MGT Capital Investments Inc. (MGTI)

[ihaveanorangebike]

Interesting point from today's SA article.

I am referring to this excerpt:

"The problem is however, that many poker players don't trust providers to offer them a fair game. In a recent survey, only 4.3% of respondents indicated they would trust the land based casino industry to run an online poker room. Only 16.7% indicated they would trust the state lottery agencies. This lack of trust severely limits the expansion of the online poker industry, and the Real Deal Poker system eliminates this uncertainty. This could mean one of two things. First, Real Deal Poker could become hugely popular, as it is the only platform that offers full auditability for every card dealt. Second, MGT has the potential to license the technology to other platform providers, creating a revenue stream for the company."

This is in line with my theory that MGT did not apply for CSIE license because they wanted to be the sole partner with a casino. Rather they were looking to create licensing deals directly with platform providers who have inferior auditability with their current shuffling systems.

The online poker report survey referenced in the article is very telling:

http://www.onlinepokerreport.com/5480/does-regulated-us-online-poker-face-a-trust-gap/

4.3% is a ridiculously dismal number. If only 4.3% of responders actually trust the land based casinos, then online poker is going nowhere fast. Casinos and their platform partners must be aware of this and one would think they are looking for a way to solve this issue.