Quote:
Originally Posted by LektorAJ
You may think SNEs should have volume discounts but if so then you need argue for it rather than just misdescribe what's happening, because you won't change anything that way.
I don't know that I'm making a direct argument but I wanted to share some of my thoughts and this seemed like a good comment to reply to
In 2013 371 players earned supernova elite. That's the most recent figure I could find.
It takes 1,000,000 VPPS to reach SNE. At 5.5 VPPS per dollar raked each SNE has payed a minimum of $182k in rake for a total of $67.5 million in rake generated by SNEs. Assume for simplicity everyone gets the 70% rake which is the max figure I've seen so PokerStars only keeps 30% which is $20.2 million of that.
Assume that the changes made will drop SNE player volume by half, which I don't think is unreasonable. Some players will have to quit, others will reduce volume and try to increase winrate. SNE rake revenue drops to $33.8 million and at the new (temporary) 45% rakeback PokerStars' net rake is $18.6 million.
In essence, PokerStars' income from SNEs stays the same while $33.8 million dollars doesn't get taken out of player funds as rake. Maybe more importantly, it's $33.8 million that doesn't need to be deposited for PokerStars to maintain roughly the same income from rake.
Similar effects should be possibly by other means. Just limiting the number of tables players can play. Decrease the number of tables in general with possibly more decreases for very slow players as they're currently doing. That makes it harder to attain SNE while still preserving it as a goal.
Keeping the same SNE benefts would however reduce PokerStars net proceeds from SNE rake to $10.1 million. $10 million is a big reduction for Stars but pretty insignifiant to a company that hs over $300 million in revenues each quarter.
I would imagine that their VIP program helps drive players to the site and helps generate rake from players who want to try for SNE but fail.
As Ansky pointed out this isn't a take from the recs give to the regs situation that is being portrayed. It's a take from the recs, including low stakes regs that only reach platinum, ron't tive back to the rec and don't take away from PokerStars.