How come all the viable online sites don't have PokerStars quality software?
It can't really be that expensive (relatively speaking) can it?
I think it's a investment vs reward question, less the money and more the logistical difficulties of changing software. I've been through this exact process and it's littered with trouble
Good answer.
'Stars software is the nuts, because until comparatively recently, they were a one product Business - poker.
Most (though not all) other sites have poker as a sideshow to other Gaming Products, & as such, they get better - & far bigger - returns on their investment in resource on the other Products. Compared to Online Gaming as a whole, the poker market is microscopic in size & profitability.
If you think about it, there is a capped return on poker for the sites - Rake & reg fees minus running costs & investment. We know what the max rake & reg fees are, now deduct Prime Costs & overheads & you can easily see there is a quite thin ROI. Let's say, theoretically, that rake/reg fees were 10%. Now deduct rakeback payments, promo & marketing costs, investment, resource. What profit % are they now left with? For those on a network, the numbers are even worse, as they pay the Network a slice of the margin, too.
Most of the mixed product sites just run poker primarily as a x-sell exercise. They make a few bob, yes, but there's far more to be made via other Gaming products, simple because the market is so much bigger.
Author