Microgaming moves to True Value rake

The change already happened: a new method of rake allocation, called True Value, is already live on the Microgaming Poker Network.

True Value is a dual-layer rake distribution, which changes the how rake is allocated to operators on their network.
In a press release Lydia Melton, Head of Network Games at Microgaming said, “What sets True Value apart from other networks’ solutions to the valuation problem is that it uses a dual layer system, which does not impact the players themselves. Any players earning rake-based promotions, like bonuses, will clear those promotions at the same rate on True Value as on the current method”

Basically, the rake is no longer allocated based on the volume only, but instead it includes the player’s win/loss ratio into the calculations, similar to Ongame's network Essence rake model or the Bodog Poker Network's recreational poker model that was introduced a couple of years ago. There are few differences though.

Something that makes True Value unique in the industry is that it does not impact players in any way. Specifically, players will continue to clear their rakeback and bonuses based on the Weighted Contributed rake allocation method. This method is going to incentivize operators and affiliates to consistently acquire new, weak, and depositing players.

Back in 2010, Odman described his model to EGR Magazine:
“The root of the problem is the way rake is distributed among players, and that is where the Bodog Network intends to address the problem,” Odman says.

Losing, casual players are the type of players poker networks want, but Odman says “the way the rake is currently split, winning players get a (too) large proportion of the rake” and skins on the network end up having to slash their margins to put the rake back deals on the table needed to attract high-raking, winning players. This progressively erodes the money left in sites’ marketing budgets to spend on attracting losing, casual players, starving networks of the liquidity they need to grow in a sustainable manner.”

When asked of the Microgaming change, Jonas Odman said, “The contributed method of rake attribution is a step in the right direction since players with a loose style will be worth more to operators than tight players. This is good from an entertainment point of view because loose players make the game more fun to play. It is slightly different than our system, and also Ongame’s Essence model, which both focus on player results rather than style, rewarding operators who bring net depositing players to the network. But since most loose players are net depositing players the effect will be similar.”

Isn't this exactly like essence? They say it's nothing like it, then says it's exactly like it. I don't get it.

No, because on essence players rakeback is calculated by that players win ratio. Here player gets same return all the time, though the affiliate that he registered throu (or the poker room directly) gets their commission from network operator adjusted based on that players win ratio.

Basically, without striking player hardly this cuts off private rakeback deals on the network, since no affiliate will be able to offer extensive rakeback deals, as their income won't be predictable and in the end they might have insufficient funds to pay players.

ah, I see.

Whats the safest skin in the Microgaming network?

ladbrokes probably, unibet second safest

nordicbet.. but they are leaving network soon I belive

NordicBet was bought by Betsson, so I guess they are one of the safest, though probably leaving the network as morph1 stated, so not worth the hassle.

Stan James as well (big UK bookie).

On July 12 2012 04:21 morph1 wrote: nordicbet.. but they are leaving network soon I belive

where did u hear this?

There were threads about this and they even sent email to their players (I was playing there)

"Dear fellow player,

We would like to inform you that Betsson AB (publ) today announced that it has signed an agreement to acquire substantial parts of the business of Nordic Gaming Group plc, which is the owner of the Nordicbet, Triobet and Tobet gaming operations. Once the transaction is approved by competent regulatory bodies, the acquisition will be finalized in the end of second quarter 2012.

We would like to confirm this announcement from our side as well as assure you that it will not have any impact on you as our customer: Nordicbet will continue the same as usual, being your local partner for all your favorite services and products. Your gaming account, wallet and personal data continue to be secure with us, and there will be no interruption to the Nordicbet service or product offering. The only change is that after the acquisition, Nordicbet will be part of the biggest independent online gaming company in our markets, giving you as a player an even better offer going forward.

If you have any questions about this, please do not hesitate to contact our customer support via email at support@nordicbet.com, Live Chat or phone on +356 2132 3638.
"

I asked their live support and they confirmed