In an ingenious move that might not gain any traction – but it doesn’t hurt to try – a poker fan has started a petition asking officials at the World Series of Poker to eliminate the rake on the WSOP Championship Event. In addition to this elimination of rake, the petition is also asking for a revenue sharing program over other WSOP events that will “spread the wealth” that Caesars Entertainment is pulling in over a variety of methods.
David Bass, an investment banker with Arena Capital Advisors who publishes a blog called AnyTwo.biz, called for the petition earlier this week after some analysis of the current WSOP rake structure. “Our basic thesis is that a portion of the money paid by ESPN to the WSOP (or its parent company, Caesars) for the right (sic) to broadcast WSOP events and other ancillary revenue should be added to the WSOP prize pools,” Bass writes on his blog. “The WSOP should take no rake from the players on televised tournament buy-ins.”
Currently there are only two or three events that are televised by ESPN, a stark departure from the early days of the television contract between the WSOP and ESPN. In 2015, the Championship Event was one of those tournaments (the other was the WSOP National Championship) that reached the airwaves, so Bass has adjusted his petition accordingly. As a form of persuasion, Bass also attempts to demonstrate how much Caesars is taking in from just the rake alone in these tournaments.
“Poker is the only major global sports or gaming competitions where the players themselves provide the funding for tournament prize pools and operating expenses,” Bass writes on the petition that is addressed to Jack Effel, the WSOP Vice President and Executive Tournament Director, Executive Director of the WSOP Ty Stewart and Vice President of Corporate Communications Seth Palansky. “In addition, the players – including top professionals – are responsible for their own travel and out-of-pocket expenses necessary to participate at live events.” He then points out that the Championship Event’s $10,000 buy in automatically has 6% subtracted from it ($600) for “entry fees” and payments to dealers and floor staff. For the smaller tournaments, Bass states, the WSOP can hold anywhere from 10% to 18% ($65 on a $365 buy-in) for what is called “operating expenses.”
The explosion of the WSOP schedule is a point of emphasis by Bass. The 68 event schedule in Las Vegas, the WSOP Europe and its 10 event schedule, the WSOP Circuit and WSOP.com all are brought into the mix (surprisingly, Bass doesn’t mention the WSOP Asia/Pacific…guess that’s what happens when you alternate years). Cash games, satellite tournaments, numerous sponsorships (Jack Link’s Beef Jerky, anyone?) and other sidelights also are noted. Memorabilia sales, concessions and other miscellaneous sales to a “captive audience” also add to the kitty for Caesars, at least in Bass’ eyes.
At no point does Bass even begin to broach the subject of where ESPN’s rights deal with the WSOP to broadcast the tournament come into play or how much that the WSOP receives for those rights (one of the most closely kept secrets in Las Vegas besides Jimmy Hoffa’s final resting place), probably a sizeable chunk of change in its own right. He does, however, point out where other major sports are doing a revenue sharing model.
Bass accurately points out that the National Football League gives players 47% of football-related revenues, with the other major sports leagues doing the same (the National Basketball Association and the National Hockey League donate the most revenues, 50%, to the players). Additionally, the Professional Golf Association provides 60% of a tournament’s prize pool from their television rights, with the remaining 40% coming from the specific tournament’s title sponsor. “It is time for the prize pool composition to evolve, first by eliminating the rake on the top tournaments and second by supplementing the prize pool following a revenue sharing model that is common in other major international sports and gaming competitions,” Bass contends. “In doing so, the WSOP will continue to attract more participants, grow its appeal to TV and other media audiences, and increase the overall value of the WSOP brand.”
The counter from Caesars would probably be that there are huge expenses for putting on a poker tournament the size of a WSOP, especially the version in Las Vegas. That is difficult to prove, however, without actually seeing the accounting from the endeavor. If Caesars could actually show that the television rights, the rake and players’ fees and various other revenues being raised on the backs of the players either barely covers the expenditure or that they are operating at a loss, then they might have a leg to stand on. If that isn’t the case, then Bass may have something to go on here.
The website Change.org is well-known for its non-binding petitions that draw attention to controversial issues in the world today. They have had some “successful” petitions, with that word in quotation marks because it is difficult to determine just how much the Change.org petition had on the eventual result. Change.org touts the release of Washington Post journalist Jason Rezaian from Iran in January 2016 as one of its “success stories,” for example.
Currently Bass’ petition is off to a slow start. Only 37 people have taken the time to add their signatures, with the most prominent name on the list being that of three-time WSOP bracelet winner Matt Matros. In putting his name on the petition, Matros commented, “Players are providing much of the value and should be compensated accordingly,” something that isn’t a rare thought amongst the players.
Poker News Daily has reached out to Caesars Entertainment and WSOP officials for comment and will update this story as necessary.
UPDATE: WSOP official Seth Palansky replied to Poker News Daily with a simple statement: “We have always been conscious of rake, and there has never been an increase in the Main Event rake in the nine years I’ve been here. Name another business that hasn’t raised its prices in the last nine years?”
