Quote:
Originally Posted by TheDefiniteArticle
You have to weight your numbers for this to be remotely realistic. Assuming SNE pay more than half the tax - which I think is correct - it should be noted that an SNE will grind much more than a gold star (indeed, on the largest possible numbers, about 12x more, on the smallest, about 33x more). There aren't a huge number of UK SNE, but it would be interesting to know what SN pays.
Well weighting based on there being a lot more chrome, bronze, gold players seems fair enough. It really doesn't matter though as it is perfectly clear from Stars climbdown and flagging up differentiated rake based on the 50% POCT split coming that they don't believe the VIP change was the full hit.
Scrapping UK players having to pay rake on every rebuy was a huge change of heart. That was being driven by the tax, even after the VIP changes and the change of heart was based on player hostility but also based upon a longer term differentiated rake solution. They accepted that it was not right to hit rebuy players to cover others, the targetted group was too small and too likely to lead to players just shifting to other games.
Now nearly 9 months later things may have moved on but the margin erosion via tax they have had is still real. Figures using assumptions of SNEs taking big hits by not adapting their behaviour to the new sceme don't alter that basic reality - Stars say and I estimate (on reasonable assumptions) that they are still well short of dumping 50% of the cost of POCT on UK players.
Now Stars could be lieing, I could be wrong, it may be that like with Denmark to date Stars eat more than the 50% but what are the odds? Maybe Stars have made other cost cuts to maintain margins and keep the debt payments and net revenues look fine to the shareholders, and more crucially the bondholders. It might be that their disposals letting them reschedule/reduce the bond helps but long term a business where the business model actively incentivises individual countries to up taxes knowing that foreigners pay it has a slight problem.
Quote:
Originally Posted by kdgkajhk
Why change a good functioning rakeback system?
Well who does it work for?
The change is to make the VIP programe more visible/important to lower volume players. You know what you'd want if you were planning to shift it to reward recs more and regs less. Without the "visualisation" such a shift would be irrelevant to the lower volume players anyway.
Today regs behaviour is altered by the scheme - it incentivises volume and disincentivises playing on other sites for some of the time. For rec players? I doubt it has any real visibility never mind any ability to shift behaviour partly as the rewards at low levels of volume are just pitiful/meaningless and partly because they don't even see it, or any value in it today.
It works for high volume regs and it used to work for Stars when building volume was key but now with recruiting new casual players the key issue for poker, the firm, shareholders it is already bust.
Last edited by Mike Haven; 08-29-2015 at 05:02 PM.
Reason: 2 posts merged