Crypto Business Development - Simply Alpha Capital. LLC

Gambling Industry Advisory

Crypto exchanges that enter the gambling industry will need a full suite of needs extending beyond regulation, licensing and compliance. But since we are leading the path into this near area, we are have prepared a special consulting package that will extend our licensing and regulatory compliance to include operational support and important knowledge on running an online sports book and casino operation.

Other Business Opportunities

At Simply Alpha we see the crypto industry mirroring previous developments in online gamblings. For example we see the collection online data feeds becoming a substantial business in the future. We see possibilities for crypto credit card facilities outside of Visa/MasterCard developing. And, we the sale of big data analysis becoming a serious business. For the providers the build the best products and services there will be large rewards in the future. We can assist profitable business with new development projects based on the ideas we have learned form online gambling.

Adding Sports Betting to Crypto Exchanges

The crypto market is new and still immature. We at Simply Alpha Capital believe strongly that crypto currency exchanges should add gambling to their product mix. After two years analyzing crypto users behavior, we are confident that the cross over is potential significant.

Currently most gambling operators and regulatory bodies are wary of crypto to enter gambling. At Simply Alpha Capital we are on the forefront of bringing the two industries together. We can provide several options for Crypto currency exchanges to enter the market. We can provide all the same services we provide to any B2C operator who wishes to expand into Gambling; with the understanding that crypto exchanges will have special and very specific needs (such as adding Bitcoin or other coins/tokens for gambling)

In typical sports books that add other gambling products (casino, bingo, slots, etc..) the revenue increase can be as much as 30% of total revenuers. We believe that crypto exchanges who add gambling will see similar results from cross over revenues from exchange fees to gambling revenue.

Acquisition of an Existing Sports Betting Platform

The online gambling industry experienced massive consolidation in the last 10 years. The largest chucks of online gambling revenues go to sports book operators. Casino and Bingo sites, have also been popular on a regional basis, but it’s the Sports betting brands that attract the largest amounts of players. As a result these sites have become gambling destination websites where players can bet on sports first and then are invited to cross over to poker, casino, slots, bingo, virtual games and even live dealer games done via live video streams. This especially works, because sports betting is a very regional experience. Players want to bet on their local teams and those must be displayer by local IP; a lot of testing goes into making sure the right games are provided to the right localities.

The other impact of consolidation was that there are now very few B2B providers available to buy; plus the cost of doing a raw (with core services) B2B deal is now anywhere from 10-15% of revenue share, making building new software quite an expensive option.

If a crypto currency exchange wants to enter the market with its own technology, have an existing brand, and have a built-in team ready to partner with in the long run, then there are still some options. However, in some cases they would require a hostile takeover of a minority founder.

If you are interested, please contact us. We can help you expand your business in this exciting industry.

Partnering with a B2B Platform

If acquiring an existing sports book isn’t a viable option, or a crypto business with a large number of users want to enter the gambling market quickly, then then the next best option is partnering with a B2B provider. Since its a crypto business there are not a lot of public companies that are ready to enter this market in a meaningful way. Some dont even offer an Asian product since they are concerned about impacting their licensing status in white markets – you see some of the UK listed public gambling companies are trying to sell themselves to large US gambling interests looking to expand into online gambling as the US markets slowly open up. This means they dont want to add an unregulated business to their menu, even on a B2B basis.

At Simply Alpha we have negotiated with several of the remaining major providers who are interested in getting into crypto gambling. And we can introduce exchanges to these providers.

Nevertheless, it’s important to understand that the potential business here is meaningful. A B2B operator will provide the following:

All software needed for sports and casino
casino, poker, live dealer, slots, bingo, etc partners
Back end software for risk analysis
Trading teams for pricing
Sports risk management for up to 100K live games
Software integration team (B2B end)
Local specifications for individual markets (displayed to users by IP)
B2B licensing
Support for Sports Book and other gambling
One Time Software Licensing fees ($100K-$300K)

The B2C operator needs to provide the following:

Project management
Business plan (regulatory strategy, Internal controls, marketing plan, etc..)
Front end software (website) and front end support teams
Data feeds
Marketing budget
Banking
Crypto Wallets (from Exchange to Sports book ) integration
Management team consisting of financial/accounting, internal reporting (player data reporting), database management, marketing team, regulatory, compliance, risk/fraud management (player by player using software from B23B provider), customer support, software (front end teams)

The start up costs are not significant, and a B2B site in crypto could be deployed with a Curacao licensing targeting grey markets in about two months. But a crypto site should hire some staff since it’s still a new business outside the core business of exchange trading.

Joint Venture with Simply Alpha

Simply Alpha Capital is lead by a team of gambling experts. We know a lot about the industry. Any new B2C operator wishing to enter gambling can do this with an adequate B2B partner that can provide some consulting services. But the most effective solution is to hire your own teams. Because of the product growth taking place in the industry, jumping into crypto gambling might seem daunting, even if everyone understands it’s an interesting opportunity.

We have an ideal solution. We can either introduce you to and help you hire a lead project manager (future CEO) for your B2C operations, or we can offer a Joint Venture arrangement where Simply Alpha Capital takes over the hiring and entire project management over for you. We will also invest in the partnership along side your company. Your exchange will remain the primary beneficiary of revenues, but you will enter the business with a team put in place to help you be successful from the start. We can then negotiate long-term buyouts of the JV for the exchange so that once the business is humming along, you can buy us out. This is the fastest and safest way for you to entire gambling, and we are here to assist you.

Partnering with us offers several advantages:

We select a B2B partner (using our experience)
You can buy out the JV knowing the terms in advance
We can mirror the player database to ensure your assets re protected
You will have direct access to a third party audit control to verity revenues (B2B partner provides this)
You have experts helping you from the start (helping you avoid pitfalls and understand the business)
Since we will hire a known B2B provider will have the ability to change providers or build you own software in the future.

With our help we can get a team in place, a deal done and revenues flowing in 90-120 days in a worry free way. We think this will be an excellent option for many players.