Bankroll Bragging...

[ChuckyB]

I'm up $1000 since I really started playing in January. Mostly in weekly $5 buy-in tourneys, bi-monthly cash games and $6 SnGs.

My bankroll right now is $450 (bought computer, poker books, etc)

[Supersetoy]

My BR is currently sitting at $10K.

I bonus whore (party the most) 4 tabling the $5/10 6 max.

When I get bored I play $33 - $215 SnG and MTT.

For larger MTT, I like to play live ($400+ buyins).

Most of that BR is going towards the downpayment on a house in December though. [img]/images/graemlins/crazy.gif[/img]

[pokerlaw]

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dude, do u like letting online poker sites make money off of your money?


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Poker sites don't get to invest your money, do they? I can't see how this is legal. They aren't a bank, and your $$ isn't backed by FDIC.

But yes, he can take some of that and turn it into passive income if he chooses.

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are you kidding???? of course poker sites invest all the $$ they have. in general terms, it is called float, even if they are only getting a portion of the 1-day LIBOR, that still amounts to a BOATLOAD of $$ for them.

why do you think it takes a few days before your cashout hits your bank account??

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[ QUOTE ]

dude, do u like letting online poker sites make money off of your money?


[/ QUOTE ]

Poker sites don't get to invest your money, do they? I can't see how this is legal. They aren't a bank, and your $$ isn't backed by FDIC.

But yes, he can take some of that and turn it into passive income if he chooses.

[/ QUOTE ]

are you kidding???? of course poker sites invest all the $$ they have. in general terms, it is called float, even if they are only getting a portion of the 1-day LIBOR, that still amounts to a BOATLOAD of $$ for them.

why do you think it takes a few days before your cashout hits your bank account??

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That doesn't seem right at all. We should see some of those profits, as the "investors".

Or is that what "Rakeback" is supposed to symbolize??? I'm surprised to learn this, honestly.

How is this legal?

Just broke $1k for the first time since starting seriously a couple of months ago. Generally two table the $11s.

[valejo]

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[ QUOTE ]

dude, do u like letting online poker sites make money off of your money?


[/ QUOTE ]

Poker sites don't get to invest your money, do they? I can't see how this is legal. They aren't a bank, and your $$ isn't backed by FDIC.

But yes, he can take some of that and turn it into passive income if he chooses.

[/ QUOTE ]

are you kidding???? of course poker sites invest all the $$ they have. in general terms, it is called float, even if they are only getting a portion of the 1-day LIBOR, that still amounts to a BOATLOAD of $$ for them.

why do you think it takes a few days before your cashout hits your bank account??

[/ QUOTE ]

That doesn't seem right at all. We should see some of those profits, as the "investors".

Or is that what "Rakeback" is supposed to symbolize??? I'm surprised to learn this, honestly.

How is this legal?

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Disclaimer: All of this below is an educated guess.

That said, any business--even off shore poker sites--is going to hold any cash they have in some kind of security. It just doesn't make sense to hold large amounts of cash on hand when it could be working for you.

But you're looney if you think the reason it takes several days for Party to wire you cashouts is because they have your money invested. First, the reason is because it usually takes about two business days for banks to process and post electronic fund transfers. There's a lot of banking security, federal regulation, and a bizarre mesh of old and new banking networks contributing. In fact, we just changed the way paper checks move around in the US fairly recently, underscoring the way in which the banking industry has a foot in the past.

But second, you really misunderstand the way PartyPoker does their accounting. When you deposit money, they don't put all that money into your own special cubby. They accept your transfer, record the amount you bought in for, and then put your money into the same bank account as every other deposit. Although they hold some percentage of the total dollars in play, they (probably) put most of those funds in some kind of security.

This is obviously legal. Banks, a highly regulated industry, do exactly this (that's what the Federal Reserve rate is all about). If poker sites were domestic and regulated, then there might be a law requiring them to hold all of the current buy-ins in cash.

[valejo]

Oh, and one more thing. It is +EV for me that PartyPoker makes some money by investing all their cash. That means they have to charge less vig to remain profitable!

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This is obviously legal. Banks, a highly regulated industry, do exactly this (that's what the Federal Reserve rate is all about). If poker sites were domestic and regulated, then there might be a law requiring them to hold all of the current buy-ins in cash.

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Yes, but when you deposit to a bank you have FDIC to insure you up to like $100K. Poker sites don't. How can they get away with investing YOUR money without you charging them vig?

In other words, if party is "Down" this month with their off-site investments, and every member cashes out fully, Party wouldn't have sufficient funds to pay everyone!?!? Isn't this what happened with Banks in the '30's (before FDIC)?

[chisness]

they're also making a profit every day and they can invest at lower rates with no risk