[arsenal]

I don't think it is the "site" per say. I could definitely see an employee taking advantage of this though. While it is the same thing in the eyes of the public.

As far as the sites making money. You can do a quick calculation (based only on Sit and Go tourny's).
In any given hour, say there are 100 $3 + $0.30 sit and go tourney's that run. For the sake of argument, let's say they are 10 person tourney's.
So $0.30 for the site (entry fee) X 10 people at the table = $3.00 / table.
$3.00 x 100 tables / hour = $300 / hour. Just on the entry fees of one type of sit and go tourney alone. And I am just thinking of Texas Holdem. A lot of sites have Omaha, Razz, Hi Lo, etc as well. Mind you those are not as popular.