PokerStars Removes Low Stake Cash Games in Belgium

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Thursday, July 7th, 2016 | Written by Stephen Smith

Nano stakes Pot Limit Omaha and No Limit Hold’em games are popular on many online poker sites around the world, especially amongst beginners and recreational players looking to minimize their losses while still enjoying the game. With many poker sites trying to attract recreational players rather than appeal to the needs of grinders and pros, it’s surprising to see that PokerStars has eliminated penny poker games from their offerings in Belgium.

Not a Mistake

In June, PokerStars pulled the plug on nano stakes games on their site in Belgium, doing so quietly without making a statement. Players seemed to assume that the disappearance was a glitch or mistake. After receiving many inquiries, PokerStars Belgium finally issued a statement saying that the $/€/£ 2.00 No Limit and $/€/£ 0.01/0.02 Pot Limit and No Limit games had been removed on June 15th The statement went on to explain that PokerStars monitors game play and may choose to remove any game that does not seem to be positively contributing to players’ experiences.

What’s Behind the Move

As inflation rises, the benefits of playing penny poker become very low both for players and for site operators. Operators can expect a gradual shift away from the lowest tier games to higher stakes games over time, but it seems that PokerStars is trying to speed up the process.

The removal of the nano stakes games is part of a greater pattern that shows PokerStars’ desire to encourage players to choose higher stakes games. For the most recent Cardhunt promotion, benefits began at stakes of $0.05/$0.10.

With a small, independently regulated market, Belgium is a great place for PokerStars to experiment with the removal of nano stakes games. The operator can closely monitor the response and see if it has a positive or negative impact on site profitability.

Is It a Smart Play?

While the motivation for PokerStars’ removal of nano stakes games makes sense in theory, there is a chance that eliminating penny poker will have a detrimental impact in the long run. Studies have found that the average online poker deposit is in the two-digit range, showing that most players are not logging on to gamble for high stakes. One research study found that the largest segment of players–roughly 30 percent–paid less than $1 in rake over a 6 month period and that another 21 percent paid only between $1 and $5.

The data makes it clear that while high stakes games provide the biggest wins, they’re not what’s appealing to the majority of players. Penny poker can be a gateway to more profitable games. In many regulated markets, competition for players is high and retention is a top focus. Sites that offer nano stakes games can provide an environment where newbies and recreational players can experiment and gain confidence, gradually building a tolerance for risk. By eliminating nano stakes games, PokerStars Belgium may be gambling with their player retention and acquisition rates, but only time will tell.

Negatively Impact PokerStars’ Reputation?

Since Amaya Gaming took over the running of PokerStars, the world’s biggest online poker site has suffered a series of blows to its reputation as the company seeks to attract more recreational players at the expense of its loyal legion of online grinders.

One such blow was the last minute elimination of its Super Nova Elite reward program which left numerous pros steaming and out of pocket. While the subsequent boycott of PokerStars organized by disgruntled pros failed to significantly impact the site, it did highlight the diminishing esteem held for PokerStars, with top sponsored pro Daniel Negreanu later recognizing that:

“The company has acknowledged that the communication of the changes was too vague, and we should have done a far better job being clear in the messaging.”

Unfortunately, the latest development in Belgium once again illustrates a lack of fair warning given by PokerStars to its customers, especially considering the importance of removing low stakes games. While PokerStars continuously gives priority to the numerous bonuses and promotions it offers its customers, perhaps it should also pay greater attention to alerting its them of less positive developments ahead of time, and in a timely fashion.