So How Much Money Does Pokerstars Make Per Day?

One of the questions that I see posted online quite a bit is: how much money does Pokerstars make in a day? Or, how much money do they make over the course of an entire year?

Since Pokerstars is a private company, there is no way to know this answer for sure. With Party Poker, you can easily figure out exactly how much they averaged per day in poker revenues, and then how much of that was net profit. With Pokerstars, the answer is not as clear. However, with a number of pieces of different data, you can come up with a figure that is likely pretty close.

When Pokerstars was thinking of going public (a year or two ago), I read an article that stated that for every dollar of revenue that Pokerstars brought in, nearly 50 cents of that translated into net profit for the company. So we will work on the assumption that their operating structure is still basically the same and that 1 dollar of revenues still translates to 50 cents in net profit.

Now we have plenty of data from Party Poker to work with, but for that to have any benefit to us, we need to know how big Pokerstars is in relation to Party Poker right now. Based on market share data that I have read, real money ring game numbers, and other pieces of data (such as number of tournaments and SNG's, tournament field #'s, etc.) I would guess that Pokerstars is roughly double the size of Party Poker when we are talking about real money players (playing poker) on their respective sites. Based on Party Poker excluding US players from their site and Pokerstars continuing to grow over the past year, I would be comfortable saying that Pokerstars is about double the size of Party Poker, though some might disagree. For the sake of argument, let's say that this is the case. Some pieces of data that I have seen would say that Pokerstars is more than double the size, and some would say that it is less than double the size. We'll stick with exactly double for this article.

In the first six months of 2007, Partygaming brought in $212.5 million in revenues, with $140.5 million of this revenue coming from online poker. According to their web site, Party Poker's real money players generated an average of $777,400 / day in revenues.

So if Pokerstars is roughly double the size and assuming that they generating the same amount of $ per player that Partypoker does (a stretch, but we don't know for sure), then we can assume that Pokerstars was generating around $1.5 million in revenues per day in the first half of 2007. By all indications, Pokerstars has continued to grow in the second half of 2007, so I wouldn't be surprised if that number had increased up to $1.7-$1.8 million per day in revenues by the end of 2007. Pokerstars is investing heavily in marketing to different regions of the world besides the United States, so there is no reason to think that they are not continuing to grow. Let's stay conservative though and figure that Pokerstars is generating $1.5 million per day in revenues. In 2006, while mulling over the idea of going public, Pokerstars also hinted that they were making around $200 million per year in revenues. So to assume that they had grown to $547.5 million per year in revenues after some of their biggest rivals dropped out of the US market wouldn't be too much of a stretch, IMO.

If Pokerstars still generates 50 cents of profit for each dollar in revenues that they generate, this would translate to a net profit of around $274 million dollars per year, which would equal about $750,000 in profits every day for the company.

My best guess would be that Pokerstars generates between $1.5 - $2 million per day in revenues (on average), and between $700k to $1 million per day in net profit.

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