Revenue Share vs. PPH Agency

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Dalton Wagner, Proprietor of V.O. Group, S.A. has recently found
himself in the middle of a controversy between Revenue Sharing
Sportsbooks and his Price Per Head Agency Concept. We had an
opportunity to catch up with Dalton Wagner and discuss the issue on
his last visit to Curacao.


Vegas Offshore: We hear that the Price Per Head offering you launched
several months ago has landed you in some hot water?
Wagner: Yes, it appears that my Price Per Head Software offering
has been a little too popular with onshore bookmakers and it is making
my competition a little upset.

Vegas Offshore: Can you be a little more explicit?
Wagner: Several offshore bookmakers have lost relationships with
their agents because my Price Per Head offering has lured them away
and toward my offering. Specifically, several of the largest credit
sportsbooks in Costa Rica have lost packages to me in the range of
500-1000 head apiece. And, they are not happy about it.

Vegas Offshore: Why are so many people leaving their agency
relationships with credit sportsbooks?
Wagner: Well, in the old days an offshore sportsbook might partner
with an onshore bookmaker. The deal was based on the onshore
bookmaker finding the business and the offshore operator writing it
and doing the accounting for a fee. The deal was typically 50%/50%.
However, with my Price Per Head offering, I can offer the same
offerings, but only charge the onshore bookmaker a nominal fee for
using my service. The fact is that 50% is simply too much to charge
an onshore bookmaker. I charge bookmakers a flat fee based on the
number of head I am writing and let the bookmaker keep the rest of the
money.

Vegas Offshore: Wait a minute. How can you afford to write the
business for a simple fee when it historically cost 50%.
Wagner: The simple fact is that 50% of the revenue is ridiculous.
I can charge a fee as little as $25 per head, per week and allow a
client to have access to sports wagering, casino wagering and horse
wagering – and, make a profit. Furthermore, we have written a
software interface that allows agents onshore to manage their clients
limits, run reports, etc. from any computer in the world. The
offering is robust, efficient and simple to use. And, unfortunately
for offshore sportsbooks that share in revenue, agents and bookmakers
simply love it.

Vegas Offshore: Is the PPH product only based on sports wagering?
Wagner: No. We actually have the ability to offer clients two (2)
casino products including blackjack, baccarat, slots, 3 card poker,
roulette, etc. And, clients may also bet on horses at over 350 tracks
worldwide.

Vegas Offshore: How many bookmakers do you currently work with?
Wagner: We are writing business for over 250 bookmakers now. Some
represent groups as small as 2 or 3; and others represent groups as
large as 500. Again, remember the key is finding as many clients as
possible. If you get to where you are writing 15 clients or more, it
is almost impossible to lose for an extended period of time.

Vegas Offshore: Anything else you would like to add?
Wagner: Sure. If you're a bookmaker onshore, call us or visit us
online to learn how to save money and/or grow your business beyond
your wildest dreams. The service is modestly priced, and we have
never had a disgruntled user. The value proposition is simply huge
for any bookmaker.