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How do poker sites make money?
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[QUOTE="GotaLovePoke, post: 980958, member: 46031"] By the way, do you know what "managed by one of Europe's leading financial services groups." means, it means that the money is not necesserely cash, but could be either financial assets or obligations or debt titles, managed by the "europe leading financial service group" they chose. [B]Wich basicaly means that your money, is not necesserely "guaranteed"[/B]. In case poker stars goes Chapter 11, as a client, they have a debt towards you, but they are not "forced" to cover that debt, they just split whats left of the money with every one to whom they owe money. So keeping the total money of what players have [B][SIZE=4]means nothing[/SIZE][/B] if they have a financial leverage, wich I am not sure but I am prety sure they have. This is no different than any company btw, and imo is innevitable. I wish I could tell you more, im prety certain though pokerstars is not close to being bankrupt, not yet any way, but I have tried to find their balance sheet, so I could tell you exactly how "bullish" is that statement. Maybe they have that cash in equity, wich then would be fine, or a bit safer. And I think its bold to ask if they use that cash in operational expense, as soon as you put your money in the system, it becomes a part of operational expense. :deal: [/QUOTE]
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