Archive for July 21st, 2010

Use the force Luke

Posted by On July - 21 - 2010ADD COMMENTS

Those who trifle Ongame network (bwin, Betfair Poker from 27 July) you will have received an email a few days ago which reported that, as of July 15, the rule to calculate reward points unchanged.

On 15/07/2010, bwin will change the rule for calculating the points of poker. If you play against teams that could be considered better than you based on the results, you get more points .

poker

This simple phrase, extracted from the bwin communication with users, contains a much greater depth concept for the online poker industry. We are talking, in final accounts of a new model, dramatically different in the management of the rake to the player and affiliates by Ongame Network.

rakeback

The analysis has led to the introduction of this new model a few months ago was detailed in an article by Markus Lind Ongame manager for the magazine Inside Poker Business , titled ‘ Injecting Player Value Into ‘.

Rakeback

In that article, Lind calls into question the current validity of the player reward system that only takes into account the rake that the user produce.

Our concept is very simple: the losing players are more important than winning and large generators .

rake

The explanation is simple. Broadly, the losing players inject cash into the ecosystem of the network while you extract the winning players in the form of benefits and rakeback. Summarizing again: the fishes make deposits, the grinders, cashouts . This implies that, for the living room, new players are, ultimately, more valuable than regular, not forgetting to always be a balance of forces in the population pyramid of the network.

For Ongame, this model, the long term, lead to a liquidity problem in the system would benefit anyone, so Lind explained in the article the idea of introducing a factor “quality” in the valuation of the player who will lead reward programs.

Proper assessment of a player should be reflected in an updated business model, taking the true quality and performance of the player into consideration. Ongame Network intends to move from the current state focused solely on the amount of activity to a new situation where the quality of the activity is rewarded.

Another issue with which you have found the networks has been the phenomenon of competition between rooms on the same network offering increasingly better rakeback deals to players. The rooms with an aggressive policy of rakeback have attracted the kind of players that extract money from the system

. The rooms that are committed to attracting new players (and therefore new deposits) may perceive some unfairness towards his players, those who inject cash into the ecosystem.

Ongame has taken the first step towards the introduction of qualitative aspects in the evaluation of players with Essence, a weighting algorithm that takes into account the trajectory of the player over the past 90 days to determine what percentage of the rake rightful

view to their subsequent translation at points and loyalty rewards programs, release of bonds, etc. In short: the rakeback at large.

The performance data Essence algorithm have not been made public but generally is scheduled for losing players receive more reward points to the winning players.

In a document sent to a member of the Board Bet24, part of Ongame, which was leaked last week in the forum 2 2 (that thread was subsequently closed), they discussed some details of the operation of Essence.

ongame essenceTo explain the operation of the algorithm, the paper type of player divided into four groups on the relation between profits and losses (net) and the rake generated in the process .

Then create a table for an explanation of how to understand the contribution to the rake face of the generation of points (the paper says they are not actual figures but have an explanatory character) depending on the type of player who participates in the pot.

ongame essence

In the report, document designed as a FAQ (frequently made useful to examine), we read:

Ok … Then receive less income from my players what is good in this ?

If you are a member who works mainly on price competition (valueback), short-term changes are likely to be negative for you. However, there are positive:

As the losing players will generate more profit, there will be more marketing to that segment. This means more fishes and play there have a better expectation. (This is a good thing to tell your players )…

The Poker-Network Forum opened a thread, the past 15 days, where it was said the new policy on Ongame. ‘Flan Sinnata’ regular user on the network, explained a day after the launch of Essence:

“First Data …..
The data used to award the points are what we have gained in the last 90 days.
I discuss my case ..
In the last 90 days Ongame’m winning player at a rate of 7.88 BB/100.
Until yesterday managed to play each hand more or less 0.09 points yesterday, which is when everything came into force on the roll …. 0.05 Almost half.

Getting everyone to go their own conclusions. “

Obviously, Ongame has implemented this policy in mind long-term market

. Only time will tell if the reason is on their side.

What is clear is that the market starts to move and that among the legal issues and new policies and business models, online poker, as we have seen since its inception in the last decade, is preparing for big changes.

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