Here's an article another SI member PM's me. Thought you all might like to see it.
nationalpost.com
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Betting on bingo for online success
Charities registered: Expectation that sticky site will attract advertisers
David Akin
Financial Post
Bingo.com / The Web site that hosts the million-dollar jackpot bingo game.
A Vancouver entrepreneur will launch a digital version next month of the world's most popular gambling game.
Bingo.com Inc. president Darren Little is spending $1.3-million (US) to develop the site, betting that the chance to play for the world's first million-dollar jackpot bingo game will make his site an instant hit with players and advertisers alike.
The site, which launches on April 30, expects to make as much as 60% of its revenue from wagers, but also expects a healthy chunk of sales from media partners eager to put their corporate brands at the centre of virtual bingo cards.
"The demographics of bingo have dramatically changed over the years. It's now the baby boomers who are playing the game," said Mr. Little.
Like other e-commerce sites, Bingo.com will supplement the actual games with other Internet services such as free e-mail, free chat rooms, and entertainment and lifestyle information. The goal of the site's creators is to foster a sense of community and create a place for devotees to gossip and socialize, just like real bingo halls.
If Mr. Little and his associates are successful, Bingo.com will become a "sticky site," a term used to describe Internet sites like the online flea market eBay that are able to attract repeat visitors for long visits. Sticky sites are particularly attractive to online advertisers.
Bingo.com hopes to derive about 15% of its revenue from the sale of advertising; up to 20% from royalties for its technology; and 5% in merchandising royalties.
While Mr. Little is based in Vancouver, the company has been incorporated in Tallahassee, Fla., and a separate subsidiary has been created in Antigua, which will run the gaming part of the business.
Bingo.com also announced this week it is taking applications for registered charities that could benefit from the betting. It will present a menu of 25 charities from which participants can choose to support. A small portion of the player's wagers -- it may vary between 1% and 5% -- will be returned to that charity.
Earlier this year, Progressive General Lumber Corp. of Vancouver bought the rights to the domain name bingo.com in a deal worth $1.1-million (US). The company changed its name to Bingo.com Inc. and said it would trade in the over-the-counter market under the symbol BIGG.
On Jan. 19, it announced it had raised $1-million (US) from various investors, many of which Mr. Little said are fund managers and institutional investors.
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