Premier,
The answer to your question as to break down of revenues of gaming vs. lottery vs. e-tail processing is, No one knows at this point! I don't believe even Mr. Skinner could even answer that question if it were legally prudent. I have made no bones about the fact, in the past, that the e-commerce side of this venture is what could really make it a behemoth in the online processing arena. The problem with trying to figure out what the breakdown will be, is that it is a completely dynamic process. Meaning it could literally change from week to week. As you pointed out in your post about INKT and its "invisible" processing system, their rates for transactions range anywhere from 5%-20%. Why the huge spread. Well. being a businessman, I assume it has to do with individually negotiated contracts based on projected volumes and cash flow. The smaller the projected sales volume and cash flow the higher the transaction fee, while the larger volume higher cash flow sites will probably be given a "better deal" on the processing fee. We know for now, at least, that the gaming sites are working on an 5% fee in, and 2 1/2% fee out with a possible per play transaction fee involved as well. I would assume that the lottery site will be much the same. As for the e-commerce side, not only will WINR recieve a %, but the CLT as well, so it will be divided up and only those signing the contracts will know for sure what that is, but based on VISA's charges of 6-7%, and INKT 5%-20%, I have to feel that WINRs take will be substantial. Also, keep in mind that most of the online e-commerce entities at this point are aimed almost entirely at the American market. This is where I believe WINR is way ahead of the game, as their system caters to that whole other consuming population out there known as " not the United States". This is very far sighted and visionary in my opinion. I also still believe, that by working with a central trust (CLT), on a Debit account basis, that fees to the retailer will be much cheaper than with a traditional credit transaction which means retailers can make the same amount of profit on a product but charge less for it through the WINR/CMS system. I feel this is very important as there has been a lot made lately of all the zero margin sales being made in this very competitive arena trying to gain market share. The bottom line on both sides, both gaming and e-commerce, is VOLUME. And the addition of these new entities in a few days will add an excellent boost in transaction volume. We will not be sure what kind of cash flow or volumes these entities are creating for sure until we get a fully audited balance sheet at the end of Q2. As I have stated before Q1 means very little to me as it has been so fragmented and used to fine tune the system, but I expect to get a very good picture of the growth potential through a comparison of Q1 vs Q2. To say the least I, for one, am very excited about these new entities and look forward to getting them all up and running. Here's hoping for a very exciting Monday, if not weekend.
Best Wishes,
Swedelo |
