Remember my first post about the 2007 World Series? (Post #150, from May 28)
“If the 2006 World Series of Poker was like Woodstock, the 2007 Series threatens to be Altamont. Harrah's barely had control of last year's Series; add in lame-duck management and the company not just biting the hand that feeds (online poker) but vomiting on it as well. Throw in thirty to forty thousand desperate gamblers, most of whom are fighting to become or escape stereotypes or archetypes; pros; celebrities; good dealers and floor personnel; incompetent dealers and floor personnel; bureaucrats; promoters; doomsayers; naysayers; and gawkers. All this adds up to an ugly panorama, and one I don't dare miss.”
Privately, I thought maybe the 2005 WSOP was really Woodstock, with everyone enjoying the good vibe of the post-Moneymaker boom and the nod to history by holding the final table for the last time at the Horseshoe. That would have meant the 2006 WSOP was Altamont, which certainly fit: uncontrolled crowds, absence of order, authority figures we didn’t trust. The 2 million unaccounted chips were the poker equivalent of someone getting stabbed by the Hells Angels during Sympathy for the Devil.
But I couldn’t use that analogy for the foreshadowing I wanted to suggest. After all, if 2005 was Woodstock and 2006 was Altamont, what would that make 2007? What would be WORSE than Altamont? Disco?
You still got the picture, right? I thought signs pointed toward something really bad at the 2007 World Series.
Nothing about the first couple days of the Series suggested otherwise. The lines were ridiculously long even though they were ridiculously long at the beginning of the 2006 Series. Then there was the playing-card fiasco.
But you know what? Harrah’s won me over. I know everyone doesn’t agree, and I have a lot of qualifiers. I believe, however, that they are backing up their claims of caring about the players, caring about poker, and caring about the institution of the World Series of Poker. For two years, they’ve talked the talk. I think the signs are unmistakable that, in 2007, they’ve started walking the walk.
I noticed a HUGE difference in how the Series was run in 2007 from 2006. I don’t know if it simply took a year for the Pollack regime to understand what it really meant to do right by the players, the game, and the institution. Or maybe it was the blowback from their shabby treatment of dealers (and resulting poor quality of work) in 2006. Or perhaps the Players Advisory Council did better or was listened to more. Or the color-up catastrophe of 2006 served as a wake-up call. Or maybe all of the above.
Overall, two conclusions are inescapable: (1) The 2007 WSOP was a much better experience than the 2006 Series; and (2) Pollack et al. care about the players (while also caring about things that may be inconsistent with what the players want, like making Harrah’s money). To reach these conclusions, I tried to look at as many aspects of the just-concluded World Series of Poker as I could. In some, Harrah’s did a very good job. In others, they definitely improved, either from 2006 to 2007 or from the beginning of the 2007 Series to the end of it (or both). In still others, it’s clear that even where there were problems, it’s not fair to blame Harrah’s alone, at least not presumptively. And there were a few things that stunk and continue to stink, though my conclusions on all the other elements suggest that there’s a reasonable chance they’ll do better next time.
This is how it all looked to me:
THE MONEY SHOT
Harrah’s makes a lot of money from the World Series of Poker. I’m generalizing over a lot of categories and a lot of people, but I think they have more streams of revenue than most people realize (the business everyone at the Series does in the restaurants and shops and especially in the pits, ESPN, internet coverage, radio, pay-per-view, deals with all the marketing partners from Milwaukee’s Best to Planters and Hershey, WSOP logo merchandise, etc. etc. etc.) though some of them may be worth less (at least in the near term) than people think (e.g., some of the high-profile companies starting relationships with Harrah’s and the WSOP, like Planters and Hershey, are probably not paying Partypoker.net-type money).
I think that’s all fine. If you play poker to win, you’re a capitalist, and we have to recognize that Harrah’s bought the World Series of Poker – Steve Wynn could have bought it, Doyle Brunson could have bought it, you and I could have bought it, but it was Harrah’s that followed through – and they are entitled to all the profits they are able to make. It would be legal, but not really sporting, if they took advantage of the situation, and I’m sure that’s what many people believe is the case.
I’m not willing to assume it, though. Let’s look at what they charge and what we get. I think (a) they are entitled to charge what the market will bear and it will definitely bear what they are charging; (b) compared with what the Bellagio charged for the Bellagio Cup, Harrah’s was not crazy with the rake; (c) they are taking risks and making investments and building the brand but they are making more money apart from the rake than anyone else who runs a poker tournament, so they should take that in consideration when deciding what to charge us; (d) they are generally NOT greedy about the intellectual property rights of players; and (e) the business of how to cut the players in on some of their revenue streams is very complicated.
I’ll try to explain all that. First, the market says charging 9% rake for a $1,500 event isn’t too much. The $1,500 no-limit hold ‘em events were mob scenes, averaging over 2,500 players. It’s hard to say how much of an arm’s-length transaction the relationship between $1,500 hold ‘em entrant and Harrah’s is. Certainly, the player can choose not to play, but it’s the WORLD SERIES. I can’t applaud Harrah’s if they are taking advantage of the situation, but I can’t condemn it either, at least not very strongly.
Besides, look what they are charging for the $50,000 HORSE: 4% or $2,000 per player. These are the highest-stakes players in the world, and this event was invented for the 2006 Series – in part by the Players Advisory Committee – and Harrah’s instantly exploited it for ESPN, even spreading it to five days and adding extra TV coverage. If Doyle Brunson and Chip Reese and Andy Bloch and Howard Lederer are willing to pay $2,000 apiece, who’s willing to say they are foolish for doing so?
When I looked at what the Bellagio charged for the Bellagio Cup, which ran concurrent with part of the World Series, I thought it was about half what Harrah’s charged for the Series. Bellagio charged 6% on its $1,500 events, just under 5% on $2,500 events, and about 3% on the $5,000 events and the $10,000 WPT Main Event.
But they raked twice: Bellagio takes a fee on top of the entry and then they take some of the prize pool. I don’t have their tournament documentation handy but if you look at the payouts for their events, it’s pretty clear. For their $5,000 NLHE event on June 22, they had 48 players and a prize pool of $232,800. The entry, however, was $5,000 + $180. So they charged $8,640 (the $180 from each of the 48 players) AND took $7,200 from the gross entry pool of $240,000 ($5,000 x 48). [Incidentally, I’m pretty sure the Bellagio discloses all this to players. I just don’t have the payout sheets in front of me.] The players put up a total of $248,640 and were paying $15,840 of that to the Bellagio and/or its dealers and staff. If a WSOP $5,000 event had the same number of players, Harrah’s would take out 6%, but that means they are taking LESS (albeit from a smaller pool) than Bellagio, $14,400 from a pool of $240,000.
I’m not saying Bellagio charges too little or too much. I’m not saying their quality of facilities is better or worse than Harrah’s and the Rio. I’m not saying a 48-player event costs more or less to run than the giant events operating daily at the World Series. But I am saying that Harrah’s is not off-the-charts crazy compared with what other venues are charging.
A lot of people probably won’t believe this, but I think Harrah’s wants to find a way to cut the players in. (The easiest way, of course, would be simply not raking as much.) You notice how these guys are very good at lining up corporate partners and finding new things to make money from at the Series – Planters, the official nut of the World Series of Poker? They are clearly adept at figuring out ways to exploit the World Series brand. Yet they have not gone out of their way – in contrast to the World Poker Tour – to lock up the players’ intellectual property rights.
They could probably get away with it. The WPT gets away with it; they are being sued but it’s a tiny minority of players who have gone to the trouble, and nearly everyone else is still playing the events (including at least one of the plaintiffs in the lawsuit). Harrah’s knows how to charge a high rake, so it’s not like they are afraid of making players unhappy.
Yet they don’t. Their release is NOT a ridiculous abuse of power. I’ve seen them personally deal with players who had problems signing the release and showing flexibility in working it out. (I saw, first hand, the OPPOSITE behavior from Steve Lipscomb on this issue.) I don’t think they want to take advantage of the players. But because the players don’t have an overall negotiating entity, they can’t work out a simple way for compensating players other than involving a few individual players in deals they have with sponsors/partners, like the video game companies.
Maybe I’ll be proven dead wrong on this, but I don’t think so. I believe Harrah’s is looking for a way to clarify what they make on the Series and cut the players in on some aspect of it.
It wouldn’t be an inappropriate gesture, to start, for Harrah’s to lower the rake on the televised events. After all, they make extra for those particular events because of the TV deal, right?
Now, let’s talk about the operation of the Series itself.
LONG LINES
I don’t know whether Harrah’s should put this in the win column or the loss column. There were HORRIBLE lines at the beginning to register, hours long, even in the middle of the night. And then it cleared up and wasn’t a problem for the rest of the Series. Kudos for straightening it out. But why was it a problem to begin with?
That said, they have to do something about the process of getting people paid. I know some delay is inevitable if the bubble bursts and they have to process 25 or 50 players at a time. But there MUST be a faster way of doing it.
First, they had computers set up all around the payout room, but I think they were props. Most of information they asked for was already provided when I initially registered (or was certainly provided by the second or third time I got paid during the Series), yet they still asked for and hand-wrote all the information on a form. Second, there were multiple levels of clerks and places to march around. First you had to get the floorperson to give you the bust-out ticket. Then someone in the bleachers noted your information. Then you went to the payout room where you gave them your players card and ID. And then you waited, a prisoner really because there’s no way for you to leave the property while they have your identification. After the wait, someone with a big, underused computer would take your information, give you a tax receipt and assign you to a valet who would accompany you to the cashier’s cage. And if there was a wait at any point up to now, there would also be one at the cage.
VARIETY OF EVENTS
This was a winner from the start. They had lots of mixed events and provided many, many more non-no-limit hold’ em events. I counted about 10 new events in 2007, either mixed events or forms of poker they didn’t have in 2006. And there was still plenty of no-limit hold ‘em.
DEALERS AND FLOORSTAFF
Huge improvement from what I could see, from 2006 to 2007. I don’t know the details but I remember dealers complaining bitterly about their treatment during 2006 and I had the impression that they weren’t making what dealers ought to be making. With few exceptions, the quality of dealers was just fine, keeping in mind that they needed about 1,000 a day. Likewise, I didn’t hear much about the job the floor did in making rulings and running the events smoothly – which is usually the biggest compliment you can give tournament administration.
When I explained the controversy surrounding David Singer’s elimination from the tournament (Posts ## 199-201), I was surprised that several of the comments I got attacked David and defended Harrah’s decision. Attacking David was unwarranted, but that sentiment is FAR from the way people would treat a controversial decision by the floor in 2006. People ASSUMED back then that if the floor decided something that wasn’t clear, that they were wrong. The sentiment has reversed, and good for Harrah’s that they’ve won some confidence.
THE AMAZON ROOM
By the way, Harrah’s had a good idea from the start by having the tournament in the Amazon Room. It’s a haul from inside the casino but it’s great from outside the casino – so good that I sometimes took my car from the garage outside the Masquerade Tower and drove to the convention center.
Good job on the look of the Amazon Room. The fabric pictures of the champions were beautiful. The lighting was very good. The final table stadium was much better this year than last year.
I had a problem with the timers. Because they were at floor level along walls, they were in one of the few places non-players could stand/gather. There was almost always – I’m talking about, say 90 times out of 100 – somebody in my line of sight when I wanted to see the length of time left in a level, unless I was seated directly in front of the timer. I don’t blame Harrah’s for this; it’s just something to work on.
Maybe take those overhead monitors with the chip counts – which weren’t comprehensive or updated anyway – and put the timers there.
THE GOLDILOCKS/MENOPAUSE PAVILION
Let me first say that the air conditioning situation at the World Series of Poker is proof positive that Harrah’s is not going out of its way to fatten its bottom line. It’s always freezing in the Amazon Room and often freezing in the pavilion (though it’s sometimes broiling only inches away). Cold in the desert costs money. If anything, they are spending TOO MUCH because it’s almost always too cold.
The pavilion was, literally, coming apart at the seams by the end of the Series. I don’t think they could have anticipated that so many people spending so many hours in that room for so many different events could have aged that tent so much. I hope they break down and annex one of the other convention rooms. I know that’s revenue they’re foregoing but as they correctly determined for the main event, no one wanted to play a $10,000 event (for which Harrah’s was receiving $600 plus all the other streams of revenue) to play poker in something that felt like the LOST IN SPACE set. A lot of revenue is generated from all the action that went on there. Time to give us an actual room.
SEQUESTATORIUM
Obviously, it would have been nice for the people in the room to see Phil Hellmuth win his 11th bracelet. And I heard a couple unattributed, unnamed instances of people whose families couldn’t see them play at the final table. But …
First, more coverage of more events by more media is a good thing. Even better if they players can more directly capitalize but generally better in any event. Second, as I understand it, it was the PAC who pushed for a more severe form of sequestration. I applaud them for considering the integrity of the final table. And I think we have to cut Harrah’s a little slack if we’re unhappy with it. Third, this is the kind of thing I think Harrah’s will fix up. The room gets better each year, the final table stadium gets better each year. This was the first year of the Cone of Silence. Give it time.
FOOD
I think they have to work on this. Two years ago, they didn’t have much more than some guy peddling sandwiches out in the hall. The poker kitchen was a big improvement for 2006, located in what’s now the Menopause Pavilion.
Time for another upgrade. Maybe I’m jaded because I was there for the whole Series, but the selections were too limited for a 48-day prisoner. And frankly, it seemed like the stuff was reheated under those lamps for too long. They’re back down to bad-quality-airport-food level. There was also some issue that they didn’t have cartons or containers to take the food to go. I learned this the first and last time I ordered hot food during the Series. What’s that about?
And let’s take a flame thrower to that horrific restaurant between the casino and the convention center. Who ever heard of a coffee shop in a casino that closes at 9 PM? Especially when you’ve got hundreds of playing until 2 or 3 AM, many of whom don’t go on dinner break until 9. The fucking Gold Spike has a coffee shop that’s open all night. What kind of drugs was the food-service executive on who hatched that place? (By the way, even when it’s open, the place is empty, so maybe I should argue for even shorter hours.)
If you can’t make money selling food at the World Series of Poker, you can’t make money. Maybe there’s a jurisdictional issue – I don’t see Jeffrey Pollack and Ty Stewart donning hairnets and slinging hash – but this is the kind of problem that someone ought to be able to fix.
THE PLAYING CARDS
Positive: before the Series started, they brought KEM back and decided to start each day and each table with a fresh deck. As a writer, I have to take issue with this because that meant there was so much less to write about in 2007. Consequently, without being able to harp on the shabby playing cards, I committed to playing more events.
Negative: the new design they developed for the start of the Series was a disaster.
Positive: They were TRYING at least. The design was supposed to be something the players liked. It just didn’t work out that way.
Non-negative: Harrah’s gets, at most, only partial fault for this. U.S. Playing Card should have been expert at this. Also, I understand that the design was by committee. They got a lot of input from different people, so they didn’t screw up by themselves.
Positive: Jeffrey Pollack didn’t hide. He bore the boos and announced new cards were being rushed to Vegas. They arrived quickly enough that Jeffrey left unstated the possibility the trucks had armed guards with orders to shoot to kill anyone crossing in their path. So Pollack faced a hostile group of players and fixed it. That’s the most you can ask for when something gets messed up. For me, that was a turning point.
PLAYERS ADVISORY COUNCIL
I heard about a number of things that were done in consultation with the PAC. From what I hear, a lot of top players are giving advice – and Harrah’s is always considering it, sometimes following it – on issues like events to run, structures, payouts, etc. This also means on some of the things people are complaining about – like the SequesterDome – it’s not fair to just assume that Jeffrey Pollack is shooting from the hip.
I’m sure there are things I haven’t given adequate attention here. I know there are questions and complaints about the tournament structures and payout percentages. But I also know the PAC was somewhat involved in those, and it’s hard to get a consensus on what’s right, and Harrah’s is trying to get input and be fair.
I also haven’t talked about Harrah’s dedication to charity, which is a positive thing. They picked up the tab for the VIP suite, so the Nevada Cancer Institute could charge $1,000 per player for access during the Series and it all went to the Institute. They did some nice things with Phil Gordon’s and Rafe Furst’s cancer charity and did a great job helping with Annie Duke’s and Don Cheadle’s Ante-Up for Africa. Phil and Annie both specifically told me how helpful Harrah’s WSOP executives were.
CONCLUSION
Overall, recognizing that most poker players are skeptical and complain a lot, I have to say Harrah’s did a good job. They did some things well. More important, they IMPROVED. They EVOLVED. They frequently seemed interested in finding out what the players wanted – which is usually a lot harder than it sounds – and worked toward it. They made mistakes, but they frequently learned from them or fixed them.
Arguably, the players should own the World Series of Poker. If the players didn’t show up, that asset – which I think is worth, conservatively, $500 million and possibly a lot more – is worthless.
But the players don’t own it. Harrah’s does. And unless the players pony up $500 million-plus, it’s going to stay that way. It’s possible the owner of the World Series of Poker could screw up so bad that the value of the Series is impair or even destroyed.
I can tell that this group isn’t going to let that happen. The Series survived the feud among the Binions, Ted Binion’s murder, a shutdown by the government, and a resurrection of the Series on the fly just as it was soaring in value. Jeffrey Pollack, Ty Stewart, and Jack Effel have proven that they can make mistakes – but they’ve also proven they can learn from them and fix them. And in doing so, they have demonstrated that they care. No matter how much we have to complain about – and sometimes it’s a lot – that secret ingredient of caring makes all the difference.




















