing the pokerrooms increasing rake but also adding games like blackjack etc as a means to get extra money out of the existing customer base.

The rooms imho are more bothered about getting in the leisure players most of whom dont know or care that much about the rake. They log on play a fews hours a couple of times a week maybe have the odd sidebet or a few hands of blackjack and have a bit fun and they either win or dont win but they will be back with their cash the next month.

The increases in rake works because most of the players dont care and those that do generally chosse their games based on their potential earn ie the fishiest easiest games than looking for value (and generally have rakeback as well), although I know some regular players dont play some sites cos of the rake.

I can only see the poker sites consolidating over the coming year so I suspect we will rake rising rather than falling in the short-medium term, as growth reduces and competition increases we may see some price wars but I think we are some way form that happening yet.