News Release:
April 07, 1999 09:16
eConnect Reports January, February and March Net Earnings of $25,000
LAS VEGAS--(BUSINESS WIRE)--April 7, 1999--eConnect (OTC/BB:BETT) reported that www777wins.com has generated $25,000 in unaudited net earnings for the combined January, February and March 1999 time period.
777WINS began business in January. Presently working on band- width expansion, 777WINS expects four times increased net earnings for April, May and June, based on past player volume and factoring in improved telecommuncations and a wider bandwidth to allow for more simultaneous 777WINS players.
eConnect expects to have completed the acquisition of 777WINS.com by July.
eConnect is presently generating revenue through its eGaming division, which is focused on acquiring one gaming company per gaming market segment over the next six months. These gaming companies will act as Group Gates (see hpos.com and click eConnect) to receive incoming home, office and mobile smart card and ATM card same-as-cash wagers.
This is the eGate division of eConnect. eGate is directly dependent on the distribution of home and office and publicly located terminals that can effect ATM card and smart card same-as-cash gaming transactions which will be processed by bank host centers such as ET&T.
eConnect believes that self-serviced terminals made by different companies will be promoted into homes by utility, phone and other industries as a same-as-cash bill payment method that can be used by both banked consumers and non-banked consumers.
Six out of 10 consumers will use these same terminals to place same-as-cash wagers that will be processed by bank host processing centers such as ET&T, who is a strategic partner with eConnect.
eGate will provide the connection between the bank hosts and the gaming companies who are being paid instant cash by PERFECT wagers.
Initial net profits will be generated by eConnect's Group Gate companies such as 777WINS. By mid 2000, the eGate division will be accounting for 40 percent of eConnect net earnings and by 2001, eGate will account for 80 percent of eConnect net earnings.
777WINS will generate revenues from two sources:
1. Immediate net earnings, as a leading Internet casino promoted and marketed by eConnect;
2. From service fees paid to 777WINS by Internet casino competitors to receive instant cash ATM card/smart card Internet wagers that are being electronically sent by terminals. Devices such as the in development SLICK (see www.hpos.com) will be keyboard terminals safely bypassing the Internet with bank and private data.
Gaming operators prefer cash to credit, and some gaming markets such as government lotteries can be paid only in cash, which is what an ATM card with PIN or smart card can do. These transactions are defined by eConnect as PERFECT wagers.
First home ATM card Internet same-as-cash PERFECT account open transaction
eConnect plans to test the first home-originated Internet casino ATM card online debit gaming transaction with 777WINS in the next 60 days.
Off Track Pennsylvania Pilot for home-originated ATM card same-as-cash transaction:
eConnect is presently in early discussions to pilot test 100 eConnect terminals calling from Pennsylvania homes to open or replenish Off Track gaming accounts by ATM card or smart card and a United Kingdom pilot to test 100 homes using the eConnect terminal to send home cash soccer wagers by ATM card or smart card.
United Kingdom pilot for home PERFECT soccer wagers:
eConnect is in early talks with a United Kingdom soccer pool operator to test home-originated ATM card and smart card same-as-cash PERFECT wagers.
Presently, soccer bets are picked up by service organizations called "runners" who collect the cash wagers. By usage of the eConnect service, the consumer wagers with either an ATM card or smart card and uses the eConnect terminal to send the transaction that is processed by ET&T and then passed on to eGate to connect with the gaming operator.
The gaming operator has now received instant cash in real time, has maximized cash flow, increased earnings by eliminating the need for collectors, reduced risk and decreased paper work. The player has a printed receipt of the transaction. A PERFECT wager.
The transactions in the United Kingdom will be driven by the ET&T bank host and passed on the eConnect division of eGate to connect with the gaming operators.
The goal of eConnect is to work with ET&T to establish its gaming presence in eight targeted countries by December 1999.
eConnect believes that the global PERFECT wagering marketplace will be more than $200 billion by 2001.
eConnect bases this projection on the fact that by 2001, any consumer with telephony will have access to Internet and non-Internet-related devices that can send same-as-cash debit or smart card transactions for wagering, bill payment, purchases and business transactions over landline or wireless connections.
eConnect is focused on capturing 40 percent of the PERFECT global wagering market.
CONTACT: Carnegie, Cooke & Company
Anita Goldberg, 800/262-2331 (investor relations) |
