Starting January 1st, Playtech’s iPoker Network will implement a new method of attributing rake to each of its member rooms. Originally reported by PokerTube.com, the new method is called “Source Based Rake” (SBR) and is aimed at encouraging skins to recruit recreational players.
Traditionally, the iPoker Network, as well as all other online poker networks, has attributed rake to each of its member rooms based on how much rake each player contributes at a table. For instance, if someone playing on, say, William Hill contributed $1 in rake to a pot, that $1 would be assigned to William Hill by the network. If someone playing through Everest Poker was at the table but folded pre-flop and didn’t put in a penny, Everest Poker would not be credited with revenue for that hand. Pretty simple and makes total sense.
The problem with this, as the iPoker Network seems to see it, is that it puts too much emphasis on recruiting high volume grinders, as they are the ones that generate the most rake. In recent years, online poker rooms have viewed these players as less desirable because they are generally winning players who pull money out of the poker economy after only depositing once or twice. Recreational players, those who play primarily for fun, are not as strong on average and therefore have the tendency to lose and re-deposit more often. These are the players poker rooms want, as they are the source of money.
By catering to the “sharks” through attractive rakeback deals, bonus schemes, and loyalty programs, the tables get filled with a higher percentage of strong players, thus frustrating the recreational players and possibly causing them to leave. Some of those sharks may leave, as well, either because of similar frustration or because the “fish” are swimming away.
This is the theory, at least.
In the new SBR method, the network allocates rake to each poker room based on how much of a player’s deposits end up on the tables and turned into rake. As quoted by PokerTube, the iPoker Network says, “….deposits are essential to ensure rake and fees can be generated out of the liquidity in the future and therefore recreational players are worth more.”
The real formula the network is going to use in its calculations is a bit murky, but essentially the member rooms are credited with revenue when one of their players uses their own deposited money (or bonus) to start a Sit-and-Go or contribute to a pot in a cash game. Thus, a player who deposits, eventually players and loses, then deposits again and plays is more valuable that a player who deposits once and just keeps winning. Multi-table tournaments and Twister Poker games will not use the SBR method.
Theories abound on how this might affect the skins on the network. Two years ago, the iPoker Network split its rooms into two tiers based on the types of players they recruit. Tier 1 looked to be rooms that were recruiting a higher percentage of high volume grinders, while Tier 2 rooms nabbed more recreational players. The tiers were ring-fenced from one another, thus lowering liquidity and the tables, but making the games that existed for Tier 2 rooms more attractive. SBR may bring an end to this split, as the lack of revenue sharing will replace the punishment of demotion to Tier 1. The reunited network would obviously be a good thing for players, as there would be more tables available to everyone.
SBR could seriously hurt some of the poker rooms, though, as the ones with a high number of grinders could see their revenues plummet. It is entirely possible that some rooms could close or be absorbed into others, similar to what happened when the network instituted the split in 2012. Additionally, because rooms will have to attract more recreational players, grinders could very well see their benefits decrease, as the poker rooms will find them less desirable. This could lead to “sharks” leaving the pool, theoretically making the games better for everyone who remains.
