An article from the S.I. (BETT) board about the potential of internet gaming. WINR is mentioned, and quite well.
To: Marc A. Richter (1195 )
From: Fli-by
Sunday, Feb 7 1999 6:33PM ET
Reply # of 1197
OK folks, this is what I got from the IGP web site(www.igp.nu). Not much information yet. BUT we're on
the top of his list..Get ready for some real shaking and baking to go on Monday; and if some news from the
Company such as the 10k or news on some financing deals come out.... well lets say 7th heaven...
FreeIssue.autoresponder@igp.nu wrote:
*******************************************
INTERNET GAMING PERSPECTIVE
*******************************************
Introductory Issue. vol. 2 (12/31/98)
*******************************************
Thank you for requesting this Introductory issue of
INTERNET GAMING PERSPECTIVE- The new on-line e-
newsletter devoted specifically to the new explosive industry of
Internet Gaming. In this issue you will learn all you need to know
to get yourself acquainted with this incredible investment
opportunity! Learn about the legislative issues- here and abroad,
and the publicly owned companies that are poping up to cash in on
the Billions that will be made in this multi-billion dollar industry that
is in it's infancy! The goal of this newsletter is simple: It will give
you all of the information that you will need to stay abreast of the
issues and companies- to help you, the investor, get
and stay in on the ground floor of all of the best investment
opportunities this industry will afford.
Sincerely,
Brian Haggerty
Editor-in-Chief
Internet Gaming Perspective
*********************************************************
CONTENTS:
1. Introduction to Internet Gaming.
2. Current legal issues around the world.
3.. The Companies: Who are they and where? How can you cash in,
and when?
4. Conclusion.
*********************************************************
1. INTRODUCTION-
As our world begins to revolve more and more around the internet, so do
the many activities, hobbies and pastimes that fill the lives of everyone
connected to it. No matter the medium, the internet is bringing about fast,
new, creative and convenient means by which people can indulge in their
spare time.
If you missed out on the ground floor of Microsoft, Intel, IBM and the
other big companies of the last decade, You can now have the opportunity
to cash in on the BILLIONS to be made in the new explosive industry of
Internet Gaming.
According to International Gaming and Wagering Business (August 1997),
one out of every 10 dollars consumers spend on leisure is spent on
commercial games. What's more, casinos have spread from 2 states to 32
states in the last 7-10 years. This constitutes a clear demand and growth in
the gaming industry that is causing investors to stand up and take notice of
the potential that exists within. Wired Magazine reports that Gaming is the
fastest growing industry in North America today with a 2,800% increase
since 1974. According to the American Casino Guide- 1998 edition- casino
gambling is now within a short drive of every major U.S. city. Below are
some statistics and facts from the American Gaming Association
(September 1997) that give light to the growth of gaming in America:
* "The overwhelming majority of U.S. adults- 92 percent- say casino
entertainment is acceptable for themselves and others.
* "U.S. households made 176 million visits to casinos in 1996, an
increase of 14% over the previous year.
* "32% of U.S. households gambled at a casino in 1996."
According to the Baker Report (March 1997), wagering in the United
Sates alone was a $550 Billion dollar business in 1996. In light of these
statistics, reports and projections, it is no wonder that gaming stocks have
been major players in the stock market over the past several years. With
more money at their disposal, Americans have been turning to gaming as a
prime leisure activity. Even Las Vegas is becoming more of a family resort
with it's theme parks and Disney-like atmosphere. It's no longer just the
place for the 'gambler'! It's now a family place where the kids have plenty
to keep them entertained and busy, while Mom and Dad visit the casinos.
Never before has gaming had such a universal appeal to mainstream
America.
This, my friends, is only the United States! Imagine when we calculate the
rest of the free world market into these statistics. The Baker Report
(March 1997) was quoted as saying: "We believe our projections of
Internet gambling revenues of $100 to $200 billion domestically and $200
to $400 billion in the rest of the world by 2005 is reasonable, even
conservative." Imagine investing into a piece of that pie! A one percent
market share of a $400 billion dollar industry is 4 BILLION alone! Now
imagine investing in one of the companies that will capture that one percent
market share! The results are mind boggling! And- this is the time in which
to do it! In 1997, on-line casinos saw revenues totaling around $11.4
million. This number is going to explode throughout 1998 and grow
exponentially into the turn of the millennium- especially as more and more
companies emerge, and more countries around the world begin to hand out
gaming licenses. Australia and Antigua have already begun to hand out
gaming licenses to internet gaming companies. Shares of stock in these
companies are selling for as little as 10 cents per share. Think of the
rupture in these stocks when the boom catches on! Think of how many
times the stocks will split! Do you want a piece of this pie? If so, then keep
reading!
Imagine investing $1,000 in an Internet Gaming that sells for 25 cents per
share. That's 4,000 shares. Now imagine that in 2-4 years, that company
may be selling for 50-60 dollars per share once the industry takes off and
their stocks are in demand. Well, that $1,000 investment is now worth
close to a QUARTER OF A MILLION DOLLARS! Not bad for a small
investment! Suppose you invested $5,000, or even $10,000. It's mind-
boggling. Well, you have the chance to make incredible returns on a small
investment right now. The risk is small, but the return is pheonominal!
How can you do this? Well- now's the time to learn about the industry and
the companies! That's what We've been doing. Get in early and cash in when
the boom begins!
In essence, the Internet gaming industry is composed of more than just on-
line casinos. It also includes sports wagering, international lotteries, pari-
mutuel betting as well as the software companies that will design and sell
gaming software- all of which we track and will report to you.
2. CURRENT DOMESTIC AND INTERNATIONAL LEGAL ISSUES
One of the biggest questions facing this industry is whether or not The
United States will seek to outlaw on-line gaming. Presently, there is no law
on the books concerning on-line wagering, per se. However, the
government has been using other gambling laws with which to combat
companies in the U.S. that are engaging in on-line gambling. This is a battle
that has only just begun. This is why many Internet Gaming companies are
not presently accepting real-time wagering from North America. Those that
are, are under tremendous scrutiny and run the risk of being shut down
and/or charged with breaking the law. This is why many companies will
not engage the North American market until this legal issue
is resolved.
But, no matter where the U.S. ends up standing with regard to internet
gaming, there are countless other countries around the world that are
welcoming it with open arms. For instance, on March 18, 1998- the State
Government of the Australian State of Queensland passed into law what is
probably the world's first "Cybergaming Law". What makes this even more
eventful is that this is a first world government in an industrialized
democracy. What's more, licensees are not required under the law to
enforce prohibitions on players from oversees jurisdictions where it may be
deemed illegal. That means that if the U.S. were to officially outlaw
cybergaming, a U.S. citizen could still enter, via the web, a cybercasino in
Australia. It would be up to the U.S. to prosecute the U.S. gambler. That is
something that the U.S. is far too ill-equipped to ever do.
On Capitol Hill, there have been a few of bills that are being drawn
to address internet gambling. One bill, known as the Kyl Bill, sponsored
by Senator Jon Kyl (R- Az.), seeks to completely outlaw internet gambling
of any kind. Another bill is being drawn by Congressman Bob Goodlatte
(R- Va) and Congressman Frank Lobiondo (R- NJ). This bill seeks to not only
prohibit all forms of internet gambling, but also to give law enforcement the tools
required to crackdown on illegal internet gamblers. The problem is that enforcement
is next to impossible of any such laws. The money and time
required to do so would cripple law enforcement agents. Infact, just recently
(June 17, 1998), the Justice Department, while reviewing the Kyl Bill, stated that
it would be impossible to enforce anti-internet gambling laws, and that to do so
would damage the freedom of global commerce that the internet provides.
There is another solution that is getting much attention. This one is
proposed by the internet gaming industry itself. Industry members are
actively lobbying Washington to "REGULATE" internet gaming as
opposed to an outright ban. Internet gaming proprietors have taken the
first step by forming the all new "Interactive Gaming Council". The council
is welcoming regulation and taxation in order that the industry be allowed
to operate legally within the U.S.. They also have created strict industry
codes to which all council members have sworn adherence- so as to ensure
accountability and reliability on the part of all internet gaming operators.
Thus earning the trust of both the government and the people.
So it remains to be seen whether or not internet gaming will one day be
allowed in the U.S. But, one thing is for sure- with or without the U.S,
there will be Billions made around the world.
3. THE COMPANIES. WHO ARE THEY, AND WHERE? HOW CAN
YOU CASH IN AND WHEN?
Every week, more and more Internet Gaming companies are springing up.
They deal in every aspect of gaming: online casino games, sports betting,
lottery ticket sales, pari-mutuel betting etc.. At present, there are hundreds
of companies engaging in some form of online gaming. However, not all are publicly
owned- and not all are going to succeed. In this section, we'll take a brief
look at a few of the better companies and their prospects for success.
Should you choose to subscribe to IGP, I will go into more depth on the
companies, their financial standing and offer interviews with some of the
company CEO's and executives- as well as other industry experts. ( NOTE-
the reader is encouraged to draw his own conclusions based upon the facts
presented, and advised to THOROUGHLY research any and all companies
before a monetary investment is made)
1. BETTING, INC. (BETT) Betting, Inc. is a subsidiary of Electronic
Transactions and Technologies(ETT). Betting Inc., has developed and
is in the process of marketing a portable off-track betting device that can be
carried on one's person just like a cell phone. Through the use of encrypted
data, a person can bet on any horse race from wherever they are. Recent
price per share has been between $.10 and $.50. (as of 12/31/98)
2. Starnet "World Gaming"- (SNMM- OTC BB). One of the largest
companies in the industry, Starnet employs upwards to 90 employees.
They offer players casino games, sportsbook, virtual bingo, lotteries and
world-wide horseracing coverage. For safe wagering, the company
employs the use of STAR-MX encryption. Starnet's corporate office is in
Vancouver, but operates validly in Antigua. Presently, due to legal issues,
they are not accepting wagers in North America. They first started to
accept real-money wagering in October of 1997. Starnet has what seems to
be one of the most complete systems in the industry- operating LEGALLY.
Their wagering software is in 7 languages. Recent share price has been
between 53 cents - $1.50. Their web address is www.worldgaming.net.
3. PLAYSTAR (NASD-OTC-BB: PSCK)
PlayStar, a world leader in interactive game development, has built all of its
games using Sun Microsystems' leading Java technology for maximum
portability. Internet users can play right from their browser in minutes,
with no software to download and install. The games are available on a wide variety
of systems, including Windows 95 and 98, Apple Macintosh, Sun Microsystems,
and many others. Corporate offices are located in Toronto. You may visit them
at www.playstar.com.
4. ATLANTIC INTERNATIONAL ENTERTAINMENT (NASD-BB:
AIEE) Offers casino games and sportsbook. This company, located in
Florida, operates in several off-shore countries. They only accept bets
where legal. AIEE licenses Internet gaming systems and Hotel "Intranet"
gaming systems (Intranet- a person can gamble at various casinos from
his/her hotel room) It's subsidiaries are currently seeking licensees in
Australia and South Africa. Visit them at www.emeraldpalms.com.
5. VENTURE TECH (NASD-OTC-BB: VTEH) This company offers
casino games only using CD-MAX encryption technology acquired from a
third party. They are pursuing Asian licensees. Company office is in
Virginia, but operates legally in the Marshall Islands. They are presently
not accepting North American wagers. Basically, Venture Tech is a high
tech company that is trying to vie for a piece of this industry. Like AIEE,
they too are developing Hotel-Operated "Intranet" systems. Visit them at www.ecasino.com.
6. Cryptologic (TSE- CRYP) This company designs casino software for third
party licensing. With their corporate offices located in Toronto, they are
operating via a license in Antiqua. Cryptologic seems to be one of
the most advanced internet casino companies in operation. Visit them at
www. intercasino.com.
7. You Bet (NASD OTC-BB: UBET) This company does not offer any
casino games. Only pari-mutuel. They offer handicaps, news and stats.
Corporate offices are located in California. They are focusing on a more
limited, but shorter-term market- state by state as legal, making strategic
alliances with handicapping systems operators. Visit them at www.
youbet.com
8. NETBET (NASD OTC-BB: NBET) Operates under company name
"Casinos of the South Pacific". Offers slots, keno, poker, blackjack- casino
games only, all via an encrypted transaction system. Operates legally in the
Cook Islands. They only develop gaming systems for clients on a
"Consulting fee" basis. In 5 languages. Internet address- sp.cosp.com
9. VIRTUAL GAMING TECHNOLOGIES (NASD OTC-BB: VGTI)
Corporate offices in San Diego, operating legally in Antigua, this company
offers Casino games and a sportsbook. Wagering is done via a third party
processor and a regulated bank. They have been accepting real-money
wagers since September of 1997. You may visit them at
www.virtcasino.com.
10. GAMING LOTTERY CORP (NASD: GLCCF) Better known as
"Galaxiworld", this company has JAVA based Poker and slots.
GalaxiWorld Limited, a wholly owned subsidiary of GLC Limited
, a company licensed to operate an international
Internet casino in St. Kitts, aims to be the leading virtual casino on the
Internet by encompassing a virtual reality gambling experience, digital
entertainment and commerce. Ultimately patrons of GalaxiWorld will
be able to "walk" through a lavish 3-D virtual casino, open and retain
accounts at this casino and experience 52 different games of chance.
Among these games are blackjack, poker, roulette, craps, slots and
Pai Gow. There will also be a sports book, keno, cumulative lotteries
and progressive jackpots for added winning opportunities. GLCCF soared
to $25 a share at the end of November before settling around the $5 to
$9 level.
11. NTN- (AMEX: NTN) This company, operating as "IWN
Homestretch", specializes in pari-mutuel (horseracing) ONLY. Located in
California, this company intends to market to U.S. customers only where it
is legal. Though this is a specialized, but limited product, they do not yet
accept any wagering. Web address- www.iwnonline.com.
12. GLOBAL INTERTAINMENT (OTC BB- GGNC) This is another big
company that operates off-shore, but has it's offices in Hong Kong,
Vancouver and Las Vegas. Operating under the casino name of
"Cyberbetz", this company also experienced a stock jump from 15 cents to $6 the last week of November. They
have since settled down at the
$1.75- $2.50 level. (as of 12/31/98) They plan to aggressively market in Asia and N. America
to tap into untapped markets. Check them out at www.ggncwins.com.
13. INLAND ENTERTAINMENT (NASDAQ- INLD)
Inland Entertainment Corporation provides award-winning marketing
support to gaming enterprises. Inland Entertainment Corporation was
recently ranked as the seventh leading publicly held company in San Diego
County by The San Diego Union-Tribune. Stock has been selling for
around $3.00 per share.
14. WINNERS INTERNET NETWORK (OTC- WINR)
WINR is a pioneer in developing a Global Gaming Payout System which
they feel will revolutionize both the Internet Casino and the International
SportsBook method of payout. Once on WINR's System, a player will be
able to track a full accounting of wins and losses at each licensed site.
WINR intends to work closely with all Government Host Sites insuring
adherence to all International Gaming Laws and Regulations. Winners
stock has been selling for around $2 per share (as of 12/31/98). (NOTE: So far,
Winners is the only company that has been working on this concept of
universal payout. When this industry hits 20 billion, imagine their
profitability when they take their 1% fee off of the top! That's 200 million!)
15. Go Call, Inc. (NASDAQ OTC- GOCA) Go Call Inc., (www.go.ca) is a
telecommunications and electronic commerce. Their casino operates under
the name Go Casino. Go Call is involved with E-Commerce and hopes to
use its internet solutions to tap into the online gaming market.
CONCLUSION-
And there you have it. A brief look at some of the better companies
involved in Internet Gaming. There are many more, but we felt that these
companies are on the right track at this time. IGP will not only go in depth
into these, but we will also track some of the others and try to put our finger
on which ones will be the "winners". There are many factors that will affect which
companies succeed. The main factors being- advertising, accountability and credibility.
Once on-line wagering catches on (and it is doing that very quickly!)
people will want to wager with the most reliable, reputable and accountable
company. It's going to take millions of dollars in start up costs to achieve
that world-wide. That is why they are all operating at a loss at this time.
Don't let that scare you! In fact, I'd be extremely leery of those that
weren't! Companies like Starnet and Cryptologic have spent millions in
start-up costs. So- how much time does one have in which to
get in on the ground floor? Well, I'd say, based upon what I've seen in
terms of publicity and market movement, we have under one year!
After the initial rise in these stocks, revenues from the fast growing
industry will make for an excellent long-term position- so long as you
have invested in the right companies. Many Internet Gaming companies will
not make it. But those with the right business plan, the right software
development and the right amount of money will win.
Five years from now, Internet Gaming will incorporate virtual reality.
Instead of a one-dimensional computer monitor, you'll be able to step
into a "Virtual Casino" right fryour own home using virtual reality technology.
Gamblers in virtual casinos will be able to feel their cards, feel their chips,
roll their dice, pull the arm of their favorite slot machine and see other players,
dealers- and be able to converse with them all- from all over the world! ALL OF
THIS FROM THE COMFORT OF HOME. Now, do you think this will be a profitable
industry? You're darn right,
Get a head start, bookmark these companies on the web. Check them
and their stock prices daily. And subscribe to IGP for the full story and get
the facts on market trends, corporate interviews and the legal issues that
will drive this industry!
Visit our web site - www.igp.nu
DISCLAIMER- The information herein has been obtained from sources which are
believed to be reliable, but there are no guarantees as to its
accuracy or completeness. Neither the information nor any opinion
expressed constitutes a solicitation for the purchase or sale of any
security. Consult with your financial advisor before making any
financial changes.
I hope all of you make millions!
Good Luck and God Bless!
Brian Haggerty
IGP
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