Is this deposit method illegal?

My roommate's friend who plays poker live wants to start online. He decided to deposit. I told him to sign up through rakeback site. He said he wanted to only deposit $50. I told him, you can deposit $600, give my roommate $550. My roommate withdraws it to his bank, and give his friend $550. So this way, he'll have $600 bonus while only depositing $50. I told him that if he has funds to temporarily provide it, it's worth it since my deposit bonuses were $50. I cannot ask this to full tilt so I'm asking cardschat.

Reason why I thought of this is because I know that if you deposit for first time, I don't think they let you withdraw your money to your bank right away until they verify you and you clear your bonus. But he can still transfer funds.

Is this illegal method? If this is illegal, then I might just tell him to deposit $50 and play poker.

Sounds convoluted to me.

If there is only $50 in the account, how do you expect to clear the larger bonus?

If he only wants to deposit $50 just take the bonus for that and clear that bonus. It would be hard to clear much more in the time they give you.

FTP doesn't allow players with less than a 90-day deposit history to make transfers greater than $150.

It also makes zero sense to think you can clear a $600 deposit bonus with a $50 BR.

1) To unlock the $600 bonus you have to play a lot of hands. He'll be paying at least $600 in rake during that time.
That's very hard to do with only $60. If every hand you play is a raked hand ($1 pot or more) and rake is 5%, that's $12,000 of bets he'll have to make. And there's no way a $60 roll can average $1 per pot at first without being waaaay under-rolled.

2) If you transfer money to someone the poker sites require that the person plays with the money before he withdraws. So if Mr. X transfers $550 to Mr. Y, Mr. Y will either have to have an additional $550 in his account or make $550 in wagers (maybe more?) before he can make a $550 withdrawal.