strategy

The online gaming industry has changed considerably since Playsafe floated in 06. The introduction of the UIGEA 06, the withdrawal of Neteller from the Canada 07 and the increased competition among the operators outside USA has changed the game. The cost of player acquisition has increased considerably as the online gaming market matured and the above events unfolded. Purchasing growth (player acquisition) through online traffic drivers have grown increasingly expensive and are in certain cases close to player lifetime values. This in turn drives operators to find new low cost acquisition channels.

It is the belief of Playsafe that we have identified such new unique low cost acquisition channels that can enable the company to grow without spending the premium online acquisition cost. These products, including our new server based Poker Terminal, as shown to the right, are launched under the ActionB2B umbrella. You can read more about this product suite under the B2B section.

Furthermore, a strategic partnership with FunWorld AG, Europe’s largest amusement terminal producer has been formed. This partnership will potentially bring the "play for fun" games of Playsafe to more than 10,000 terminals reaching more than 6,000,000 annual users introducing them to our game of poker.

In light of the above market developments our strategy has changed from one of consolidation of small operators, to one of growth through land-based partnerships through the use of new technology.

Our goal is therefore to stay out of the way of the large operators, identify and exploit new unused acquisition channels, while all the online operators fight out their online battle over market share. In a short time the large operators have to buy growth to justify its pricing and they have to look to new avenues. We see clear signs of this already as the large UK operators are losing market share and revenue. We are positioning Playsafe in order to dominate that space.