Absolute: 9% interest on account balance
 

I just got this in an e-mail.

Better than the Bank - Elite members can now earn 9% interest on their AP account balance with our new interest bearing account.

Pretty sweet. Like the good old days of Party Poker, I think that was 10% on balances over 10k.

Also a 20% reload.

Re: Absolute: 9% interest on account balance
 

That would scare me actually, that rate indicates there is significant risk in leaving your money there.

Why get regulated as if you were a Bank, Absolute ???
 

Assuming that is actually from Absolute, I would be very surprised if it lasts very long .... for the same reason.

WHY attract regulatory attention by becoming a Bank ??

Where is the upside ?

Re: Why get regulated as if you were a Bank, Absolute ???
 

[ QUOTE ]
Assuming that is actually from Absolute, I would be very surprised if it lasts very long .... for the same reason.

WHY attract regulatory attention by becoming a Bank ??

Where is the upside ?

[/ QUOTE ]

What regulatory attention? They aren't in america. Its not illegal for AP to run a poker operation outside of america.

Re: Absolute: 9% interest on account balance
 

[ QUOTE ]
That would scare me actually, that rate indicates there is significant risk in leaving your money there.

[/ QUOTE ]

Re: Why get regulated as if you were a Bank, Absolute ???
 

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WHY attract regulatory attention by becoming a Bank ??


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I don't think they need to be regulated like a bank - which is worrying in itself.

Paying interest also suggests they are using your money for somehting that nets them more than the interest they are offering.

Zimbabwe sub-prime mortgages?

I think Neteller is moderately safer. At least they're regulated by the FSA.

Re: Why get regulated as if you were a Bank, Absolute ???
 

I wouldn't be worried about it. Think of it as AP giving Elite VIP's rakeback. AP makes a lot of money from rake, so they can afford to offer those that give them the most action some extra incentive.

It's not like AP is giving 9% interest to everybody. It's just those that already generate a lot of revenue.

Re: Why get regulated as if you were a Bank, Absolute ???
 

Also, I would think sites for whom Americans comprise a large part of their business are likely going to place a large value on getting customers to keep their money on their site.

If I take a bunch of money out of my bankroll or move it to a different site, it's easy for me to bring it back on to Absolute again.

If Joe American decides he's overrolled and should start earning interest on his money, then later goes busto and needs some of that money again, it's not so easy. Maybe he doesn't bother, or while he's going to all that trouble he decides to finally try Stars this time since he obviously went busto because AP is "rigged", or who knows what else he might do. If that money was still safely on AP earning interest, Joe's decision is easy...go win it all back at AP!

Re: Absolute: 9% interest on account balance
 

is there a maximum account balance? If not, what is to stop people from borrowing a ton of money and raking in positive carry?

Re: Absolute: 9% interest on account balance
 

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is there a maximum account balance? If not, what is to stop people from borrowing a ton of money and raking in positive carry?

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According to Infopowa $500,000 is the maximum interest earning balance.