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[QUOTE="OzExorcist, post: 2627127, member: 23910"]
I'm actually not sure what the penalty is online, but live it usually results in you having to sit out for a set period of time (one round of the button, for example).

Tournament directors are given some latitude in how the penalty is applied though: if they believe it's a genuine mistake (ie: it's a casual player who wasn't aware of the rule, or may not have even been aware they had an unbeatable hand) then they may just give the player a warning, and penalise them if it happens again.

Probably the most famous example was Darvin Moon doing it on national television at the WSOP, the year after he made his final table run.  IIRC they gave him a one-hand penalty, because he was obviously clueless as to what the rule was and wasn't trying to soft play or gain an advantage.

It's pretty much as you describe, chip dumping is deliberately losing your chips to another player, in order to help that player.

How you tell when it's chip dumping and when it's a player just being clueless is difficult, I guess like most things in poker it comes with a great big "it depends" tag attached.  TDs will take the full context and maybe prior behaviour or other patterns into account, as well as the specific action in the hand in question.
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