Exclusive: iPoker 2 licensees to form action group following split
Playtech network split sparks "minor room" iPoker licensees to discuss forming official forum to share liquidity, ecology, investment and competition concerns.
A number of iPoker licensees that failed to meet the criteria to enter its top tier following the network’s split today are close to forming an unofficial forum in order to discuss shared concerns that they could lose out as a result of the division, eGaming Review has learned.
Playtech’s scheduled iPoker network split was confirmed earlier today with William Hill, bet365, TitanPoker “ that recently merged with CelebPoker “ Paddy Power Poker and Poker770 fulfilling network owner Playtech’s strict volume and player ratio guidelines. Its largest licensees will now form and share liquidity within its exclusive iPoker 1 network that will focus predominantly on recreational players and that contribute as much as 70% of the network’s overall liquidity for cash games.
In an eGR poll last week 50% of readers said four operators or fewer would begin on the higher tier, despite several more being rumoured to be in contention for inclusion. Betfred and Dafabet, owned by Asian Logic, were both on the borderline of joining iPoker 1 however they have now been moved to the second tier.
Playtech introduced a new set of rules in July including the maintenance of a base of 6,000 monthly active players, as well as the introduction of 850 new players each month. Skins are also required to maintain a satisfactory balance of recreational and professional players in order to take their place at the top table and enjoy segregated liquidity for cash games.
The remainder of the supplier’s licensees including Mansion, Genting, Boylesports and Blue Square will be relegated to the second tier, however eGR has learned that a number of these companies, among others, have already contacted one another and are considering forming a group to share their concerns over today’s split.
Despite one operator telling eGR that the second tier network has a “sufficient chance of competing with others” following discussions with Playtech, their concerns surround a number of issues including liquidity; the ecology of the room; how much Playtech is willing to invest in the “minor room” given the lower returns from smaller licensees; as well as the influence and the “enhanced competitive edge” tier one licensees could have on the supplier’s management board.
One operator, who chose to remain anonymous, told eGR that “numerous conversations” had taken place between other “affected” licensees but that if it acted alone concerted action would be difficult. However if a number of operators worked together then the network would be more likely to consider hearing and acting on their concerns, he explained. “If we work together we could shape the minor room into an area or a concept that appeals to a section of the poker market,” he added.
Another operator, who also chose to remain anonymous, told eGR it was not yet clear how many of the smaller rooms were affiliated to sharks and how this would affect their more recreational and beginner level players, while he also voiced his concerns over whether there would be sufficient UK-facing liquidity with Asian-facing Dafabet contributing the most players and a large number of players not online during UK daylight hours. “UK liquidity may not be sustainable from a UK perspective especially if Asian Logic [Dafabet] dominates [the second tier].
A number of sites are known to have already examined alternative network options including Microgaming, Entraction and Ongame, as well as some negotiating and/or preparing an exit from iPoker if some of the issues, including sufficient UK liquidity, are not made clearer or even guaranteed.