Liquidity
and Access - Two Peas In a Pod
Members
of the poker community have been a down-trodden bunch since that ominous Black
Friday of 2011. Following the indictments that came down from the US Department
of Justice for online entities like Full-Tilt Poker, PokerStars, and Absolute
Poker/Ultimatebet, what was once a thriving online society of global players
fell into disrepair, confusion, and anger. American professional poker players
scurried for the nearest borders to set up house and their laptops in order to
continue their lucrative, relentless pursuit of an honest living through
gambling. Poker players in the rest of the world continued as usual, knowing
that their governments were unlikely to act in such a paternal way.
But that
April day changed the online poker community once and for all. What the US
market brought to these global sites was liquidity, defined as huge numbers of
players willing to risk small and large amounts of money on the game. Once the
US market was squelched, the otherwise unnoticeable restrictions of other
countries bent on keeping their own tax money and not sharing with their
neighbors, became obvious. The real truth of online poker was there for
everyone to see - without healthy, robust numbers of players online at all times
of the day and night, online poker was not the cash cow it seemed to be.
For the
last three plus years advocates of the game have been trying to recapture that
magic and most of those efforts have fallen woefully short of the goal.
Online
poker is still played legally throughout Europe and illegally by many Americans
on sites based outside the US. Yet, online poker revenues have fallen overall
during that time. While PokerStars still maintains a clear advantage over other
sites, all have experienced declines in players and revenue since 2012. What
once was a "no brainer" investment has become a cautious choice for
investors. What once was a sure thing has become a gamble.
The
recent emergence of legal online gambling in Nevada, Delaware, and New Jersey
has done little to improve the picture. US online revenues, especially in New
Jersey, have fallen far short of optimistic projections and player numbers have
ceased to increase as they did over the first few months of play.
The US
online poker industry has been searching for answers and coming up short.
National approval of online gambling, once thought to be in the offing, has
fizzled and all but died. Individual states, in addition to those already
committed to online gambling, have had their proposals bogged down with details
and stuck in legislative committees. Among the biggest arguments holding up any
progress toward approval is the so called "bad actor" clauses imbedded in the language of many
state bills that forbid any company that operated in the US before Black Friday
from participating now. Left holding the bag outside the locked doors of the US
online poker market, companies like PokerStars have been looking for a way in.
A
scenario like this makes most poker players anxious and when people get anxious
they often grasp for straws.
So, when the merger/acquisition of PokerStars by
Canada's Amaya Gaming Group was announced a few weeks ago, American poker
players began to salivate imagining that this was the solution to all their
ills.
And
that's what everyone was thinking and many were saying - once PokerStars is
back in the game, even under another name, we can get back to what we were
doing before. And that went on for a week or so until one poker journalist had
the insight to see through all the hope and anticipation and the guts to write
about it. My twitter friend, Robbie Strazynski, was that guy and I do not
pretend to be able to say it better than he did. PokerStars or no PokerStars,
the online poker market still does not have nor will it have the liquidity
(translate simply as "number of players") to be as good as it was
before without everyone, anywhere being able to get online and participate.
Read
Robbie's eloquent piece here: Robbie's Article
And what
about access? Poker players like to play poker. They do not enjoy flipping from
screen to screen trying to get their credit card to work or trying to transfer
funds from here to there. They want it easy and until someone can make it easy
- like it used to be - to get money in and money out of an online poker site,
this dilemma will cut further into the necessary numbers.
I don't
expect a lot of sympathy from professional poker players on these issues. These
guys and gals make a living at poker and they can afford to travel and put up
with all kinds of inconveniences because they have to in order to survive. But,
the thousands of players who are participating in the WSOP right now as I'm
writing this aside, the vast majority of poker players are regular men and
women looking to have a good time and maybe make a few bucks. Making those few
bucks is nice but the fun is usually more important. We play poker because we
love it and we will not come back into the game unless it is easy to get in and
unless we can find a place to sit our virtual behinds down quickly. Liquidity
and easy access will bring us back into the game playing our $10 Sit N Go
before we go to bed and enrolling in that $20 Friday night tournament with 2000
other players just to see if we can compete, always walking away with a
tremendous rush!
Liquidity
and easy access are good for everyone but they are essential to us regular
players. We really don't need the ability to play 16 tables at once nor are we
ever going to risk $1000 from our day job on a chance to make a fortune. We
want to play when the spirit moves us with a table full of other gamers and
that's all.
Unfortunately
nothing that I see on the near horizon promises that!