How poker companies make money

"In 2004, the Gibraltar company (PartyGaming) earned $350 million in profits on $602 million in revenues by taking a small commission from online poker, bingo, and other games. In June of 2005, the company listed on the London Stock Exchange."

This is just one company! Imagine how much a company like PokerStars or FullTiltPoker makes!

The rake is very hard to beat.

How poker companies make money

I agree (PartyGaming) along with PS and FTP all make a ton of money out of the rake or Drop depending on what you call it. However in their defense most of these online sites allow for less of a rake than casinos making them better for players. Most casinos drop 10% up to forty a hand thus 4 dollars maximum rake. Online most limits about .25/50 and higher are only 5% rake which is a huge addition to a players earn over the long run. Online sites also offer rakeback incentives where a player can get 27% of his rake given back to him by the site and all u have to do is fill out some simple forms when you open your account.

As far as "The rake is very hard to beat." I both agree and disagree depending on your meaning. The simple fact is no player in the game will ever earn more money than the rake in a cash game over a large sample of play. A good sample would be 100,000hands of play. This however doesn't mean that the players cannot win. In any given game at least the 3 best players will show a profit over a long sample if the rake is 10% or less. How much they win depends on the game but for example a .25/50 NLH game a good player can win an average of 4 big blinds per 100 hands played so roughly 2 dollars per 100 hands played.

Those poker stars play in

Those poker stars play in tournaments.

I've been there, done it. It doesn't matter what strategy you use, if you don't have the cards, you're shit out of luck. :jawdrop: