PPA has released its UIGEA regulations comment talking points

[DeadMoneyDad]

[ QUOTE ]
[ QUOTE ]
Because not one thing the PPA has said the Poker World would do to gain entry into the US market in the form or a regualtory mix will every come to pass.

Sure the market will open up and others who are in the wings or who let the market will try to re-enter, but who's position is the strongest? The major off-shore operators!

They "own" the current portion of the US market and to some degree will get to shape the future of on-line poker market for some time. Any inovation that they can live with in their business model they can implement quicker than anyone else and keep market share. Think M$ and Apple.

[/ QUOTE ]

This doesn't make sense to me at all. A company like Apple didn't gain its market share by providing a service that a huge portion of its potential customer base stayed away from because they feared it was illegal.

I love PS. I played my first hand there, and haven't left except to whore during the Bonus Rush. With that said, if poker were exempted tomorrow and MGM Poker opened Friday, I'd be one of the first people to open an account there -- along with every Joe S. Pack who thinks online poker has been shut down since last October.

Expressly legal poker in the United States is not a bad thing. Even the aforementioned Apple could open its own site and compete quickly with monsters such as Party. The off-shore operators' market share is based on supply only.

This is somewhat analogous to saying marijuana dealers would still own the market share if a 20-pack of pre-rolled joints were available at Smoker Friendly for $15.

And, IMHO, the competitive market will make all of the fears about regulated poker (high rake, more fees) moot because sites will be willing to accept lower profit margins in order to construct their own legal cash cow.

Where am I wrong here?

[/ QUOTE ]

Well since we are in a virtual world where big money is at stake the powers involved have a little more forsight.

Think of what happened to Apples operating system. Most of the world thinks Bill Gates invented Windows or at least his company M$.

Any new entrant to the market can be quickly matched by those with existing market share. Since they already have a significant market share they can easily match any new marketing and or technical inovations.

The new entrant has to gain market share in some cases by reducing margins (profits) in this case with bonuses or reduced rake, but they can not afford to do this as easily as an established market leader or market share holder.

While some of these may end up being good things in a future poker world, most are likely to be loss leader ideas that die away once the new entrant can no longer afford to keep offering.


D$D