Poker online sites see lots of mergers and takeovers

Originally Posted on Thursday Jan 28 4:49:00 GMT 2010

Everyday seems to bring yet more news of online poker and gaming sites selling out to competitors, or merging with other sites, thus generally forming bigger companies and in turn making for less competition.

It must be these bigger companies that are able to offer rakebacks to their customers.  The term means that players receive extra money just for using a particular site over and over again.  The expectation is that once a site has attracted a player to their site they will be able to retain them by handing out very generous rakebacks.

Some in the industry see this as short term folly, because ultimately a poker site has to be profitable.  Many online sites are finding it difficult to actually make a profit.  If they were then to withdraw the incentives that keep their regular players happy, they will probably lose them to other sites.

Clearly this a problem that will take some time to work out if many businesses are to survive in this extremely competitive market.

New Zealanders will be as attracted to the sites offering the rackbacks as any other nation and will no doubt be watching as anxiously as the rest of the world as to how the online gambling sites will resolve this problem.

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