Cryptologic Software! The Heavily Discounted License Is Offered At A Fire Sale Price!
The heavily discounted license is offered at a fire sale price!
What do you get if you buy it? The right to lose a lot of money, and feed the hungry sharks and crooks.
Read the "CONFIDENTIAL" memo from the attorney representing the owners of the license.
The poor licensee had revenues for the whole year equivalent to what a good operator can make in one day. Forget about a profit, we are taking about revenue here. There are many expenses to run an online casino, but if you just calculate the amount the licensee spent in advertising, he lost a packet.
This license has been established a few years ago, so he had plenty of time to try everything he could to make it work. This confirms that Cryptologic business model is a major failure because they are so greedy and hungry. Cryptologic themselves make money, because they own intercasino and probably a few others, and also cook their books and refuse to supply proper accounts to the licensees. They just help themselves in the till and refuse to answer legitimate questions.
Here are the e-mails from the attorney representing the licensee.
From: "smillar718"
Subject: IOLL License for sale
Gentlemen:
I represent Eurovegas, N.V., operator of eurovegas.com an IOLL licensee. The operator would like to sell . If you are interested, please advise.
Thank you,
Sanford I. Millar,
attorney at law.
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From: "smillar718"
Subject: Re: IOLL License for sale
Dear XXXX:
They have the domain names, eurovegas, com; amexcasino.com and arabian nights.com together with the customer base and records. The price is negotiable. They are selling because their principal business activity is construction and telecommunications and this business just does not fit into their business plan anymore. If you are interested, please let me know what details you need and I can have the obtained and (subject to a confidentiality agreement) sent to you for review.
Feel free to call me. My number is 310.556.3007. I did the original contract negotiations and I am familiar with situation.
Thank you,
Sanford I. Millar
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From: "smillar718"
Subject: Re: IOLL License for sale
Dear XXXX:
I need your address and fax number to send anything on my letterhead. I am licensed to practice law in California. My office address and number are: 2029 Century Park East # 600, L.A., CA 90067. tel 310.556.3007. fax: 310.556.3094.
I will get you the customer base and average sale data once you send me your return address and fax number. The hardware could be part of the deal. I will get the details on that as well. It would include the data base and reporting system.
Thank you for your immediate attention. I will forward you inquiry on to my client as soon as I receive you response.
Sanford I. Millar
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From: "smillar718"
Subject: Re: IOLL License for sale
Dear XXXX:
I should have the data in the next day or two. I may be able to get it all in a WORD file, but if not I can fax it. Please let me know if you have a pricing formula in mind.
Thanks,
Sanford I. Millar
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From: "smillar718"
Subject: Re: IOLL License for sale
I was able to get some data. The average monthly player count runs from 90 at the low to 140 at the high end. The gross revenue for the period ending 12/31/00 was approximately $165,000. The net operating revenue was approximately $105,000. There is no significant hardware as the data is accessed from the Cryptologic system daily. It is downloaded into a data base for record keeping. All three sites are active and generating revenue.
Please advise how you want to proceed.
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From: "smillar718"
Subject: Re: IOLL License for sale
Generally you are correct. The initial fee was in that range and the revenue share, prior to add backs, is also 50/50.
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From: "smillar718"
Subject: IOLL License for sale
Dear XXXX:
We took a look at your site. Are you considering the purchase of eurovegas, etc. to operate the casino or sell the domain name(s)? The answer may affect the approach we have to take with IOLL and others. Please provide me with some further details on your intentions.
Thank you,
Sanford I. Millar
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From: "smillar718"
Subject: Re: IOLL License for sale
Dear XXXX:
Attached is a memo following yours of earlier this morning. I look forward to hearing from you.
Sanford I. Millar
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From: "smillar718"
Subject: Re: IOLL License for sale
Dear XXX:
The IOLL license would be assigned as would the customer base and domain names. The company is free from liabilities as it is a single purpose company. If you would like the corporate shell, it includes the license and domain names and the customer base and the authority to operate in the Netherlands Antilles. as you are an existing IOLL licensee there should be no significant difficulty in getting the consent to the transfer of shares from IOLL/Cryptologic.
I have no current number for advertising. The company initially spent ( after formation in 1998) over $100,000 in the first few months. The budget trailed off, but the thing to do is to review the customer base turn-over. I would like to point out that if the company did not spend $1.00 on advertising but was able to net $105,000 for 2000 on gross revenue of $165,000 you would be making a good investment. If on the other hand it took $200,000 in marketing to get the same results, the investment would be foolish. In essences, it is not the dollars spent it is the efficiency of the dollars spent that matters. The average player count is constant. Monthly revenue will vary, but annual revenue is constant for 1999 and 2000.
I have tried to get a range of value from the client on price. If you are interested, put forth your estimate and we will respond immediately. They think that 1.25X net operating income for sale to an existing licensee of IOLL is a good starting point, however, submit your proposal. If someone were to have to purchase a new license and go through start-up procedures the costs would be very significant, as you well know.
If you wish to proceed, we need to work out the logistics. Please advise how you would propose to handle this.
Thank you,
Sanford I. Millar
