If you can log into PokerStars from your country, then you probably have not heard much about ‘Club’ or ‘Agent’ Poker. If you are an online poker player in Asia, the USA or Australia you are probably playing on it already.
The premise is this: An online poker operator (Company) provides a mobile poker platform and allows a person (the ‘Club Owner’) to create a private club on the software. Furthermore, the Company provides a chip bank to the Club account operated by the Club Owner. Now, the Club Owner can invite players to join their Club. Eventually a player will want to cash out, the Club Owner will send them the money and take the chips back to the chip bank.
Consequently, the Club Owner is in fact the ‘banker’ for the company (who operates the software). When the Club Owner needs more chips for their players, an order is made to the Company. Where is the profit made? Well, just as in real money online poker, rake. Similarly, the club poker software charges table rake and there are also in app purchases that can be made. The Company sell chips to the Club Owner at a discount so that when they sell them on to the players, they already have a built-in margin.
Is it lucrative? You bet!
Millions Play Club Poker
Do not be under any illusion, just because you have not heard a lot about Club Poker doesn’t mean it isn’t big business. This industry operates very quietly. You have not heard much because the Club Owners are operating illegally in many jurisdictions, most notably the USA and Australia and in ‘Grey’ areas elsewhere.
PPPoker is without doubt the largest of the operators, with thousands of Club Owners, some with thousands of players. Tens of millions of dollars exchange hands every month.
Dodgy Club Owners
You find a poker club on a mobile poker room software site, you send the Club Owner money via PayPal or some other discreet payment processor and you get chips. When you want to cash out, you ask the club owner or agent and they send you the money, Simple right?
Unfortunately, in a completely unregulated market, there will be dishonesty. Search the poker forums and poker news sites and you will find many horror stories where Club Owners have disappeared with the players’ deposits. Yet a lot of Club Owners are making in excess of $100,000 profit per month and we at Latereg have met some Club Owners who make a lot more than that.
Do You Want to Know How You Can Operate Club Poker?
Our staff are highly experienced in the online gaming industry and highly experienced in the poker sector as consultants and operators. They will take it from here and explain this market. Furthermore, they will explain the latest products, and the start up costs, right here in this post.
The Big Boys
PPPoker have had it good for many years, not much is known about who is behind the company or where they bank or how much revenue they make. So, you would think that a company that is making many millions in revenue each month would treat the club owner with repect and give great customer service, wrong. We have spoken with many club owners and the majority complain about custoner service and payment processing, accounts etc. But, until recently, players consider PPPoker the best of a bad bunch when it comes to software and were no real alternatives.
Is There An Alternative to PPPoker, Yes!
In the coming weeks we shall be trialling a new club/agent operated, mobile, poker platform.
So. Check Back after the weekend, cheers!
In the meantime you can read about the different types of poker platforms here. Also, in this post we show you how to operate a real money poker platform and in this post here, how to market your poker business.