Lately I have run into some obvious "team players" online who play together and split their winnings?

Is this legal and can it be stopped?

I remember reading that on pokerstars you should report them and theyll be delt with. Its not allowed.

It`s called collusion, and it`s a serious breach of the rules at most (if not all) poker sites. Persons found doing this are likely to be banned, and may have their account balances confiscated.

that is very illigal,,,a few months ago i reciecved an email from pokerstars telling me i was involved in a string of sng's that had some colluders...the cool thing is that they credited me with 67 dollars ..turns out they divided the colluders money between all players involved

Report them and the site will investigate.

I'm assuming you mean team players in a bad way beyond just splitting the money? As in chip dumping to each other, possibly chatting in MSN or something to help them cheat, that sort of thing? Then yes, that would be wrong on any poker site out there. Report them all and the site will investigate.

Keep in mind, there could be legit "team players" so to speak. What I mean is, if two players buy in to an event together and do not cheat, don't chip dump, don't help each other, don't soft play each other, etc, then splitting their winnings is perfectly legal. It's called sponsorship and happens all of the time in major events. In the WSOP, there are pros (playing in the ME) that stake (partially or wholly) other players in the ME in exchange for a cut of the winnings. The point is that they play against all players the same. Doing this is not illegal or unethical. In fact, anytime something like this is done, it is in the best interest of those involved to let others know that they have a deal in place to help minimize thoughts of impropriety.

So, while I do think you meant this post in the bad way based on how you wrote it, I just want to make sure you think about the other side of it as well. But yes, if there is anything fishy in what they are doing, then let the poker site know for sure.