The online poker room belonging to Tower Gaming is now part of Cake Network. Tower Gaming, which was a partner of Ongame Network for a long time, does not accept US online poker players, but it offers a rakeback of 33 percent now that it is with Cake.
Since no official statement is out yet, nobody knows the exact reasons for the move, but it is generally believed that Tower Gaming made the move because of Ongame Network’s method of rake calculation called the Essence method and its method of rewarding loyalty points. Ongame claimed yesterday that it has attracted 8 percent more recreational players after the introduction of the Essence method of rake calculation. The network claimed that the winnings of its regular players had increased, but did not specify the exact amount.
Fredrik Kjell, Ongame head of poker, stated: “We always knew Essence was revolutionary as a concept, but it is of course reassuring and great to see that it is working as intended. With Essence, we have turned the tide on poker’s aging business model. We now have it black on white that Essence helps create an ever healthier ecosystem, in a way that is unique for the entire poker industry.” On the other hand, Cake calculates rakeback with the dealt method.
Meanwhile, the Bwin-owned Ongame network is for sale. Bwin.Party Digital Entertainment Plc stated that the sale procedures are already in place. This giant online gambling company, formed when Bwin merged with Party Gaming this year, labeled Ongame poker network as a “surplus asset.” Just before the sale, online poker players at Bwin will be shifted to Party Poker.
According to a Bwin.Party statement, “One area of our stated strategy was to recycle surplus assets. As part of this process and having taken some initial soundings from interested parties, we have commenced a formal process to sell Ongame’s Business-to-Business operation that is one of the world’s leading online poker networks with a state-of-the-art technology platform. We expect that any sale will be completed by the end of the year.”
Ongame network wants to walk in the footsteps of Entraction Network, which was sold to International Game Technology for €70 million last month.
Regarding Tower Gamings shift to Cake Poker, no official statement has been made as yet. But Tower Gaming has posted two tweets on its Twitter account, stating, “Cake Poke permits HUDs. Great news for Tower grinders.”