Originally Posted by
Peep
Just further on the creditwagering model. Not only is their cost of aqquiring customers dirt cheap (they put it at $26 per, as opposed to over $600 now for a "normal" postup book), but the cost of a stiff is close to zero. No money out of pocket for them at all. So if they have say 500 people stiff them for a $1000 apiece, that $500,000 is not out of pocket, it is just money that they don't have.
Big difference.
In the meantime, they have the belief that most people still pay their bills when their bills are due. So far creditwagering has paid me everytime on time when their bill was due, as have I.
And creditwagering, like every other book, is as good as their last payment. Only difference is, IF they don't make their last payment to me, I won't be out of pocket either, as I haven't sent them a postup. If Laspalmas goes under, and I sent them a $1000, I am a $1000 out of pocket PLUS whatever I won. Again, a big difference.
As a player I like the creditwagering model MUCH better than me having to send my money in in advance. Safer for me.