There is certainly a massive run on Neteller and, at least, Pinnacle. I think everyone will get every cent their owned from these guys and this will be a testament to just how well run these organizations are. Remember "real" banks and financial services have had trouble dealing with these issues in the past.
It's my impression that most of the top rated books are well funded and prepared to deal with this run. Bodog, however, I hear has massive overhead and depends on future revenue to pay their current liabilities. (Can anyone at SBR confirm this?) When NT pulls out and if Bodog has to give up the US mkt, will they be able to remain solvent or will they crash down like a pyramid? If they've made investment decisions that rely on a certain growth rate (large overhead on useless stuff like Bodog girls, super-generous reload bonuses with small rollover, etc.) and then they have to forgo much of this revenue, will they still be able to cover all their liabilities?
Certainly companies make decisions based on financial projections and if these projections fall short the company can face ruin, that's just business. I think companies that have large overhead like Bodog are in for a hurtin' for certain.
Another question arises for books that can no longer sustain themselves without the US. If they're forced to pull out of the US market, and their business model is no longer sustainable would they consider just taking players money and running?
It's game theory. Parties cooperate as long as they know cooperation will lead to the best result in the long term . Books will do better to treat their customers fairly when the risk of losing future business outweighs the benefits of screwing the customer over. But if there is no long term benefit for the books (because they will have to shut down anyway) will they just default and make a run for it? It seems that this is their dominant strategy (morals aside).
I definitely feel safer when books have a selfish reason for acting fairly.
It's my impression that most of the top rated books are well funded and prepared to deal with this run. Bodog, however, I hear has massive overhead and depends on future revenue to pay their current liabilities. (Can anyone at SBR confirm this?) When NT pulls out and if Bodog has to give up the US mkt, will they be able to remain solvent or will they crash down like a pyramid? If they've made investment decisions that rely on a certain growth rate (large overhead on useless stuff like Bodog girls, super-generous reload bonuses with small rollover, etc.) and then they have to forgo much of this revenue, will they still be able to cover all their liabilities?
Certainly companies make decisions based on financial projections and if these projections fall short the company can face ruin, that's just business. I think companies that have large overhead like Bodog are in for a hurtin' for certain.
Another question arises for books that can no longer sustain themselves without the US. If they're forced to pull out of the US market, and their business model is no longer sustainable would they consider just taking players money and running?
It's game theory. Parties cooperate as long as they know cooperation will lead to the best result in the long term . Books will do better to treat their customers fairly when the risk of losing future business outweighs the benefits of screwing the customer over. But if there is no long term benefit for the books (because they will have to shut down anyway) will they just default and make a run for it? It seems that this is their dominant strategy (morals aside).
I definitely feel safer when books have a selfish reason for acting fairly.