There is a fatal flaw in this (or so I believe). Say someone signs up, and deposits 50 chips worth. They play a game, and lose 100 chips. They have 50 chips left. Technically, they won't be able to withdraw these chips, right? Or, say someone wins a pot of 800 chips that they bet real chips into, but all of those chips were play chips. Can the winner than withdraw?
If they can withdraw, you will go bankrupt almost immediately. You will be sending more money out than you even have in player deposits, not to mention rakes / tournament fees. If the winner can't withdraw, its a scam, as they won the chips fair and square betting real money deposits.
This site is a lose-lose situation
Ahhh no it doesn't work that way.
This is the amount of chips given to new players. Buy-ins are debited from this balance when a player joins a ring game or a tournament. Any chips they still have when leaving a ring game (or winnings from a tournament) are credited back to their balance.