(PWIN) |
PlayandWin, Inc. (OTC BB: PWIN)
CORPORATE WEBSITE
http://www.playandwininc.com
SHARE INFORMATION
Issued & Out: 46,551,428
Float: 25,000,000 (Approx.)
PROJECTED REVENUES/INCOME
Year : Revenue : RPS : Price/Rev :Pretax % : Net Profit
2001E : $ 4.0M : $0.54 : 2.5X : N/A : ($250,000)
2002E : $31.0M : $4.14 : 3.0X : 42% : $ 6.5M
2003E : $60.0M : $8.02 : 0.2X`: 55% : $18.0M
SUMMARY
-PlayandWin, Inc., (OTC BB: PWIN), is a gaming company that holds the exclusive license to market, promote, develop,
and sell a new and unique pari-mutuel wagering game/system named Racingo®. Racingo® combines the simplicity
of bingo style wagering and the excitement and handicapping potential of horseracing via a pari-mutuel wagering
pool. It carries a mega jackpot potential by drawing from the entire North American continent for its size, much
like the Power Ball Lot! tery does.
-Pari-mutuel wagering totaled $20 Billion in the U.S. in 1999 and is expected to grow at continued high rates over
the next several years due to a increasingly relaxed gaming regulatory environment and the development of technologies.
These technologies include the Internet and other advanced telecommunications technologies which allow companies
such as PWIN to penetrate the market for gaming services like never before.
-The Hong Kong Jockey Club's new "Triple Trio" wager is the same as Racingo®'s full card any order
pattern. In just 2 years the "Triple Trio" has become Hong Kong's biggest and most effective pool. Last
June more than $110,000,000 US was bet on the "Triple Trio" in a single day -- a Guinness record book
entry for the world's largest pari-mutuel pool. The Hong Kong Jockey Club acknowledges that the "Triple Trio"
is growing steadily and shows no cannibalization of other mutual pools.
-Big jackpot games are proven successes gener! ators for casinos and, especially, power ball lotteries. Plans are
to seed the Racingo® full card exact order jackpot pool at $2,000,000 to ensure attention, interest and play.
Hollywood Park's recent successful "pick Six" experiments with $1,000,000 and $1,500,000 seeded jackpots
demonstrates that big jackpots work.
-PWIN has entered into an exclusive partnership/distribution agreement with AUTOTOTE, (AMEX: TTE), the world's
largest provider of pari-mutuel wagering services with over 75% of the North American market. Autotote has licensed
the product, whereby Autotote will offer Racingo® at facilities where it has a presence (100 horse racetracks
in North America, more than 800 'off-track-betting' --OTBs--, and virtually all casinos in Las Vegas and other
gambling centers). Autotote will provide all hardware, software, and day-to-day management of the actual wagering
on Racingo®. PWIN is responsible for developing a market and presence of the game. Autotote will give ! the
Company immediate access to the largest share of North America's pari-mutuel betting community.
http://www.playandwininc.com/june12000.html
-PENN NATIONAL GAMING (NASDAQ: PENN) will act as a wagering hub for all hosting services for Racingo® in the
United States. They will host the bet at their facility, Penn National Race Course, Grantville, PA and will provide
the accounting services, payments to tracks and winners and money room transfers. Penn National Gaming, Inc. is
a diversified gaming and pari-mutuel wagering company. The Company owns an 89% interest in the Charles Town entertainment
complex, which includes 1,500 gaming machines and a thoroughbred racetrack in Charles Town, West Virginia. The
Company also owns and operates two racetracks and ten off-track wagering facilities (OTWs) in Pennsylvania. Additionally,
the Company owns a 50% interest in a joint venture, Pennwood Racing Gro! up, which owns and operates Freehold Raceway
and, under a long-term lease, operates Garden State Park in New Jersey. The Company's Pennsylvania racetracks include
Penn National Race Course, one of two thoroughbred racetracks in Pennsylvania, and Pocono Downs, one of two harness
racetracks in Pennsylvania. Revenues are derived primarily from wagering on the Company's live races at the Company's
racetracks, at the Company's OTWs, at other Pennsylvania racetracks and OTWs and through telephone betting.
http://www.playandwininc.com/nov27.html
-TRACKPOWER, INC. (OTCBB:TPWR) and PlayandWin, Inc. have mutually agreed to terminate the Letter of Intent signed
between the two companies this past December. The companies are currently negotiating a joint marketing and distribution
agreement that would allow PlayandWin to access TrackPower's kiosk network for marketing the Racingo® wager,
and allow TrackPower a! ccess to PlayandWin's relationships in the pari-mutuel industry for rollout of their ATM/kiosk
network.
Stewart Garner, President of PlayandWin, stated, ``Under this proposed joint venture agreement both companies will
reap the benefits of a strong relationship without the dilution of an acquisition.'' Mr. Garner added, ``We are
excited about continuing to explore opportunities with TrackPower and we believe the synergies and common goals
of our companies will provide the basis for our relationship going forward.''
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-The multi-step rollout program will focus initially on the North American market with an expected launch date
scheduled for early 2001. The Company will generate revenue on the first Racingo® ticket sold. Expansion into
international and other gaming markets is envisioned upon the successful launch of the U.S. version of Racingo®.
-Due! to the extremely low overhead costs to PWIN inherent in its licensing agreement with Autotote, the Company
expects to produce a 42% pretax profit in its 1st year of operations. The entire operation only requires six full-time
employees, as well as a few marketing consultants, to function. The Company (in conjunction with Autotote) estimates
2002 (February 2002) revenues of approximately $31 million, and EPS of about $1.20.
ABOUT RACINGO®
Racingo® is primarily designed to appeal to gaming audiences who like their games exciting but simple---bingo,
lottery, slots and casino patrons.
As in bingo, the object is to form a winning pattern out of numbers randomly placed on a grid. Players complete
3x3 grid like tickets, purchased for $2 each, by selecting three horses in each of three designated, live/simulcast
races to finish 1st, 2nd, or 3rd Players can also opt for a "quick-pick" style ticket whereby winning
horses are selected automatically just like ! state lottery and nationwide powerball lottery tickets may be purchased.
However, the opportunity to handicap the three designated horse races offers significantly increased odds of winning.
Features/Characteristics of Racingo® include:
-An exotic pari-mutuel wagering game based on the outcome of three live/simulcast races.
-Racingo® requires the player to complete bingo-like patterns on a 3x3 grid-like ticket based upon the outcome
of 3 live/simulcast horse races.
-Each Racingo® ticket is priced at $2.00 and there are 5 possible winning patterns---the diagonal, the "X",
the diamond, the full card any order, and the full card exact order---on every ticket.
-Payoffs can range from "churn pool" lows of $6 - $8 for the diagonal pattern to big jackpot highs of
$30,000,000 plus for the full card exact order pattern.
-Such mega-jackpots are made possible by the "critical mass" of wagering afforded by a constituency as
large as the Ontario Lottery.
-Pl! ayed through a central location
For a visual as to how you play Racingo visit:
http://www.playandwininc.com/products.html#howtoplayracingo
THE COMPANY
PlayandWin, Inc. is a Nevada corporation formed in June of 1995 and its principal place of business is in Ontario,
Canada. In October of 1999 the Company's wholly owned subsidiary, PlayandWin Canada, Inc. (PWIN Canada), acquired
all of the issued and outstanding securities of Lynx Gaming Corp., and 5% of the issued and outstanding equity
of P.E.S.T. Creative Gaming Corporation, (P.E.S.T.) for the securities convertible into common shares of the Company.
Lynx is the owner of the other 95% of P.E.S.T.
http://www.playandwininc.com/nov16.html
http://www.playandwininc.com/sept2! 3.html
The Company's business is the development, marketing, promotion and sale of Racingo® which is basically a pari-mutuel
system of bingo-style betting in which the winning bettor(s) share the total stakes minus a small percentage for
the management. As in Bingo, the object is to form a winning pattern out of numbers randomly placed on a grid.
In Racingo®, the winning numbers are selected by the outcome of one or more horse races, combining the simplicity
of Bingo and the fun of horse races with lottery-size jackpots.
PlayandWin, Inc. (PWIN) holds the exclusive license to the Racingo® concept for the Internet as well as for
all of North American on and off-track versions of Racingo® and PWIN also retains the right of first refusal
to introduce the Racingo® concept to other countries and venues such as cruise-ship lines, airlines, Indian
gaming and Bingo, cable television, etc. from Racingo Investments, Ltd.
FINANCIALS
PWIN has accumulated a $2 million loss carryforward during its development stage, on no revenues through August
2000, the end of Q2 2001 (fiscal year end February). The company will begin generating revenue as soon as the first
Racingo ticket is sold in early 2001. With low overhead, due to the unique licensing/partnership arrangement with
Autotote, we expect PWIN to produce pretax profits of about 42%.
In addition, PWIN's efforts in other new venues, such as the Internet, bingo halls, cruise ships and at home cable
TV wagering among others should provide significant revenues over the next 18-months. We have not factored any
revenue from these sources into our forecasts. We expect PWIN to be above a $40 million annualized revenue run
rate by the end of 2001 strictly based upon traditional wagering venues, primarily through Autotote. With its loss
carryforward, PW! IN could produce fiscal 2001 EPS of $1.20. Other gaming industry leaders, such as Anchor Gaming
(NASDAQ: SLOT -- P/E: 12.5X), Autotote Corporation (AMEX: TTE--P/E 28), WMS Industries, Inc. (NYSE: WMS--P/E 12),
and Park Place Entertainment (NYSE: PPE--P/E: 33X) trade at P/E ratios of between 12 -to- 33 times current EPS.
The Company generates additional revenue with every wager placed with geometrically declining costs. Due to PWIN's
successful funding recently, its excellent executive management team, aggressive rollout strategy of Racingo through
its partner Autotote, and an in-place solid advertising, PR and sales & marketing infrastructure we believe
the Company will be successful with the launch of Racingo® through Autotote facilities in early 2001. |
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