To: Dan Meckenstock (266 ) |
From: SCOOBEY-DO Tuesday, Jul 7 1998 7:26PM ET
Reply # of 2319
Hey Dan; The following is a response to you from Tom Hughes;
"1. We agree. Betting Inc. will be purchasing Pay Masters from SWYW at cost plus 10% markup. We will then give away the terminals to Sports Lounges.
2. There is no reason to limit the betting aspect to sports lounges. A patient at a doctors office can just as easily replenish her sports account as a second transaction after first purchasing from the Shop While You Wait catalog. A business person spending time waiting for a meeting to start in hotel lobbies, will use the Pay Master to shop from and 5 minutes later use it again to replenish his sports account. He then has to find a phone to place the bet.
3. On these transactions, the Pay Master is driven by the bank host processor called ET&T. All Pay Master transactions of any type will first call the ET&T bank host. This is a standard procedure done millions of times a day with credit card and ATM card authorization.
4. ET&T, once we have received the card authorization back from the bank, now needs to let the gaming operator, in the case of an account replenishment transaction, be alerted that actual non reversible cash has been sent to his account. Instead of calling to the operator, we call to an interface service called Betting Inc. ET&T pays Betting Inc. a fee to command the gaming operators computer to respond back to Betting Inc. with an acknowledgment of payment received. Betting Inc. then alerts ET&T which has been standing by with bank authorization of the card. The acknowledgment and authorization are then shipped back to the hotel lobby or sports bar Pay Master, which then prints a receipt.
As the PERFECT industry expands, other bank hosts centers who are competitive to ET&T will choose the service of Betting Inc. as s cheaper and more efficient route then to call the gaming operator directly. It is far more efficient to have one main line connected to an interface service such as a Betting Inc. which then has many lines connected to the world of the gaming operators.
5. ET&T's stock if free trading. The exit strategy is there from day one.
6. Have Dan speak to any utility company about the possibility of being paid from the home by an ATM card with PIN or stored value smart card. They will crawl through the phone line to learn more. As the Pay Master is flooding into the market as a Shop While You Wait terminal, the phone and utility companies will quickly understand that the same unit can also pay a phone bill from a dentist office or a hotel lobby. Then, the major marketing campaigns will begin and ET&T and Betting Inc. will be there to catch the transactions flooding from the homes.
By giving away the terminals as a Shop While You Wait device, we drop the price of manufacture to below $100; expose the general public and the utility companies to these devices; and we make money in the process.
The PERFECT devices such as the SLICK, Pocket Pay or Pay Master will migrate into the homes as a bill payment device being pushed by the local phone company, but once into the home...wagering will begin. Yes...but it will begin...it can't be stopped...and the winnings will be taxed automatically by the State and Federal powers"
I have a couple of questions for Tom Hughes:
1. It sounds like the gaming transaction is normally the second transaction. Is a SWYW transaction required before a gaming transaction can occur?
2. Is the "terminal and the Pay Master the same device?
3. Can a transaction be made from a regular phone connected to a phone line?
If anyone on this thread has any question regarding Betting Inc. or the 504 D funding, this is your opportunity. Ask away. Go BETT. Scoobey