Definition of chip dumping
Let's state up front that chip dumping is illegal everywhere, in all online gaming rooms and in all casinos. Players who engage in chip dumping are banned from casinos and have their money seized in online rooms. The player who is chip dumping willingly gives his money or chips to another player and acts as if it was not planned. If a player premeditates that he or she will lose his or her stack to his or her friend, that is chip dumping.
The reasons for the illegality of chip dumping
Chip dumping mainly takes place in online poker rooms. And all rooms explicitly write that it is illegal behavior. Why is this? Some poker rooms will give bonuses to new players. The bonus will be frozen and cannot be withdrawn until the player has paid X amount of money in commission. This amount is given to attract new players and get them to play. So let's say Player A has 100 Euros (bonus received) frozen in his account. He takes a heads-up table with his friend, Player B, who has an account in good standing with 100 Euros of his own money unfrozen. Player A raises preflop to 99 Euros, Player B pushes all in, Player A folds and Player B pockets 99 Euros. This is chip dumping. Player B can then withdraw Player A's money since it is now in Player B's hands and will no longer be frozen. Player B can then share the money with Player A after he cashes out.