L
luckyhearts
Rock Star
Silver Level
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witchywitchy
Rock Star
Silver Level
Online gaming sites make money over and above the rake and tourney fees. They earn interest on the funds in your account. So many players leave funds just sitting in their accounts instead of moving the money to a site when they are going to be playing
How many of you have logged into a site you haven't been to for awhile and are surprised you have funds there? The poker site has been collecting the interest on that money all the time it was just sitting there
How many of you have logged into a site you haven't been to for awhile and are surprised you have funds there? The poker site has been collecting the interest on that money all the time it was just sitting there
Vfranks
Legend
Silver Level
Whether a player wins or looses the house is still gonna make the same amount of money from them if they are playing the same stakes... you answered yourself in your own post.. rake.. I heard Full Tilt Makes 100k in rake a day? I dunno about the smaller sites, I think they just wait till they have everyone's money and disappear right?
K_Kahne_Fan
Legend
Silver Level
I don't think OP meant scheme, but simply a pyramid.
top = Sharks
middle = average players
bottom = money depositing fish
OP is asking, why do the money depositing fish who lose keep depositing, and if they stop will the pyramid crumble because the $$ base goes away.
Here's how I've kind of seen the poker sites;
100K people, deposit $20 = $2M
10K of those play decent and triple their roll to $60 and decide to step up to a next level, but only $1K make it and triple their roll to $240, but the other 9K got a taste, so they redeposit (bringing in more money). And it keeps going until you have a select few at the very top who have slowly (sometimes quickly) made their rise and can stay there. Along the way, as they rise, they bring the bottom fish's money with them. Some go back down, then come back up, then go back down, then come back up. So, as long as you have new fish making $$, it WILL keep rising to the top. And, as long as you have fish (forever), there will always be new deposits made by the second, so there will NEVER be a lack of funds.
I myself am a fish. I have gotten a little better over time. Now, instead of losing my $$ within a week, I can make it last a few months... but (so far) it will usually go away. Why do I keep depositing? Because, what other hobby can I have that I can spend small $$ every couple of months on? To me, it's a form of entertainment. I would love for it to be more than that, but I've come to realize it probably won't ever be more than that, so I take it for what it is.
As the saying goes, "There's a sucker born every second", and 18 years later they will deposit their $$ on a poker site, every second. So no, the fish base will never go away and the pyramid will never crumble. Some will leave but, if it's a good site, for every 1 that leaves 2 will join.
top = Sharks
middle = average players
bottom = money depositing fish
OP is asking, why do the money depositing fish who lose keep depositing, and if they stop will the pyramid crumble because the $$ base goes away.
Here's how I've kind of seen the poker sites;
100K people, deposit $20 = $2M
10K of those play decent and triple their roll to $60 and decide to step up to a next level, but only $1K make it and triple their roll to $240, but the other 9K got a taste, so they redeposit (bringing in more money). And it keeps going until you have a select few at the very top who have slowly (sometimes quickly) made their rise and can stay there. Along the way, as they rise, they bring the bottom fish's money with them. Some go back down, then come back up, then go back down, then come back up. So, as long as you have new fish making $$, it WILL keep rising to the top. And, as long as you have fish (forever), there will always be new deposits made by the second, so there will NEVER be a lack of funds.
I myself am a fish. I have gotten a little better over time. Now, instead of losing my $$ within a week, I can make it last a few months... but (so far) it will usually go away. Why do I keep depositing? Because, what other hobby can I have that I can spend small $$ every couple of months on? To me, it's a form of entertainment. I would love for it to be more than that, but I've come to realize it probably won't ever be more than that, so I take it for what it is.
As the saying goes, "There's a sucker born every second", and 18 years later they will deposit their $$ on a poker site, every second. So no, the fish base will never go away and the pyramid will never crumble. Some will leave but, if it's a good site, for every 1 that leaves 2 will join.
fletchdad
Jammin................
Loyaler
Oh how old school.... You still spend money on FOOD???? As long as people like you keep investing, the food pyramid will never collapse........
Food is rigged...man, is that scam still getting over??????????????
Beer, now THERE lies the future of nutrition......
U
umpinpa22
Rock Star
Silver Level
thye take a share of all pots! the poker sites could care less who wins or loses just like bookies! they want action! rake is the word! gl to everyone at the tables! go northern iowa the ultimate underdog along with cornell!
Weregoat
Visionary
Silver Level
I, for one, quit playing online poker.
If you do an internet search of all my accounts you will see I'm in the hole about $8000. All my graphs involve a steady, steady build, then a speeding bullet plummet.
Losing $8000 in online poker is especially difficult, since I'd ussually only deposit $100-$200 at a time, but over the years it adds up.
*cries*
That's why I play live now. I actually have an edge there. I can't read people in online, and apparently I give off all the classic tells.
If you do an internet search of all my accounts you will see I'm in the hole about $8000. All my graphs involve a steady, steady build, then a speeding bullet plummet.
Losing $8000 in online poker is especially difficult, since I'd ussually only deposit $100-$200 at a time, but over the years it adds up.
*cries*
That's why I play live now. I actually have an edge there. I can't read people in online, and apparently I give off all the classic tells.
Poker Orifice
FoolsTilt
Platinum Level
Yes, an old post but found it when searching player names in CC games.
Take Fulltilt for example. &.. just for starters consider all of the tournaments running in one day & the amount of money they earn from those tourney fees. I mean just in the $750K alone there are ~4,000 players. That's $60,000 in revenue just from one tournament!!!!!!! I'd guesstimate there's almost $1million per day just in Tournament fees (adding in SNG fees).. maybe that's a low estimate? I know of MTT players who pay $5,000/mth. in Tournament fees!!! {and that's just ONE player!!). think about... $60k/yr. from one guy.
I'd think the question in this post might be.. "how could pokersites NOT make money?"
J
JMcCabe
Rock Star
Silver Level
One thing people forget about poker sites is that they are holding a tonne of cash (ie all of their user's bankrolls) and although you may think they just bank it, keep it safe, and earn the interest, what percentage of that money do you think is reinvested.
Do you really believe that money is just sitting there and their only form of revenue is rake? Think about how many of the smaller poker sites failed shortly after the collapse of the stock market.
Rake-only earnings seem to be the case for skins on the network/skin system that is becoming prevailant today. The networks, which hold the bankrolls of all the players on all the skins, are definitely doing something with the massive amount of cash they hold.
Do you really believe that money is just sitting there and their only form of revenue is rake? Think about how many of the smaller poker sites failed shortly after the collapse of the stock market.
Rake-only earnings seem to be the case for skins on the network/skin system that is becoming prevailant today. The networks, which hold the bankrolls of all the players on all the skins, are definitely doing something with the massive amount of cash they hold.