Hi Jeff!
I'm hardly an expert on UBET (I'm still learning myself), but I do have all their materials and have talked to people assisting them with PR. I too think the concept could be huge!
>>>Is this a $60 million company?<<<
I think it has the potential to be more. Look at the market caps of their strategic partners, such as Ladbroke. The US horseracing wagering market is $15 billion in total with $11 billion in off-track betting (UBET's U.S. market.) This off-track component is growing by leaps and bounds. UBET is looking to go international. The worldwide horseracing wagering industry is $100 billion!!! A Yankelovich study showed that 63% of U.S. handicappers would use or seriously consider using the system. Even a fraction of this could be incredible in terms of the dollars involved.
>>>What are their revenue projections?<<<
They aren't giving out specific projections right now, just market percentages, etc. I guess they're worried about those "forward-looking" statements. But considering that they only launched their product two weeks ago and 5,000 people have already registered on-line to order the service, I can certainly see some rapids earnings growth on this one.
>>>How are they paid by the tracks?<<<
They actually get their revenues from subscription fees, information and merchandise sales, and transaction fees based on the total amount wagered. I'm not quite sure what that percentage is, but I'll try to hunt it down.
>>>What are the barriers to entry?<<<
Pretty large for something on this scale. They spent over $10 million developing the software and system and getting the strategic alliances in place. It was a hard sell at first, but now with added credibility, they will be adding tracks pretty quickly. With strategic partners like Ladbrokes (with their account wagering systems in place, etc.), UBET is firmly placed as the leader (and sole) player in the US on-line horseracing game. Recall that this is not an Internet system (easier entry I suppose) but a dedicated private network for security (more secure but more expensive). The founders also had the experience from the predecessor company, PC-Totes, Inc., that developed the world's first fault-tolerant, PC-based computer totaliser system for horseracing. Quite simply, their years of expertise and added cast of characters through strategic partnerships, plus all the money that was required to bring them to this point, makes their achievement very difficult to duplicate.
>>>what are the legal issues?<<<
I posted that issue on one of these threads. I'll find it and post the link for you, but, suffice it to say, it is legal in all states. Horseracing wagering was covered under telewagering. As telephone lines are used, the UBET system is also covered. Horseracing has always had a favorable status because it is considered more a game of skill than of chance. Also, because the company uses a private Intranet, it is not subject to broader Internet rules designed to keep minors, etc. from gambling.
>>>I hope I didn't ask too many questions! But when I buy a stock, I like to look at all the negatives as well as the positives for a company.<<<<
What we need here is more questions like yours! Doing the DD is required of any stock purchase, especially a hot, emerging technology with great potential like this one.
All the best,
Clo
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