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Online Poker - the Story So Far...
While poker has been played for hundreds of years (possibly thousands,
opinion varies), the online version of the game is a relatively recent
phenomenon. Online poker has boomed in the past couple of years, and
it has changed the face of the game forever. |
| Born at the end
of the century… |
Before the first online poker rooms, other types of online gambling
sites had been launched. Online sportsbooks sprouted in the mid 90's
- a period which also witnessed the launch of online casinos. As the
internet took off, the possibilities for online gambling became clear.
It could be said that the seeds for the growth of online poker were
planted back in 1994, when the Government of Antigua, Bermuda passed
the Free Trade and Processing Zone Act. This allowed gamblers in the
USA to take part in online gambling, outside of the USA's restrictions
that stated gambling could only take place in licensed venues.
Great Britain has experienced a similar situation in recent years,
as online gambling firms have set up in Gibraltar as a way around
British laws, that stated gambling could only take part in licensed,
physical venues (as opposed to online 'spaces'). Legislation is in
place to bring these laws up to date with the internet's capabilities
- with the Gambling Act 2005 setting up a commission specifically
to deal online gambling.
It was not until 1998 that the first dedicated online poker room was
established. For a short time, Planet Poker enjoyed the status of
being the only online poker firm. While it has since been overtaken
by many other online poker rooms, its influence remains with its initial
rake structure - of 5% up to a $3 max rake - having been used by many
other poker rooms since.
Other online poker rooms soon began to appear as the popularity of
poker and the possibilities of the internet increased. Paradise Poker
was established in 1999 and soon became the industry leader. |
| Growing Pains... |
Paradise Poker was the first firm to really push online poker in
to the big time, with its excellent software providing the platform
for a site with an international audience, bolstered by advertising
campaigns. By the end of 1999, there were thought to be in the region
of 700 online casinos, giving online players a massive choice of sites
in which to play poker.
However, not all these sites were as well-run and reputable as the
big names in the industry, and at this early time in the online poker
market there were a couple of unfortunate cases of players getting
their fingers burned. For instance, the infamous case of Poker Spot
occurred during this initial period of entry into the industry. Poker
Spot was an online poker firm founded by Dutch Boyd, a successful
poker player.
Launched in May 2000, it later became the first online poker room
to offer tournaments. However, troubles soon plagued Poker Spot. According
to Dutch Boyd, it was unable to collect player deposits from its credit
card processing firm. Essentially, all of the money that players deposited
and played with was not in the system, so Poker Spot was unable to
pay its players their winnings. The firm soon went under.
To date there hasn't been another case like that of Poker Spot repeated
by any major online poker firm. This is largely due to the possibilities
of e-cash: funds transfer services such as Neteller have become the
'middleman' used by online poker rooms to safely deposit and payout
sums of money. These are good for players and firms alike - allowing
players to deposit funds and receive winning payouts easily, and offering
the online poker rooms greater security and service with their transactions. |
| Hitting the Big Time... |
It was not until 2001 that three of the most dominant online poker
firms entered the market. Poker Stars became a popular destination
because of its tournaments, and Party Poker and Ultimate Bet staked
their claim for a piece of the online poker industry pie too.
Poker steadily gained popularity and the industry continued to grow.
Paradise remained the dominant firm in the industry until 2003, when
Party Poker launched a massive television advertising campaign. Party's
advertising during the World Poker Tour, and its launch of the Party
Poker Million tournament were very successful marketing moves, and
Party Poker soon became the top dog in the industry. The network now
represents roughly half of the entire online poker market.
Party Poker was spending millions on marketing, but it was one man's
$40 buy-in that truly put the entire industry on the map. Chris Moneymaker's
story of winning the World Series of Poker (WSOP) in 2003 reads like
a Hollywood script, and provided the online poker industry with the
type of advertising that money just can't buy.
The perfectly named Moneymaker (which is actually his real surname!)
qualified for the World Series of Poker main event through a small
buy-in satellite event at Poker Stars. At the WSOP, he outlasted a
field of 839 entrants, the largest in World Series of Poker history
at the time. He tried his hand against some of the world's best professional
poker players - and came out top. Moneymaker's first place finish
(in what was his first ever live tournament) earned him a staggering
$2.5 million.
As well as Chris Moneymaker, the 2004 champion, Greg Raymer, was also
an entrant from the Poker Stars site and no co-incidence, Joe Hachem,
a Chiropractor from Australia won the 2006 WSOP also through Poker
Stars. These three big wins, by players seen to be 'normal' people
trying their luck, rather than ruthless professionals or industry
names, further boosted the online poker industry, building credibility
and legitimising the online game.
Consequently, more and more people - be it 'traditional' gamblers
who hadn't tried the online game before, or complete beginners drawn
in by the fun of playing at home and the possibility of winning big
money - began to take a seat at the virtual tables. As a result, the
industry's revenues increased three-fold, and new sites continued
to open their online doors.
The industry has reached a stage now where the major online poker
firms are becoming public companies. Paradise Poker was purchased
by Sportingbet, a publicly traded online sportsbook, in October of
2004 for $297.5 million. In June 2005 Party Poker was listed on the
London stock exchange at a value of £4.64 billion, soon peaking at
over £7 billion (though it has now dropped to around half that). Cassava,
the company that owns the Pacific Poker and 888.com online casinos,
also 'went public' in October 2005. |
| Poker grows up... |
Online poker today is big business. The massive growth that has
occurred from the late 1990s to the middle of the 'noughties' has
dealt the industry a good hand from which to play out the next round.
The pack has been shuffled a couple of times - with the jokers removed.
Although there is a great choice of casinos to play at, the world
of online poker now centres round a handful of major names, which
have built up strong reputations over time - and set in place several
reassuring standards to make life easier for the beginner:
- good-looking, free to install and easy to use software
- secure membership and payment procedures
- a wide range of real players of all skill levels online to play
against at any given time
- around-the-clock customer services; practise games and 'fun
money' options so players can practise without risking any stakes.
Advances in technology and the capabilities of the internet are sure
to continue to make poker available in many more weird and wonderful
ways. Wireless broadband connections, mobile phone access, and improved
graphics look set to lead the way, creating a mind-boggling array
opportunities for playing the game on the move. It will be fascinating
to see how the game itself evolves alongside such possibilities… |
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