Quote:
Originally Posted by DucyInTheSky
The new rules are not going to be determined by the REGs or RECs ITT. They are going to be determined by the licensed operators. It seems to me that the REGs seem to prefer the PS/FTP model and the RECs are more to Bovada. The issue is that neither model is relevant because neither of these companies will be competing for licenses in the near future.
As has been discussed, it looks like it is unlikely that Federal legislation will direct the market. State law will. And the same situation that governs state run lotteries and BM casinos will apply to online poker. Each state will have its own operators, regulations, and players. No national or international options for the player for the time being.
Ducy:
The interesting (and fascinating) thing about all this is what marketing strategy, (i.e. what "business model" if you prefer), licensed operators will ultimately decide to pursue? Will they decide it makes better business sense to bend over backwards to please grinders since these high volume players tend to generate greater rake, or will they decide to modify the terms & conditions in order to make their site more attractive to the "millions" of potential new recreational players they seem to be convinced exist? (I seriously doubt if any of the operators are going to do anything about reforming the rake structure.)
In the brick & mortar world, operators have had plenty of experience dealing with this issue. For the most part, casinos have adopted the "Disney World" (or the "Wal Mart") corporate mass market strategy. Rather than coming on like a Neiman-Marcus or a Tiffany's specialty retailer, catering only to high end (well heeled) clientele, B&M's have "run the numbers" and figured out that it makes better business sense to make average wage earners feel welcome. Another way of saying this is that they want families (as in both the husband and wife as well as their grown children) to patronize their properties. (Oh sure, they still welcome the occasional whale in their joints - they even have special "High Limit" rooms set up for these folks - but most of their operation is geared toward serving the vast middle class.) Walk onto the floor of any crowded casino and you immediately realize that most of these folks are not millionaires. Most of them are what some people might call working stiffs. So people like Mr. Loveman have figured out that you maximize revenue and profits by appealing to the vast middle class rather than concentrating on the richest one percent.
So when it comes to marketing "legal and regulated" online poker to this potential market of "millions" of new players, do you appeal to the vast middle (by adopting terms and conditions that are more favorable to recs), or do you decide that Poker Stars has it about right so we're better off adopting terms & conditions that are more agreeable to the high volume grinders. (In other words, we allow the use of HUDs, mass multi-tabling, and we pretty much ignore cheating and collusion.)
When Gary Loveman and his B&M counterparts gaze over at Zynga and see 40 million folks on that site playing for play money, they must drool at the prospect of converting even a tiny fraction of that crowd to real money poker. I imagine some of those folks will give legal "real money" internet poker a try. Excuse me for being cynical, but unless the terms & conditions are modified to exclude (or greatly restrict) the use of HUDs and multi-tabling - since Zynga folks probably hate waiting for a multi-tabler to time out - either the operator modifies the T&C to be more favorable to these recreational players ... or they can forget [ever] attracting "millions" of new players to their site. (I'm not saying Poker Stars has a flawed business model, far from it, but has there ever been a time when a million [or more] real money players were logged on and playing on their site?)
If one takes Mr. Loveman at his word, (i.e. that he's actually serious about attracting - and keeping - "millions" of new players depositing and playing on his site), I believe there will have to be restrictions on HUDs and multi-tabling - at a minimum. I don't believe Caesar's will be able to attract (and keep) millions of new players if they adopt the Poker Stars business model. This is my subjective (and admittedly biased) judgment, but I don't think the Zynga crowd will be comfortable with an online poker experience where they know (or come to believe) that they are being bumhunted. I have a feeling Mr. Loveman and his advisors will figure that out.