[betadecay]

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It does not provide a disincentive to cheat. Someone can cheat like Justin did, and they know that even if they get caught they will only lose the amount the stole. If they don't get caught then their theft is profitable. Hence, it is impossible for them to lose by cheating.

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That's not entirely correct. He's not just losing the winnings from the times that he cheated; he is losing the money (and time) he invested in them as well.

For example if a perfectly average player spends $3000 in tournament entry fees, he figures to end up with about $3000 (breakeven) when he is done. If he cheats, then he thinks he can end up with $4500... but if he gets caught, he ends up with $0. In that sense he is risking losing $3000 to possibly win $1500. The only way that cheating is risk-free is if he figures to have exactly 0 ROI when not cheating.

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This is also incorrect. He's not loosing his winnings, they aren't his since he cheated them. All he is losing is his time and his buy in. That is so lame stars.