Warning: This is going to be half-assed since I can't play on Stars or Tilt anymore so I'm not interested enough to take the time to find the old threads and links to other relevant info.

I seem to recall a previous discussion where the subject of whether PokerStars (or maybe it was FTP or possibly both but same difference now) made money off the player balances kept in trust through interest bearing accounts. One of the reps from the site came into the thread and said they used to but don't anymore or that their regulator didn't allow them to or something to that affect. The question was then posed to the other site and there was a similar response.

Lots of companies hold onto substantial amounts of money (in the 100's of millions in some cases) that is destined to be distributed to others. Some examples are affiliate companies (Amazon) and advertising platforms (Google) that pay their publishers 30 or more (sometimes much more) days after the earnings have been accrued. This money that is earmarked for others but for whatever reason can't be distributed (called the float) is similar to how PokerStars holds player balances in trust. There are safe/insured/guaranteed ways to earn some sort of interest in this money.

Would it be possible for players to consent to Amaya doing the same (in a safe/insured/guaranteed type fashion) and supports any changes in regulation necessary in exchange for a rollback of the recent rake increases and exchange rate fees?

That way Amaya gets the extra money they claim they need for marketing to grow the poker ecosystem, players don't get raped by rake. Everyone's happy.

Just a thought.

Theoretically, your idea would certainly help... assuming Amaya/PokerStars was looking for a way to reduce rake.

In practice, AmayaStars would use this as a means to skim off some extra bucks while continuing to rake the games at a higher rate than before. As long as people continue to play there in high volumes, and as long as there is not worthy challenger in the market, I don't imagine a scenario in which the Amaya brass says, "If only there was a way we could lower the rake without losing too much money."

Amaya owes a ton of money to its creditors going forward. Amaya isn't looking for ways to reduce the rake. They are looking for more ways to nickel and dime their client base to death.

The money exists in a bank somewhere, so for sure it is being lent out to other people or invested in government bonds or whatever. The question is, who is profiting? It would seem strange if it was just the bank and not Amaya. I can see why Amaya can't pay interest on balances directly as it would be like they were running a financial institution themselves. But it seems strange if the bank is basically being given a long-term interest free loan to reloan for profit.

I haven't actually checked. But I bet this better not be true. Segregated accounts and all. If Amaya were taking all the players' money and investing it, that is a big problem.

If you mean Amaya deposited it all into a bank and that bank is now investing it, less disturbing obviously. Still not loving it though depending somewhat on what bank it is.

This is perhaps the whole point behind segregated non-interest bearing accounts.

^ Yeah I mean the bank doing it. That's why I say it being lent out logically follows from it being in a bank - unless there is something special about this type of account that prevents it from being used to calculate deposit ratios etc..

What else would the bank do with the deposit than investing it? That's why it's a bank.