Long gone it seems are the days when poker was confined firstly to western bars frequented with outlaws, bounty hunters and prostitutes and then to an underworld of gangsters and con men. The modern game is an ever-increasing portrait of young, college educated and intelligent players, doing battle on the web with tools comprising of statistics, strategy and aggression.
Everybody Wants to be a Moneymaker
A revolution took place in the world of Poker in November 2003 when, after qualifying as an amateur through an online poker room, Chris Moneymaker, an accountant from Tennessee, shot to poker superstardom when he won the World Series of Poker.
Since then poker and predominantly online poker have grown to mammoth proportions as more and more would-be professionals attempt to replicate Moneymaker’s achievements on the world stage. While the game is still played by many long term professionals, more and more amateurs are taking up what is now being considered the “sport” of poker. There has been no better place than online, as games can range from as little as $1 entry and up to as much as $1 million in prize money and sometimes even more, the incentives are there for players to make a living from the game.
Since Chris Moneymaker’s historic win, unknowns on the world stage have risen to fame and fortune in the World Series of Poker with Greg Raymer, Peter Eastgate and 2009 winner Joe Cada all winning the competition from seeming obscurity. And while the big-money players such as Phil Ivey, Patrick Antonius and Tom Dwan come along for the ride, in the most coveted prize in the world of Poker, fresh faces are making the most impact; as can be seen in 2009’s runner up, Darvin Moon, a logger and amateur poker player from Maryland.
Market Saturated Online Poker
The online poker industry has seen exceptional growth with a predicted value of $6.2 billion by 2012. The larger poker rooms have profited most withmore and more players visiting the rooms, plus a wider scope for marketing, which now sees Full Tilt Poker and PokerStars finding their way onto F1 cars and snooker competitions. Yet while these two biggest online poker rooms, with a combined market share of 60%, continue to turn a handsome profit, the smaller rooms are struggling under the weight of increased competition and offers of free money from the larger companies.
Poker, just as in all forms of gambling, thrives on a constant turnover of visitors as the strong continue to take from the weak. Reducing numbers of visitors hits the smaller rooms in particular, as gaming analyst Paul Leyland states; “The problem you face with poker…is that you need volume to make the model work. You have to bring volume in to supply your higher rollers with people to play.”
Moreover, US government legislation that could legalise internet gambling may come at a price as rooms may be charged a licence fee. This would only hinder the industry more and may see some rooms fall off the map entirely. Yet for the big players who sustain high numbers of visitors, the online poker room doors will remain open for now.
Online Gaming Effects on Economy; Help or Hindrance?
While many people have taken up poker as a recreation and some as professionals, the rise of the virtual casino may not have as many benefits as some think. The issue with gambling that may stretch as far as the entertainment industry in general lies in defining what creates wealth.
Economic development can be defined as "people engaged in production of goods or services that add greater wealth or value than the initial input". As Earl Grinols, Distinguished Professor of Economics at Baylor University, illustrates, “Paint and canvas, for example, are re-arranged in the hands of a master painter into a work of art that has more value than the components had previously.”
In relation to gambling itself, in his book Economics, Paul Samuelson states: “(Gambling) involves simply sterile transfers of money or goods between individuals, creating no new money or goods. Although it creates no output, gambling does nevertheless absorb time and resources. When pursued beyond the limits of recreation, where the main purpose after all is to kill time, gambling subtracts from the national income.”
The argument for the development of online gaming and in particular poker comes from proponents of its legalisation in the US who claim that, among other things, jobs are created which can only be a good thing. The growth of the city of Las Vegas is used as an example of how communities profit from gambling.
Here again, by way of a number of examples, Grinols goes on to prove; “Anything that increases the value of social product leading to greater welfare of residents is economic development and anything that does not is not. Job creation is immaterial unless it happens to be a vehicle for increase in social value.”
In the January 1997 California Research Bureau report "Gambling in California", Roger Dunstan makes the point; “Money spent on a gambling facility is money that already existed but was spent on other things… Building and running a gambling facility doesn't create wealth, it merely transfers it.”
Aptly named as American’s favourite pastime, poker has built a sizable niche in the world of entertainment. In the UK gambling in the form of poker and sports betting has equally shown unprecedented growth. Whether the growth equates to benefiting the nation and adding value to society is another matter. Yet for now, while the thousands continue to visit the likes of Full Tilt and PokerStars, one thing is for sure; online poker is not going anywhere.
Anthony Rimmer - Anthony has a lot of life experience, working in a variety of jobs, in many countries around the world. He has lived in South Korea, South ...
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