How Online Poker rooms profit
Since poker became available online it quickly gained massive popularity over the years. Then more and more websites started providing poker with real money crossing all the continents. Online poker gaming websites became a multi-million dollar industry.
In India alone, the state of poker market value is of 290 USD in the year 2017. The online poker space in India has an estimated value of 700 Crore. Online or offline poker rooms only function if they make a profit. How do they do it is something which keeps running in the mind of every online poker player.
The answer is these websites make a profit through a few direct and indirect ways. Let's take a look at how it is done.
Rake is a percentage of the pot that goes to the respective house (usually varies based on stake /5% capped at $3). It is the commission fee taken by the respective cardroom operating a poker game and is the most common practice for online/offline poker.
This only occurs at the time of the tournament as it is taken from the tournament fee structure. Usually, it is 10% of the buy-in. They also sell tickets to a live tournament which directly goes to the website. As the buy-in goes higher the fee goes lower.
This is one of the indirect ways to earn a profit. The websites make a lot of merchandising although they don’t profit a lot in this as being a marketing strategy. Sometimes merchandising doesn’t cut the invested amount therein as its publicity also plays an important factor.
Investing Player’s Funds:
This is the biggest source for revenue generation for every online real money poker gaming company. The size of investment depends on the total amount of deposits the players make on the website.
The deposits that players make the player doesn’t necessarily spend the whole amount in a day, thus a small percentage of the fund deposited is intelligently invested elsewhere. The website earns a lot on this without having to generate capital from outside it pulls some from within.
It is a flat fee paid for the admission in the poker room. To enter a poker website/real poker room a player has to pay a specific fee. Though this method is becoming less and less popular still it brings in only interested players. Cover Charge amount varies depending on the gaming facility/tournament/website.
This direct form of earnings is conducted by charging a flat fee for joining the table. This is usually done when any new dealer enters the game being charged on the basis of specific intervals (every half hour or more). The rate can be low as 3$ per player or more in case of the website for high rollers.
Displaying Advertisements: Depending on the traffic and popularity of the traffic and popularity of the website it can charge the specific amount for displaying advertising a specific brand on their website.
This is naturally time-based and earning often isn’t much but it brings in some business for the host website. With a lot of direct and indirect ways, every online poker gaming website earns over sufficiently along with bringing fun and thrill for poker players.