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What New Jersey Can Tell Us About The Loyalty Of Online Poker Players

Another 20 percent of customers will try two or three sites (perhaps unhappy with the first in some way, taking advantage of a one-time offer, or wanting to try a new brand that just entered the market). Additionally, finding a way to keep the “Top Ten Percent” loyal is just as critical. Back of the envelope math (using Rutgers wagering averages for the “Top 10 Percent” and the other 90 percent) indicates that the 2,700 online gamblers who make up the “Top 10 Percent” wagered about $1.4 billion in 2015. The other 70,000 online gamblers wagered around $1.6 billion. At first blush, that seems to indicate each group should be treated equally. But considering the lack of loyalty amongst the Top 10 Percent, it’s likely they are plied with far more offers than the typical online gambler who’s wagering less than a twentieth of what the highest volume players are wagering on an annual basis. So, while the $3 billion in wagers works out to a hold percentage of about five percent (NJ online casinos generated around $150 million in revenue in 2015) it’s more likely that the “Top 10 Percent” had a much lower hold percentage than the other 90 percent. Additionally, because they don’t have the same level of loyalty, the Top 10 Percent likely require more marketing spend too. This is a good explanation why online poker sites are slashing benefits to the upper tier of players, and placing more value on recreational players. Yes, they wager far less, but they’re far more loyal and have higher margins.

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