Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Starnet (SNMM)Online gaming, sexsites, lottery, Sportsbook -- Ignore unavailable to you. Want to Upgrade?

To: Doug (Htfd,CT) who wrote (1333)	1/3/1999 6:40:00 PM
From: THOMAS GOODRICH	Read Replies (1) \| Respond to of 8858

Doug, Playstar has not likely realized any proceeds from their Partnership program as it was just announced on December 8. I would not construe the Partnership Agreement as a free license or as a licensee per se, but, rather a referring webmaster and ONLY that. In essence, the Partner does not in any way host or operate the site, but, merely provides a persistent link to Playstar's facilities. Further, as I understand it, the Partner would not be engaged in any operating or decision-making capacity other than simply providing a clickable graphic on his or her commercial web site of whatever nature. The Partnership Agreement specifies a commission of up to 40% on net profits to the company rather than 40% flat as a previous poster alluded to. It is possible some web masters will receive nothing and most will ultimately earn less depending on volume. Again, this is my interpretation of Playstar's plan as I have not as yet perused it in detail. Starnet licensees on the other hand would share less to Starnet, but, in some instances may host the media and would typically be responsible for licensure, promotion as well as additional overhead. Some vendors have caps on contractual agreements whereby when a certain level is attained split share (to the vendor) goes to 5% or less. As you can see, this arrangement can be lucrative to licensees with sportsbooks earning millions of dollars annually. Bear in mind that individual licensees have decision making authority over their respective businesses and can opt in or out of referral programs as well as individual customization. TG

To: Doug (Htfd,CT) who wrote (1333)	1/3/1999 7:22:00 PM
From: M_Power	Respond to of 8858

I think Playstar just threw in "free licenses" as a buzzword. Anybody who doesn't take the risk of incorporating offshore, obtaining an Internet gaming permit and getting Visa merchant numbers isn't a true licensee in my eyes. A reseller is a marketeer who takes no business risk other than occupying a few pixels worth of banner space on their website. Nonetheless if I were a Starnet licensee, I would be an invisible owner of a privately incorporated offshore casino...and take US bets. To keep myself invisible I would hire a third-party marketing company to execute my (and their) ideas. I'd get them to talk to Playboy or Details about slipping a few CD-ROMs into February's issue at no cost, then splitting gaming revenues with them! Resellers don't have to exist on the web only; you could track offline resellers by tagging the batch of CD-ROMs they distribute. How about taking a road trip and handing out CD-ROMs at every major college? All kinds of neat ideas to try. Let's put together a million and do it! ///M