I give the responds of the chairman.
I treceived a letter from him the 22 april 1999 and here follows a part of it:
The long term growth of eConnect is based on eGate transactions. Our short term
earnings will come from eGaming acquisitions such as eSportsbet and 777WINS... our long term major dollars will come from eGate transactions. (see www.hpos.com and click eConnect)
I know where the stock will be by September and everyone will be quite
happy.
We are quite interested in developing a presence for eConnect in the European market.
Take Belgium. ET&T would set up our bank host processing center and eConnect will
set up a pilot of 50 PayMaster terminals (see www.hpos.com and click PayMaster)
which will be distributed into 50 homes for free and which will then test the usage of
ATM card debit with PIN and smart card in sending real time wagers, a PERFECT wager.
The transaction will travel from the home to ET&T Belgium, who would route it into the bank system for authorization. As a banker, you will understand the speed of the transaction.
The authorized dollars and bet information would then be passed by ET&T to eGate, the PERFECT transaction division of eConnect, who would then "connect" with the Belgium gaming company who would then acknowledge the pay per play transaction back to eGate, who would then pass the information back to ET&T Belgium.
ET&T would then ship the final receipt to the PayMaster which will print out time and date
and bank authorization plus the gaming merchant acknowledgment of the transaction.
Now Demuysere, jump forward to July 2000, and imagine 5 competitive bank hosts
driving 10 different types of PERFECT devices and all connecting to eGate to reach
the gaming operators.
How did the PERFECT devices migrate into the homes? As a bill payment device moving
on line debit or smart card transactions.
We are developing the PocketPay and the SLICK (see www.hpos.com) and have no doubt that other PERFECT devices will be flooding the market and will be migrating into homes as a bill payment terminal... but once into the home, many people will now be able to wager in real time,
and will elect to do so.
The electronic pathway from the sending bank to the acquiring bank (such as Lottery) will be
easily followed back to the consumer's bank with the electronic winnings. But since the winnings are being sent bank to bank... they will be taxed.
This is the PERFECT industry in action.
ET&T is looking for partners to develop Europe, country by country. We will pay the pilot out of our own pocket. Once the Pilot proves the concept, the Partner then has the option to
purchase 50% of each application for $250,000.
ET&T will split the Net Transaction Receipts 50/50 with the Partner. The Partner will
enjoy control of the decision making for the Country and the development of the
PERFECT industry.
Net Transactions are the electronic fee, usually paid by the recipient, less bank fees,
communication costs, processing costs, and Gate fees such as will be paid to eGate.
The PERFECT Applications are:
Wagering
Bill Payment
Impulse Purchasing
Sending Cash (like a self service Western Union transaction)
Donations
Taxes
eGate represents only one Gate for one specific industry.... wagering.
ET&T, the controlling shareholder of eConnect, recognizes that we will not drive every
transaction, nor will we be the only bank host.... but the Gate level, such as eGate, could service many different bank hosts, and collect a fee per Gating transaction to the recipient merchants.
In the case of PERFECT wagering, the eGate Belgium can directly be connected to eGate Mexico to eGate Australia to eGate USA to eGate Korea and in one day a billion dollar
bet is played in real time, with on line debit or smart cards between the countries.
That's a PERFECT wager.
Let me know your interest level in the big picture of the PERFECT industry.
GO BETT!
Tom
Thomas S. Hughes
Chairman and CEO |
