Full Tilt Poker is yet to pay out its US poker players, some of whom like Phil Ivey were very high rollers. This means that there is a big fat lot of money sitting in its poker player accounts. And while some trustful souls may be willing to believe that Full Tilt Poker is still keeping its players’ money secure and locked away, others are wondering if their money is shifting from one hand to the other and keeping the site going.
Are funds being used in circulation from poker player deposits to pay out other players and guarantee tourneys? After all, very few players cash out all their money. Poker players are beginning to ask if their complete deposits are untouched?
According to Phil Ivey’s lawsuit, the answer is no. Ivey accused that “Full Tilt Poker failed to maintain a reserve account sufficient to satisfy the return of funds to U.S. players.”
Like most other online poker websites, Full Tilt Poker which receives deposits from the players does not just lock away the deposits. In fact, they use the money for other investments just like banks, brokerages and even the insurance companies do. How much and what Full Tilt invested in loans, financial securities and stocks remains to be seen.
For instance, in a place which has a bank reserve requirement ratio of 10%, banks would keep 10 percent of the complete deposits in cash. Later, they will deposit the remaining 90% to get returns. There is no denying that the higher the players deposit in a bank, the higher will be the returns. But, when it comes to online poker rooms, there may not be a legal need for reserve ratios.
This is exactly the reason why, there are rules regarding how much reserves a bank can maintain. Furthermore, if the banks get in involved in a controversy, a government bank is always present to bail the banks out. However, it is highly unlikely that the government will come forward to bail Full Tilt out.
According to Ivey, Full Tilt owes $150,000,000 to US players. Full Tilt poker was shut down on the 15th of April and it reached a consensus with the government that on 20th of the very same month that it will return all the money to the players. Evidently, Full Tilt is unable to return the money at the moment. When it comes to insolvency, tax payers help to bail out banks and it happens when the investments have gone astray, but this will not happen for Full Tilt – so how will the poker players get their money?