Originally posted by OZSA
For me the most stunning thing is, regs make the money for sites, fish gives money to regs so they wont run out of it while raking all their money...why is it so hard to understand, its regs you have to make happy not the fishes, fish is happy with freerolls and random presents, regs need money to play with.
For me the most stunning thing is how many people still don't get the fact that grinders don't "make" money to poker rooms. All that matters is sum of deposits and sum of cashouts.
Fish deposit and put the money in the system. Fish usually don't cash out (or even when they do they will redeposit after a while). If everyone on the site would be fish, all the money deposited would end up in the pockets of poker room (as rake). Even when a fish runs hot temporarily he will just keep playing until its all gone. The money stays in the system untill the rake eats it all up.
Regulars on the other hand make cashouts. They draw money out of the system. The money withdrawn can't be raked anymore.
Many people seem to think that regulars boost traffic because they play lots of hands. Wrong. Let's take a hypothetical poker room who launces a big rakeback campaign to attract regulars. The traffic will skyrocet! But thats a short term effect. Regulars bust fish, fish will leave. Regulars realise they don't have an edge anymore and leave as well. The traffic cripples.
To sum it up - doesnt matter if a regular plays 10 times the hand an hour. Without withdrawing regulars there would be 10+ times more fish playing.
P.S. The reason why PokerStars is successful despite favouring regulars is: they are the biggest room. They are known to be "The poker room", they advertise a lot, run big live tournaments (EPT) etc, therefore many starting players will choose it because its "The biggest", therefore cool and trustworthy.