Parent company of WWTS acquires Oasis

[Illusion]

BetCorp Ltd, parent company of WWTS (SBR rating A+) acquires Oasis (SBR rating D+) for $9.8 million. WWTS management has already stated that it will pay over $4,000 to former Oasis players who filed balance confiscation complaints with SBR. The treatment to unwanted players in 2005 was largely responsible for the book’s rating to fall from B- to D+. Oasis was successfully migrated from Curacao to Betcorp’s servers in Antigua and will be reevaluated.

[JoshW]

More consolidation. Seems like if you don't go under you get bought out. :|

[slash]

Can someone explain to me the price tag of almost $10 mio?

How on earth can a book like Oasis be worth that much?

The player base at Oasis will for the most part already play with BetCorp, so that's not the reason.

Oasis made some big fuckups last year stealing money from legitimate players, so BetCorp don't buy Oasis because of a great reputation.

Is the Oasis software worth anything? I don't remember other shops using it, so it might have been created by the guys from Oasis,

Does Oasis hold a lot in player balances? They might do but certainly not enough to warrant a $10 mio price tag.

Strange things happen....

[tacomax]

Can someone explain to me the price tag of almost $10 mio? How on earth can a book like Oasis be worth that much?

Presumably because Betcorp thought that they thought that the return of the assets acquired are, over the long term, higher than the price they paid for those assets. Just like most other business decisions.

The player base at Oasis will for the most part already play with BetCorp, so that's not the reason.

Didn't know you had the player databases at Betcorp and Oasis. Is security really that slack?

Oasis made some big fuckups last year stealing money from legitimate players, so BetCorp don't buy Oasis because of a great reputation.

They did it before with the Cybersportsbook group. But you're overlooking the fact that whatever they paid for Oasis, they expect to make money from the operation. Otherwise they wouldn't have bought it.

Does Oasis hold a lot in player balances? They might do but certainly not enough to warrant a $10 mio price tag.

What have player balances have to do with it? Player balances are pretty much irrelevant when assessing the worth of a business. Player balances are not assets of the company, they are the assets of the players. The important determinant is how much profit the sportsbook is able to create from it's customers.

[magnavox]

Funny thing is that all that bad publicity and downgrades was for just $4k.

[JoshW]

Oasis has been around a while. They had a decent base of recreational players beyond the bonus whores and scalpers who seem to hit up everyone.

[SBR_John]

I thought the price was high too.

[slash]

Presumably because Betcorp thought that they thought that the return of the assets acquired are, over the long term, higher than the price they paid for those assets. Just like most other business decisions.

Ok, to rephrase the question: How can they think that?

Didn't know you had the player databases at Betcorp and Oasis. Is security really that slack?

Yes, it is slack, but I don't need a player database to conclude that.

They did it before with the Cybersportsbook group. But you're overlooking the fact that whatever they paid for Oasis, they expect to make money from the operation. Otherwise they wouldn't have bought it.



What have player balances have to do with it? Player balances are pretty much irrelevant when assessing the worth of a business. Player balances are not assets of the company, they are the assets of the players. The important determinant is how much profit the sportsbook is able to create from it's customers.

Balances don't matter???? So it doesn't matter if WWTS takes over the Oasis accounts with a total player balance of $100 million or $1? Surprise for you: The players might withdraw, and then WWTS will have to pay.

...

[Kaka]

you´re right about their software Slash - I liked it... but I doubt that WWTS etc will use it anyway!

[tacomax]

Balances don't matter???? So it doesn't matter if WWTS takes over the Oasis accounts with a total player balance of $100 million or $1?

No, balances don't matter - this is basic business. Unless, of course, the sportsbook industry operates on a totally different platform from other businesses in the world.

Oasis might have $1 million or $100 million worth of customer deposits but this won't affect their valuation (it might do marginally, assuming some other factors, but not in the way which you think). This is because the customer deposits aren't their money. When Oasis sold their business, they sold the assets of their business and the ultimate value would have been made up of a number of variables - player balances wouldn't have been one of them since they're not an asset of the company. The value of the customer deposits would appear on the balance sheet but they would be offset on the other side of the balance sheet as liabilities since it's money owed to the customers.

Surprise for you: The players might withdraw, and then WWTS will have to pay.

WWTS bought the assets of the business and the customers deposits were transferred from Oasis to WWTS.

Surprise for you - WWTS wouldn't have to "pay" if all players withdrawn since all customer balances were transferred with the sale. The money wouldn't come out of the pockets of WWTS but would come out of the transferred customer deposits from Oasis.

[JoshW]

Ok, I admit to sloppy reading, didn't see the $10 million figure, seems really high. But BetCorp must have some clue what they are doing. Some of this has to be credit accounts to be worth it right? And I thought they weren't doing credit business anymore?