Online gambling websites – how much money must they keep in reserve to cover the costs of wins?
Question by sniffysam: Online gambling websites – how much money must they keep in reserve to cover the costs of wins?
It is my understanding that land based casinos have to have funds available but again how much i dont know?
Answer by mr.longshot
Online casinos? I am yet to hear of anyone cashing in on one of those. I’m sure someone has. Someone like the casino site owners daughter. To answer your question.. Probably not much.. Pretty sure there are pretty heavy mortgage payments due. My suggestion.. Do NOT deposit any money into an online casino.
Probably varies depending on which jurisdiction the company presides. I’d imagine it wouldn’t be the same rules everywhere.
Land based casinos are much different because players don’t keep their money there after they are done gambling. Online casinos are similar to banks, where customers let their money sit in accounts and customers have to manually withdraw funds to see the cash. Banks are required to only hold 10% of all account balances in cash on site.
Since online casinos are not regulated, there is zero requirement to keep any percentage on hold. They will typically keep several million in their bank accounts though (a tiny fraction of the sum of all their accounts). Unless they are going out of business, this is more than enough, since they typically receive more in deposits than withdrawals every day.