Racetrack Casino Closing

**Simmo!** · 25th October 2006, 07:53 PM

US fallout.

It is with regret that GamingPromo informs you of the closure of Race Track Casino which has been a solid and profitable client of ours for the past three years. Race Track Casino offered a very unique gaming experience, providing its players with cutting-edge PlayTech software, friendly assistance and very coveted prizes. However, since Race Track Casino's player base was mostly made up of US residents, it had no other choice but to shut down.

From now on, Race Track Casino's players will be automatically redirected to the very popular City Club Casino – Race Track's sister casino and GamingPromo's most successful client. Existing players can keep their current ID code and password. Their VIP level will remain unchanged and they can start playing with their existing balance right away.
“With City Club Casino, our players have nothing to worry about, they are in very good hands. We have known City Club Casino's professional and dedicated team for several years and are confident they will meet our players' expectations and take good care of them” says Race Track Casino Manager Adam Sutherland. “Our players will find there all that they left behind at Race Track and much more. We wish them all great luck and success.”
PromoGaming has consistently presented its Race Track Casino affiliates and players with very special offers and will continue to do so through City Club Casino, which already enjoys a strong position in today's hottest markets. With an application already available in several languages and players from all over the world, City Club Casino is a sure bet.

**winbig** · 25th October 2006, 08:28 PM

Originally Posted by Simmo!

US fallout.

More of bad marketing and planning than US fallout.

However, since Race Track Casino's player base was mostly made up of US residents, it had no other choice but to shut down.

**Simmo!** · 25th October 2006, 09:37 PM

Originally Posted by winbig

More of bad marketing and planning than US fallout.

Fair point

**soflat** · 25th October 2006, 09:55 PM

Originally Posted by winbig

More of bad marketing and planning than US fallout.

LOL. So true!

**winbig** · 25th October 2006, 10:25 PM

Originally Posted by soflat

LOL. So true!

Yep, yep...you don't see 32Red going under

*waits for the flood of PAB's from people not getting paid by Racetrack*

**Casinomeister** · 26th October 2006, 09:04 AM

Maybe they had too many "educated players" from Casinomeister

**Tester** · 27th October 2006, 07:41 AM

Other mistakes of them nonwithstanding, knocking down 70% of clients is soemthing that can drive many businesses to losers.

With 100K monthly overhead. falling revenues from 200K to 60 is enough to close shop.

We should remember that financially speaking, every operation that stops taking US bets is at a higher risk to be insolvent.

PS. Even BetOnSports goes belly up by some accounts because they stopped taking US bets, which took the whole business downhill. But that is certainly another story.

**Simmo!** · 27th October 2006, 09:51 AM

Originally Posted by Tester

Other mistakes of them nonwithstanding, knocking down 70% of clients is soemthing that can drive many businesses to losers.

With 100K monthly overhead. falling revenues from 200K to 60 is enough to close shop.

We should remember that financially speaking, every operation that stops taking US bets is at a higher risk to be insolvent.

Good point. I think many consumers (casino or otherwise) forget that any business has overheads. I've seen people say that online casinos are much less expensive to run than their B&M counterparts, undoubtedly true, but in relative terms the expenses per capita income are not very different. Licence fees, taxes and staff costs alone are very hefty, and that's before you even start to think about marketing. I can fully understand why a casino experiencing a 70% drop in business overnight decides to pack up. Witness all the redundancies (layoffs) at 888 in the past week.

**Tester** · 28th October 2006, 06:05 PM

I suspect that Neteller have relatively low overheads. And, at least as per their stated results over the last years, their results are just a fraction of revenues.

Taken together with the fact that they are not backing up right now, and they have almost a year to change contracts with employees etc. I guess that their remaining operations if leaving the US will remain profitable as much as before (i.e. if they retain 30% of the business, they will have 30% net income).

**GrandMaster** · 30th October 2006, 09:11 PM

Originally Posted by Simmo!

Good point. I think many consumers (casino or otherwise) forget that any business has overheads. I've seen people say that online casinos are much less expensive to run than their B&M counterparts, undoubtedly true, but in relative terms the expenses per capita income are not very different. Licence fees, taxes and staff costs alone are very hefty, and that's before you even start to think about marketing. I can fully understand why a casino experiencing a 70% drop in business overnight decides to pack up. Witness all the redundancies (layoffs) at 888 in the past week.

The Wynn cost $2.7 billion to build. I don't think any online casino required even 1% of this amount to start up.