Business Objective
Explanation of Opportunity (Important: Time Dated )
I will attempt to clearly explain the online poker industry and the powerful opportunity that exists. The growth in the poker industry has been fueled by many factors including increased television exposure, celebrity participation, million dollar events, and ease of online access through broadband penetration.As a reference, we have utilized statistics from the “Global Business of Poker Report.” The report is just over 300 pages. It covers every online poker market in the world, annual global revenues, current gaming laws, and industry changes.
To put these figures in perspective, the combined annual revenue for all of the Las Vegas strip is $5 billion USD per year.
Turn on the TV today, and I bet you can find a poker tournament being televised. Whether it’s “The World Series of Poker”, “The World Poker Tour”, or “High Stakes Poker”, there are literally billions of dollars being pumped into the poker market each and every year. As far as the Internet is concerned, the top poker casinos are profiting hundreds of millions of dollars per year. It goes without saying that the online poker market is spiraling upward.
Global online gambling revenue will rise to $24 billion dollars by 2010. Annual revenue was $15 billion USD in 2005, and only $3 billion USD in 2001. Online gambling is now regarded as one of the most important internet businesses globally.
Party Poker alone made nearly $1 billion USD in annual revenues for 2005. According to Global Betting and Gaming Consultants, gross gaming revenues from actual online poker totaled $2.6 billion USD in 2005. The company predicts this will increase by 40% to $3.7 billion USD in 2006. ArkSports predicts annual revenues to reach $6.2 billion USD by 2009.
The greatest thing about poker is that the house (casino) makes money whether the players win or lose. The poker room simply takes a small percentage out of every hand (rake). It is typically about 5% on average. On larger stakes tables, the rake is not usually more than $3. An online poker room deals about 50-70 hands per hour, per table on average. An online poker room also deals up to 3-4 times more hands on average than a real live dealer poker room. Multiply that times hundreds and
hundreds of tables, and the impact is obvious.
Objective:
Our mission is to join, maintain, advertise, and profit from an online poker room. It is our goal, through experience, to do this in an effective and calculated manner. Because of authoring and marketing a highly successful poker book, this door has been opened. We have been contacted by a Poker Network and offered a deal. They are extremely impressed by our past marketing strategies, and feel we are a perfect fit for their vision. Their vision is to create several sister poker sites to gain more of a market share.
The network has built their software from the ground up. They have spent years doing it with an immense budget. The graphics, interface, and ease of use, are unlike any network that we have seen. This network is using current state of the art technology. (Most networks are using platforms that are 5 years old or older.)
This network has the ability to incorporate ALL client languages. Pretend for a moment that you are in Europe and speak Chinese, you can view the entire website in Chinese and download the poker software interface in your native language. This will greatly assist us in marketing globally.
Regardless of money, the new poker network will not just sign anyone up to become a licensee. Fortunately, we have a track record of successfully bringing in and creating new online poker players (explained later). The network is impressed with our past results, our current plan, and is giving us the opportunity to join forces.
Our poker site will be branded, and have a unique look and feel compared to any of the other poker sites on the network. The poker room will function in a similar fashion to the other poker rooms on the network. We have already acquired an existing online poker site. In our mind, it is one of the best Domain Names ever!
It is www.allbetspoker.com. We will be using the name, the logo/brand, and the existing player base to get started. All of the web pages and content for AllBetsPoker.com will be unique to ANY site on the internet.
We actually will receive two poker rooms. One is a .com (www.allbetspoker.com), and the other is a .net (www.allbetspoker.net). The poker rooms are virtually identical, but the .com is for real money players. The .net is for play money players. The reason we need both, is because some advertising methods around the globe restrict advertising Real Money poker rooms. In that case, we advertise our “play money” poker room, and then convert a percentage of those players into our “real money” poker room. A certain percentage of people will also mistype .net for .com which will take them to the real money site.
