PokerStars Foreign Exchange Margin has Players Fuming

Written by:
Ace King
Published on:
Oct/25/2014
PokerStars Foreign Exchange Margin has Players Fuming

Following Gambling911.com’s report that PokerStars parent company Amaya may be preparing to make drastic changes to its business model, the company wasted zero time in imposing a foreign exchange margin for deposits and withdrawals, much to the dismay of long time loyal customers.  

PokerRealMoney.com explains the consequences:

This change to the company´s terms and conditions will affect many players in Canada, Australia and Europe who have PokerStars accounts in US Dollars and who fund their accounts from a source held in their native currency (CAD, AU$, €uro, £GBP). The change only applies to deposit and withdrawals, and not to exchange rates when players with a PokerStars account in US dollars chooses to play on a €uro or £GBP cash game table.

The site goes on to report that several posting forum contributors have attempted withdrawals in a foreign currency and were shocked to learn that the calculated margin was around 2.5% – a charge of $25.00 for each $1,000 deposited or withdrawn.

PokerRealMoney.com added:

The reaction to the announcement was pretty vociferous, with many players complaining that the change in policy will hurt those who produce the highest volume from the site at a time when the value of VIP Rewards has been reduced and the traffic on the cash tables is falling due the introduction of distractions such as “Spin n Go” and the PokerStars Casino.

This past week, Gambling911.com quoted AmericasCardRoom.eu CEO Phil Nagy regarding the looming changes at Amaya poker rooms, PokerStars and Full Tilt Poker.

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Americas Cardroom began offering a high stakes multi-table time-based cash game with a $5000 + $100 buy-in that harks back to the good 'ol days of Stars

“All these things seem pretty standard when a company changes hands in this fashion,” Nagy surmised, first making reference to the departures of Full Tilt Poker sponsored pros told Viktor Blom and Gus Hansen.  “They did spend 4.9 billion and they are going to look to get that back somehow probably like this.

“They cut costs by eliminating team pros, opting out on sponsorship deals in Canada, restructuring their bonus program and I’m sure there is plenty more coming.

“What this means is Amaya will make loads of money but at what cost?”, Nagy asks.  “Poker will never be the same.”

The reaction to the Gambling911.com article by readers was swift.

“Americas Cardroom gets it!” remarked one reader.  “Seeing the high stakes Cage promo and other policies of this site makes me want to join right now.  They (Americas Cardroom) obviously want to capitalize on what will likely be a mass departure of high stakes players at Stars.”

Unfortunately this particular player resides in the state of New Jersey and Americas Cardroom currently does not accept players from this state due to an NJ Attorney General directive.

“I’m going to use my cousin’s address down in Florida to play at ACR,” this player vowed.

PokerRealMoney.com noted that PokerStars players in the United Kingdom were especially impacted by the new foreign exchange margin policy.

One player was being charged more than €80.00 on a €4,000 withdrawal because his (or her) funding source was in £ sterling.  Yikes!

- Ace King, Gambling911.com

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