Hi folks,
Have really been enjoying the extra traffic that the happy days promotion has given us on the DYM tables.
It got me thinking, if this amount of traffic was the norm, would it be worth SP lowering their rake?
I would love to know if SP makes more money per day when they run this promotion, or on a normal day?
On a side note, the rake on the DYM turbos is definitely too high - but I don't really want to get into that here, more interested in the above!
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Comments
It's also totally different selling "Cheaper games" as a promotion than it is to sell "Extra rakeback", as you're often marketing to a different audience. Look at Asda advertising low prices compared to Tesco/Sainsburys giving loyalty points to people with a loyalty card - One is rewarding repeat business, the other is just trying to get new people through the door to try their store and hope that they stick around.
Likewise, consider the reason why Unibet has 1% rake at 4nl and has done ever since they started up - They're trying to get people to move over to try out their site, whereas Sky giving double points are trying to get their existing players to play more for a few days.
A rake decrease might result in a slight increase in reg vs reg action, but the limiting factor for how much the majority of losing players play is how often they can afford to deposit, so for those players a rake drop won't significantly affect how much they play (apart from getting an extra game or two before going busto with the money they saved in paying less rake).
I would obviously love lower rake, as would everyone. However, I can't see it making enough sense from Sky's perspective for it to happen.
I do think other formats, in particular "Spin Up" tables and Turbo DYMs benefit from this promotion more than most because of how high the rake is on those games and how small the edges are otherwise. I think the vast majority of my Turbo DYM volume has been during double points promotions, and I reckon that'll be the same for a lot of people who would potentially start games etc.
IMO once you start getting regs not playing because the edges are too thin, that's when the site needs to seriously consider a permanent rake decrease so that people are actually populating the lobby.
For that reason, I agree about Turbo DYM rake. However I fear that as long as people keep playing them at 10% rake just to get loads of points quickly, they'll probably stay at 10% rake unfortunately.