How many online poker rooms will fold this year?

Calvin Ayre
Calvin Ayre
January 7, 2011
13 Comments

how-many-online-poker-rooms-foldCouldn’t help but notice this recent item noting the demise of the BigBetPoker room, a site on the Merge Network. No precise cause of death was given, but Merge is a US-facing network, and thus subject to the ongoing federal attacks being launched against pure poker eCom for the past year and a half. Of course, there could be any number of other reasons why the site has decided to pack it in: bad management, lousy marketing, making too many concessions to attract the wrong kinds of players… Or perhaps the fact that I said it would happen?

The year isn’t even a week old and already my year-end predictions are starting to come true. No, not the one about Mitch Garber getting a job, this one: At least one major poker company is killed by the cruel hand of the marketplace.

BigBetPoker may not have been a major poker room, but given that its death notice was published in the first week of 2011, it’s entirely possible that we could just be getting warmed up here. For the record, I believe we’ll see at least three – and possibly many more – poker rooms fold this year. A couple small networks might even succumb to their wounds. As for Mitch Garber getting a job, well, the timing on that one’s a little harder to predict. Depends how many brain cells key industry executives may have killed during the holiday excesses.

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Tags: Article, BigBet Poker, merge network
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  • Ben F

    its weird because Merge's software is fantastic. It sure destroys your software Mr A

    • http://CalvinAyre.com Calvin Ayre

      I have nothing against your employers Ben, or the Merge software or their owners Sportsbook.com, nor do I actually produce any poker software myself so will leave that debate to online poker players. If you reread the message above I am more commenting on the poker industry in general and more particularly if you read all my articles, the changes that the industry is going to have to make to stay healthy.

      These are what are called predictions and only time will tell if they are correct. However, what is all over the net and is fact as far as we can tell, is that Big Bet Poker, running on the Merge network, has closed its doors. We are a news site and we have to cover the industry news, no matter how many times you shoot the messenger, the message does not change :-) Maybe you can be so kind as to get a hold of Big Bet and get us more details on why they shut their doors so we can publish this? Your boss at Merge can likely get them to tell us. I have already predicted there are going to be failures in this area this year and this is not the last.

      Thanks for reading our site, the online gaming news site with balls :-)

  • http://CalvinAyre.com Calvin Ayre

    By the way, one of my reporters just informed me there is another story on the Merge network and Lock poker on its way that again goes into why online poker is in trouble for many operators right now. Have not seen it yet, but should be an interesting read.

  • Ben F

    I don't work for Merge. In fact, I work for my own company which consults for the industry. We have recently built a report which compares all the leading poker rooms in the industry. My inference was that Merge's software was much better than Bodog's as well as many other rooms to be honest….however, I realise that you have nothing to do with Bodog any more and should not have joined the two together. It surprises me that a poker room on good software (Merge) taking US bets, cannot stay open. Must be poorly managed.

    As we all know, marketing poker rooms is becoming a much harder job these days. Offering USPs that compel customers to join your site vs another is becoming increasingly difficult in a market that has Tilt and Stars so far ahead of everyone else.

    I like your news site Mr A, I was just trying to get a reaction. Seems I did.

    • http://CalvinAyre.com Calvin Ayre

      Normally nobody comes in with cheap shots that are unrelated to the story unless they have some skin in the game Ben. I would still guess you work for Merge at some level, which is cool with me. The article above is just covering a story that is all over the net, its not making any big statement other than the jokes, which are not about Merge.

      Glad you like the site, but would rather you give us some new insight into the industry instead of the noise of your first post, especially since you are presenting yourself as a consultant to the industry….you should in fact have your name and company name in the post and be loud and proud. It is your potential customers after all that read this site.

      The business model of the online poker industry is being forced to change, this is unrelated to software and in many cases what some consider to be “bad software” is only because they do not understand what the right business model is. I am monitoring this closely and can see changes coming this year in poker..lots of changes.

      • Ben F

        I have no issue in being upfront about who I am. My name is Ben Fried. I used to run Betfair Poker for 4 years. I have never worked for Merge. I have been in the betting and gaming industry for over 8 years.

        My consultancy, Gaming Edge Associates, has tried to contact Bodog to help them with their poker software and its standing in the marketplace, but I have had no response. I have tried a couple of ways.

        I guess my insight was that I am surprised by a Merge company that has not succeeded. They have done some very good things with their software in the past couple of years, and that's what has surprised me.
        I am intrigued what you mean by the right business model for poker as no-one has successfully challenged the pricing/rake structures begun by Planet and Paradise in 1999 (apart from 100% rb from WSEX in the mid-2000s – and that did not even work!). I guess there is a model to offer it nearly free and use poker as an acquisition tool for other products, but that is already being done by some.

        My initial comment might have come across as cheap and apologies for that, but I think you have to admit that some of your jokes above smack of cheapness as well…

        • http://CalvinAyre.com Calvin Ayre

          Bodog Poker is run from London by Patrik Selin. Is this who you have been in contact with? I know the entire industry is responding to their philosophy, which is widely published here and on other sites in the industry such as eGR… the software they inherited and are in the process of changing…not sure if you can help them or not. I am not involved and do not play poker online so am the wrong guy to be debating software with. I am a sports betting guy…with a bit of black jack for fun.

          If you throw out a cheap shot you will get one back my friend :-) And I must repeat that what you initially posted is odd given the article above and the information you are now giving don't you think?

          Thanks for commenting and good idea to use your name as if you are making sense this builds your personal brand in the industry. Hiding who you are has never made any sense to me when you need to promote to be successful in business and in our site you have access to the entire industry for just your time to comment.

  • Steve J

    I doubt Merge is going anywhere, with Sportsbook.com supplying it with an endless source of whales. However, rumblings of Cake's overspending habits, poor employee morale, combined with their loss of the SB.com, is indicating an impending death.

    I agree with Calvin's prediction, though my money is on Cake disappearing, not Merge. Bets, anyone? :)

    • http://CalvinAyre.com Calvin Ayre

      I agree that Merge is not going anywhere as long as Sportsbook.com is there sending their fish. My point on Merge is that I can understand why they let the little rooms like Lock that are net liquidity drainers stay on the network. They should get rid of them and do a few other things that enhance the playing experience of the recreational players.

      Once again…this is going to be a very turbulant year in online Poker. 2011, the year the poker industry had to restructure.

      Can not comment on Cake in general, though I am meeting Nick later today for a meeting and do know they are also the same as the rest of the industry in having too many advantages for sharks too their own detriment.

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  • http://www.pokeroddscalculator.org Poker Calculator Guy

    I think it is innevitable that there is some consolidation as we've seen lately and some rooms going under. But the industry itself is still booming and there will continue to be strong poker rooms and networks.

    • http://CalvinAyre.com Calvin Ayre

      Poker industry is here to stay. But the winners and losers are not carved in stone yet and the companies in the industry are going to have to continue to evolve.