Starting An Online Poker Room

[Michael Davis]

LOL, wow you just blew it, why would you offer such a great idea for free?

-Michael

[Henry17]

While I don't think it is a good idea at the same time the guy shouldn't be crucified. I've been pitched much worse.

[BradleyT]

1) If WPEX can't get a player base going with 100% rakeback what makes you think people are going to flock to your site where they have to spend their rakeback on crappy store items?

2) The guy who currently makes $3,000 a month in rakeback at 30% isn't going to play at your site because he doesn't need $10,000 of your worthless store junk - he wants cash.

[Rushstreet07]

Interesting timing for this thread...I have recently been in talks with a group of investors who had previous success in various types of gaming companies online and land based... they are well funded and well connected but very new to the poker industry.

Obviously they are hearing things along the lines of what BarryG recently mentioned and it looks like online poker will be legalized in the not too distant future.

These guys have also opened land based casinos in the Carribbean and overseas and flipped them. They were able to open the casinos because they are very good at understanding the necessary political game - i.e. obtaining licenses when only a limited number are available. My post is 100% serious. I have been talking to these guys because they know I am involved and somewhat knowledgeable about online poker. I am by no means an expert and there are many things I need to learn about the industry in a short period of time. Perhaps some people who are intrigued and knowledgeable would like to discuss this more?

Anyone legitimately iterested in perhaps getting involved in the process of helping this organization with research and putting together a business plan - PM me.

Disclaimer: this company looks at 100's of deals and only chooses a few. There may be an opportunity here but it could very well turn out they decide against entering this market. They are simply looking into it right now.

[Yads]

Another problem is how do you force people to spend money in your store? What about people that go broke? I'd imagine a better way would be to take rake, but instead of paying it back it could go into a separate account that could only be used to purchase goods in your store.

[john voight]

I'd say this: the model is fundamentally flawed.

When starting the site, you are losing hughe amount of money b/c your resources are not being used to to maximum potential.

Running a server is a fixed cost. Weather you have 100 ppl playing, or 400ppl playing that 1 server still costs $3,000 a month. (Assuming 401 ppl would require a second server).

Now, normally sites would be losing money, but the rake would be really slow the bleeding. In your case its not. You practically have no cashflow. You would need to have an endless supply of capital b/c positive cash flow would only result when your profit from the store products would exceed the costs of running the site.

I mean you would need to have a ton off ppl buying stuff in order to squeak out a tiny profit. In fact if the profit would not cover the expenses, then it would be impossible to make money off this model.

Take a look around. This is why there are no such sites.

[ran]

I think OP is suggesting 100% rakeback given in the form of store credit. That would partially solve the cashflow problem, as players save up their rakeback for big ticket items.

Not a terrible idea, if they sold decent stuff at profitable, but competitive, prices. It might have worked four years ago.

It would give new meaning to "ship it, holla"

[Rushstreet07]

P.S. the business plan I am working on for my investors does not invlove any sort of "free rake" or anything like that. I'm not trying to downplay the original poster's idea but I have found that the money people who are willing to invest in these type of things do not like to over complicate it. They want a model that works and is profitable - no need to re-invent the wheel in their words...

[dj_mercury]

Why not just using tables and rooms sponsoring as a way to get revenues, instead of rake? More traffic you are able to attract on your website, more firms are likely to be interested in getting an advertising exposure.

@Rushstreet07, is this company also interested in other gambling ideas?

[Rushstreet07]

Rushstreet07, is this company also interested in other gambling ideas?
__________________________________________________ ________

They have only asked me about online poker. They are not a company they are a venture capital fund.