Quote:
Originally Posted by OnWithTheShow
The beauty of the online gaming business is the sites can use the customer deposits interest free to invest in marketing efforts. There is always money coming in and you don't need anywhere near 100% of customer's deposits available to payout, more like 10% from what I'm told.
This is completely wrong if you hold the money in trust. A lot of sites, ftp included iirc, do not. However, not holding the money in trust is very bad for players, and there is a good possiblity it will become very bad for sites if the issue is brought to forefront through situations like the Prima skin debacle (not saying they have yet, most casual players have no idea about it) or impossible if regulation ever occurs in the US (I would be incredulous if any for such regulation did not force the monies to be held in trust).
Floating with money like that is incredibly sketchy. (Money like that meaning money that is not invested in your company, but rather funds you are actually just holding.)
Seriously, every player should be worried about this sort of thing. Even banks and financial institutions who are regulated and have much more skillfull financial management get into serious trouble at times. Of course, the government (i.e. US taxpayers) are not going to bail out a poker site the way our long history shows us bailing out financial institutions.
I am greatly disturbed by the insinuation that FTP uses players' money in any operational way. That is just frightening beyond belief.