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Banker Lucy
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Posted - 2008.11.18 20:38:00 -
[1]
Edited by: Banker Lucy on 18/11/2008 20:41:38
Chapter 1: Summary of EVE casino
EVE casino is EVE's first casino business, while there have been many texas hold'em and various other lottery corporations, none have house games such as blackjack. Current games are all playable in the in-game browser and include blackjack, roulette, video poker and slots. It is still in development, a flashier out of game version of the site will be finished shortly and more games such as texas hold'em will be added. Take a look at the free play area at http://evec.site40.net/session/login.php
Chapter 2: Corporate structure
After considering various options, I've decided to keep things between myself and a RL friend, ThatCPP. We will be running things and possibly hire a few bankers to help.
Chapter 3 - The Business Plan
I am to be very similar to a real life casino. Most games will be almost exact copies of games you would find in a normal casino. I believe that this is a niche area which has not been done before.
I do not expect there to be much business for the first few months as the corporation needs to grow in reputation first. However, as with real life casinos it is still a very lucrative business.
Chapter 4 - Reason For Bond
The ISK is needed for investment into marketing. It is also needed so that customers can be confident in the fact that any winnings will be paid out quickly. The roulette table has a maximum payout of 7 billion on one spin. The casino needs enough capital to absorb this volatility. The casino currently has assets of 4 billion ISK, all of which is liquid.
Chapter 5 - Full Disclosure of Risks
While in the long run, all the games in the casino would turn a profit, short term volatility could cause fluctuations in the profits. There is also a very small risk of total ruin. However, as long as the corporation still has ISK in it's wallet, the minimum of 6% per month will be paid even if there was a net loss for the month.
I know I am not known on the forums nor in game. However, I believe that the work I have put into the website is better security than most other investment opportunities. Should I not repay the bonds, all the work would go to waste as this is a business which relies heavily on reputation.
Chapter 6 - Hit By A Bus Strategy
Since both me and thatCPP has full control over the funds, should one of us get hit by the bus the bond should still be repaid.
Chapter 7 - Bond Structure
There will be 100 bonds issued for 100 million ISK per bond. Depending on interest, it will be all in one block or split into two blocks. There will be a monthly payout of a floating rate of 20% of the profits each month. This is capped at a minimum of 6% and a maximum of 13% per month.
I reserve the right to buy the bonds back at 110% of issued price and the full payout for that month.
At the end of 3 months I will make the final payout and buy the bonds back at the issue price.
Investors will also gain access to a real-time summary of the casino's revenue and net profits. This can be accessed using any web browser.
Reservations:
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Banker Lucy
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Posted - 2008.11.18 21:00:00 -
[2]
Thanks for the reservation, will try to meet your conditions. You are right that trust will be difficult since I am an unknown, however, as I stated above I believe that this is less risky than some other investment opportunities as the business itself serves as a form of security.
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1. I think you need to bring someone on board who the MD community trusts for making payments to and withdrawing.
I would be very interested in someone auditing
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2. The casino needs to have auditors in place that can audit it at any time to confirm payout structure
Do you mean from a customers point of view and not investors?
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3. You need to list what the payout structures, and mechanisms will be.
20% of the profits for that month with a minimum of 6% and maximum of 13% of the issue value.
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4. I would also like to see a current audit.
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5. You need to identify what your profit split will be with the investors and your self (management fees, etc). How much the total business will be worth and how many shares will be owned by the public
The profit will not really be split, the payout per month will just be tied to the profits for that month. Full control will remain with me. This will be more of a loan than an IPO.
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Banker Lucy
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Posted - 2008.11.18 21:31:00 -
[3]
Hacking of accounts will not really be a problem since they are tied to the eve accounts. I am however worried about people exploiting bugs in the games and stuff like that. Things like the strength of the random number generator also concern me. Will work to prevent it.
The minimum is 6% per month which I think is highly competitive with other bonds without the added bonus of a higher payout should the company do well. The buy back would be for a minimum of 116% since it would include that months payout. So unless this is a scam or the casino takes a loss of the 10 billion AND around 4 billion of my own assets, the minimum return will be 118% and the maximum will be 139% total after 3 months.
Yes, it is somewhat like a loan but investors also stand to benefit from the business doing well.
I was considering more of an IPO style offering by decided on this as I feel it is simpler.
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Banker Lucy
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Posted - 2008.11.18 22:08:00 -
[4]
Yes, that is correct. |
Banker Lucy
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Posted - 2008.11.18 23:00:00 -
[5]
It's in the thread in events, send isk to me. And amarr, the 7 billion isk in one spin is the example. Even if I were to reduce the limit to 100 mil it would still be 3.5 bil in one spin. |
Banker Lucy
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Posted - 2008.11.19 01:53:00 -
[6]
Had my first high roller come to play today, took 2 billion isk off me on roulette. Statically speaking the casino should have turned a profit of around 2 billion based on the number of times he played but it ended up in a 2 billion isk loss.
Seems like a crappy thing to tell potential investors but over the course of 3 months things will even out. |
Banker Lucy
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Posted - 2008.11.19 05:10:00 -
[7]
Still looking for someone to audit. |
Banker Lucy
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Posted - 2008.11.19 06:01:00 -
[8]
Why would you want to check the coding though? My coding is so ugly it's kinda embarrasing  .
If it is to ensure that the reported casino profits are accurate would it not be easier for me to give the auditor my full API so that he can check the journal logs? The coding would be pointless for this purpose as I can freely modify the database without it.
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Banker Lucy
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Posted - 2008.11.19 15:22:00 -
[9]
It's all in PHP. Kuzuo would you be interested in auditing? I would like an audit of the coding so that the general public can see that the games are not rigged. However for the purpose of this bond I'm afraid it would not help. I don't see a way to restrict myself access of the database. All players balances and tracking of profits are stored in the mysql database which I can modify, it also does not log changes.
I think the best way would be to keep track of the isk in-game. I could disclose all my alts and the auditor could keep track of my wallet. Not foolproof but better than keeping track of the code imo.
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Banker Lucy
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Posted - 2008.11.24 20:18:00 -
[10]
Lord gabe, there are still 44 more bonds.(4.4b) You could send the isk now but the coupon will only be calculated from the start of the first block. I am finally in contact with kazzac so this should launch by midweek if there are no delays from the reservations.
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Banker Lucy
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Posted - 2008.11.27 02:09:00 -
[11]
Thanks kazzac, bonds will be issued this saturday. Please send isk by then.
As kazzac has mentioned in his audit, the casino has made a profit of 2 billion isk in the week or so it has been operating. It would have made 700 million more if I had not made a mistake in the payout and another 1 billion isk or so more if video poker had not been broken.
However, most of the profits have been coming from one or two high rollers. Nonetheless, 13% payout (1.3 bil in profits a week) for the first month should be easy if things keep up.
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Banker Lucy
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Posted - 2008.11.27 03:00:00 -
[12]
Payout will be on the 29th of december, 29th of january and 1st of march.
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Banker Lucy
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Posted - 2008.11.28 05:31:00 -
[13]
Sorry bout that. Still 22 bonds left.
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Banker Lucy
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Posted - 2008.11.28 20:15:00 -
[14]
Sorry esrith, it's full. Don't send isk, I'll contact you if anyone drops out.
Full, don't send isk from this point unless you have reserved.******
Please resize signature to the maximum allowed filesize of 400 x 120 pixels. Navigator |
Banker Lucy
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Posted - 2008.11.30 02:03:00 -
[15]
Sorry, I must have forgotten to paste it.
Those who have reserved please pay up by tonight. 4 more hours, thanks.
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Banker Lucy
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Posted - 2008.12.01 09:04:00 -
[16]
So that would leave 2 bonds?
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Banker Lucy
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Posted - 2008.12.01 17:41:00 -
[17]
Edited by: Banker Lucy on 01/12/2008 17:45:38
So that leaves 1 bond.  Guess I'll just buy it myself. Thanks everyone, report will be on the 29th. Also create an account on www.evecasino.org if you want to keep track of profits, will get that working soon.
edit: Ooops, that's 2 bonds left which i'll buy myself.
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