The Unabridged History of Winners and Losers

[Tatari Gami]

Wallstreet Now report, copyright 1997.
as per web archives:
http://web.archive.org/web/19990221182403/www.cfgstocks.com/...

Winners Internet Network, Inc.

Address: 15 Eight Street, St. Augustine, FL 32084
Phone: [phone]
Fax: [phone]
E-mail: [e-mail]
Website: http://www.winr.net/" target="_new">http://web.archive.org/web/19990221182403/http://www.winr.net/

Investor Relations: Columbia Financial Group, Inc.
Address: 1301 York Road Suite 400, Lutherville, MD 21093
Phone: [phone]
Fax: [phone]
E-mail: [e-mail]
Website: http://www.cfgstoc.." target="_new">http://web.archive.org/web/19990221182403/http://www.cfgstoc...

Symbol: WINR
Shares Outstanding: 10,500,000
Estimated Float: 2,500,000

WINR headed by a CEO with extensive offshore gaming connections, Winners owns the exclusive rights to proprietary technology that offers to web gaming operators a new software and banking system ensuring creditability and that provides them with a payoff structure. This should revolutionize internet gaming, since it is expected that this system will become the standard for the industry. So readily should this technology be accepted by the web gaming industry that the company anticipates to grow 50% to 80% annually for the next five years.

COMPANY BACKGROUND

Winners Internet Network, Inc. assumed its present identity on July 21, 1997. To effect public trading of its shares, the company was backed into a shell corporation previously named Comstock Empire International, Inc. Winners owns and controls The Davki Agency, Inc., which has an exclusive right to a software program that provides a means of payout for customers of Internet casinos and sportsbooks.

Although Winners is a recent start-up, it is a pioneer company, and, like a pioneer, stands to reap huge rewards, since it has no known competition. Because of this fact, the company has positioned itself to profit from most wager transactions made over the internet, and the market appears limitless.

Presently, there does not exist in the web gaming industry a uniform payoff structure to playing customers who enter video casinos, and, with few exceptions, web gaming sites have been unable to design and format a system that will ensure complete creditability. Web gaming is an exploding industry, but, without these glitches, it could become even more explosive. If a person wishes to gamble on the internet, they are given a menu of nearly 60 web gaming sites from which to choose. Most players have no real confidence in many of these sites because they have no real guarantees they will ever see their money again, or be paid their winnings, if any.

What all web gaming sites need is something akin to the Good Housekeeping Seal of Approval. Enter Winners, who, through their 100%-owned The Davki Agency, feels it has overcome the confidence gap by developing a Global Gaming Payout System which could revolutionize both the video casino and the international sportsbook method of payoff. This system, which will link to the international banking community, also will ensure compliance with all existing laws and provide an audit structure for governments. It also provides an audit function to guarantee governments receipt of their percentage of profits.

Winners feels it has set the stage to offer "the only secure payout system". The company has signed an exclusive 10-year agreement with Global Gaming Link Systems (GGLS), the designer of the proprietary software; this agreement is renewable. Winners developed the system concept and GGLS wrote the software. As part of the accord, GGLS will also represent Winners in establishing the worldwide system of gaming and sportsbook payoffs.

GGLS has contracted with a Liechtenstein company to provide the management and accounting services to guarantee not only the accuracy of payments, but confidentiality to the customers. It is believed that the method of payment cannot be duplicated. The Liechtenstein company has been able to provide the unique services of a highly regarded software company that provides services for many banking and government institutions. The central bank, through which the gaming transactions will be made, is purported to be an extremely respected European financial institution. Its name, and that of the Liechtenstein company, must be kept confidential until final details of the payout systems are announced, which should be within the next several months. Not only should the system establish the only legal and foolproof payout structure, it should also add light years to players confidence in casino gaming. A player will send his/her money to the bank, which guarantees its safety, and also guarantees that players will receive their winnings, if any. Players are issued pin numbers, and within the next six to nine months, the bank should also be offering debit cards, also a first for internet gaming. The bank will list on its web pages the web gaming sites that are enrolled in the Winners system. Players will be paid in the currency of their country.

The Winners system should also end the money laundering that is now rampant throughout web gaming. Safegaurds are already established to prevent this from continuing, and it is believed that the Winners system will be the model used throughout the net casino industry. Likewise, the company will ensure that all illegal betting will not be serviced. For instance, if it is illegal to gamble in New York City, no payouts will be made to Big Apple residents, thereby giving added creditability to offshore gaming operations.

Winners does not foresee major hurdles in selling their system to legitimate web gaming sites. Besides giving a site respectability with "The Winners Seal of Assurance" (or something like that), and providing a payout structure, the company's system will also save gaming operators significant amounts of overhead. No longer will operators need to employ legions of workers to cut thousands of checks weekly. The proprietary software will be able to interface through the existing software now being used by all internet casinos, so as to enable the casinos to be totally serviced for all payouts. Winners has been informed by hands-on operators that it is virtually impossible for a self-user to match the payout systems that Winners/GGLS offers.

So, how does Winners make money from this? Transaction fees. The company will receive 0.5% of all system transactions. For example, if there is a $100,000 payout, $500 goes to Winners. If total annual transactions amount to $10 billion, and that could be the case in five or six years, Winners would get $50 million.

Another potential source of revenue for Winners is through Master Licenses. Presently, there are three Master Licenses available - The Internet Casino, The Internet Sportsbook, and The Call-In Sportsbook. The Master License would allow the Licensee to sell to other casino/sportsbook operations and to participate in the transaction fees and a portion of the license renewal. The basic cost for a Master License is $110,000. The Sub-Licensee would acquire the yearly rights for the Master License at an annual fee of $40,000, or more, according to the size of the License. One half of the proceeds will be paid to GGLS and Winners will receive 25% of those proceeds. In addition, the Licensee will participate in the transaction fee based on a flat amount of a handle percentage.

A new age in internet gaming is about to unfold, and Winners is on the cutting edge of proprietary technology that will allow this infant industry to gain quick creditability. It should set the industry trend for payouts and attain worldwide acceptance.

Could Winners become the Microsoft of the gaming industry?

© 1997 Wallstreet Now