They don’t literally have the prize money sitting in a bank account. What they do have is legally binding contracts with people that say “When you determine a prize winner, we’ll give you the money to pay out the amount you’ve promised.” (James Randi’s prize for demonstrating psychic powers under controlled conditions is funded the same way.)
They don’t literally have the prize money sitting in a bank account. What they do have is legally binding contracts with people that say “When you determine a prize winner, we’ll give you the money to pay out the amount you’ve promised.” (James Randi’s prize for demonstrating psychic powers under controlled conditions is funded the same way.)