THIS IS FROM THE INTERNET GAMING PERSPECTIVE NEWSLETTER
AN INTERVIEW WITH ROBERT CARVER, PRESIDENT OF XIRTRIX GAMING
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INTERNET GAMING PERSPECTIVE
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New Years Eve December 31, 1998
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Below is a copy of my interview with Bob back in August.
It is still timely, however, that was before the fate of the Kyl
Bill was known. Bob feels that Internet Gaming regulation
will not happen any time soon.
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1. There are many experts making estimates concerning the size
and future of Internet Gaming revenues. Some say 10 billion by
2000, others say 500 billion by 2005. According to your research
and estimates, what do you feel is an appropriate estimate?
In the next 2-3 years Internet gaming will evolve and achieve
acceptance as a principle gaming medium thoughout the world.
Lotteries, sportsbetting, horse race wagering, casino games,
bingo, stock market and other games not yet conceived will become
as commonplace via the Internet as the purchase of state lottery tickets
at your neighborhood market. As usage increases, as it has, and more
people learn about it, experience the excitement and tell their friends,
Internet gaming usage will reach critical mass. Given the current usage
and acceptance of other forms of gaming, I believe estimates of
10-20 billion by 2000 to be conservative.
2. Due to the legal ambiguities within the gaming laws of the United States,
most credible Internet Gaming companies are not accepting wagers from the
United States. What are your thoughts concerning the possible prohibition or
legalization of Internet Gaming in the US? Is Xirtrix involved with any
kind of lobbying effort to bring about legalization through regulation? What
issues do you feel need to be addressed before the US would be apt to allow
Internet Gaming, if at all?
I do believe the Kyl bill will pass in some form. I also believe the
bill will serve only to keep the legitimate companies in the US from
accepting US players. The Bill will not keep companies located around
the world from accepting bets from US players, nor will it stop US
players from betting. Therefore I believe the Kyl bill will actually promote
play at casinos where a US player has no recourse and where the play
may or may not be fair. Since there really is no way to stop play at an
Internet casino located outside US jurisdiction, the goal of the government
should be to promote play at Internet casinos located within US
jurisdiction, where the player would have some recourse and the
authorities could monitor payouts, etc. There are a handful of
states that have correctly taken this view. Hopefully, the Kyl Bill will not
preclude the states from adopting their own policies.
3. Aside from the United States, what are the other major markets in the
world that Internet Gaming can expect to penetrate?
There is a tremendous amount of interest coming from Asia, especially
Taiwan. Given the cultural acceptance of gaming in general in that region
I expect we'll see huge investments in this business coming from Asia.
Next is Europe, where the numbers of consumers coming online is
increasing dramatically.
4. Where does Xirtrix stand with regard to it's competitors within the
software development aspect of the industry? How aggressive do you
feel is your marketing plan with regard to others?
Let me just say that since we have elected to license rather than
develop > our software, we are free to focus on marketing. Marketing this
tremendous business opportunity to entrepreneurs around the world and
providing marketing expertise to our clients.
5. Presently, the Justice Department estimates that there are over 500
Internet Gaming sites in operation around the globe. What do you see in the
future: many, many Internet Casinos in competition with one another, or a
few big giants that capture the market?
Ultimately, there will be thousands of Internet casinos operating from
around the world, some doing a small business and others doing a huge
business. A few companies may emerge that become well-known, but
they won't dominate with so many choices available to the consumer.
6. As a developer of "turn-key" gaming software, you are actually an
industry within an industry. Is this your objective, or do you also plan on
operating your own casinos in the future?
We provide a comprehensive 100% turn-key solution, not only software
but all the ancillary services necessary to operate an online casino. Our
focus is on providing value to our clients. As such, we have no plans to
operate a company owned casino.
7. How do you find investor sentiment to be with regard to Internet Gaming?
Do you feel it has reached a point of credibility? Do you see investors
starting to take notice of the opportunity?
Investor attitude toward this business, although 100% better than say 2
years ago, are not where they should be. But this is just a function of where
the industry is today, still in its infancy, with no public companies
reporting
extraordinary profits. And yes, credibility is an issue, but I don't believe
it will
be long before the mainstream investing public takes notice. I also believe
there are some tremendous values available to the investor willing to do his
homework.
8. One of the many issues concerning Internet Gaming is accountability and
credibility. To this end, players presently don't "trust" the fairness of
the games, and no one is there to oversee if they are operating credibly
(i.e.)
legitimate odds, payouts etc.. Does Xirtrix offer any kind of solution to
this- in that your software is designed to, shall we say, "keep the gaming
owners honest"? What safeguards do you have?
3rd party verification/certification of odds/payouts is definitely
necessary. However, the player needs to be assured that the 3rd party is
credible. We have addressed this issue in the best possible way.
However, I believe the only real answer is time, experience and making
sure your players are informed about winners at your casino. If you run
a clean operation, most of your players will know it, come back and tell
their friends.
10. Finally, because you have been so kind as to answer our questions, we'd
like to allow you a few lines in which to expound upon anything that you
feel our readers would like to know regarding the industry and/or your
company.
This is an exciting time to be involved in this industry. The
opportunities presented for building a significant worldwide
enterprise are huge. However, these opportunities come with a
variety of challenges, some of which you've touched on.
As in any industry, new or mature, those companies that
address their challenges with a long-term view will succeed.
Xirtrix was organized with express purpose of providing a
credible vehicle for investors and entrepreneurs to tap into
the promise this burgeoning industry holds.
We must take a long-term view, since our success is directly linked
to our the success of our clients. I encourage your readers to
investigate the opportunities presented by Internet gaming.
END..........................................................................
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That's all for now folks. I hope you all have a Happy and
Healthy New Year! 1999 will be the year to "cash-in" on
Internet Gaming. I hope by this time next year, we are all
retired :)
Happy New Year,
Brian Haggerty
and the IGP staff |
