[Margon]

[ QUOTE ]

As a theoretical example I'd like to address those who just flat out state that "You can NEVER rake a pot up to 10%"

Well, for the sake of argumentation, why not?


PokerRoom.com
Meet Them and Beat Them

[/ QUOTE ]

What an arogant comment. I think that this shows a fundamental lack of business sense. Lets extend this same logic for some other companies:

- Why can't Ford Charge $100,000 for an F-150?
- Why can't Maytag charge $10,000 for a basic fridge?
- Why can't Walmart triple its prices on all its products?

The answer quite simply is they CAN! HOWEVER, NO ONE WILL BUY THEM!!!!

Using the PokerRoom logic, why not charge a flat 25% rake, they can.... Heck, why not make a reverse bonus while they are at it, for every $100 you deposit, they are going to take $20 off the top, and only $80 will go into your account. Now that would make them a TON of $$$.

The new rakeback and associated commentary that I have seen reeks of arrogance. In a industry that is experiencing Hyper-competition, it is suicide (unless they have the bankroll to ride out the industry stabilization period with the goal of 'reentering the competition' at a later date). The problem is, there are few to no barriers to entry in this industry, so it will never be the case where 10% rakeback becomes the norm, if anything it will go lower than the current 5%.

The only other way to look at this is to think that PokerRoom is doing this to get rid of the Small Stake sharks, people that would actually care about rake. They may think that their games are better off without the 2+2 crowd on there, or the people that multitable. To be honest I don't think that many of their 0.25/0.50 players have any clue what they are paying in rake and will not notice or care. I don't know if this is a viable approach on their part.

As a side note, the old bonus structure and rakeback (I had RB set up at Bet on Bet, still had their site making money on me when clearing a bonus (i.e. Rake > Bonus + Rakeback).

Margon <-- has both a PokerRoom and BetonBet account, which will never be played on again.