Quote:
Originally Posted by PokerXanadu
Ain't going to happen. Under CA law, "percentage" games are not legal. This has already been interpreted by CA courts to mean a % rake is illegal. Cardrooms can only charge a fixed amount per hand (but no flop, no drop is allowed). The legislature is not about to open a can of worms by attempting to modify current law to allow online percentage games.
The online CA sites under this bill will be able to charge the same way the live cardrooms do. They can set whatever fixed charge they want per hand, based on each game (stakes, limits, etc.); and they can have a no flop, no drop policy if they choose.
It is also permitted for the cardroom to not charge unless there is a certain minimum in the pot. For example, I have seen one cardroom that does not charge a rake unless there is at least $20 in the pot.
As to competition: The casinos/cardrooms are, in general, very aware that they have competition, even in the BM environment. While they may not be as active in changing the things that matter to most of us (e.g. rake), they often are quite aware of where their competition stands with respect to most issues. For instance, in one competitive market one casino sends people to survey the number of people playing in the other casino's poker room at least on a daily basis. The surveyed competitor is quite aware that the other is doing this and watches for the people who come in to monitor them.
Unfortunately, in the B&M world rake is not high on the list of things that most fish look at wrt. their choice of casino/cardroom. For most players, there are things which significantly outweigh a non-egregious difference in rake.
In the online environment, rake will probably be higher on the list of things considered by more players. Given enough licensed sites, it will certainly be an area which will adjust due to competition. The CA model of $X/hand does make it easier for most people to compare the relative amount of rake being taken by different licensees. This should make it more likely that rake becomes a significant area of competition. However, the casino industry is well versed in how to make other things matter more to most players (i.e. the fish) than the amount that they are paying to the house. To most players, it is more important how much the promos/comps/badbeat might provide to them than the amount of rake they are paying.