Playtech's iPoker trialing "revolutionary" rake allocation method
Changes designed to end intra-network cannibalisation as Italian licensees test the new method ahead of possible global roll-out
Playtech’s iPoker network is currently trialing a “revolutionary” change in the way it allocates revenue between operators on its Italian poker network ahead of a possible wider-scale roll-out.
The network has adopted a new revenue allocation method dubbed source-based rake (SBR) which changes the way in which individual player value is calculated, and it is hoped that the trial will prove the validity of the new system prior to Playtech rolling it out globally.
The new player valuation is based on two weighted aspects: the revenue generated by a player for licensees by turning deposits into rake and whether they deposited money into the network.
Under ‘source based rake’ licensees will see a higher player value assigned to depositing players that come through acquisition, reactivation or cross-sell campaigns, with iPoker arguing this will result in much better return on investment for operators who are marketing and promoting poker to a recreational audience.
It is currently under trial with iPoker’s Italy-facing licensees and players will continue to be rewarded based on their activity with SBR only affecting the licensees.
SBR has been designed in an attempt to end intra-network cannibalisation, with high-volume non-depositing player traffic becoming less profitable for licensees.
Major Italian poker licensees such as Snai, Sisal and Eurobet segregated their cash liquidity in 2013 as part of a private agreement to protect themselves from losing high volume players due to poaching from rival skins.
But with the introduction of SBR Italian iPoker network will be merged into a single cash game liquidity pool.
A three-month trial with Italian licensees began on 7 July with operators running a simulation of the new system to evaluate the results of the new system against current performance.
Italy’s poker market has struggled in recent months and in June cash game and tournament revenue in the country fell by 30% and 26% to 295m and 48m respectively, prompting Marco Trucco, gaming director at Eurobet, to claim the Italian poker market was “collapsing”.