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Online Poker Revenue: How Rake Works (Part I)

It is a question that often bothers curious laymen as well as potential investors looking to take a plunge into the industry: how does an online poker room generate revenue for the operators by organizing real money poker games online? And while it is a matter of general knowledge that online poker is a great investment opportunity and a proven ‘money-spinner’, very few outside the industry (and some very experienced players) are privy, beyond vague generalities, to the inner workings of a well-run online poker business.

Unlike a casino, which is a “player vs. the house” affair for most of the part, poker is only about the players. The house doesn’t wager against the players; the players do so against each other. In that process, they all contribute an individual amount to a prize pool; you would know this as the ‘pot’. The pot is not only the coveted prize for which poker players, whether online or offline, play for, it is also instrumental in generating the revenue for the house. That is what brings us to the concept of ‘rake’.

online-poker-rakeA simple definition of ‘rake’ is: the percentage of the pot that goes to the house. This is the ‘fee’ that the house charges for facilitating the game, and to ensure the profitability of the business

The “Rake” is the percentage of the pot that goes to the house. Poker is a player-versus-player game, and the house does not wager against its players. Thus rake constitutes the principal mechanism to generate revenues from ring games. In online poker rake covers the various costs of operation such as support, software, game server hosting cost , payment gateway and cashier costs ,website operations costs and personnel to name a few.

The rake isn’t just important from a house perspective. With each raked hand that a player plays in an online poker room, they add to the overall rake contributed by them, which the house computes for them. Over time, a good quantity of generated rake may make them eligible for special offers, or bonuses, as may be the house policy. This also means that there has to be an accurate method for determining just how much rake a player has contributed by playing real money ring games on a particular site.

Methods of Calculating Rake

There are various methods that may be used to compute rake from a given table during a ring game.

The Dealt Rake Method

The Dealt Rake Method calculates rake by dividing the rake with the number of players on the table. All players who are on the table, regardless of whether they have folded pre-flop or seen the showdown, will get an equal share of the rake generated on the table.

What this leads to is that if there are 5 players at a table and let us suppose that all but two of them fold during the proceedings of a particular dealt hand. In the case of dealt rake method, the final rake that is computed would be computed at a predetermined x% of the pot and would be equally divided among the five seated players. This is unfair as the players who had at point of time folded their hand did not make any further contribution to the pot as the betting progressed afterwards.

 

The Contributed Rake Method / Average Rake Method

The Contributed Rake Method is also called as the Average Rake Method as calculates rake exactly as the name suggests, i.e. If 4 players have contributed to the pot (whether less or more does not matter), all 4 will get 25% (100%/4) of the rake.

Those players who do not contribute any amount to the pot, are not calculated and the rake generated by them is taken as $0. This method ensures that only the players who have made any contribution to the pot would be credited with having generated rake for the house. However, the flip side is that while it recognizes that a player who folds on the gun hasn’t made any contributions, this method makes no difference between a player who folds on the flop, or on the river, or one who carries through to the showdown. The final rake computed on the basis of the pot, is then divided by the number of players who contributed to pot. This means that irrespective of the quantum of the contribution, all contributing players are thought to have equally contributed to the rake.

If the readers are now wondering which of these two method does the Cybertech online poker software makes use of, we’d like to inform that it is none of the two described thus far. The model we use shall be discussed in the next post. Until then, watch this space.

 

Online Poker – A beginners Guide to Texas Holdem

When it comes to using an Online Poker Software, Texas Hold-em is currently the most popular variation. The great thing about Texas Hold-em is that it is simple to learn. Even a beginner can promptly grow into a winning Texas Hold-em player. By following a sound strategy and playing the best preliminary hands in online poker, a Texas Hold-em rookie can considerably cut down the learning curve.

Top hands in online poker a novice ought to play

When playing online poker, the best hands for a beginner to play are Ace-Ace, King-King, Queen-Queen, Jack-Jack, Ace-King suited (example – Ace of clubs & King of clubs).

It is greatly proposed that an online poker rookie only play these starting hands. In other words, if you are dealt a hand other than one of the above then the ideal thing to do would be to fold!Online Poker Texas Holdem for Beginners

Folding is one of the hardest decisions for a Texas Hold-em Poker fish to do. The frame of mind of most new online poker players is to stick around and see the flop in the hope of hitting it just right and improving a hand.

While a beginner will hit the flop and improve their hand intermittently, more frequently than not they will miss it, a Texas Hold-em Poker rookie that plays poor starting hands will end up losing quite a lot of money.

When you are dealt one of the finer starting hands I propose raising the pot which will serve two purposes. Primarily, it will compel players with weak hands to fold instead of letting them to stay in the game and checking out the flop for nothing.

The next thing is, by considering who raises and calls you get to see who thinks that they have a good hand and who may be lingering around for the flop.

When the flop is dealt you must look carefully to check if your hand has improved. Even though your hand may not have improved, because you started out with one of the better hands you may still have the best hand. This is mainly true if your starting hand was a pair of aces or kings.

If your online poker opponents raise back, this can be a strong signal that they may have a powerful hand. It would be good practice to ask yourself, “What could that player have?” “Has the flop helped improve their hand?”

Make it a habit to ask yourself these questions after each round of cards are dealt and try to “read” your opponents hand.
If your hole cards just happen to be a high pair a raise after the flop can help you evaluate if your opponents may have a strong hand.

If you believe you are outgunned there is no disgrace in folding right at this point.

When the turn card has been revealed, if you believe that you may possibly still have the better hand It would be best to raise the pot so as to obtain information about the remaining players’ hands.

Follow the exact same strategy on the river card.

To summarize this Texas hold-em online poker strategy

  • Fold the low ranking hands
  • Use the control of the raise to knock out the competition and to review the force of your opponent’s hands

~ Online Marketing Content Team

The Challenge of Online Gaming Marketing

First it was social media, then social gaming and now online gaming marketing is all set to change the way the world interact with each other. I am a social gamer but I have never taken up Farmville professionally as some of my colleagues have. But even I can’t deny the fact that online social gaming has changed the social picture. Online gaming marketing is also going the same way with marketers practically chomping at the bits to capitalize on the massive marketing opportunity that online gaming marketing presents today.

Online Gaming Marketing – Lets Play!

Online gaming marketing especially poker marketing and casino marketing in the gaming world is a very complex game by itself with multiple players competing for that converted position on the search engine rankings which bring with it the assurance at least for the near future of steady revenue generating player traffic.online gaming marketing

One would think that once all the “parts” of an internet marketing campaign are in place then your online gaming site is pretty much set. The reality is pretty much exactly the opposite. Internet marketing is a never ending boxing match. Your gaming website competes with millions of websites on the web including already established online gaming websites who already dominate your targeted search page. This means it takes a lot more effort to get the traffic and sales that you want.

Change, or else Perish!

If competition wasn’t enough, your online gaming marketing efforts pitch you against the Google algorithm. Your online gaming marketing strategy has to be fluid and flexible enough to counter the very basis of your SERP position. You need to target and use different online marketing tactics as a methodology being followed currently which is paying you dividends may simply be outdated by one of the frequent changes that Google does to its algorithm A.K.A the Google panda update. This means that your online gaming marketing campaign needs to tap resources and reach online audiences via multiple methods.

Multiple Channels which may be used include

• Banner Advertising including Pop-ups and Pop-unders and push signups.
• Contextual link advertising
• Text links advertising
• CPA services (Cost Per Action – Specific Lead generation services)
• Organic search engine optimization
• Press Releases (both online and print media)
• Article marketing
• Forum Marketing
• Social Media Marketing
• Pay Per Click (PPC) Marketing
• Pay Per Millie (PPM) advertising.
• Email marketing
• Blog Network Syndication

Online Gaming Marketing – Content is King

Crisp and to the point content spread over different web Medias such as press releases, blogs, forums, email campaigns, websites, social medias, directories is the greatest of all online marketing tools. Good quality and unique content and solutions will have players taking about your site. Site content will lead to your player’s checking out your site more frequently and perhaps propose it to their pals. Mostly important, search engines will rank you high for those money spinning keywords which will drive more player traffic to your site. Generating enough content and then managing it efficiently is the foremost challenge for online gaming marketing.

Online Gaming Marketing – Return on Investment

Return on investment is what everyone expects and getting a high ROI and keeping it increasing is paramount in online gaming marketing. It requires Social media optimizers and analyst who constantly keep tabs on the competition and research new ways of doing things. This team constantly analyzes if current social media tactics are working the way they should and then adjust them to get maximum ROI. One needs to focus on placing more energy and resources on winning activities and strategies that actually bring in players to your gaming website and give you maximum returns for all the online gaming marketing efforts.

~ Online Marketing Team

Into the Realm of 2D Poker Software

Playing poker online is so much easier and so much fun. But have you ever thought of looking beyond the moves and the cards, beyond the spanking user interface of the 2d poker software and wondered about the underlying architecture that holds it together? This world of client and server interactions with data storage and retrieval from databases is also very fascinating. Let us give you a whirlwind tour of what transpires here.