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Velocity grants GameLogic $3 Million
US-based gambling software provider GameLogic has received a cash boost through a $3 million loan from speciality financing company Velocity. GameLogic is best known for its 'PlayAway' concept which avoids clashes with US laws on Internet gaming by combining land and Internet action. 21 land casinos in 15 states are participants in the PlayAway system.
GameLogic uses popular Internet-based game content to help casinos attract new players and interact with existing players while they are off-property, materially increasing casino property visits. On average, casinos involved in the scheme report a two-fold increase in interest in their offering. Of the new web visits generated, about 10 percent register online for a new player club card, and of those, 25 percent will actually visit the casino to activate their cards. These new players are worth significantly more in Average Daily Theoretical (ADT) — in most cases as much as 3 times — as a new club member that the casino acquires through their existing channels.
"On average, for every 3 web visits, we are generating a new casino visit," the company boasts. "And because the games are exciting, fun to play and there is a chance to "win," we are generating significant web traffic and interest in the program."
GameLogic's CEO and president, John E. Taylor, Jr., says that his company's ability to raise debt financing on favourable terms in today's tough market and turbulent economic times is testament to its business model, which provides a US legal way to play casino games on the Internet.
PlayAway deploys a combination of land and Internet gaming, with qualified players purchasing MoneyPlay tickets at the land casino partner. These are then used in the comfort of the home environment to play online at the casino's website. The player then returns to the land casino to collect any winnings, thus avoiding any exchange of money on wagering through the Internet.
In commenting on the current condition of the casino industry, Taylor went on to say that "Casino marketers are experiencing unprecedented economic challenges that require a complete rethink of marketing to existing players and finding new ones. Our products provide a solution to this challenge."
JP Marchette, Principal at Velocity Financial Group said: "Given the current economic environment, we are extremely selective with whom we provide capital. We saw a tremendous opportunity in GameLogic with their business model, and ability to enable their customers to monetize their existing assets via a unique proprietary platform that has the potential to be adopted across an entire industry."
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