Quote:
Originally Posted by Do it Right
I realize your comment was intended to be rhetorical but it really wasn't.
First look at the sizes of Stars and Full Tilt. In the past week the average number of ring game SEATS (not players, a critical distinction) at the sites have been 30,400 and 16,400 respectively. So one person 24 tabling at Stars counts as 24 SEATS. The important question then becomes how many tables is the average person on each site playing at once? At Stars I think 6 is likely a substantial underestimation, and perhaps somewhere around 3 or 4 for Full Tilt. Taking these numbers that gives an average ring game PLAYERS online at each site of 5,067 and 4,685 respectively.
And obviously both of those sites are well beyond the critical mass required to maintain games and produce mind bogglingly large profits. All the sudden that 600,000 figure is starting to look quite substantial. Even if there are only 100,000 potential players in that population after accounting for age/preference and you only capture a fraction of that demographic, the site has the potential to be huge.
IMO your numbers are way high, you have to remember that in order to attain those numbers of multi-table players (which I suspect you are putting WAY too high anyway) FT and Stars draw on pools of hundreds of millions of people not 600,000 , nope not even close to having the numbers you are throwing around.
I'm NOT sure I totally agree with the premise that such a pool wouldn't be at least
somewhat viable with decent marketing I could see you getting possibly as much 2 percent of the population as registered 'active' accounts, meaning about 12,000 players of which probably around 10 percent will be pretty hardcore giving you possibly around 1000 'regs', now figure in rake from both groups:
11,000 rec. players X ~$20 rake/month avg. (a bit arbitrary but I think reasonable) = $220,000/month
+
1,000 'reg.' players X ~$200 rake/month avg. (also an arbitrary but probably resonable number) = $200,000/month
=
Rake revenue of ~$400,000/month.
Now given these numbers which I think are probably fairly reasonable, D.C. could POSSIBLY support 1 such site depending of course on the cost of licensing and other 'fees', but no one is going to get rich off of it for certain. Once all the operating costs and taxes are taken you can probably figure something around 10 percent net profit or about $500,000 per year on revenue of $5million.
Forbes says that in 2010 Stars made ~$500million Net profit I think my figure above of 1/10 of 1 percent of that is probably in the right region for D.C. .
Look at it this way, Stars probably reaches around 10% of the entire global population as a base, or around 600million people and D.C. has a population of 600,000 or (drumroll) 1/10th of 1 percent of that, which pretty much matches the numbers my slapdash figures came up with.
Probably would be a viable business but nothing earth shattering for certain.
Anyway, as I said in earlier posts, the value doesn't lay in whether it becomes a real and viable concern in D.C. but rather in the political symbol the legalization represents vis a vis the rest of the U.S. .
Last edited by SpaceGhost; 04-09-2011 at 07:56 AM.