What is Online Poker?

Online poker is the game of poker played on the Internet. It's been partially responsible for a huge gain in the amount of poker players worldwide. Christiansen Capital Advisors said online poker earnings grew from $82.7 million in 2001 to $2.4 billion in 2005, while a survey carried out by DrKW and Global Betting and Gaming Consultants asserted online poker revenues in 2004 were at $1.4 billion. In a testimony before the United States Senate regarding Internet Gaming, Grant Eve, a Certified Public Accountant representing that the US Enforcement Business Joseph Eve, Certified Public Accountants, estimated that one in every four dollars gambled is gambled online.

Difference Between Traditional Poker and Online Poker

Traditional (or "brick and mortar", B&M, reside, land-based) venues for playing poker, like casinos and poker rooms, could be intimidating for novice players and are frequently located in geographically disparate locations. Also, brick and mortar casinos are hesitant to promote poker because it is difficult for them to gain from it. Although the rake, or time charge, of traditional casinos is often large, the opportunity costs of running a poker room are even greater. Brick and mortar casinos often make much more money by removing poker rooms and adding more slot machines for example, figures by the Gambling Enforcement Firm Joseph Eve quote that poker accounts for 1% of brick and mortar casino revenues.

Online venues, by contrast, are dramatically cheaper because they have much smaller overhead costs. By way of example, adding another table doesn't take up valuable space as it would for a physical casino. Internet poker rooms also allow the players to play for low stakes (as low as 1pennies/2pennies) and frequently provide poker freeroll tournaments (where there is no entrance fee), attracting novices or less affluent clientele.

Online venues may be more vulnerable to certain types of fraud, especially collusion between players. However, they have collusion detection abilities that do not exist in brick and mortar casinos. For instance, internet poker room security employees can look at the hand history of the cards previously played by any player on the site, making patterns of behavior easier to detect than in a casino where colluding players can simply fold their hands without anybody ever knowing the strength of their holding. Internet poker rooms also check players' IP addresses so as to prevent players at the same household or at known open proxy servers from playing on the very same tables. Digital apparatus fingerprinting also permits poker websites to recognize and block players that make new accounts in attempts to bypass prior account bans, restrictions and closures.

History of Online Poker

Free poker online has been played as early as the late 1990s in the kind of IRC poker game. Planet Poker was the first online card area to offer real cash games from 1998. The initial real money poker match was dealt on January 1, 1998. Author Mike Caro became the "face" of Planet Poker in October 1999.

The significant online poker sites offer varying features to entice new players. One common feature is to offer tournaments called satellites by which the winners gain entry to real-life poker tournaments. It was through one such tournament on PokerStars that Chris Moneymaker won his entry to the 2003 World collection of Poker. He moved on to win the main event, causing shock in the poker world, and beginning the poker boom. The 2004 World Series featured three times as many players as in 2003. At least four players in the WSOP final table won their entry through an online cardroom. Like Moneymaker, 2004 winner Greg Raymer also won his entry at the PokerStars online cardroom.

Four Ways online poker rooms profit

Typically, internet poker rooms generate the majority of their revenue through four methods. First, there is the rake. Like the vig paid into a bookie, the rake is a charge paid to the home for hosting the match. Rake is accumulated from most real money ring game pots. The rake is generally calculated as a percentage of the pot based on a sliding scale and capped at some maximum fee. Each online poker room decides its rake structure. Considering that the costs for conducting an internet poker table are bigger than those for running a live poker table, rake in most online poker rooms is much more compact than its brick and mortar counterpart.

Secondly, palms played in pre-scheduled multi-table and impromptu sit-and-go tournaments aren't raked, but instead an entry fee approximately five to ten percent of this tournament buy-in is added to the entry cost of this tournament. These two are generally specified in the tournament details as, e.g., $20+$2 ($20 signifies the buy-in which goes into the prize pool and $2 represents the entrance fee, de facto rake). Unlike real casino tournaments, online tournaments don't deduct dealer tips and other expenses in the prize pool.

Third, some online poker sites also supply side games such as blackjack, roulettes , or side stakes on poker hands where the player plays against "the home" for actual cash. The odds have been in your house's favor in these types of matches, so producing a gain for the home. Some websites go as far as getting affiliated with online casinos, or perhaps incorporating them in the poker room software.

Fourth, like almost all institutions that hold cash, online poker websites invest the money that players deposit. Regulations in many jurisdictions exist in an effort to limit the sort of dangers websites can take together with their clients' money. However, since the websites do not need to pay interest on gamers' bankrolls even low-risk investments can be a significant source of revenue.