Gambling Industry continues to falter and tumble...
Posted by:
jopez (---.88-80-70.mc.videotron.ca)
Date: June 17, 2007 05:44PM
Since 2000, the gambling industry continues to go through its phases of growth, decline and nothing will really change. I remember when Master Card announced they would no longer allow payments to be credited to their cards. Many sites stopped using Master Card in a feeble attempt to protest their policy change. What happened? These very same companies quietly began using Master Card again.
Again in 2006, when the UIGEA was passed, everybody ran for cover. Even though the law did not go into effect, the industry plunged itself head-long into the oblivion. The industry as a whole needs to learn from these things, not dig itself deeper into a reactionary whole. Emotional reaction is your worse enemy. Had the founders of Neteller stayed away from the US, nothing would have happened and especially with ACH. Yes, their account would have been seized, but that is another story, they should have been expecting a hit from the US and not have had that much money in that account. A few hundred thousand would have been plenty. Neteller should have been acting as if the US were going to turn against them for a long time. It was lack of vision that caused this situation, and lack of vision that will continue to plague today's internet gaming companies.
Solution? Go underground, stay there, regardless of what the media says. Develop your business with guerrilla style marketing. Run your transactions through as many banks who will take them. The US will never be able to fully enforce this law reminiscent of the Prohibition of the 30's.
Which brings me to the next point. If you live in the US, what the *^&%$#$ are you doing even considering an online venture? And if you don't live in the US, stay out! You think you won't get picked up cause you are visiting your grandmother? The US is scaring everyone into compliance. They know they cannot enforce it, so they scare everyone into compliance.
Finally, save your money, do not market the old fashioned way. People with email lists will not get you the response you need. They WILL get your money. There are a ton of ways to market your site. Use them all, as many as you can. Hire someone who can put a marketing plan into motion, one who will cover as many bases as you can.
But stay underground. If things change, come up only for air. But don't think you can legitimize this business, make your money quietly. Only make noise for your site.
Good luck to those of you who have decided to stay the course...
Jopez
