Business Projections
I would like to show why this opportunity is so powerful and how an online poker room can become an empire within just a few years. As with any business, there are costs associated with it. We detail those costs later on in this business plan. Putting marketing and related human resources to the side, it takes roughly $25,000 a month to maintain and support the online poker site. This covers the minimum royalty fee, the player support, the hosting fees, server fees, long distance, site maintenance, upgrades, etc.A low rake average works likes this:50 hands per hour x .30 cents per hand per player = $15/hour per player.
Studies show that 25% of all active players play 10 hours a week or more.
*InterCasino claims 25% of its active players play 20 hours a week or more.
Take 50 active players who play 10 hours a week:
10 hours a week x 50 players = 500 hours a week x 4 weeks x $15.hour = $30,000/mo.
Before marketing and human resources, our poker room could actually show a profit with just 50 active players!
By the way, Poker Stars just hit 5 million signups.
Let’s take a look at some of the revenue examples All Bets Poker can expect to create within its first 12-18 months after launch.
Keep in mind that other factors could affect this example: Number of people at the table, hands per hour played, average pot, stakes of table which effect rake, etc.
Reaching only half of our Super Conservative Example below, in 12 months from launch, will make our poker room profitable.
Super Conservative Example (SCE Goal)
In this example, we are assuming that we have only signed up 2,000 players whom average 10 hours of play each week. To reach this average, we realistically need 8,000 total signed up players. That is about 670 player signups per month, or 22 players per day. This could very well be an 18-month goal because it may take us 6 months of building momentum to consistently sign up 670 players per month.
This will be for $2/$4 limit or higher stakes. Online, there are typically 50-70 hands dealt per hour, per table. With a table of 10 players, using the rake of $3 per hand, each player is worth roughly 30 cents to the poker room per raked hand. .30 cents x 50 hands per hour is $15 an hour. This is a very conservative average because a table of 6 players would be worth approximately $.50 per raked hand per player.
Here’s the math:
$15 an hour x 2,000 players x 10 hours a week = $300,000 in weekly rakes
$300,000 x 4 weeks = $972,000 in monthly rakes.
$14,400,000 in yearly gross rake
Conservative Example (CE)
In this example, we are assuming that we only have signed up 4,000 players whom average 10 hours of play each week. To reach this average, we realistically need 16,000 total signed up players. That is about 1350 player signups per month, or 45 players per day. This could very well be an 18-month goal because it may take us 6 months of building momentum to consistently sign up 500 players per month.
This will be for $2/$4 limit or higher stakes. Online, there are typically 50 hands dealt per hour, per table. With a 10-player table, using the rake of $3 per hand, each player is worth roughly 30 cents to the poker room per hand. .30 cents x 50 hands per hour is $15 an hour.
Again, this is a conservative average because a table of 6 players would be worth approximately $.50 per raked hand per player.
Here’s the math:
$15 an hour x 4,000 players x 10 hours a week = $600,000 in weekly rakes
$600,000 x 4 weeks = $1,944,000 in monthly rakes.
$28,800,000 in yearly gross rake.
Goal from launch date (36 months or less)
2,500 poker players, who play 20 hours a week. Or, 5,000 players who play 10 hours a week.
To get 5,000 poker players playing on average of 10 hours a week, will realistically take between 15,000 and 20,000 real money poker player sign ups.
(FAQ) What could a $25,000 buy in potentially return?
Answer: A $25,000 buy in could return hundreds of thousands of dollars perhaps a few million within just 5 years. The market supports these figures and the growth will continue thanks to broadband internet expansion on a global scale.
