Most people in the online poker community are familiar with the name of Run It Once Poker, a poker platform that was envisioned and brought forth by the high-stake legend Phil Galfond.
I put in just under $10 million… By the end of this, I had essentially lost everything.
Galfond set out to create a poker site that was different, focusing on the player, giving back more, and creating a better overall experience. A noble idea, to be sure, but not one that was easy to implement.
As some of you will know, Galfond’s site ceased operations in January, 2022, and it has since been revealed that the software was bought by Rush Street Interactive to power BetRivers Poker, the new addition to the regulated US online poker market.
However, what happened behind the closed doors and why the site (which looked very promising but ended up shutting down) was covered in mystery. That veil was finally lifted in the second part of the poker documentary series titled GALFOND, where Phil describes the Run It Once Poker journey from start to finish.
A Gift That Keeps on Taking
Getting Run It Once Poker off the ground was no easy task for Phil and the crew. The launch was always “a few months away,” but that goalposts kept moving, and Galfond kept on putting more of his own money into the project to see it through.
Then, in 2019 it happened — and Run It Once Poker finally went live even though it didn’t include all the planned features such as the ability to host tournaments. The entire team was still naturally excited as something they worked on so hard for so long was finally completed.
But the initial elation was short lived. The goal soon shifted to bringing in as many new players as possible just to keep up with the natural churn of a portion of the player base. It wasn’t easy to maintain the number of players at a level that would keep the operation generating revenue.
At this point, according to Galfond, they were burning through $300,000 every month, and the burden of that expense was mostly on his shoulders. Things weren’t looking great, but then a surprise struck out of nowhere.
Run It Once Poker Picks Up Speed
The year, 2020 brought a period that remains in not-so-fond memories for most of us but which did boost many online businesses. As the Covid-19 pandemic struck, followed by lockdowns that came with it, online poker flourished around the world, and Run It Once reaped the benefits as well.
By mid-year, the site reached the player base size where it was almost breaking even, and this was one of the most exciting moments of the journey up to that point as it showed promise for being able to build the poker app to the founder’s vision. Run It Once Poker was close to breaching that very important barrier.
The sweet period, however, didn’t last long. Once lockdowns started to ease up, the traffic began to plummet, diminishing the company’s ability to fund its operation.
The Breaking Point
Realizing that the company couldn’t continue down the same path, it was time for some hard decisions. Galfond and the team needed either a big investment into marketing, or they had to find a buyer. Opting for the latter, as 2020 drew to a close, they actively started to look for a willing buyer.
This wasn’t smooth sailing. Despite making close to 100 calls, they couldn’t find any potential partners with serious intentions. Eventually, however, they were able to get an offer that raised their hopes, but while all this was happening, Phil kept sinking more and more money into the company.
While negotiations dragged on, and since they were not allowed to raise any money for the company or partner with anyone else during that period, Galfond had to spend about $300,000 every month just to keep the business running.
Explaining just how bad it got, Phil states:
“All told, when you add up the money that I put in personally and all of the free cash flow from Run It Once, which would have otherwise been my money, I put in just under $10 million… By the end of this, I had essentially lost everything.”
Adding insult to injury, the promising deal went belly up about six months into the negotiations, and despite their best efforts, the buyer decided to pull out. It was looking more and more like they would just have to shut down the company without anything to show for it.
In the midst of all this happening, Phil was struck by a personal tragedy, as his father passed away. Naturally, this had a profound effect on him, but there was no time to take a break. They had to do something with the company, as it kept draining hundreds of thousands of dollars every month.
RSI to the Rescue
Eventually, Galfond was able to get an offer from a different company. The offer wasn’t nearly as good as the one that was previously on the table, but it was at least a way to get some money back for the investors and himself. And at this point, it was the best they could hope for.
Run It Once Poker was sold to Rush Street Interactive, and it eventually came to light that the company wanted to use the platform to power a new room under its own brand — BetRivers Poker. BetRivers had already been present in the US with casino and sports betting products, so this would help them round up their gaming offering.
Galfond remained a part of the behind-the-scenes team, but not nearly as involved with the site as he was prior to the deal. This allowed him to focus on the Run It Once Training platform once again, while contributing to the future BetRivers Poker platform in his areas of expertise.
It was quite a journey for Phil and the entire team, but despite all the difficulties, Galfond says that the whole experience helped him understand that he could handle bad things happening to him and develop a new appreciation for what he has.
And that journey isn’t over yet, as we’re yet to see what exactly RSI has in store for the online poker market in the US. The weight, however, is off Phil’s shoulders, and Run It Once Poker, no matter what happens next, will always be an important piece of poker history and perhaps a bit of a lesson that even the best of intentions aren’t always enough to make something a success.