Quote:
Originally Posted by deemikey
Comparing a poker site to a bank and fractional reserve banking is apples and oranges for a bunch of reasons, but the biggest and simplest difference is FDIC insurance.
lol, no, the biggest and simplest difference is that one is apples and the other is oranges.
Poker and banking are totally different business models presented to their customers.
Poker sites perform a service, while holding player funds for no other purpose than to meet player liability, and charge fees for the service against player funds which players have themselves paid as fees or put into raked play.
Banks take in depositor funds, which the bank itself lends to third parties; the Bank pays depositors for that use of the funds.
The ONLY similarity is that each model provides for players/customers to demand payment against the balances in their accounts.
That the FDIC insures those funds held by a bank has little to do with the difference between the bank model and the poker model.
(When my then-company launched poker operations in 2001, we were regulated by the Financial Services authority in Antigua, but they had no understanding at all of the poker model or even the idea of a P2P game.)
Cue Nooseknot to explain how a truly decentralized gaming operation never puts player account balance funds into the operators' hands.
Last edited by Gzesh; 01-04-2018 at 08:10 PM.