Originally Posted by
Dan Druff
The more I think about it, the more I realize that the 100% rakeback model should be the way to go for most non-A-list pros in the future.
This accomplishes a few things:
1) Encourages pros to actually play on the site. This is always good for business, as people enjoy playing with "big name" players online rather than just anonymous grinders. Furthermore, it brings railbirds out to watch the games, which then sometimes translates into deposits.
2) Eliminates "hard costs" of salaries or tournament buyins.
3) Site pros with 100% rakeback will probably start more games (and attract players partially due to their notoriety), thus getting more games going and ultimately making more money for the site.
I feel it is incorrect to look at this from the perspective of, "Cada is raking $XX,XXX per year, and we don't feel he's worth that as a sponsored pro if we return that money to him."
There's a huge difference between hard costs (money you have to pay out to third parties) and simply rendering your own services for free at minimal (or no) cost. Yes, Amaya can look at it from the perspective that he would probably play anyway (and thus will cost them real money by giving all of the rake back), but that's too presumptuous. Perhaps Cada will quit playing on Stars and go elsewhere to sites which will give him a better deal. Perhaps he will sharply decrease his play out of bitterness over the situation. The bottom line is that you can't equate "he would have spent this money here and we would have made it" with "we are paying him this amount of money". Comping automated electronic services (which is what Stars is doing) is one of the best things you can professionally trade, as there is almost zero real cost to your business, and presumably you will gain a good deal with what you receive on the other end. This is different than, say, a guy demanding that he eat at a restaurant every day for free, as that has real cost associated with it. Cada playing with 100% rakeback has almost no cost.
I think Amaya is on the right track with trimming the fat from Pokerstars, but I think they're taking it a bit too far.