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

To: Doug (Htfd,CT) who wrote (1337)	1/3/1999 9:40:00 PM
From: THOMAS GOODRICH	Respond to of 8858

Doug, The licensee arrangement is a little more complicated than most people realize. Starnet collects an agreed upon amount for interface customization and a promotion contract. This sum is typically in the $50 - $200K range depending on what was negotiated. Then there is a fee for licensure in the domicile where located. Typically as in Nevis-St.Kitts an operator would pay $100K or so annually for inclusion under a master license. Governments can pull licenses for malfeasance and other reasons as they deem necessary. Licensees operating in jurisdictions as Nevis-St. Kitts may accept wagers from the United States, however, not from nationals. Starnet as corporate parent and as a house itself licensed in Antigua will not do business in the United States and Canada. Again, some of licensees as well as sub-licensees can, at least for the foreseeable future. While Internet gaming is not illegal in the United States, several states have become roiled over the issue. Largely, they claim children could gamble away the family fortunes and become addicted to gambling. However, we all know the crux of the matter is revenue leaving the states. As a result land-based casinos and lotteries will suffer, so they claim. There are indeed artful ways of circumventing IP identity, however, for now, the Java programming language as well as security servers need to be able to verify who is at the other end of the line at all times so that precludes the use of redirecting facilities. In time no doubt this will be solved. Anyone want to start a company called Players Anonymous? It could be the next Yahoo!<g> TG

To: Doug (Htfd,CT) who wrote (1337)	1/4/1999 11:16:00 PM
From: bodie	Read Replies (2) \| Respond to of 8858

Please explain about the software blocking access from U.S. and Canada. Is every penny that SNMM receives as revenue, regardless of source (including licensees) not from the U.S. or Canada? If this is 100% correct, and none of the licensees are able to receive or defeat the blocking feature then, the KYL Bill, when it is passed, will have no effect on the revenue of SNMM. Is this correct? Has anyone asked IR about this? I assumed that all the licensees were getting most of their revenue from the U.S., but since SNMM was not directly involved they were protected. Obviously if licensees are getting money from U.S., and Canada then Revenue would be affected by passage of the Bill. If SNMM's recent EPS, and estimated EPS is based on ZERO dollars from U.S., and Canada (and taking into account that licensees cannot accept, or allowed to accept money from U.S., and Canada, and actually abiding by this) then this is an INCREDIBLE revelation. IMO if this is actually the case, then all the people who are aware of this company, but afraid to jump in due to the KYL Bill no longer have a reason not to buy, and this stock should indeed skyrocket.