Re: Why is SNG rake so high?
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I'm nearly positive PokerStars is losing money by not lowering rake. Think of all the players who were mulitabling insane amounts of SNGs and paying tons of rake but now have moved to cash.
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The rake had some effect on those players and their decision to leave, but it isn't the main reason. There are fewer fish and other games are much more profitable.
Lowering the rake increases profitability of SNGs again by a small amount. But this doesn't serve to bring in new, desirable customers. The fish don't care and adding in more pros just serves to fleece the fish quicker. Then you're left with really tough games again.
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The fish DO care although not nearly as much as the players who are only playing poker for the profit. Fish are well aware of how much rake they are paying and will play where the rake is the lowest. There are some who have no idea how much the rake affects them and don't really adjust much but in general they will and do respond to changes in rake and I have never seen any evidence to the contrary.
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