Guaranteed Poker Tournaments - Business plan?

[Toonces]

It seems that these guaranteed tournaments are becoming more and more popular. Many of these tournaments tend to attract just below the breakeven point. But what I don't get is how the casinos are making money on these guaranteed tournaments, particularly the ones that fall below the minimum necessary to break even. Is it just to get people used to playing on your site? Are they making money on these tournaments in a way I am not thinking of?

[cain06]

They are probably making money the same way the sites which offer free $ to play do (e.g. Pacific Poker giving all new players $10 in their real $ accounts). Get the people hooked and they will pay more $ in the future. Gambling addiction is a real thing... [img]/images/graemlins/blush.gif[/img]

[Jurollo]

Realize that every tournament has a fee as well. Take for instance this week's $50K on empire. 441 entrants = $44,100, seemingly a large $5,900 overlay but then take the $10 in entry fees for each player and you get $48,510... only a total $1490 overlay which is NOTHING for these sites, especially in return for getting players to keep $110 or more in their accounts as this will generally mean they'll play elsewhere on your site as well. While they lose money on the tourney itself remember they can't make money in other ways without having customers and these guarantees get customers there.
~Justin

[rdu $teve]

Its a marketing promotion. Get people on the site, they are going to play other games and events.