Quote:
Originally Posted by OnWithTheShow
Amulet, you and I have mutual friends. It seems to me the known player/shareholders don't have much of a problem with things as long as those monthlies don't stop.
I suspect the ROI on some of the US based marketing efforts is probably what has dissapointed you. The beauty of the online gaming business is the sites can use the customer deposits interest free to invest in marketing efforts. There is always money coming in and you don't need anywhere near 100% of customer's deposits available to payout, more like 10% from what I'm told.
I'd say Pokerstars has experienced a higher ROI because they are concentrating on markets where processing is easier (i.e. not North America). The EPT and other euro-focused efforts may not yield as profitable of a player, but with a falling dollar and easier processing overseas, this is a no brainer.
FTP is branded well in the US, but the U.S. based processing hurdles are also signficant. Credit card factoring only gets you so far and inevitably yields a high ratio of processor no-payments and endless manpower in sustaining the fake businesses.
I don't think it is a customer service issue and I think the site has performed exceptionally well for shareholders considering the current market. My guess is they understand they need to break into Europe but maybe aren't sure how.
Smart people at FTP and they will figure it all out. I'm sure your investment will be fine and I'd say your biggest concrern is having someone else count all your money first.
They were right about the US market being the richest and most profitable, but were wrong to underestimate processing hurdles. If I were them, I would form my own euro-based e-wallet so I didn't have to pay Neteller and Moneybookers their ridiculous fees, start my own EPT, form a team Euro-FTP for my overseas B&W commercials, sponsor some soccer teams and F-1 race cars, add some Euro denominated tables and give the US client the finger.
I think they have a license to print infinite money.
I would never write that i have an interest in Tiltware, that is an assumption people here have made. The laws on ownership are clear, however, the DOJ is interpreting them differently then every lawyer I know would. Therefore, since said laws in the US are being interpreted ambiguously I would prefer we not discuss ownership again.
Your post is interesting. I should add I regret starting this thread. I made a huge mistake assuming that the private information I have was somewhat public. Therefore, I made a statement that I cannot back up. It lacks credibility and unless I can find public information, I apologize to everyone for writing anything on this topic.
In regard to your post, at the end of last year FT started going after the overseas market aggressively. That effort was moderately successful. As I previously wrote, a new initiative is in the process of being launched at the overseas market.
However, my concerns are exactly what I posted originally. PS has out grown and out performed FT dramatically. I cannot prove it here, so my writing it is meaningless, but it is fact.
In the first 15 to 20 years of the automobile business almost 3000 companies were started. Many had short-term success, only those that should BOTH constant growth in market share and profitability ending up making it. A handful.
Thank you for your well thought out post. I hope this thread will now die, but I doubt that will happen.