I have a question regarding the online casino tournaments that are offered and the fact that they claim that the prize pool of say 200K is guaranteed. I apologize if this post has already been discussed elsewhere I just couldn't find a serarch feature here in the forum to search though old posts. Anyways I'm interested in knowing how online casinos go about guaranteeing the prize pools. Are they guaranteeing them from their own pockets as an online casino operators (ie. where is the money that guarantees the prize pool coming from).

This is more general interest for me rather then a deterrent from playing in online casino tournaments. I just moved from playing at Rushmore casino which I still really love playing at but wanted to play in some online casino tournaments (specifically slots tournaments) which I see that they don't offer as of right now. Anyways if anyone has any idea as to where the guarantee in the prize pool comes from would be interesting to know.

Thanks,
BM

The guarantee is given by the casino themselves. The way that tournaments work is that even if it's a free roll tournament those who re-buy into the tournament are the ones that build the cash prizes for these tournaments. Essentially what it means is if the tournament doesn't generate enough money for the prize pool that the casino will then jump in and pay any differences. So let's say that the tournament only generates 150K in prizes and the entire prize pool for the tournament is 200K that means that the casino will have to bite a 50K loss on their end in order to pay out all the prizes to players for the tournament.

Hope that makes sense!

-Wiz

Good explanation Wiz... I agree with your description of how the guarantees for tournaments works!