You've got to know when to deal
February 28, 2005
What do ESPN, department stores and Shuffle Master have in common? They are riding high on the popularity of poker – ESPN broadcasts poker tournaments, department stores devote floor space for at-home poker paraphernalia and Shuffle Master – maker of card shufflers – is an odds-on hot stock.
This year poker is everywhere. It is huge. It's played in neighborhood games, in local bars, online and on television.
Some people have said watching golf on TV is not as exciting as watching paint dry. So for a card game to take off and become a popular fixture on TV, there must be excitement and big bucks to be made.
Who is making them? ESPN for one.
ESPN spokeswoman Keri Potts argues watching poker is a lot more interesting than watching paint dry. ESPN broadcasts the World Series of Poker and has televised poker for 11 years.
What's the allure?
"There's lots of colorful people, great characters," Ms. Potts answered.
Viewers can relate to players who look like ordinary people and not elite athletes, and compete against the best in the world, she said.
Then there's the money. Greg Raymer, a patent attorney, not a professional card player, won $5 million and the world title last year. Chris Moneymaker, an accountant, was the 2003 champ and the winner of $2.5 million.
Unable to uncover hard data on profitability for the network, I then spoke with Gary Thompson, spokesman for Harrah's, ESPN's partner in WSP.
This year WSP will have a $50 million final event payout, Mr. Thompson said.
"There's not another single event on the planet where participants can make $50 million," he said.
Poker is popular because it is an American game, it's been around since cowboy days and, Mr. Thompson said, it has a romantic cachet.
Up until about five years ago, though, casinos were removing poker tables in favor of slot machines. Nine slot machines fit in the same floor space it takes to hold a poker table.
The average take from a single slot machine on the Strip in Las Vegas, Mr. Thompson said, is between $350 and $500 a day; the average payout is about $140.
Today, the poker tables are coming back.
But how do casinos make money on poker? In a casino poker game, the house takes a portion, or rake, from every pot.
A poker table, when in play, yields between $50 and $60 an hour. Dealers need to be paid a salary and medical benefits, and that raises the cost for the house.
But, the big payoff for the casinos is the amount of attention a poker tournament causes, and the thousands of non-players who come to watch – and spend money. In the early days of poker tournaments, the audience couldn't see much – except when a player raked in the pot or showed his hand when called.
It was a high-tech invention that revolutionized the game for television. The lipstick camera, inserted into the table next to each player, removed the paint-drying analogy from watching a poker match.
Now viewers can see cards players are holding – adding a tremendous amount of nuance to the game, Mr. Thompson said.
Cameras give viewers the inside scoop, Ms. Potts said. They're in the know, and everyone else at the table is in the dark.
Fame and fortune have lured many to the game. "Anyone can win," Mr. Thompson said. That's what may be fueling the poker phenomenon.
Participating in a national event gives players the opportunity to earn a life-changing amount of money.
Unlike professional poker players who can earn as much as $6 million a year, the average poker player doesn't need a lot of money to play. But to play with the big boys (and girls), players need to ante up $10,000 for the WSP event.
The poker tournament is a powerful lure, Mr. Thompson said, for those who want their 15 minutes of fame.
Fame's fine, but in the end, it's probably the money.
Bonnie Eksten is the business editor.
She can be reached at 343-2329,
or by e-mail,
bonnie.eksten@starnewsonline.com
