DESCRIPTION OF BUSINESS:
In its' aggressive pursuit to deliver diverse,
leading-edge solutions, the Company has created a
wide range of customer-driven service programs and
patent-pending products that are technologically
proven, accepted by consumers and endorsed by
businesses of every size. The Company is made up of
two divisions: The first, eGaming, is presently
generating revenues and earnings from its eSportsbet
and 777WINS.com acquisitions. The second division
of eGate which is developing technology for ATM card
with PIN or smart card payments (same-as-cash - only
the merchant can reverse the transaction) using the
Personal Encrypted Remote Financial Electronic Card
Transactions ("PERFECT"). Thus, the Company is both
an Internet and non Internet company, and both a
gaming and non gaming company. focused on connecting
the consumer directly to the recipient merchant... no middlepersons.
eGaming Division.This division of of the Company consists of
777WINS.com and eSportsbetcom. These recent
acquisitions are generating revenues and earnings
for the Company. eSportsbet and 777WINS.com are
both located in Costa Rica. eSportsbet is
projecting $1 million in revenue by the fourth
quarter of 1999 and 777WINS.com is projecting
$500,000 in revenue by the same time period.
It is intended that eSportsbet will have a web
presence shortly. 777WINS.com is increasing their
band width and is the first Internet casino to offer
a Tournament whereby the winners travel to a real
Casino in Costa Rica. eGaming will be creating the
sites of Bingo and Slots over the next several months.
The Company is presently generating about $150,000
per month in revenues from this division. A new
business unit will be EzyGame,which will be the on
site or off site usage of the Company's equipment to
effect Lottery and Powerball transactions by ATM card or EzyCard.
(a) Business Strategy.There are currently less than 50 off shore sports
books servicing an average less than 1000 clients
each. In fact, there are less than 10 Internet
sites that are fully operational for on-line
wagering. In concise terms, less than 0.06 % of
bettors are wagering off shore. More significantly,
less than 0.0125% of bettors are wagering through
the Internet. The off shore gambling market is a
virgin industry with over 80 million potential
customers and virtually no place for these people to
bet. We are in a position to exploit this
opportunity and have already begun the process.
eSportsbet.com was founded in early 1998 and has
recently emerged from its development stage. The
sports book has been fully operational since
September 1, 1998. Development of on-line sports
wagering services is now complete. This division of
the company can best be described as being in the
business of providing a legal, reliable, and secure
home or bank to place wagers. Our key strengths
include state-of-the-art-technology, customer
service and innovative marketing. Our management
team is in place. We have hired a sports book
manager to complete our team. We are currently
hiring ten employees to answer phone calls from
prospective customers and current clients who wish to place wagers.
The marketplace has been expanding rapidly. The
Company is now poised to capitalize on the
convergence increased Internet access, ease of web
site operability and security with a flourishing
demand to place wagers in this form. Current
customers of offshore sports books are requesting
that the Company provide the ability to place wagers
on-line much in the same way that individual
investors can enact stock transactions on-line with
companies such as Fidelity, Schwabb and E-Trade.
To assure the best possible service decisions are
made, the Company has implemented the following
criteria for servicing the most important asset, the
Company's clients: Service assistance for customers
with opening new accounts, reducing time, effort and
expense by delineating responsibilities by
department. Service will be implemented using six
separate departments: new accounts, accounts payable
and receivable, customer service, phone clerks to
accept wagers and the executive office.
Advertising and marketing will be the Company's
largest expense; the focus on attaining customers
and keeping clients is the Company's foremost goal.
The idea is to keep customers indefinitely by
continually offering them a valuable service,
thereby diminishing the Company's costs of
continually reaching and appealing to them. In
order to separate the Company from others in this
field, wise selection of service offerings is
therefore critical to eSportsbet.com's success.
(b) Marketing and Advertising Strategy.
eSportsbet.com's marketing strategy is to enhance,
promote and support the fact that the Company's
product is unique in terms of ease of operability,
reliability, security. Most importantly, from a
bettor's perspective it is the opinion of management
that the Company's product offer the highest odds
pay outs in the entire industry.
eSportsbet.com's marketing strategy incorporates
plans to sell its product through several channels.
These distribution channels include: Friday,
Saturday and Sunday sports sections of regional
newspapers; print media in direct market sports and
male dominated periodicals; thirty and sixty second
radio spots on popular sports talk radio shows;
printed flyers and brochures handed out at major
sporting events. The determining factors in choosing
these channels are customer profile; i.e., age,
gender, sports enthusiast, etc. Key competition uses
only print media in industry publications and word
of mouth as distribution channels. The Company's
mix of distribution channels will give the
advantages of complete market saturation, not
limiting the Company to region or sports specific
publications versus the competition.
eSportsbet.com recognizes the key to success at this
time requires extensive promotion. This must be
done aggressively on a wide scale. To accomplish
the Company's sales goals, an extremely capable
advertising agency and public relations firm will be required.
The Company will develop an advertising campaign
built around ease of operability, reliability,
security, instant pay outs if requested and most
importantly from a bettor's perspective, and, in the
opinion of the Company, the highest pay out odds
available anywhere in the industry. Further, the
Company will develop a consistent reach and
frequency with advertising throughout the year. In
addition to standard advertising practices,
eSportsbet.com will gain considerable recognition
through grass roots, guerrilla marketing campaigns.
This strategy will include flyers handed out to
spectators of the four major sporting events and
boxing, promotions made available to local sports
bars in Boston and other metropolitan areas.
eSportsbet.com's overall advertising and promotional
objectives are to: Position eSportsbet.com as the
leader in the market; increase company awareness and
brand name recognition; generate qualified sales
leads and potential new distributors; create
product-advertising programs supporting our market
dominant position; coordinate sales literature,
materials, telemarketing programs; and direct
response promotions in order to continually saturate
the market with our name and logo. Establish the
proper image of eSportsbet.com which in our opinion
is the "bank" of the betting world and indicates
that association with security, safety and stability
The Company is building its capabilities in database
marketing. Registration cards and periodic customer
surveys will help the Company understand the
customer, and help to measure the success of the
marketing, sales and product activities. The
Company plans to develop a customer information
system that will help make sound decisions by
providing historical answers to the marketing questions that are posed.
The Company will use in house telemarketing service
to perform the following functions: Address customer complaints
Respond to inquiries Generate new business(c) Direct Response Mail.
The Company will be exploring the benefits of
incremental, coordinated direct mail programs in the
next several months. The Company will be
approaching this quantitatively, as customer
targeting ability is improved. The Company has
purchased mailing lists from sports gambling
magazines and newsletters and sports bettors from
Las Vegas casinos. In addition, the direct mail
activities will be continually directed to the
existing customer base to ask for referrals. A $100
betting voucher will be provided to these clients
for every referral that signs up.(d) Internal/External Newsletter.
The Company is currently planning to produce a
newsletter to serve as an informational piece for
internal personnel, the sales force, and customers.
It will include sections covering each major
department or organization within eSportsbet.com,
useful trade information and the latest updates.
Importantly, these newsletters will provide
incentives and promotions for clients and new customers.eGate Division.
EzyLink Consumer Sales Group:(a) EzyDepot Transaction Terminal.
The EzyDepot is a low-cost terminal that can be used
as a consumer activated shopping and pay-station
kiosk. The EzyDepot is an intelligent and
programmable device, and features a 4-line display,
qwerty keyboard, modem, and built-in receipt
printer. New programming and data can be remotely
loaded to units already in the field. In terms of
flexibility for consumer operation, any functions
that a kiosk or ATM is able to perform, can also be achieved by the EzyDepot
(b) EzyShop Shopping System. EzyShop is an exciting new service that allows
people to shop for goods while in waiting rooms and
other public areas. Catalogs from leading
merchandisers and an EzyDepot unit, a compact
terminal designed to process credit card
transactions, is placed at all EzyShop locations.
Consumers browse the catalogs and then place their
orders using the EzyDepot. The process simply
involves keying in a product code, typing in a
delivery address and swiping a major credit card
through the EzyDepot's built in credit card reader.
A printed receipt confirms the transaction.
By using a small, low-cost device, rather than a
traditional PC-based kiosk, an EzyDepot can be
profitably placed in locations where a traditional
kiosk could not, such as waiting rooms in doctors' offices, car washes, etc
EzyShop is not a catalog merchandising company.
Instead, we work with some of the nation's leading
catalog retailers, providing our client's the
flexibility to promote demographically targeted
merchandise to their own customers. Therefore, any
product or service can be easily sold through EzyShop.
Companies featuring the EzyShop service, called
EzyRetailers, earn a percentage of all sales
generated through the EzyDepot. EzyRetailers carry
no inventory and have no overhead, yet benefit from
the profits generated by this revolutionary new distribution channel.
(c) EzyPay.Recent reports from the U.S. Federal Reserve state
that an estimated 70+ billion checks are written
every year. Overall costs incurred by a merchant or
financial institution to process each consumer check
can be as high as $3.50. This adds up to more than
$40 billion spent each year by retailers to accept check payments.
The Company's EzyPay eliminates the ongoing
inconvenience of accepting, processing and handling
payments by check, cash or other paper instruments.
Designed to dramatically improve customer service
and reduce the inherent cost of processing paper
transactions, EzyPay is the means by which pre-
authorized debits are electronically transmitted
from a customer's credit card account to the businesses' accounts.
EzyPay Benefits - Simple to use- Simple implementation
- 100% electronic: no physical handling- Proven technology- Flexible
- Automatic collection and deposit- Pre-authorized payments
- Provides faster funds availability- Reduces costs of accepting paper checks
- Improves customer retention EzyPay Applications- Mortgage or medical payments
- Dues or subscriptions- Utility bills- Cable companies- Telephone companies
- Insurance premiumseSecure Internet Group:(a) eSecure Systems.
One of the Company's most exciting concepts is the
use of a traditional ATM card to make purchases over
the Internet. The use of an ATM card with PIN ID
offers a cost advantage to the retailer, and
security advantages to both the consumer and
retailer. In the ever expanding world of e-
commerce, it is imperative that card based business
transactions be safe and secure. The Company's
patented eSecure "Same-As-Cash" technology enabling
encrypted remote financial transactions is our
solution for providing secure ATM-card transactions
via the Internet. These ATM card with PIN or smart
card payments are the same-as-cash in that only the
merchant can reverse the transaction. The Company
has positioned itself as a "processor", or
"gateway", for these transactions and work with
banks and ISOs to sign up web merchants for debit
acceptance, just as store fronts are signed up for
on-line debit acceptance today.For users of major credit cards, the Company's
eSecure "SafeTpay" system allows people to make
purchases and payments on-line. By simply swiping a
major credit card through any of the Company's
eSecure hardware products, the encryption processing
systems provide the ultimate in current anti-piracy technology.(b) ePINpad.
At the heart of our new ePINpad product is eSecure
technology. This system enables the consumer to
utilize his or her PC to make on-line purchases and
payments with an ATM or credit card! Plug-in
software enables the ePINpad to work seamlessly with your current web browser.
(c) ePocketPay.For the busy consumer in today's world, desktop or
counter top convenience is not enough. The ultimate
solution is a portable device, carried with the
conumer, which can transact business at any tine.
That device is the "ePocketPay".
The ePocketPay looks and works like a cell phone.
But, because a card reader with processing
capabilities is built into it, it represents a whole
new class of device. While walking down the street,
riding in a cab, or sitting in your office, someone
can order flowers for a spouse, pay a bill, book
airplane tickets....and simply swipe the card to
pay. The transaction is done and the merchandise or
service provider can proceed without risk of non-
payment; a risk that is always present in a traditional phone order
The Company has been granted a broad patent for the
ePocketPay, and is seeking strategic alliance(s)
with cellular equipment and/or service providers to develop working prototypes.
(d) eKeys.For good reason, many consumers have a strong desire
to make internet based payments with an ATM or
credit card, but don't want any additional hardware
cluttering their desktops. As a solution to that
dilemma, the Company has patented "eKeys", a simple,
integrated and elegant keyboard / credit card
reader. eKeys simply attaches to a PC or Macintosh
computer. Finally, an integrated ATM / credit card
compatible encrypting keyboard / reader is at the
consumer's fingertips. eKeys also features a built
in modem so that the consumer can bypass the
internet to make direct secure payments to a vendor or service provider. |
