777 Sports Entertainment Corp.
Corporate profile
A Nevada company, 777 Sports Entertainment Corp. (OTC Pink Sheets: SVNP) has acquired a 49% interest, with an agreement to own up to 60%, in the United Kingdom company, 777 Sports Entertainment Limited. UK-based 777 Sports Entertainment Limited, holds a license to operate an Internet casino and sports book using the Chimera 2 suite of products, platforms and applications. The company operates i-gaming services as www.777betz.com with all day-to-day operations provided through
E-Network de Costa Rica S.A. Company President and CEO, James Cheung has ten years experience in on-line gaming and Internet marketing, as well as extensive marketing contacts, including North America’s largest Asian community.
Business Overview
777 Sports Entertainment Corp.’s business strategy is to invest in the exciting and exploding Internet-gaming industry through being the largest single investor in the UK company, 777 Sports Entertainment Limited. After 777 Sports acquired the interest in 777 Sports Entertainment Limited in January 2005, branding and customization of the products and applications were completed in July 2005, and the one-stop shop for discriminating players was launched. The full suite of casino games, international sports book wagering, thoroughbred horse betting, the highly popular Texas Hold-em Poker, and the ability for mobile access to all products, will be completed by October 2005. Tournament play will be commenced as soon as practical and the platform will offer a range of card games which are popular with North American, European and Asian players.
www.777betz.com handled in excess of US $1.75 million in July 2005, which was not a full operating month, with Member sign-ups in August being twice the business plan expectations. Revenues generated by operations are earned by the company on a play for fees basis and therefore are taken into profits immediately. Business plan projections call for cash flow to be positive within a 6-month period.
Mobile Play
In September 2005, 777 will launch a mobile gaming platform to provide access to all gaming platforms on a play for fun, or real play modes, through cell phones and other mobile devices such as PDA’s. Players will access the various platforms to be played through www.777betz.com. As with players who access the website on a PC, the mobile platform will provide access to all gaming options, including the multi-table/tournament poker platform with the highly popular Texas Hold-em, as well as Chinese Poker, Big 2 and Pan, which appeal to the Company’s Asian members.
Poker Prospects
Poker websites make money by taking a ‘rake’ from each pot, usually 1%-3% of the pot. The research group River City, calculates that such revenues from the world’s 200-plus poker websites now approach $2 billion a year, as of 2005 and will continue to show significant increases. The research group believes that some 1.5 million people play poker online regularly for real money and that the number is growing by 100,000 a month. UK-based Party Poker claims that 65,000 people, mainly Americans, play simultaneously on its site at peak hours. Party Poker is estimated to have made US$350 million in profit in 2004, with prospects of making US$500-600 million in 2005.
777 Features
The world-class sportsbook-wagering platform allows members to wager on all major sporting events worldwide. Players are able to place bets in confidence; and the software provides a comprehensive and easily utilized reporting platform for players to track their wagers and/or to view completed transactions.
The online casino games are delivered to the players in a Java format, with a Flash application to be implemented soon offering additional games by year-end. The programs have been developed with ease-of-use in mind, with realistic graphics and no download required. The suite of games presently available include: Baccarat, Blackjack, Caribbean Poker, American Roulette, Craps, Super Slots, Outer Space Slots, Crazy Reel Slots, Wanted Slots, and of course, the all-time favorite, Jacks or Better.
The horseracing platform provides access to major North America horse tracks and will be upgraded by year-end to include tracks from Europe and Asia. The platform features a user-friendly interface with live lines that include the track name, race-odds, betting limits, bet types, the purse, horse name, and the name of the jockey. The payout is based on track prices and automatic updates of real-time odds, scratches and pool information is provided. The online capability enables members to make wagers up to post time.
777 Operations
The licensing agreement with Nevada-based i-gaming software and e-commerce services company, Chimera Technology Corp., provides 777 with a complete turnkey operation. Chimera is an international developer, licensor, and provider of online gaming products and has developed a state-of-the-art "BIRDS EYE" System, which incorporates a complete back-office management system operating all e-commerce transactions, gaming Web sites, accounting system and licensees' management/reporting platform.
As members register at www.777betz.com, a payment processing application is completed, which allows for deposits to be made to an account for player use in all platforms. Deposits may be made electronically and by other methods such as wire transfers. This transaction processing system is provided through 724 PAY, a business partner, and the system facilitates payouts of winnings to members again either electronically or by other chosen methods.
777 Marketing Strategy
The Company is presently marketing operations through affiliates and existing business connections to target prospective sports enthusiasts or groups. www.777betz.com provides some important conditions of use translated into Mandarin Chinese. Players are offered bonus prizes and incentives for continued play and referrals, as repeat business is the hallmark of success in i-gaming. The Company believes that in addition to being a one-stop gaming destination site, exciting gaming options, integrity of odds offered, seamless back-office support, ease-of-use, and instant pay service will all build customer loyalty.
Industry Outlook
777 Sports Entertainment enters the i-gaming world at a time when investors appear to have a healthy appetite for on-line casinos. A United Kingdom IPO for www.partypoker.com successfully completed in July 2005, gave that company a market value of US$ 1 billion on its first day of trading. London’s Daily Post reported on August 25, 2005 that www.888.com, the world’s most-visited Internet casino, is planning an early September flotation at a Financial Times-predicted value of US$ 1.4 billion.
Revenues for Internet gambling sites have exploded in the 10 years since the first on-line casino was launched in 1995. Christiansen/Cummings Associates estimates that on-line gambling revenues more than doubled to US$651 million from 1997 to 1998. Frost and Sullivan attribute US$919.1 million in revenues for 1998. Bear, Stearns & Co. Inc. reports US$1.2 billion in revenues from an estimated 650 i-gambling sites in 1999. In 2000 revenues reached US$3 billion. By 2003, revenues from on-line gambling doubled to US$6 billion. Merrill Lynch predicts that this number will be US$50 billion by 2010 and US$177 billion by 2015
A study conducted across the UK by Uswitch.com Communications reported that four million people in the UK gamble on-line each month and that since 2003, the amount of money staked on-line has soared by 566%. There is significant interest from Asian markets.
777 Competitive Advantages
Market knowledge
Product updates
Multicultural connections
One-Stop Shop
Ease-of-Play
Mobile Play
Repeat play
Instant Pay
Industry Highlights
i-gaming IPOs are hot in 2005
Multi-billion dollar worldwide revenues
Accelerated growth forecast
Click Casinos vs Brick Casinos
Lower capital costs to set up and operate More costly to build and operate
Frequent repeat visits Higher turnover of customers
Anonymity feature attracts wider client-base
Share Structure
The authorized capital of the company is 100,000,000 common shares with 13,346,796 being issued and outstanding as of August 31, 2005. Of these shares issued, 12,060,637 shares are restricted under Rule 144.
Corporate Information
For more information on 777 Sports Entertainment Corp., please contact the Company at info@777betz.com or contact Investor Relations @ Tiger Capital, at 1.866.259.0125.
777 Sports Entertainment Corp. is a publicly traded company whose shares trade on the OTC Pink Sheets in the United States under the trading symbol: SVNP.
