There has been consistent growth in the Online Poker industry over the last few years, with the online version of the game becoming increasingly popular among players. However, there’s something more to these online poker sites, which have thousands of players playing on them daily, that is the concept of a Poker Network.
Whether you are planning to launch an online poker platform or just want to understand how the industry works before making a decision, it is essential to have a good understanding of Poker networks. This guide will provide all the information that you need to know, from how the Poker network operates to the pros and cons of poker networking.
What is a Poker Network?
A Poker Network is a group of poker rooms, also known as skins, which come together and connect under a central software system to form a huge player pool.
Instead of operating on its own, each of the skin joins hands with others to benefit from the network’s shared liquidity. This allows players from different poker rooms (skins) to compete against each other in the same cash games and tournaments.
To explain it in simple terms, if Poker Room A has 50 players, Poker Room B has 25 players, and Poker Room C has 100 players, they can all come together to form a Poker network and a combined player pool of 175 players, ensuring the games run continuously around the clock. This results in increasingly active tables with engaging gameplay.
How a Poker Network Operates?
Now that you have understood what exactly a Poker Network is, it’s time to learn how a poker network operates.
The operation of a poker network revolves around a primary software provider, who maintains and runs the central platform, while other Poker Rooms join the central platform. Here is how it works in steps:
Central Software Provider: This central software provider connects multiple skins to form a merged poker system, handling everything from gameplay to payments and player management.
Independent Skins: The independent Poker rooms, or skins, continue to operate under their own brand, run their own marketing campaigns, and have a separate customer support team. However, all their players will use the centralized software, and the player pool remains the same.
Shared Liquidity: As players from various skins join the same network, they create larger tournaments and increased activity on the cash tables as well. This ensures the games are active around the clock.
Revenue Model: Every Poker network earns revenue from rake, tournament fees, and promotions, depending on the volume put in by its players. As compensation for providing the software and infrastructure, the network operator usually takes a share of the revenue from each skin.
Why Poker Operators Choose To Join Poker Networks
While launching an independent poker network sounds like a great opportunity, it can be really challenging when it comes to attracting players. Without enough players, the cash tables will remain mostly empty, and tournaments will receive very few entries. Even a few players who are already on the platform will eventually leave due to the low traffic.
By joining an existing Poker network, even a new poker room can gain access to a large player pool and tables that run 24/7, making it easier to attract and retain players.
This is the primary reason that Poker networks are the backbone of the online poker industry and a considerable support to new or struggling poker rooms.
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Advantages and Disadvantages of a Poker Network
Joining a Poker network comes with several advantages as well as some disadvantages for poker rooms looking to join a network.
Let’s first look at some of the advantages:
– Larger Player Pool: Once the skins join a Poker network, everyone benefits from the large player pools and tables that remain active throughout, with a lively environment. Liquidity is clearly the most significant benefit of being a part of the network.
– Active Games Around the Clock: Unlike independent Poker rooms that struggle to keep the tables active, a Poker network ensures the games are running 24/7. This assists in player retention and boosts the total rake generated.
– Pre-Defined Tournament Schedules: Poker networks typically publish their tournament schedules well in advance. They also offer constant Promotions and Leaderboards to attract players to join these tournaments.
– Independent: Even though all the skins are part of the same Poker network, they can maintain their own identity by managing their players and running independent marketing campaigns. This enables their platforms to remain competitive in the market.
– Gaining Credibility: By being associated with a reputed Poker network, the Poker rooms can gain constant visibility and credibility that they would not have otherwise as an independent operator.
– Reduced Entry Barriers: Poker rooms may face numerous entry barriers, including high investment requirements and a limited pool of ready-to-play players.
Now, let’s look at some of the disadvantages:
– Settlement Issue Between Skins: As multiple skins are involved in revenue sharing, disputes may arise occasionally between them, particularly regarding settlement or rake distribution. This difference in opinion can lead to friction between the network members.
– Difference in Strategy: Over time, skins may develop conflicts of interest, such as differences in approach to bonuses, player acquisition, and marketing strategies.
– Operational Complexity: Operating a network involves compliance with multiple gaming regulations, ensuring fair revenue distribution, and managing payment gateways across regions. All of this can get complex and costly at times.
– Limited Say: Although the skins benefit from larger player pools, they have to operate within the rules defined by the network provider, including the tournament structures, settlement rules, and other policies.
Things to Consider Before Starting a Poker Network:
If you are planning to start your own Poker network, here are a few things to keep in mind:
– Licencing and Compliance: The Poker network providers usually require an authorized master gaming licence from regulatory jurisdictions such as Malta, Curacao, or the Isle of Man. Sub-licenses may also be required by the poker rooms joining the network. If you’re unsure which jurisdiction is right for you, check out our guide on choosing the right jurisdiction for your poker game license.
– Payment Gateways: To ensure smooth transactions for all players, the poker software of the network provider should support multiple payment methods, including credit cards, e-wallets, bank transfers, crypto, and other area-specific payment methods.
– Stability and Infrastructure: Network providers must have stable servers across various regions to accommodate an increasing number of players without interruptions and ensure seamless gameplay.
– Marketing: The success of a Poker network depends not only on stable software but also on having strong promotions, affiliate systems, and loyalty programs to retain players.
Conclusion
A Poker network serves as an excellent opportunity for independent poker rooms to grow their business by collaborating with other skins within the network and enjoying access to a huge player pool.
However, just like any other business model, the poker network model also presents its own set of challenges, including occasional settlement disputes and operational complexities.
However, with the proper approach, planning, and joining a reputable poker network, you can significantly enhance your poker platform and pave the way for consistent growth and business expansion.
