Quote:
Originally Posted by PokerStars Matthew
It’s not a decision that we considered lightly; it’s being made after months of analysis and investigation to find the best possible model for the long-term viability of our poker ecosystem. Over time, the VIP Club rewards have become so enticing that we have inadvertently altered why some people play and how they play.
The significance of this change is not lost on us. The dedication and passion demonstrated by our highest status VIPs has been astounding. We are introducing these changes to move towards a more balanced long-term poker economy and to return the game back to one that rewards skill via winning at the tables rather than playing primarily for volume.
There is no way you could possibly be so stupid to believe this crap you have written. Shame on you Matthew for having no balls. These words have come from your pen, and as such, no one should have any trust or faith in anything you say henceforth. Seriously, how can you write such drivel without losing self-respect for yourself?
People never play primarily for volume- they play solely for money (or enjoyment.) Volume is simply a way to maximize one's earnings. There is no difference between money won at the tables and money won through rewards- it is all money won at the tables. Stars just happen to take an extremely large slice of those winnings which results in a rebate dressed up as "rewards." You haven't inadvertently altered why people play at all. You're trying to dress it up it to appear like Stars have been giving away free money, which of course they haven't
Now Stars is a business, and they have every right to make whatever changes they like. (Long gone are the days of Isai Scheinberg's excellent customer-centric business model.) Stars don't have an obligation to cater for what the players want, however they should have an obligation to be honest and truthful with their customers. You must realize of course that these PR untruths won't wash with the serious players who have a basic understanding of the poker ecosystem, so presumably you're counting on enough noise from the larger portion of less-informed players to drown them out.
The real truth as to why the changes are being made are as follows:
In the past, when online poker thrived, there was plenty of liquidity and an seemingly endless stream of depositing fun players. In the early days it was in Pokerstars' interests to encourage high volume players because a very simple model existed: More volume across the site led to more profit for Pokerstars. It would have looked something like this:
Overtime though the poker landscape changed, player pools got smaller and the player funds that supported the system were seen to be finite. When I was invited to the player meeting at Pokerstars' HQ on the Isle of Man in March 2012, I had an informal chat with Pokerstars' Nick, the Head of Ring Games at that time. We discussed the current climate and how the system was evolving. Nick even mentioned how it could be seen to mirror the flow of real-life eco-systems. It was clear that the linear "more volume = more profit" model no longer applied. High volume players are Pokerstars' friends up until a certain point- they are needed to drive games- but anything over that point and they start to eat into Pokerstars' profits by taking too large a slice of the depositor's money. A simplified version of Pokerstars' current model looks more like this:
So, a more truthful explanation for your changes would be:
"The poker ecosystem has changed dramatically over the years. We don't think we need the high volume players any more and we believe we can tailor it to better serve us. We are taking a calculated risk but we have run simulations of several different models and we think what we have come up with will maximize our profits. We no longer adhere to the Scheinberg "Player First" model, rather we are trying to find a balance between maintaining a reasonable amount of traffic whilst at the same time reducing edges between players. It is in our interests to limit the influence that player skill has in our games and to increase the element of chance. This ensures that less money leaves via the pocket of players, rather than own."