The village idiot of Las Vegas has a Q&A session with himself...Part 2

Of every $100 wagered in the United States -- $99 of it is illegal. Whether it be online, the neighborhood bookie, illegal card rooms, office pools and others. I've seen estimates as high as 300 billion a year as pertains to the revenue generated by illegal gambling. This years Super Bowl was estimated to have 10 billion bet illegally on it:

Let's cut to the quick; recently Nevada passed a bill that makes online poker legal in its boundaries. Nevada's population isn't large enough to support the online gaming business as a whole. So they're going to look at forming compacts with other states. At this juncture, online gaming is a state by state issue. California, Nevada's neighbor to the West, estimates an additional 150-300 million could be put in the state coffer if online gambling is legalized there. For the sake of not sounding redundant; I anticipate online gambling to be legalized throughout most of the country in the next few years. The revenue it will produce for those who are ready will be tremendous.

(Q). How does a novice like me get into a business like online gambling?

(A). Asians: Ex. Ernst & Young recently published a report. It stated by 2030, two-thirds of the worlds middle class will be of Asian descent. Couple that with the fact Asians account for 60% of all land based casino revenues and it becomes clear why they would be an obvious target market for online gaming.

(Q). How do you get to an Asian crowd as pertains to online gambling?

(A). First you must prove to them that you can be beneficial for them. The Asian community in Las Vegas is under served in many facets compared to traditional markets. Online food ordering and delivery coupled with creative marketing approaches like reality and Guerrilla Marketing will serve as the gateway to the greater market.

(Q). What's the competition entail with your approach to Asian growth strategies? Why don't you focus on a more traditional market?

(A). Competition in the Chinatown section of Las Vegas is non-existent for the ideas I'm proposing. That's what makes it so attractive! I've spent years developing the critical relationships needed. My cohorts in Chinatown have shown an eagerness to help; provided proper resources and a well defined plan are established. On the other hand, traditional markets are diluted with competition. I'm going to borrow an analogy from my colleague Kam, "In the traditional markets, you will find lots of dogs chasing a few rabbits. In the Asian markets, you will find a few dogs chasing lots of rabbits."

(Q). How many licenses have been granted in the State of Nevada for online gaming? How would you get in on the action without a gaming license?

(A). Currently, eight licenses for online gaming have been granted in the State of Nevada. The legislature has enacted a two year moratorium before any other licences will be awarded. The first thing licensees are going to be searching for once their gaming sites become active: DATA BASES! Ex: If a data base of Asian gamblers is created under ones control; it's going to be worth a substantial amount of money. Ex.--According to industry sources, gaming sites will lease a data base at a percentage of loss. The going rate is 35-40%. (A gambler can win and it won't cost you a thing if you're in a leasing agreement with a site. On the other hand, lessors of a data base would be entitled to 35-40% of total losses occurred by their data base). Industry norms for a well run gaming site are 4-5% net.

Summary

In the near future, online gambling is going to hit like an avalanche. According to industry sources: OG will grow from a cottage industry to North of 100 billion in revenues by 2020. Asian gamblers will contribute heavily to that number. I'm proposing a number of sensible strategies be put in play to capture the future growth.