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PokerStars Cancels Rake Increases

Tags: PokerStars, rake.
Posted on 07 January 2015 by "T".

On Tuesday, PokerStars announced on 2+2 that it has cancelled the increased rake, which was implemented in November 2014, for all games expect Spin & Go's. The introduction of increased rake and more changes for 2014 were not well received when announced in October last year, so the cancellation of those changes are very good news for the players of PokerStars.

Below is the full post from poker forum 2+2:

"In Brief
• All rake increases announced in October, except for Spin & Go changes, are cancelled effective immediately.
• VPP multipliers will be reduced within the next few months for players in several additional countries where VAT and/or Gaming Duty are payable. These players will be informed directly in the coming days.
• At some point in the future, we may deploy rake surcharges for countries that charge gaming duty or VAT. We will not do so before July 2015 at the earliest, and we will maintain our policy of passing on no more than half the tax to players and absorbing the rest ourselves.
• Other than this, we will not implement rake increases in 2015.
• The above apply to and shared liquidity, not for our segregated sites in Italy, Spain, or France

Rake Change Rollback
We announced several rake changes on October 29th, 2014. The changes to Spin & Go rake will remain as implemented on November 3rd, 2014. All other rake changes announced in October, including those not yet implemented, are cancelled. As many of you have noticed, the rake rollback has already been fully deployed.

We will not implement any additional increased rake in 2015 other than possibly in jurisdictions where we experience gaming duty or VAT as described below.

VPP Multipliers for Taxed Countries

Within a few months we will reduce the VPP multipliers for some countries that are subject to gaming duty or VAT but that do not have their own software clients. We will deploy the change as soon as we are technically able, likely within the next two months.

These changes will be enacted consistent with our previously communicated policy of sharing up to 50% of taxation with players. VPP multiplier reductions have already been implemented previously in other taxed markets including Denmark and Belgium.

Adjusting Rake and Rewards due to Taxation
For our segregated markets of Spain, Italy, and France we use varied combinations of higher rake and lower rewards as we aim to pass on half of the tax cost to players. For shared liquidity we have thus far only adjusted for tax increases by lowering rewards. The primary reason is the technical challenge in charging different rake or fees for different participants in the same game. As a result, to date we have passed on substantially less than half of the tax.

Reducing rewards by 10%, for example, does not cover half of a 20% tax. Tax is generally calculated based on rake/fees generated, not rewards. Consider a case where a player pays $10 in rake and earns $3 in rewards. If we are taxed 20% of revenue, that is $2. If we pass half on to players, that is $1. In order to reduce rewards by $1 out of $3, we would have to reduce rewards by 33%, all to pass on half of a 20% tax. These numbers are just examples to make a point, not figures from any particular market.

More and more countries are introducing taxation, increasing the impact on our business. As a result, we plan to develop the ability to charge different rake/fees for different players within shared liquidity.

Rake increases will be paired with the existing VIP Reward reductions, so significantly less than half of the tax will be passed on through rake increases. As an example, a player in a country with 20% tax would expect a rake surcharge of significantly less than 10%.

We may not implement such charges this year, but if we do it will be in the second half of the year.

As always, we would like to thank those who have taken the time to share their views with us here on the forums and elsewhere. We do regularly read and discuss the perspectives shared here. Your input is valuable and important."


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13 comments on "PokerStars Cancels Rake Increases"

 pochui07/01/2015 11:14:01 GMT
this actually can mean something good, at least reading the post title makes me think so, but everything that is written later is too hard to comprehend for my over cannabized brain.
at least they have written "As always, we would like to thank those who have taken the time to share their views with us here on the forums and elsewhere" makes me feel very important person...
 superthight07/01/2015 11:46:20 GMT
what would i think on this kind of news????nothing seems good news as ps just trying to make a powerful income last that they encounter all the money here comes the news!!i would like to hear rng transparency showing all the data base last year so we can review .that makes me good news..... Worship Worship Worship Worship Worship Worship Worship
 StheP07/01/2015 11:52:23 GMT
nice Big SmileDDD
 marqis07/01/2015 13:26:05 GMT
That is good news. They did not get away with it.

Good for those attempting supernova status, although it will be harder to amass the required points, they will make much more money.
 pinotte07/01/2015 16:05:48 GMT
Very good news from PokerStars it means that they are listening to the complaint of their customers and react in a very godd manner to the situation.

If all poker site would be like this it would be wonderfull.
 holzkopf1307/01/2015 16:08:43 GMT
bigger pots bigger wins. i will still waiting for my big win but to be inside is everything. Smile Smile i am thinking there is enove provit for the big poker rooms. they should give us much more back! Smile i hope we get more options to qualify online for real offline poker tournaments.
 klash2307/01/2015 17:24:28 GMT
I have seen quite a few posts recently on the various poker sites and there has been a lot of players complaining about the increases so it is good to see that a poker site has maybe listened to their customers and reversed the decision.
 yout8507/01/2015 18:01:33 GMT
A few of years ago in the UK, a government already unpopular for massive cuts across the board, announced that there would be a 1% rise in fuel duty in 6 months time.... People didn't like it, but as they were already as unpopular as could be, it didn't matter... It didn't change peoples feelings...

5 months later, when they needed approval ratings to be increased, they announced they were scrapping the rise - and announced it as a good thing they were doing to "help out the average, hard working person".... And the gullible majority of us Brits gobbled it up...

Amaya has done exactly the same thing here - I don't believe for a second that they were ever going to go through with this at all. It was just a statement made when they they were already unpopular, that they knew they would retract at a later date and say "See? We do listen to our customers".

Obviously, I'm happy about it.... but IMO, a very cynical move.
 bowie198407/01/2015 22:55:52 GMT
I should say that the true announcement should be something like this:

Dear addicted gamblers!

Now that we see how many of you willing to burn money on our fresh outa box casino games we no longer need all those rake increases since we generating higher income without it just by pounding all of you on roulette and blackjack.
Thank you very much, kepp them greens comin'

Amaya Gaming Group Board Of Directors
 marqis07/01/2015 23:40:13 GMT
Posted by yout85:
Amaya has done exactly the same thing here - I don't believe for a second that they were ever going to go through with this at all. It was just a statement made when they they were already unpopular, that they knew they would retract at a later date and say "See? We do listen to our customers".

Obviously, I'm happy about it.... but IMO, a very cynical move.

You may well be right. But they did increase the rake for a few months did they not?

I think a lot of breakeven/rakeback players may have been affected to the point of having to stop, and get a (real) job... Maybe they were actually not making more money from the increased rake, because of that, along with damage to their reputation, as well as allowing their competitors to survive a little bit longer.
 Heskor08/01/2015 14:32:27 GMT
Cheers well done pokerstars, or is it because of so much complaints from poker players as they do not want to be put in the same basket as those countries who has lots of TAX and Vat things in their countries, nice move the end, with the rake increase mos games would have gone dead and they would surely lose some players and most likely they will go to the competitors anyway cheers good news for all the spin and go players!!
 roeish308/01/2015 21:38:11 GMT
It seems that the new owners are trying to attract the amature players, which are probably the most profitible to the site. The Spin 'n go roulete is just a first in many tries to appeal to the gamblers of the poker players. The ones that got punished by this move were the proffesional and the regular cash players which had to put in there share in the new promotion.
I think that now they're affraid that the regulars will move somewhere else and take many of the aatures with them and are starting to pull back
 TheMachineQC09/01/2015 18:56:12 GMT
Hey guys,

I think YouT85 is right, this was all marketting. People spoke of Pokerstars for weeks for nothing, it was all basically free advertising.

Companies and politicians nowadays will use any strategy possible to make you believe they're on your side. But really they only think about their own interests...

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