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Does pokerstars get interest off of the $ in our accounts?

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  1. pearljam1012 pearljam1012 is offline

    Lethbridge
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    Oct 3rd, 2010 (10/3/2010 9:33pm)

    And roughly how much total $ are on peoples accounts? Trying to settle a bet
     1
  2. wackyJaxon wackyJaxon is offline Admin X

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    Oct 3rd, 2010 (10/3/2010 9:36pm) in reply to pearljam1012

    No way of knowing for sure, but it is in their rights to do so.. They just have to keep the player funds in a secure escrowed account(s).. Nothing to say that they can't earn interest as long as the money is safe..
      1 
  3. joeschmo joeschmo is offline

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    Oct 3rd, 2010 (10/3/2010 9:36pm) in reply to pearljam1012

     
    Originally Posted by pearljam1012 View Post

    And roughly how much total $ are on peoples accounts? Trying to settle a bet

    I would say they invest a sizeable portion of all funds, keeping aside a sizeable nest for payouts etc.

    No clue how much cash in peoples accounts, say hundreds of millions though.
  4. Deoxyribo Deoxyribo is offline

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    Oct 3rd, 2010 (10/3/2010 10:12pm) in reply to joeschmo

    think i remember reading that they dont, but not sure
     
  5. Mr_BigQueso Mr_BigQueso is offline

    Melbourne
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    Oct 3rd, 2010 (10/3/2010 10:14pm) in reply to Deoxyribo

    of course
    572 1
  6. MarleyGroup MarleyGroup is offline

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    Oct 3rd, 2010 (10/3/2010 10:15pm) in reply to Mr_BigQueso

    they should
     
  7. supra1988t supra1988t is online now

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    Oct 3rd, 2010 (10/3/2010 10:16pm) in reply to MarleyGroup

    why wouldn't they?
    649 
  8. N 82 50 24 N 82 50 24 is offline herp derp derp

    Philadelphia, PA
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    Oct 3rd, 2010 (10/3/2010 10:50pm) in reply to supra1988t

    They definitely do. Not a lot of interest as a % since it has to be conservatively managed but I'm sure they get something.
     
  9. The Baby Bull The Baby Bull is offline

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    Oct 3rd, 2010 (10/3/2010 10:51pm) in reply to joeschmo

     
    Originally Posted by joeschmo View Post

    I would say they invest a sizeable portion of all funds, keeping aside a sizeable nest for payouts etc.

    No clue how much cash in peoples accounts, say hundreds of millions though.

    Pretty sure they can't invest the money in anything but must keep it in an a separate client funds account. In the US you can go to jail for investing client funds to earn a profit for yourself. They probably can keep any interest earned from the client accounts. Can't say for sure since I don't know much about the law in the Isle of Man, but it's likely to be quite similar to the US.
    Edited By: The Baby Bull Oct 3rd, 2010 at 10:52 PM
    Reason: typo
     
  10. joeschmo joeschmo is offline

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    Oct 3rd, 2010 (10/3/2010 11:01pm) in reply to The Baby Bull

     
    Originally Posted by The Baby Bull View Post

    Pretty sure they can't invest the money in anything but must keep it in an a separate client funds account. In the US you can go to jail for investing client funds to earn a profit for yourself. They probably can keep any interest earned from the client accounts. Can't say for sure since I don't know much about the law in the Isle of Man, but it's likely to be quite similar to the US.

    I dont know much bout the isle of man either but doubt their laws are anything like US, thus the reason they are set up there.
  11. Lord Supremo Lord Supremo is offline actually a tuvalu lord (sigh)

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    Oct 3rd, 2010 (10/3/2010 11:03pm) in reply to The Baby Bull

     
    Originally Posted by The Baby Bull View Post

    I don't know much about the law in the Isle of Man, but it's likely to be quite similar to the US.

    I mean, given that you're allowed to run online poker sites from there....

    I've always assumed that the sites have our money in some sort of interest-bearing account, seems retarded to be sitting on tens? hundreds? of millions and not have it making any interest at all
  12. N 82 50 24 N 82 50 24 is offline herp derp derp

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    Oct 3rd, 2010 (10/3/2010 11:09pm) in reply to Lord Supremo

    The total amount is def in the nine figures plus. No doubt about that in my mind.
     
  13. Urbandb888 Urbandb888 is offline

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    Oct 3rd, 2010 (10/3/2010 11:10pm) in reply to N 82 50 24

     
    Originally Posted by N 82 50 24 View Post

    They definitely do. Not a lot of interest as a % since it has to be conservatively managed but I'm sure they get something.

    Nail,head.
  14. The Baby Bull The Baby Bull is offline

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    Oct 3rd, 2010 (10/3/2010 11:30pm) in reply to joeschmo

     
    Originally Posted by joeschmo View Post

    I dont know much bout the isle of man either but doubt their laws are anything like US, thus the reason they are set up there.

    The US system of law is descended from the British system of law and they are quite similar in scope. But, as you have noted, there are key differences such as the UK allowing internet gambling.

    One of the reasons I prefer stars to other sites is that I have more confidence in the UK law to protect my bankroll than a small Indian tribe that derives a huge percentage of their revenue from licensing online poker. George Lind has acknowledged on 2+2 that he has more than a million dollars in his account.
     
  15. doc793 doc793 is offline

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    Oct 4th, 2010 (10/4/2010 12:22am) in reply to The Baby Bull

    If I remember correctly, a couple years ago they stated that an amount equal to the players funds was kept in a bank. I think it was a Scottish bank and they did give the name. They probably earn a small amount of interest on this money.
     
  16. freeworld777 freeworld777 is offline

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    Oct 4th, 2010 (10/4/2010 1:02am) in reply to doc793

    they'd be pretty retarded if they weren't making interest on it
  17. bullseye180 bullseye180 is offline

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    Oct 4th, 2010 (10/4/2010 1:35am) in reply to freeworld777

    If it is their right to do so consider it done!
  18. The_Enigma The_Enigma is offline

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    Oct 4th, 2010 (10/4/2010 2:40am) in reply to bullseye180

    Business 101 as long as its liquid.
  19. pimpnuho pimpnuho is offline

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    Oct 4th, 2010 (10/4/2010 4:49am) in reply to The_Enigma

    Without a doubt! Prob 10 a millions a year! Its called the Float, Read about the Billions AMEX has made off of the float over the years on Travels Checks.. The average American express travels check take 120 days to cash. How long does this money stay online just changing accounts. Raking a % everytime.. 35million real money accounts is last i heard on stars! Its more then you would ever imagine!
     
  20. elgordo420 elgordo420 is offline

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    Oct 4th, 2010 (10/4/2010 7:49am) in reply to pimpnuho

    they make like 1.5m a year for every 25m without risk
     
  21. N 82 50 24 N 82 50 24 is offline herp derp derp

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    Oct 4th, 2010 (10/4/2010 9:35am) in reply to elgordo420

     
    Originally Posted by elgordo420 View Post

    they make like 1.5m a year for every 25m without risk

    I really doubt they are returning 6% a year without risk. Prove it.
     
  22. weslatell weslatell is offline

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    Oct 4th, 2010 (10/4/2010 10:24am) in reply to N 82 50 24

    isle of man laws are subject to U.K. laws.
  23. donkiman donkiman is offline

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    Oct 4th, 2010 (10/4/2010 10:38am) in reply to weslatell

    If you are a Diamond member on AP they actually give u 5% interest on your account. Used to be 10%. With this type of incentive to keep large amounts of cash on their site, they have to be investing it somewhere.
     
  24. Poker Orifice Poker Orifice is offline

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    Oct 4th, 2010 (10/4/2010 11:01am) in reply to Urbandb888

     
    Originally Posted by Urbandb888 View Post

    Nail,head.

    Is this ^ like a guest appearance post? (hey.. appreciate the vids.!! tks)
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