To: Dale Baker who wrote (153 ) 11/5/1997 9:15:00 PM From: Jason King Read Replies (1) | Respond to of 118717
Hello Dale, I feel that your comments left out some important advantages that our company has over its competitors in the Internet gaming industry. The first would be our on-line experience. We have been running a successful adult oriented Internet operation for over 2 years, which gives us a definite advantage when it comes to marketing our products; with our sites receiving a combined total of over 6 million hits per day, our on-line marketing abilities speak for themselves. A second advantage would be our revenues. We are bringing in over $400,000 CDN per month from our current Internet operations, without any revenues from our recently launched gaming operation. Internet gaming has been estimated to be a $13.2 billion US industry in Europe and Asia alone next year. This offers Starnet the opportunity for substantial increases in its revenues. Our third advantage is our software. Anyone who has downloaded our software knows the quality of our product. I honestly believe that none of our competitors come close to offering the level of game play that our software provides, and this is only our first release. Future releases will offer more games, more interactivity, and a pari-mutuels section. You also mentioned "barriers to entry" being very low in this business. I would argue that the minimum $100,000 US needed for a gaming licence, the high cost of setup in a foriegn jurisdiction, the cost for merchant transactions, and the high cost of producing a competitive gaming product, will keep most "small" players out of this industry. When you add in the dollars needed to market effectively, and the programming costs of keeping up with current competitors, the items really begin to add up. While I understand your apprehensions, I believe that our advantages will lead to positve returns in the future, and that we will be major competitors in the growing online gaming industry. Yours truly, STARNET COMMUNICATIONS INTERNATIONAL INC. NASD OTC-BB: SNMM Jason King Vice-President, Operations