PokernetworkReview

POKER – WHITHER GOEST THOU? QUO VADIS I have been fortunate to be involved in Australian Casino Poker since Tasmania 1985. It has been an exciting and fulfilling journey, the history of which involves many characters, many booms and many busts. There are a few players out there today who share this adventure with me. From the perilous beginnings in the saloons of the American Wild West, to the Gentlemen’s’ Clubs of the world, Army blankets and mining camps, Las Vegas Bugsy’s Flamingo, Johnny Moss and Nick The Greek, the WSOP, the Vegas revival and for Australians the Crown Casino we have arrived at; · A thriving Poker industry in USA, Europe and UK · A popular boom throughout the world in Casinos, TV and online · A technological revolution for online play I have spent the last week reading the industry review of online play put out by River City late last year. It demonstrates an exciting business model of an industry headed to astronomical heights. Online play only made a serious debut in 2001. v Revenue has gone from 3 Billion USD in that year to 7.46 billion in 2004 to a projected 10 billion this year 2005. v Estimated i gaming revenues in 2005; Sports betting 3.69 million, Casinos 3.09, Lottery 2.19 and other 0.69. v There are now 55 “top level” poker networks in operation and of these 22 control 83% of the market. v Software moves from good, better, best every day eliminating collusion and poker bots. v 90% of the players are young, male, high level of education with an adequate income. High Stakes players form only 1% of the player base CF B&M Casino high roller income). This is a new breed of player whose skills have been developed purely online. v The average number of ring game players per hour has risen from 1,524 in January 2003 to 18,856 in October 2004 and tournament players from 871 to 26,346 for the same period. The percentage of ring to tournament going from 64/36 to 43/57. v Tournament satellites for B&M Casinos are the flavour of the coming years. We wonder where it will all stop? The online business is a very costly exercise but it is fed by a host of very enthusiastic players and the profits are huge (as will be the losses for the unwary or undercapitalised.) A modest site in UK now shows a turnover of L50 million per day. Another has over 200,000 registered users from 85 countries worldwide and processes more transactions than the London Stock exchange. Sportingbet recently purchased Paradise Poker. The march to industry wide consolidation has just begun. We have a view that online players play specifically for recreation and cash benefit whilst the eye ball to eye ball casino and home players, play for power, ego and social activity as well. As a result online players always gravitate to B&M casinos when they have the opportunity. Hence we see the growth of the WSOP, other major Casino tournaments and our own Crown Aussie Millions and mid year tournaments. Who wants to beat a machine with no-one to see you win? As for the future; Ø Roughly 1.3 million players in real money games in October 2004. Ø About 1,700 ring games played on line at any given time as at November 2004. Ø There are about 114,000 players on line at any given time. Ø Nearly USD 150 million was wagered on internet poker over a 24 hour period in November 04. Ø A total prize pool of $2 million a week was awarded in major tournaments in Nov 04. Ø Since October 2003 $109 million in total prize money has been paid out thrpugh online events. Ø There are at least 232 reak money poker sites in operation. Ø The estimated annual online revenue is $2 billion and rising 16% on a monthly basis. Ø 24 Hour peaks for tournament play in November 2004 were Party Poker 26,930 players, Pokerstars 17,241 and Prima 9,339. However take out Party poker and Poker Stars and the average number of tournament players drops to 5000. Pokernetwork is none too sure what direction the future will hold but the present offers unbounded opportunities for the poker community to take part in a major recreational game of skill and enjoyment the result of a strong working relationship between the online and B&M Casino industries. The individual player is now a sought after asset from online and casinos. Take your pick guys. The Poker world is your own oyster. The Master