How much in player balances does a book have?

peteep · Nov 5, 2003

I know this must vary widely, but how much would you think a book has in outstanding player balances? For books like Pinny, Oly, Will Hill and the other big boys, I'm sure it's a very high figure.

But what about some of the smaller books. How much did GA have when it was sold. I read $350k somewhere....is that accurate? Seems low to me.

How about books like Cascade, Bluegrass, Beteuro, bcbets.....books that aren't quite as big but seem to carry a good reputation.

Any guesses?

THE SHRINK · Nov 5, 2003

The truth is that most of them have what is coined as POST UP DEBTS...

For example, if all the players sent a sports book 500k, the sports book may only be operating on 300k of it, leaving a debt of 200k that they would owe if all the players asked for their money at the same time....

THE SHRINK

peteep · Nov 5, 2003

Shrink,

Is that to say that a lot of this books aren't profitable?

entropy · Nov 5, 2003

is the above true of bodog SHRINK??

in your opinion can a book offer >= 20% bonuses on deposits and not eat into postup funds??

D2bets · Nov 5, 2003

SHRINK, are you serious???? This is a usual situaiton???? Maybe I'm naive or something but to me that sounds like a book that is not making an operating profit. You don't make an operating profit...you're not in business long. Or is it that the owners are just taking out extraordinary 'salaries'? What am I missing here? I can see how your scenario may be the case for a new business to cover start-up costs and what not, but an ongoing operation ought to be making a profit and adding to its bankroll, having more in the bank than its player balances. Again, maybe I just don't get it?

theinvestigatorcr · Nov 5, 2003

Basically what they do is take that 60% and they reinvest it to get more customers.

Isn’t that a normal practice in any banking company? They never have the 100% of the funds of all the customers. They make more money by financing other customers.

If everybody takes all the money out from one financial company probably it will go down.

I think it varies from book to book what the policy is how much money to keep to process payouts all the time.

Doesn’t matter if it is 100k or 1000k, they have to take a percentage to keep growing.

They use profits and a percentage for this purpose.

T-I

D2bets · Nov 5, 2003

I don't think so TI. When you say they take the 60% to 'reinvest' do you mean they spend that on marketing? That is certainly not what banking companies do? It's called a balance sheet -- banking companies must have positive balance sheets. From what I'm reading, these described books DO NOT. Sounds more like a, gasp, Ponzi scheme.

I just hope that the type of situation Shrink describes isn't common. I think that type of operation is a house of cards that is a 5mph wind gust away from crumbling. I'm not a person here that's been sounding alarms about all the small books folding and what not, but if the situation that Shrink describes is common, then I am honestly worried.

BillDozer · Nov 5, 2003

Peteep
good thing you didnt take the marlins at GA huh. Youd be betting your ass off. haha

hanover00 · Nov 5, 2003

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR> I just hope that the type of situation Shrink describes isn't common <HR></BLOCKQUOTE>
D2bets, it is my impression that most if not all of the off-shore books operate this way. Furthermore, there are few if any segregated funds laws in the off-shore locales. The solution? Use Australian and British books that have legal requirements to segregate customer funds and must show auditors that ALL funds are available. This does not mean that there can't be fraud on occasion (much like your mutual fund industry), but at least there is a risk of jail time by the book operators.

Also, now I will not open an account with any book that places withdrawal requirements for any reason. I do not want bonuses or schemes designed to hold onto my money. If I make smart bets, I make money. If I make dumb bets I lose, period. I do not want anybody's $500 for "free". I only keep several units in each book at any one time and replenish as needed. Sometimes that means paying more vig on short notice, but so what.

Samurai · Nov 5, 2003

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>The truth is that most of them have what is coined as POST UP DEBTS...<HR></BLOCKQUOTE>
I would say the truth is that most of the books have taken players' postup funds and used them to run their underfunded operations without the players' knowledge or consent.

Most people call that stealing, and hoping to be able to pay it all back some day doesn't change that fact.