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Microcap & Penny Stocks : ECNC (OTC:BB) - eConnect -- Ignore unavailable to you. Want to Upgrade?

To: j g cordes who wrote (2233)	9/13/1999 2:22:00 PM
From: M Vavolizza	Respond to of 18222

Now you're talking; that is the direction we are going in - STATE TAXATION and a Lottery to be tested in Australia, lobbied and brought here to the U S A. Add this to the perfect transportation of money and all of EGate - and we have a winner! See how the auction fits into this so much more conveniently than a sportsbook. manny I R

To: j g cordes who wrote (2233)	9/13/1999 2:32:00 PM
From: ocmayor	Read Replies (3) \| Respond to of 18222

Let me shed a little insight into this eSportsbet issue. The major thing people have to realize is that promoting eSportsbet was not in the best interest of eConnect right now. Reasons: There are a few things going on in North America right now that made eConnect have to shift focus away from operating an off-shore sportsbook. The main reason deals with the recent Starnet events. The Starnet situation has done a few very negative things to the Internet gaming industry. Here is a few big reasons why a sportsbook now is a bad idea for any company: 1. They have a reputation as the slime of the gaming industry and are the first things that governments go after when looking to destroy an Internet gaming company. 2. Obviously running a sportsbook during football season can be very profitable. So you are probably asking why did we get rid of the sportsbook? The answer is simple, eConnect could have made a lot of money yes, but the truth is that even a sportsbook won't help share holder value anymore. Since Stranet's share prices fell from the $20's to $5 in one day after there was an announcement they were being investigated, many big interests decided once and for all that Internet gaming was to risky of an investment (and we all know investments are risky enough as is). These investors know it is profitable but see to much risk right now. UNFORTUNATELY IN STARNETS CASE THERE WAS NOT EVEN ANY CHARGES FILED AND THEY FELL 75% IN ONE DAY! THEY MAYBE INNOCENT... BUT THE DAMAGE WAS DONE, A COMPANY SLAUGHTERED IN ONE TRADING DAY! So wether we are profitable or not, traders are scared of sportsbooks because they compound risk to their investment. As a publicly traded company we need to increase share holder value and opening an Internet sportsbook offshore is not the best step now. Ask yourself this, how many Internet gaming stocks are on the big board? How many gaming stocks do you know that are trading over $1? 3. We have the ability to generate signifigant revenues in the art auction industry in a crystal clear legitimate industry. Yes, in the short term it may not be as profitable as a sportsbook, but our marriage to Powerclick may put us immediately at the high end of the art auction business. We will see significant traffic to our site and this will put us in better shape then many online MOM&POP auctions. Look at the stock prices, there are a lot of crap auctions out there trading on the NASDAQ right now at $30. They don't have sportsbooks. 4. We are just cleaning up our image that is all. Shaving off eSportsbet made us one step closer to big investment dollars. Yes it is upsetting to see it go, but if we want to see $30 bucks we got to clean up and put a suit on and get out of the second sleaziest business on the net. I am in favor of the move 110%. We still have the Portal and we just cleared out a potential cancer. That is the main point of this whole letter. When you have a health problem or think you may have one, you take care of it. Tom is a smart guy, and if the sportsbook was good for his company and share value don't you think we would have ten of them by now? -The Mayor