The world's least signifigcant poker networks Merge Gaming and Revolution Gaming have started a New Rakeback War, stealing unprofitable players from each other.
At the risk of stating the obvious, rakeback is designed to appeal to a specific type of poker player: the multi-table grinder who generates lots of rake. The short-term benefits these (generally) winning players provide poker rooms are ultimately negated by the fact that these are net-withdrawing players who prey upon net-depositing players. This latter group is the lifeblood of the poker ecosystem, a steady resupply of which is required to sustain this business. Yet smallish poker rooms still view the net-withdrawers as their prize pigs, and are prepared to go to great lengths to attract and hold these players rather than encourage new players that the water in the pool is warm and inviting.