ELRA Positioned to Run as Bitcoin Prices Soars on US Regulator Decision
(NEW YORK)--Elray Gaming, Inc. (OTC:ELRA), a provider of online and mobile gaming turnkey solutions, may be positioned for a sharp move up as Bitcoin prices soar after market on US Senate decision not to regulate the virtual currency.
Bitcoin prices sky rocketed after hours on news from a US Senate hearing that there will be no immediate plans to regulate the new virtual currency. This strong after market reaction to Bitcoin prices may spill over to ELRA as one of the only publicly traded Bitcoin stock plays in the US market.
Chinese Bitcoin Exchange
WSNC has confirmed through ELRA's public relations firm that the 80 million gamers recently announced in their social gaming joint venture press release are players mostly located in China.
To put that into perspective, ELRA will now have access to nearly 80 million gamblers in China, which alone is nearly like 25% of the total US population.
China has provided the fastest growing market for Bitcoin currency, and with ELRA now offering them a platform to exchange gaming credits to Bitcoins, or Bitcoins into gaming credits, could position this new credit exchange as a major player in China's growing Bitcoin market.
The Exchange, which will be called Global CXC, will allow players to exchange credits from various social gaming networks and also interchange credits for Bitcoins. Global CXC will initially provide the exchange for the one Social Gaming Network of over 80 Million Players in China, an online Casino Network, and an Online Merchandise Store. Users will be able to freely exchange credits for the social gaming platform, the online casino, a large variety of merchandise and also utilize Bitcoins to acquire credits, hereby creating a virtual exchange for the 80 million existing users.
The exchange is expected to generate revenues largely through traditional gaming commissions, sales through their merchandise stores, and through transaction fees for conversion to and from Bitcoins.
Officials from Elray Gaming are currently in Hong Kong this week to finalize integration of the social gaming network to its new Bitcoin exchange. This joint venture could make ELRA one of the largest players in Bitcoin gaming in China, and possibly one of the top players involving Bitcoin gaming in the world.
ELRA Highlights
- Developing Bitcoin Casino
- Exploring Bitcoin Binary Option Trading
- Developing Virtual Horse Racing Platform
- Investor Demand into Bitcoins Growing
- 29 Million Shares Outstanding, Float 10 Million
- Price Target Raised to $0.40+
Developing Bitcoin Casino
Elray Gaming (ELRA) is currently developing and testing a new bitcoin casino to take advantage of the growing demand and use of the virtual bitcoin currency world-wide. South Street Media, the companies public relations firm, confirmed that the company is already well into development of this bitcoin casino, and that initial tests are already under way for potential launch in the very near future. In addition, they confirmed that the company is also exploring a number of other bitcoin related projects, such as binary option trading of bitcoin spot prices, and possible 'cold storage' hardware equipment for this growing new industry. Many options being considered are in-house development, with a stronger look for potential acquisitions within the bitcoin industry.
According to their public relations firm updates on details of these bitcoin platforms, and how the company will adhere to current gaming regulations for this new gaming market, are expected within the coming days and weeks.
Bitcoin Binary Option Platform
Along with ordinary binary option trading, Elray Gaming will be exploring the potential of incorporating binary option trading of bitcoin daily spot prices. Like trading binary options in other assets, such as gold, oil, and currencies, a bitcoin binary option trading platform would allow traders around the world to take both long and short positions based on the daily fluctuations in bitcoin spot prices. This gaming platform is still under development as a number of issues need to be reviewed, such as regulatory changes, and established partner licensed to trade binary options in this new asset.
Virtual Horse Racing Platform
Elray Gaming entered into an agreement with Virtual Technology Group, LLC to assist in developing, marketing this new virtual horse racing gaming platform. The racing platform will have three options which include fixed odds, sliding fixed odds and pari-mutuel, which enables worldwide deployment with regional preferences. Each engine calculates the payout based on the engine rule set and odds calculated by the virtual world system. Betting can be accepted as soon as the race is posted, generally 3 days in advance. All betting is closed 10 sec prior to race start when the system calculate the rendering files and sends the animation file to the viewer for the running of the race. This prevents tampering with the odds and payouts. This method offers the greatest security against any players or bots trying the “beat” the game. The system tracks every bet transaction for each user in “cash” or “play for fun” mode that can be viewed by the player from the web page, or by the operators from the call center module.
It remains unsure if the Company may develop a bitcoin gaming feature for this platform, but further details on this joint venture should be forth coming as well.
Video demo of horse racing platform -
Growing Use of Bitcoins
Websites like Wordpress.com and OKCupid have started to accept bitcoins as currency, but news this past week that China powerhouse Baidu would accept bitcoin payments sent the price for bitcoins to over $200 to near all-time record highs. As the use of bitcoins among Chinese consumers continues to grow the true value of this new virtual currency may only be just beginning.
Investment Demand into Bitcoin
In May of 2013, San Francisco based Coinbase raised $5 million in a Series A offering led by Union Square Ventures, marking to date one of the largest investments into a bitcoin company. In addition, Fortress Investment Group, a hedge fund with nearly $55 billion under management, commented that bitcoins could be a unique alternative asset investment. Although not owned by the fund itself, Michael Novogratz, co-chief investment officer of the fund said bitcoins could be used as a cheaper way of transferring money in countries with weak banking systems.
Over the summer, popular bitcoin gaming site SatoshiDice was acquired for a value of $11.5 million, thus providing the potential valuation for players within this field.
Since Elray Gaming is one of the only few public companies currently involved in the bitcoin market the incredible demand from investors world-wide looking to invest in bitcoins either directly, or indirectly as may be the case with Elray, may set the stage for a sharp increase in investor interest in ELRA stock.
Regulatory and Gaming Law Compliance
Since its inception, Elray Gaming has always strived to adhere to any and all local gaming laws so as to remain a compliant online gaming company. This is important as any new relaxation of US gaming laws will first be offered to companies who have in the past complied with current gaming laws, and have maintained a strong internal policy of obeying these laws. This may be one reason why ELRA hasn't rush full boat in its roll-out of new bitcoin casino or trading projects as the regulatory framework is still up in the air on how such a market may eventually be formatted. For that reason, the companies public relations firm confirmed that any initial roll-out of a bitcoin gaming casino will most likely adhere to current US gaming laws as if it were based on a true hard currency, like US dollars, and may be initially restricted under current gaming rules for US players. More information on how this process will work is expected in near future.
Price Target Upgraded to $0.40
As of Nov. 2013, the Company had approximately 29 million common shares issued and outstanding, with a public float available to trade at around 10 million shares.
Now that Elray Gaming looks to become one of the largest players in the Asian Bitcoin market, and with just 29 million shares outstanding, a price of $0.40 would still only equate to a $12 million market cap.
About Elray Gaming, Inc.
Elray Gaming was formed in 2004 when a group of Successful Online Casino marketing specialists identified an opportunity: the market need for professional and qualified consultants to effectively manage, market and operate Online Casinos. Today Elray Gaming provides a complete turnkey solution for numerous successful online gaming companies as well as performs strategic marketing and consulting services for Online Gaming operators from all parts of the world. While our US office is in New York, we are a global company with offices in London, Sydney and Curacao homes of the largest online operators on the net, which helps us actively manage and serve our clients. Our sophisticated patented software automatically declines any gaming requests from within the United States, in strict compliance with current US law. In Our Sydney office allows us to tap into skilled resources and some of the world's largest client base, for regular, personal interaction. As our active operations are in a jurisdiction that is friendly to online gaming, our clients can rest assured that we are here to stay. www.elraygaming.com
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