Overhaul of the Rewards Model for iPoker Sites

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Monday, April 11th, 2016 | Written by Lucy Brown

The world of online poker has been undergoing some seismic changes of late, particularly as regards the way in which the websites are run. Of particular interest is the decision by major iPoker operators to eliminate the rewards programs that had previously encouraged players to grind for a living, or play for long periods of time without worrying about winning or losing, as they would make their money through rakebacks programs. However, it is now clear that the days of quantity over quality are coming to an end, but what’s not clear is what type of rewards model will become the norm in the industry. Let’s take a look at what three of the top operators are doing with their new rewards programs.

PokerStars

As the world’s largest online poker room, PokerStars caused quite a commotion by changing its VIP program. In a nutshell, the new PokerStars VIP program reduced the amount of rewards provided for those players who reached the top tier of the program, and the program also completely eliminated rakeback at the site’s high stakes tables. The site even faced a boycott in December 2015 and January 2016 after announcing its overhaul back in November 2015.

The goal of PokerStars is to incentivize players to be more fully engaged in games, and cut down on the practice of grinders taking to multiple tables, and not interacting with other players.

TonyBet

TonyBet is an online poker operator that runs sites in Europe, with the site most well known for the open face style poker game it offers, like the format popular in China. Although the site is small compared to some other operations that have revamped their rewards program, TonyBet has nevertheless made a huge change to its structure.

Instead of eliminating rakeback, TonyBet has instituted a system where by rakeback levels increase the more that a player loses. All players get a rakeback of 25 percent standard, but when your winnings and losses for the day are between -€100 and +€100, rakeback then increases to 50 percent. Players who lose more than -€100 subsequently receive 80 percent rakeback.

Other online poker sites have tried similar strategies in the past but players have not responded well, as the system can be confusing.

888

The second largest poker operator worldwide, 888, has attractd a lot of attention with its new rewards program. The brand new system that 888 has announced provides rewards not based on rake but on accomplishing certain goals. For example, players may receive rewards for:

– Winning cash games with specific hands

– Completing a set number of certain types of games

– Winning a certain amount of money in a game

– Winning sit and go a set number of times

This rewards program is inspired by achievements used to incentivize people to play video and online computer games and will provide rewards not just for poker, but also for casino and sports betting. The rewards program seems to be set up to encourage players to try different types of gambling, and to make the focus more on fun and completing goals than on grinding away at the table endlessly. Elaborating on the new program, an 888 Poker spokesperson explained:

“We want to reward players for other activities, including long term loyalty to 888poker, rather than only for grinding.

An Inspiration for Fantasy Sports Sites

Online poker has on a steady downwards slope since the game peaked in 2006, leading to the major innovations currently taking place in the industry. Daily Fantasy Sports betting, on the other hand, is on an upwards trajectory and following the example of 888poker one of the world’s biggest DFS sites, DraftKings, has also now introduced a rewards program based upon successfully completing missions.

The revamp was implemented after the previous Frequent Player Points (FPPs) system offered by DraftKings attracted less than a 10% participation rate. While FPPs are still available, the site now also offers a range of other rewards benefits including Missions, free contests, and Flash Bonus contests, and as a DraftKings press release stated recently:

“These additions will give all of our players the opportunity to enjoy even more rewards on DraftKings. We look forward to growing this program in the upcoming months and years as we continue to provide the best experience in Daily Fantasy Sports!”

In spite of its flattering imitation, the DFS industry is trying its utmost to differentiate itself from online poker as it seeks regulation in the US. In February , for instance, FanDuel CFO Matt King caused quite a stir in the poker community when during an interview with PBS.org he insisted that poker was not a game of skill, stating that “every time you shuffle the deck, it creates an element of luck that trumps it basically to being much more a chance-dominated game than a skill-dominated game.”