World’s largest poker network reverts to stronger single tier

Licensees and players benefit as iPoker merges two-tier liquidity pools following success of Source-Based Rake in Feb 2015

London: August 13th 2015 – The world’s largest poker network has merged its two-tier system to form a single, stronger liquidity pool that will significantly increase licensee revenues, player experience and lead to a revival in B2B poker performance.

The move to revert to a single tier system was taken in consultation with iPoker licensees following the successful introduction of a new Player Valuation Formula, or Source-Based Rake (SBR), in February 2015. The decision to introduce SBR has been widely welcomed by licensees who, in partnership with Playtech, are actively investing in poker.

In September 2012 iPoker announced that as part of the ongoing evolution of the network it would split into two tiers in order to create further incentives to promote the product and drive more customers.

In a further move to generate additional recreational player traffic, the network introduced a new player valuation model earlier this year. The SBR formula changes the way in which individual player value is calculated, basing it on a player’s net contribution to the network liquidity instead of looking at how much gross rake and fee a player has generated.

This not only ensures that a losing player is now worth more to each licensee, it also addresses the drain of players’ balances from one licensee with predominantly losing players to another licensee with mainly winning players. A portion of the revenue winning players generate is traced back to the losing player and attributed to him instead of the winning player.

Joerg Nottebaum, Head of iPoker, Playtech, said: “Since its introduction in February we’ve been very pleased with the new player valuation formula. It successfully addresses previous network concerns, opens the door for licensees to grow their poker revenues and invest in poker once again.

“The network today is far healthier with licensees focusing on generating genuine revenues with their own recreational player base instead of fighting each other on small margins for the biggest winning players.

“This is good news for our licensees and their players who will enjoy the benefits of a larger poker liquidity pool and, as a result, a wider variety and richer choice of poker variants,” Nottebaum added.

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About Playtech

Playtech is a market leader in the gambling and financial trading industries. Founded in 1999 and listed on the Main Market of the London Stock Exchange, Playtech has more than 5,000 employees in 14 countries.

Playtech is the gambling industry’s leading software and services supplier with more than 120 licensees globally, including many of the world’s leading regulated online, retail and mobile operators, land-based casino groups, government sponsored entities such as lotteries, and new entrants opening operations in newly-regulated markets. Its business intelligence-driven gambling software offering includes casino, live casino, bingo, poker and sports betting.

It is the pioneer of Omni-Channel gambling which, through Playtech ONE, offers operators and their customers, a seamless, anytime, anywhere experience across any product, any channel (online, mobile, retail) and any device using a single account and single wallet. It provides marketing expertise, sophisticated CRM solutions and other services for operators seeking a full turnkey solution.

Playtech’s financial trading division, run through subsidiary TradeFX, is an established and growing online CFDs and binary options broker and trading platform provider, operating a number of brands including markets.com. Its B2C focused offering is available in more than 100 countries and in more than 25 languages and is licensed and regulated in the EU and South Africa.

www.playtech.com

For further information contact:

Playtech plc
Mor Weizer, Chief Executive Officer
Ron Hoffman, Chief Financial Officer
c/o Bell Pottinger
+44 (0)20 3772 2500

Andrew Smith, Head of Investor Relations
+44 (0)1624 645954

Bell Pottinger
David Rydell / Olly Scott / David Bass / James Newman

 

 


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