(PWIN) |
MARKET POSITIONING
Market ! research has been conducted for Racingo® by the widely successful Insignia Marketing Research
Firm, an independent firm with broad experience specific to gaming, sports, retail, consumer products, leisure,
travel, hi-tech and franchising. Insignia's international list of clients include Toyota, Kraft, Microsoft, the
Ontario Lottery Corporation, NBA Canada, Campbell's Soup, IBM, Radisson Hotels, Adidas, Kellogg's and the Canadian
Tourism Commission. The formal market research study was conducted in the New Haven, Connecticut area before, during,
and after the first Racingo® Test Market in 1997. Participants included frequent horseracing players, bingo
players and lottery ticket buyers.
The study concluded that Racingo® was extremely popular with current horseracing and bingo players, while lottery
buyers would most likely only play the pari-mutuel wager game if it were offered at their normal lottery ticket
outlet. 71% of test market players involved in the study said t! hey liked or really liked Racingo® . 93% of
test market players said they plan to play often in any given month (more than 5X per month). 66% of players spent
more than $10 each time they played Racingo® and 14% spent more than $31 each time they played. 81% of test
market players thought Racingo® was easy or very easy to play.
The overall pari-mutuel market in 1999 was over $20 Billion, with the primary wagering occurring at horseracing
tracks, off track betting (OTBs) facilities, casinos and sports books. Racingo® has the potential to greatly
expand upon this primary market by adding new venues including bingo halls (including Indian Bingo Gaming), cruise
ships, the Internet, cable TV in home gaming (similar to closed circuit broadcast but capable of providing the
wagering service directly to the consumers home), and airlines. In addition, the international potential for pari-mutuel
wagering in Racingo® across Asia and Europe is greater in size than the North America! n markets.
A key element to PWIN's and Racingo®'s success is the Company's extraordinary licensing and partnership arrangement
with Autotote (AMEX: TTE) and Penn National Gaming, Inc. (NASDAQ: PENN). A brief profile of Autotote follows: 1)
The worlds largest provider of pari-mutuel wagering services; 2) Currently process 65% of the North American Racing
Industry Handle; 3) Processes wagering at 10 of the 13 largest race tracks in North America; 4) Simulcasts approximately
15,000 races per week; 5) Operates in 21 countries on 5 continents; 6) Is an approved licensed gaming supplier
in all North American gaming jurisdictions.
Racingo is a natural marriage between lottery type betting and racetrack (handicapping) wagering. With Autotote's
presence in the lottery industry, PWIN now has an immediate entry to a large portion of lottery buyers; with a
lottery type wagering product suited to current lottery ticket buyers. PWIN is also currently negotiating with
other p! ari-mutuel wagering systems and management companies that process wagers at non-Autotote facilities to
ensure 100% coverage of the North American pari-mutuel market by 2003. PWIN has an exclusive licensing agreement
with Autotote to use its proprietary software and systems at these facilities, paying Autotote a 5% of revenue
licensing fee.
SALES AND MARKETING
PWIN's greatest challenge will be to effectively develop the market for Racingo® in North America, initially
through its partnership with Autotote. The Company has already produced a high-quality TV commercial, which will
begin airing on major networks internationally once the advertising campaign begins. The Company will primarily
direct its resources directly at racetracks, OTBs, casinos, and sports book operations initially in order to gain
a foothold. Due to its unique situation with Autotote, instant mass-market exposure is possible. PWIN has hired
seasoned industry professionals with decades of s! uccessful marketing experience who know the gaming industry.
This includes a former Executive Vice President of the Ontario, Canada, Lottery (16 years) who increased sales
during his tenure from $100 million to over $1.5 Billion. In addition to the above, PWIN has also hired outside
public relations, marketing and advertising consultants, with highly successful national and international market
development experience.
More info at:
http://www.playandwininc.com/results.html#keyfindings |
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