Do online poker sites conduct financing activities?
 

An online poker room is a lot like a bank..there is a lot of money sitting around not doing anything most of the time. I was wondering if it is a common practice to buy stocks/bonds and other financing activities with the money we all have sitting in our accounts. I would assume they do, but just wondering if anyone knows for sure.

Re: Do online poker sites conduct financing activities?
 

This is an excellent question. Clients funds should me
segregated and not mingled with operating funds the same
way my commodity trading accounts are handled.

Re: Do online poker sites conduct financing activities?
 

Stars makes a point about players funds being held in segregated accounts and not used for operational expenses. I'm pretty sure that's the case with all the major sites.

Re: Do online poker sites conduct financing activities?
 

They probably rotate the players' funds in low risk bonds, i.e. buying state bonds that expire in 1-3 months time.

Re: Do online poker sites conduct financing activities?
 

This is all very individual to this company’s nature
I cannot tell you for sure but I assume that many do

Re: Do online poker sites conduct financing activities?
 

Regardless of what seems to make sense, it is my GUESS
that some of the sites comingle funds from players accounts
with their operating capital and/or buy short term securities with players funds..a definite NO NO. If this weren't the case any site that went broke should have been
able to refund customer money and we know this isn't the case.

Re: Do online poker sites conduct financing activities?
 

Do you really think that an online poker site brings its funds to the US to invest in state bonds ?

Most likely, the funds for the players' bankrolls are simply maintained in bank cash equivalents.

Re: All In poker closing its doors, claim money before 9/22
 

Speaking of which .... All In poker, the Prima site, NOT the magazine, has decided to shut its doors:

"It is with regret that we inform you that All In Poker is to close down with immediate effect. Unfortunately our multi-level marketing model has not been taken up by enough members to make the business sustainable. Thank you for your custom.

The website and poker client will remain available to you until Friday 22 September 2006 to enable you to withdraw any funds in your accounts. Please note that after this date, any funds remaining in your account will not be accessible."

It looks like ALL-In plans to make off with any player money not claimed by September 22.

This is a Prima skin, do you think they will make good on their players balances, after earning fees for how long from their play ?

Re: All In poker closing its doors, claim money before 9/22
 

i'm sure they keep alot of the players' accounts in the money market

Re: All In poker closing its doors, claim money before 9/22
 

LOL. Yeah, right .... I am sure they do .... Okay, YOU leave your money on deposit there then.

WTF do you care where they keep money if they have shut their doors and are telling you ... come by 9/22 or tough luck on accessing your funds.

Re: All In poker closing its doors, claim money before 9/22
 

... yeah i wasn't responding to you, i was repsonding to the OP using quickreply

Re: Do online poker sites conduct financing activities?
 

[ QUOTE ]
Do you really think that an online poker site brings its funds to the US to invest in state bonds ?


[/ QUOTE ]

This is really so simple to do without revealing your identity, that they could perfectly well do it, or they can just buy some future on another stock exchange that mirrors the US bonds.

Re: Do online poker sites conduct financing activities?
 

Dutch Boyd used to run a poker site I believe, perhaps you could ask him?

Dutch Boyd web site