My team and I founded LiveAce.com because after Black Friday there were no options for US players to play competitive online ring games.  Since we launched in August 2013 we are proud to say that within 30 US states we not only offer the only competitive online ring games, but in the three major game types: no-limit, limit and pot-limit Omaha.  We’ve dealt over half a million hands, have not charged one dollar of rake and thousands of players have enjoyed competitive online poker for the first time in years, all the while improving their game.  Of all the players who joined in our first two weeks, almost 15% of them have played more than every other day since.  Almost 10% of them have played more than three of every four days since.  In this article we’ll discuss how we structured the site and other observations since launch. 

How LiveAce Works

Anybody familiar with live casino poker rooms will have no trouble understanding LiveAce.  Players start with Regular Chips which are used for table buy-ins.  No-limit hold ‘em ring games are offered starting at 1/2 blinds and go up to 25/50.  The buy in is fixed at 120 chips for 1/2 tables and 100 big blinds above that (400 chips for 2/4, for example).  You can start playing for free right away and the site gives you 400 chips, plus the ability to reload up to 400 chips once per day.  We also instituted bankroll minimums to help educate players about bankroll management.  For example, to play 2/4 no limit we require a 5 buy in or 500BB bankroll.  While some players would like to put their entire bankroll on a pot limit Omaha table, profitable players know that is not a recipe for success. 

LiveAce Auctions

So how do you cash out?  Chips you win during a session are called Live Chips.  You can use Live Chips to bid in daily real money auctions.  For example, you sign up and win 300 Live Chips.  There is a $500 auction ending at 9pm that evening.  You don’t have to bid on the whole prize – you can decide how many Live Chips to bid and how many dollars to win.  You decide to bid 200 Live Chips to win $5 (a Bid Rate of 40 LCs per dollar).  Minutes after the auction closes you find out if you were one of the high bidders.  If you don’t win any cash in the auction your Live Chips are returned to your account – so there’s no risk to bidding.  Any cash you win is transferred to your own secure cash account.  Redemptions are processed quickly via Dwolla or check.

The auctions represent an interesting game within a game that adds to the entertainment value of the site.  Each night we have approximately 100 players bidding to convert their Live Chips to cash.  However, we also have players who choose to hold onto chips they’ve won so they can climb the limits and play in bigger games.  Not only can you win or lose more at higher limits, but the competition tends to be even better as well – just like live poker.

We’ve learned some interesting things about the cash auctions.  We publish the Last Accepted Bid from prior auctions.  What we’ve seen is that people look at historical data to guide their bid.  Currently 100 Live Chips are worth about $2.  You can see on our leaderboard that our top player has won over 50,000 Live Chips.  It’s important to note that the winning bidders’ Live Chips are removed from their accounts (and circulation) and they must start building their bankroll again.

Our original hypothesis was that if we could make chips not only a scarce resource (a player cannot purchase or earn more than 3,000 in any single week) but also valuable then people would play to the best of their ability.  From observing the gameplay and player feedback we are happy to say that this hypothesis has been tested and proven correct.  I was recently observing a 2/4 limit table where people were playing tight, competitive and folding to river raises.  I think when players are taking a micro stakes, virtual chip limit game seriously it clearly illustrates we are onto something.

Legalization the Future

Many people have asked whether legalized poker will obviate our business model and I don’t believe it will for a number of reasons.  First, I believe there are a significant number of players who would like to play competitive ring games for a set monthly fee, which on LiveAce is $19.99 per month.  This is in contrast to real money sites where 95% of players are net depositors and in order to continue to play all but the smallest stakes often requires hundreds of dollars of investment per month.  Second, the rake on real money sites is difficult to overcome (and rakeback deals and deposit bonuses as a means to offset its effects are generally no longer offered). Third, real money sites typically offer big advantages for hardcore grinders such as Hold’em Manager software. 

Many analysts and players think the legalization of online poker on the state or federal level will be the panacea that the marketplace needs.  However, the legacy issues inherent in the real money model will persist.  Recent changes by site operators in Europe to separate professional from recreational players illustrate the severity of the issues and length sites will go to solve them.  The vast majority of players are net depositors and recreational players are intimidated by the advanced level of game play and in most cases are outclassed as well.  Attrition is very high and many players lose their initial deposit quickly and never return.

LiveAce has been designed to solve the problems inherent in the pre-Black Friday, post-Black Friday, and (eventual) post-legalization periods.  Importantly, LiveAce is structured to appeal to anyone with an interest in playing the game of poker online, with the notable exception of hardcore grinders.  While grinders are certainly welcome, they will likely be disappointed by a structure which is more difficult to capitalize on, a total amount of money leaving the system which is insufficient to earn a living from, and a lack of software plug-in tools typically found on a real money site.

Conclusion

I encourage you to try the site for yourself to see if you agree with this article.   We truly believe in our mission of bringing something very positive to the poker community.  We feel that LiveAce helps keep players interested and involved in the game, reenergizes their involvement in great poker resources like Two Plus Two, gives them the ability to learn new variations like pot limit Omaha in a comfortable environment all the while providing great entertainment from their living room or mobile device.