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Rake is based on tables spreads and pots, targeting an average rake of $1, a poker rooms needs several tables and spread to hit target.
By Wagercomms
Insight to Brand and Network revenue
Operators with one or several successfully brands B2C is looking to enhance business and profits through B2B, and while many are facing greater challenges in building a B2B division and network, as operations model is licensed from software suppliers and part of an existing network, other brands are independent and hence operates on ownership and control of system and thereby holds a stronger position to explore business to business in order to acquire more play and go network.
Analysing brand and network revenue this article do however not intend to advice, evaluate or make any other representation as to preferred direction, as there are several and thereto crucial factors that needs to be encountered for on a case by case basis, it do however present a brief insight to potential operations revenue, on various player levels and rounds per hour versus average rake.
Operations
The main essence of online poker is to build a solid poker community in order to maintain as many players and tables running at any given time, making sure that the rake is taken continuously in order to support operations, ongoing business and build revenue, and this is what online poker is all about.
Average Rake $1
Analysing facts, average rake is based on a variety of tables spreads and pot sizes, and reaching an average rake of 1, poker rooms require a variety of tables and limits, and the below tables represents an example of the most commonly played table limits, and represents a standard spread in reaching an average rake of 1 per round.
Table Limit Pot Spread Avg. Pot Min Rake Max Rake Avg. Rake
0.50/1 4-6 5 0.25 1 0.25
1/2 8-12 10 0.25 1 0.25
2/4 20-25 20 1 3 1
3/6 25-30 25 1 3 1
5/10 30-75 65 1 3 2
10/20 75-140 100 1 3 2
15/30 140-150 140 1 3 3
20/40 150-230 170 1 3 3
Naturally there are brands and network that don't reach an average rake of $1, one being that a higher focus on low stake tables reduces average rake, while also rakeback and network model as well as royalties having an overall impact onto average rake.
10 million rounds
Establishing an average rake of $1, revenue will be driven by the number of rounds played by the hour, i.e. number of rounds versus time versus rake are the denominators for brands and network revenue.
Table Limit Tables % Rake/round Rounds Poker rake
0.50/1 4 17 0.25 1 700 000 425 000
1/2 5 22.5 0.25 2 250 000 562 500
2/4 4 17 1 1 700 000 1 700 000
3/6 4 17 1 1 700 000 1 700 000
5/10 3 13 2 1 300 000 2 600 000
10/20 1 4.5 2 450 000 900 000
15/30 1 4.5 3 450 000 1 350 000
20/40 1 4.5 3 450 000 1 350 000
Total 23 100 10 000 000 10 587 500
Analysing the chart of 10 million rounds and a poker rake of $10 587 500, one require an estimated 27 000 rounds per 24 hours, equivalent to about 1100 rounds per hour, or 19 rounds per minute, based on a 360 day period. Reaching the estimated numbers one require about 200-400 players online playing at any given time, per the given table limits, and average rake.
25 million rounds
While looking and analysing numbers lets target the second goal of operations, 25 million rounds during 360 days.
Table Limit Tables % Rake/round Rounds Poker rake
0.50/1 12 15 0.25 3 750 000 937 500
1/2 16 21 0.25 5 250 000 1 312 500
2/4 10 15 1 3 750 000 3 750 000
3/6 8 15 1 3 750 000 3 750 000
5/10 12 15 2 3 750 000 7 500 000
10/20 8 8.5 2 2 125 000 4 250 000
15/30 4 4 3 1 000 000 3 000 000
20/40 6 6.5 3 1 625 000 4 875 000
Total 23 100 25 000 000 29 375 000
Analysing 25 million rounds and a poker rake of $29 375 000, one require an estimated 70 000 rounds per 24 hours, equivalent to about 2900 rounds per hour, or 48 rounds per minute, based on a 360 day period. Reaching the estimated numbers one require about 500-1000 players online playing at any given time, per the given table limits, and average rake.
50 million rounds
Increasing marketing targets to high levels let's take a look at the numbers on 50 million rounds.
Table Limit Tables % Rake/round Rounds Poker rake
0.50/1 25 15 0.25 7 500 000 1 875 000
1/2 18 21 0.25 10 500 000 2 625 000
2/4 22 15 1 7 500 000 7 500 000
3/6 18 15 1 7 500 000 7 500 000
5/10 14 15 2 7 500 000 15 000 000
10/20 10 8.5 2 4 250 000 8 500 000
15/30 8 4 3 2 000 000 6 000 000
20/40 6 6.5 3 3 250 000 9 750 000
Total 23 100 50 000 000 58 750 000
Hence with 50 million rounds there is a potential poker rake of $58 750 000, which requires an estimated 140 000 rounds per 24 hours, equivalent to about 5800 rounds per hour, or 96 rounds per minute, based on a 360 day period. Reaching the estimated numbers one require about 1000-2000 players online playing at any given time, per the given table limits, and average rake.
Operational Target
Whether a reality or not there is today highly successful brands online and while corporate revenue differs greatly from the numbers presented, the numbers are from analysing actual operational online brand(s), however exclusive of operational costs; bandwidth, hardware, software development, management, staff, support, bonuses, rakeback, promotions and more. Facts remain however, operational poker can be highly successful and one need to go no further than looking at the numbers of some of today's public gaming companies.
Operational rake over a three year period, accordingly to the above charts, holds the potential to reach close to a $100 million ($98 712 500).
Year 1 2 3
Rounds/Year 10 million 25 million 50 million
Rake/Year 10 587 500 29 375 000 58 750 000
Rounds/minute 19 48 96
Understanding target, one need to understand players, what is required and what can be expected, hence let's take a look at player patterns versus poker time.
Player Targets
With operational target set on a high level more interesting is analysing player levels required by the hour and what potential revenues brands and network can rake in.
800 players
0.50/1 1/2 2/4 3/6 5/10 High lim. Total
No. tables 1 1 1 1 1 2 7
Players/table 8 5 6 6 8 8 49
Time/player 2h 2h 1h 2h 1h 2h 10h/1h
Players/hour 8 5 6 6 8 16 49
Players/24h 96 60 144 72 192 192 756
Rounds/hour * 40 40 40 40 40 80 360
Rounds/minute 0.66 0.66 0.66 0.66 0.66 1.33 4.6
Rounds/24h 960 960 960 960 960 1920 6 720
Rounds/360d 2 419 200
Rake/24h 240 240 960 960 960 1920 5280
Avg. rake 0.25 0.25 1 1 1 1
Attracting 800 (756) players per 24 hours, or 49 players by the hour, holds the potential to run seven active tables continuously and rake in about $5 000 (5 280) per 24 hours.
1100 players
0.50/1 1/2 2/4 3/6 5/10 High lim. Total
No. tables 2 1 2 2 1 2 10
Players/table 4 5 6 4 4 4 43
Time/player 1h 1h 1h 1h 1h 1h 6h/1h
Players/hour 8 5 12 8 4 8 43
Players/24h 192 120 288 192 96 192 1080
Rounds/hour * 90 45 90 90 45 90 450
Rounds/minute 1,5 0.75 1,5 1,5 0.75 1.5 7,5
Rounds/24h 2160 1080 2160 2160 1080 2160 10 800
Rounds/360d 3 888 000
Rake/24h 540 270 2160 2160 6480 6480 13 770
Avg. rake 0.25 0.25 1 1 2 3
Attracting 1100 (1080) players per 24 hours, or 45 players by the hour, holds the potential to run ten active tables continuously and rake in about $14 000 (13 770) per 24 hours.
2600 players
0.50/1 1/2 2/4 3/6 5/10 High lim. Total
No. tables 3 4 3 3 3 4 20
Players/table 4 5 6 5 5 7 108
Time/player 1h 1h 1h 1h 1h 1h 6h/1h
Players/hour 12 20 18 15 15 28 108
Players/24h 288 480 432 360 360 672 2592
Rounds/hour * 135 180 135 135 135 180 900
Rounds/minute 2,25 3 2,25 2,25 2,25 3 15
Rounds/24h 3240 4320 3240 3240 3240 4320 2160
Rounds/360d 7 776 000
Rake/24h 810 1080 3240 3240 6480 12960 27 810
Avg. rake 0.25 0.25 1 1 2 3
Attracting 2600 (2592) players per 24 hours, or 108 players by the hour, holds the potential to run twenty active tables continuously and rake in about $28 000 (27 810) per 24 hours.
Spread
The business of poker is hence managed through rake and where key factors are number of rounds per hour versus number of concurrent players. However the spread in revenue from one brand to another is in great dependent on table limits and whether the majority of tables are low- medium- or high stake-tables. Healthy poker operations, spread between tables and players should reach an average rake of $1, exclusive of operations cost.
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