Why aren't all chips distributed?

In a multi-table tournament, the full ‘entry fee’ is not distributed to players. Why not? Given that they’re ‘free’ chips why does the ‘house’ take a percentage?

Firstly, it helps to balance our books. We’re currently giving away lots of free chips; for example - to each new player, top-ups to existing players, award bonuses, freeroll prizes, the new daily bonus and so forth, you get the idea! This sounds great, BUT conjuring up free money out of nowhere has it’s downside, just as it would in a real economy, it’s called ‘inflation’ and it means that the value of play chips doesn’t stay constant, but falls over time. Nobody likes the money in their wallet worth less today than it was yesterday. So by having these fees, it means that we can truly afford to give away the freebies.

Secondly, while we understand many of our players love playing poker just for fun, a lot of our players eventually want to try their hand at real money poker. That’s why it’s important for us to offer a truly realistic poker experience. Money management is a BIG part of becoming a successful poker player and that’s why as a poker player you need to be factoring in the cost of the poker room’s fees.