Online poker network health check
Alex Scott, head of Microgaming Poker Network, looks at where online poker is headed and some challenges it faces in 2015
Online poker sector continues to be the black sheep of egaming family, with declining revenues at nearly every major listed online gambling operator. But is there reason to be hopeful for its future? And can the poker networks help lead its revival?
Alex Scott, head of poker at Microgaming, talks to eGaming Review about the current state of play for poker networks and predicts a brighter future than many might expect.
eGaming Review: How would you characterise the health of poker networks in 2014?
Alex Scott: We still have some problems to solve, but generally they are problems that are facing the whole industry. For example, what do you do about players who generate a lot of revenue, but damage the playing experience of others? I think that most of the key problems that have faced poker networks specifically, like network drain, have been dealt with.
eGR: To what extent has the rakeback problem been ‘solved’?
AS: It’s been solved to the extent that I no longer worry about it. On the MPN, operators can’t profitably offer high rakeback because of our True Value system. A few of our operators don’t offer rakeback at all, and they still do very well. I definitely support operators who offer alternatives to rakeback, but I’m not overly concerned about those that still offer it.
eGR: What are the major challenges facing networks in 2015?
AS: The two big challenges facing the MPN are growth and regulation. How do you attract new operators to your network in a time when many people are increasingly cynical about poker? Regulation is a challenge that affects the entire poker industry, especially when it splits liquidity. We have no choice but to dedicate more time and resources to development so that we can continue to innovate.
eGR: Where can poker networks get growth in the dot com market? Is it more a case of managing decline/maintaining market share?
AS: I honestly don’t think we’re managing an inevitable decline. A lot of the global market is currently untracked, as was highlighted when Adjarabet appeared from nowhere on PokerScout last year. There are more Adjarabets out there and we’re going to find them.
eGR: Why have networks been less effective in dot country markets?
AS: Dot country markets require the same amount of work as the dot com market (if not more), but for a significantly reduced reward. In every dot country market it is difficult to make a profit. In addition, the operators running on networks in dot country markets have typically been new entrants to the poker marketplace, competing against experienced industry goliaths who bring their player pool with them.
The big question with any dot country market is whether it can sustain a thriving industry with many operators, or whether only two or three operators can survive in the long term.