Online Poker and the Rise of Major Tournaments

THE effect of online poker has been immense. Since the establishment of online poker rooms in the late 1990s, there has been a steady rise of players and revenue in the industry. It is estimated that online poker revenues increased approximately 3000% in the four years leading up to 2005. This is attributed to a number of factors the most significant of which is the television coverage of poker tournaments such as the World Series of Poker (WSOP) and the global popularity that poker has enjoyed as a result.

In 2003, WSOP broadcaster ESPN expanded their coverage from a highlights show to include coverage of the whole tournament (including feature tables) and the television revolution of “pocket-card cam”, where the viewers at home could now see what cards players had.

Significantly in 2003, a satellite qualifier through Pokerstars.com and poker unknown, Chris Moneymaker went onto to claim the biggest prize of the World Series of Poker, the Main Event title. Moneymaker beat a field of 839 players, the largest ever at the time and won US$2.5 million in prize money. The effect’s of Moneymaker’s win was enormous to the poker industry. Overnight, every player began to realize that anyone can be a poker world champion, even an online qualifier like Moneymaker.

In the years since, the WSOP has risen in numbers of players and prize money. The following year, 2004 saw a steep increase in players with 2,576 entries into the main event. In subsequent years numbers of entries grew and peeked in 2006 with an amazing 8,773 entering the WSOP main event that year and a first prize of US$12 million.

US legislation would have an effect in subsequent years, with the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006 stopping financial transaction from US financial institutions to online gambling sites (including poker sites), effectively putting a stop to many US players playing poker online.

While this did have follow on effects for the WSOP in the subsequent year (only 6,358 entries and first prize of US$8.25million of in 2007), the WSOP in 2008 has seen the 2^nd largest ever prize money and numbers of entries with 6,844 players in the main event and winner Peter Eastgate taking home US$9.11 million.

Online poker has had a significant impact on the entire gaming industry, specifically ‘live’ poker tournaments.

Increase in WSOP Main Event players and first prize since 1998: