Do online poker sites conduct financing activities?

[trumpman84]

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.

[mr.trout]

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.

[oyvindgee]

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.

[Arnfinn Madsen]

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

[Yossi Carmel]

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

[mr.trout]

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.

[MiltonFriedman]

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.

[MiltonFriedman]

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 ?

[Unabridged]

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

[MiltonFriedman]

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.