A Recession of…Poker?
We are in a stage of recession; there is no doubt about it. The overall economy seems, for now, to be making a rebound back up to where it should be but that does not mean it will stay. Judging by the past couple years, we may even see a slight increase before it starts to plummet again. This means the world credit market, and any type of shopping industry has lost a considerable amount of money over the past year or so. Not to mention the stock market potential earnings has dropped very low as well, and practically crashed more than once. But what does all this have to do with poker?
Most avid poker players certainly do not invest money in the stock market after winning at poker, although that might be a brilliant idea. Nor do they cycle their money into the economy through shopping and credit card use, for the most part it usually goes right back into poker. So why would the overall state of the economy begin to affect poker?
Churning a profit in the game of poker does not come from playing skilled player after skilled player; it comes simply from playing “noobs” and casual players. The less skilled opponents hardly use their chips wisely and often make unbelievably stupid bets. This is how most poker players profit; they use their skill against the naïve players who then practically give up all their chips. These poor players come from all walks of the earth, and never usually play for an extended period of time. They fall in that “gamblers” category talked about in the last post (See below “Skilled Poker Players are not Gamblers”). Unfortunately as the economy sinks more and more, fewer players will be taking their hard earned money to the casinos and onto the poker felt.
The above statement is certainly true; everyone who has remained at the game can see how deserted the tables seem to be compared to years earlier. Even online poker venues have a fewer number of players actually using “real” money. Since most online venues offer both “play” money, and “real” money game-play, most players have taken advantage of not pouring away the sweat off their brow. The real money remains in wallets, bank accounts or at home instead of being used to fill up on another stack. This means there is a much less total percentage of money circulating in the game of poker.
Veterans and skilled players, who make a living on the game, might need to consider looking elsewhere, at least for a little while, if they want to bring home some bacon. The economy is still in a slump, and the worst of the effects are yet to come.
Unemployment rates are at an all time high, and the fear of job security certain lingers heavily amongst the air. Many large corporations and companies have begun to fall financially, and others are selling off just to remain in the market. This means hundreds more blue and white collar workers will lose their jobs in the coming months. It’s these types of people exactly that bring more money to the poker table, gambling it away in their free time. With the economy and job situation remaining where it is for now, people will certainly stop flocking to casinos, and online venues to gamble what little they have away. All except for those addicted to gambling anyways…
The greatest affects of this overall economy state have not yet hit the world of poker hard. They certainly will over the next few months, and by the end of the year the poker “boom” will be gone for quite some time. All these financial subtractions are slowly removing more and more contributions from the world of poker. Fewer players, less money, less time and even fewer gaming venues will still be available as some poker venues or casinos might be forced into bankruptcy. This will change the world of poker completely making the game very tough for players still participating.
Consider a concept known as the poker ladder. At the bottom you have all the “minnows” and shallow swimmers who really can’t play the game, they make up most of the percentage of poker players therefore the bottom of the ladder would be wider. In the middle you have players who know basically what they are doing but are not yet skilled enough to pull in a considerable profit from the sport; there are not as many of these average players as there are “minnows” or beginners but there are certainly more prominent than veterans or pros. At the top of the ladder you have of course, the poker veterans and “big sharks” that make a living off the game and are very good at it. This leaves you with a triangle like ladder that works its way up in skill. With the absence of all these beginners and average players however, the ladder no longer functions as a triangle and the overall total of players is fewer. This means all those novice players, and players’ in-between still at the game will seemingly disappear over time. This in turn will make the game very difficult for those still in, because the “big sharks” or veterans will be the biggest majority of players left at the table. That triangle will shrink down so that even the newer players are stuck facing off against all poker veterans. This will discourage novice players from investing their money in the game, certainly if they know for a fact they will lose it.
Therefore, in a few months time the absence of these players and the loss of a substantial amount of total money will begin to affect those still stacking their chips on the soft, green felt. Players, who are regulars of online venues, should reconsider keeping a small bank of cash available online; if the venue goes under there is a big chance they will not get their money back.
The world of poker might be seeing one of the most dangerous periods of time slowly rising to the surface. If the economy does not lift back up and remain, there is a chance the game of poker might diminish considerably for quite some time and poker will fall into its own recession.
Tags:
Poker Economy, Poker Recession
