Full Tilt paid Ivey $900k a MONTH. How do poker sites make money?

RickAversion · Feb 15, 2014

http://www.pokernews.com/news/2012/...vey-made-920k-a-month-from-tiltware-11720.htm

How does a poker site pay Ivery $12,000,000 a year?
How do they make money? On rakes?
That's a LOT of money in rakes, no?

Stevepdx · Feb 15, 2014

Ladybugger said:
http://www.pokernews.com/news/2012/...vey-made-920k-a-month-from-tiltware-11720.htm

How does a poker site pay Ivery $12,000,000 a year?
How do they make money? On rakes?
That's a LOT of money in rakes, no?

They make asssloads and assloads of money in rake. ASSLOADS.

RickAversion · Feb 15, 2014

So, in essence, for online poker, everyone ultimately loses except the house?

XXPXXP · Feb 15, 2014

it is really hard to imaging
Full tilt collect so much rakes per year

PS: I do think they need to put large amount of cost to maintain servers, and pay for the bank transfer.

tazer · Feb 15, 2014

I think Full Tilt takes something like 5 cents for every dollar in the pot up to $3. So if you say they take something like $1.50 on average per hand they do something like 30 hands an hour per table. Something along the lines of $45 an hour per table. Somewhere along the lines of 500 active tables at any given time would be $22,500 an hour. Could be something like $540,000 a day just in rake. Just to put that number into perspective that is $197,100,000 a year.

These numbers are just ones I picked out. It is probably much higher table rate. It is just an insane amount of money flowing in from rake.

Debi · Feb 15, 2014

They make millions a day

Stevepdx · Feb 15, 2014

Ladybugger said:
So, in essence, for online poker, everyone ultimately loses except the house?

No. People beat the rake. But if rake was a player they'd be killing it.

GWU73 · Feb 15, 2014

They stole it from the players. That is why we are having such a hard time getting paid.

goodgameme · Feb 15, 2014

GWU73 said:
They stole it from the players. That is why we are having such a hard time getting paid.

Exactly. They were paying these pros out of depositor's money rather than keeping those accounts separate like PokerStars did. Ponzi scheme imo.

Randall McMurphy · Feb 16, 2014

I guess that's how Gus Hansen can afford to lose $16 million.

How about giving more perks to the rake payers Full Tilt?

LumeBStackin · Feb 16, 2014

That's just crazy. Never stopped to think how much rake added up running constantly. Also don't forget to take into account the vig paid on every sng or mtt. Dayum!

Mindset · Feb 16, 2014

It's impossible for them to lose.

They are making more than they pay out, no matter what.

Think of it this way; 2 players buy into a $200+10 HUSNG game. Winner gets 400. House profits $20 no matter what, in every situation.

After 20 of these are played, they've profited $400. We know more than 20 of these are played a day.

rytciaq · Feb 16, 2014

so the weekly freerolls which have couple of thousands dollars are nothing to them, because they make that money in a minute?

OzExorcist · Feb 16, 2014

dakota-xx said:
They make millions a day

^ this. For a poker site that's on the level yes, that money would come out of the rake they take from players.

Of course, we now know that Full Tilt wasn't on the level at that time, and that they were paying that money out of player funds. Making regular payments that huge was just one of the many mistakes they made on their way to collapse.

IIRC Ivey was a part-owner of the site at the time too so that $900K likely wasn't just a sponsorship payment, it was also his cut of the site's profits.

topper39 · Feb 16, 2014

Try to do a little calculation of how many tourneys, SNGs and cg hands are played everyday on Full Tilt. Then, based on it, make a guess of how much money they could earn a day. Triple the amount and I think you might be quite close to their actual profit.
Anyways, it's an enourmous figure so they probably had no prob to pay Ivey 900K a month (even though it's still totally sick pay when I imagine how much average man earns in his job lol).

scorpion1367 · Feb 16, 2014

Hmmmm now you know why the governments want a piece of the action and big live casinos see on-line as such a threat to there bottom lines.....scorp

Arjonius · Feb 16, 2014

FT's principals all got millions because the daily rake was huge AND they were siphoning out money. There wasn't nearly enough cash to cover all the players' balances. The site just had to have enough to cover actual withdrawal requests, which is a waaaay smaller amount.

Swickster007 · Feb 16, 2014

poker sites make money purely off of their rake/tournament fees. This cost is then used to maintain their servers and online securities that keep your money protected and try to keep the game as legit as possible (he fighting against hackers). Then there is also the cost of tech support and customer support/call centers. Either way, the house wins otherwise they wouldn't be operating a website. No one does anything for free.

imtheman · Feb 20, 2014

They make millions on are hard earned cash but ya got to love poker

S3mper · Feb 20, 2014

My god.. Did Phil Ivey cheat on her or something? She is getting 190k a month got over 1 mil in jewelry and Phil took over 15 mil in her gambling debts and she wants more?

Funny how in the divorce they split everything except debt....

Prenupm prenup, prenup..

ccocco · Feb 20, 2014

guaaa talking about millions like pennies ... lol

jodyjoPanicKid · Feb 21, 2014

I'm not so sure the shadowing rumors aren't true. They say hackers can shadow your p.c. and gain access to your hole cards. I've also heard claims of players shadowing the mother site to gain access to everything. I've experienced crazy calls that made no sense, end up getting runner runner to win. In medium and high buy in games. I know we play tons of hands on-line compared to live games but the numbers still don't add up. I have accepted the fact that the game is rigged. I'm just having fun and practicing my people skills.

Stevepdx · Feb 21, 2014

jodyjoPanicKid said:
I'm not so sure the shadowing rumors aren't true. They say hackers can shadow your p.c. and gain access to your hole cards. I've also heard claims of players shadowing the mother site to gain access to everything. I've experienced crazy calls that made no sense, end up getting runner runner to win. In medium and high buy in games. I know we play tons of hands on-line compared to live games but the numbers still don't add up. I have accepted the fact that the game is rigged. I'm just having fun and practicing my people skills.

The numbers don't add up? Math, please. I'd love to see your work.

WeenieSVK · Feb 21, 2014

Yea thats right. Rake could be 50% lower and they would still make unbelievable money from it. They are just too greedy and they dont have reason to change it cause competition is pretty same. Its like cartel.

S3mper · Feb 21, 2014

WeenieSVK said:
Yea thats right. Rake could be 50% lower and they would still make unbelievable money from it. They are just too greedy and they dont have reason to change it cause competition is pretty same. Its like cartel.

Running a business isn't a charity

Full Tilt paid Ivey $900k a MONTH. How do poker sites make money?

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