Poker Forum > General Discussion
Season 6 Discussion
Des:
Chipaccrual:
Bigfella42:
General question linked to option 3. What are the costs associated with setting up an online site, both to establish it and then ongoing licences etc? Another well known forum used to have it"s own skin on i=poker but when this was lost they never set up a new site which led me to assume, maybe wrongly, that the rake they would have taken would not be sufficient to cover expenses and make a reasonable profit.
The online poker market is pretty saturated and while the APAT regs would no doubt support it, to what level would new traffic be needed to make this a viable option?
Des:
--- Quote from: Bigfella42 on January 26, 2012, 22:32:05 PM ---
General question linked to option 3. What are the costs associated with setting up an online site, both to establish it and then ongoing licences etc? Another well known forum used to have it"s own skin on i=poker but when this was lost they never set up a new site which led me to assume, maybe wrongly, that the rake they would have taken would not be sufficient to cover expenses and make a reasonable profit.
The online poker market is pretty saturated and while the APAT regs would no doubt support it, to what level would new traffic be needed to make this a viable option?
--- End quote ---
The strength of the deal is key here. The site that you mention above actually generated significant revenue however it was unduly hammered every time the network had an overlay. In addition they were liable for additional costs that I would never sign up to. That may limit our options, but I wouldn"t sign up to any agreement that wouldn"t be beneficial to APAT.
TightEnd:
--- Quote from: Des on January 26, 2012, 22:38:36 PM ---
--- Quote from: Bigfella42 on January 26, 2012, 22:32:05 PM ---
General question linked to option 3. What are the costs associated with setting up an online site, both to establish it and then ongoing licences etc? Another well known forum used to have it"s own skin on i=poker but when this was lost they never set up a new site which led me to assume, maybe wrongly, that the rake they would have taken would not be sufficient to cover expenses and make a reasonable profit.
The online poker market is pretty saturated and while the APAT regs would no doubt support it, to what level would new traffic be needed to make this a viable option?
--- End quote ---
The strength of the deal is key here. The site that you mention above actually generated significant revenue however it was unduly hammered every time the network had an overlay. In addition they were liable for additional costs that I would never sign up to. That may limit our options, but I wouldn"t sign up to any agreement that wouldn"t be beneficial to APAT.
--- End quote ---
This was only part of the problem encountered but yes, its all down to
a) the contract you have (and I inherited one that was nasty to the skin)
b) the policies of the network you are on
If those are right then yes to take Glenn"s point the margin on gross rake can be good
as to setting up a skin from scratch, set up costs are generally quoted at $25,000+ though as with most areas of life it depends who you know
Of course you don"t necessarily need to set up a skin from scratch. Arguably the market is too fragmented and consolidation is needed to give smaller skins on various network more critical mass/economies of scale
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