Racetrack Casino Closing

Simmo!

Paleo Meister (means really, really old)
Joined
May 29, 2004
Location
England
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.
 

Casinomeister

Forum Cheermeister
Staff member
Joined
Jun 30, 1998
Location
Bierland
Maybe they had too many "educated players" from Casinomeister :rolleyes:
 

Tester

Non-Gambler
Joined
Jun 15, 2004
Location
Israel
Simple economics

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!

Paleo Meister (means really, really old)
Joined
May 29, 2004
Location
England
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

Non-Gambler
Joined
Jun 15, 2004
Location
Israel
Neteller?

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

Dormant account
Joined
Jan 21, 2004
Location
UK
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.
 

Simmo!

Paleo Meister (means really, really old)
Joined
May 29, 2004
Location
England
The Wynn cost $2.7 billion to build. I don't think any online casino required even 1% of this amount to start up.

Probably not, but running costs and outgoings on a d2d basis still have to be less than revenues to turn a profit, whatever business you're in and I was amazed at the outlay required for an MG licencee.
 

Tester

Non-Gambler
Joined
Jun 15, 2004
Location
Israel
Economics again

In an efficient market, $100 bills do not lay on the ground.
If there is free money then competition erodes it.

If a casino can make money giving you half the HA, there will be someone doing so and winnig the customers.

In the end, there is some kind of balance between expenses and revenues.
Once you remove 70% of revenues the balance breaks down.
 
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