It would help if you provided profit/loss figures, a balance sheet, traffic states, list of assets etc. Making people come to you for these details will deter people making an offer since its quite cheap to build your own site these days.
Not true. Yes, it's quite cheap to build your own... I'm sure a lot cheaper than taking ownership of an already established casino with custom games
but requesting potential buyers to contact them shouldn't be a deterrence, at least not for serious operators.
I contacted these guys a while ago and they said the site had a profit of 2000
BTC over the year and wanted an offer based on that, which just isn't realistic. When BTC is a fraction of the cost it is now, of course theres going to be more bets. BTC is worth many times what it used to be, the valuation needs to be in USD as the current BTC revenue will not match the previous year. The traffic / financials should be made public instead of making buyers PM, theres no need that the information should be made private. Unfortunately, the casino market has exploded with new comers, including many casino's offering 100's of games, 3D games to boot.
Not to be a douche... But I think the financials need to be made public. I have some doubts about the "big wins", especially about May 8, 2014 when a user won 765.65
BTC. Thats nearly $370,000 at what the prices were at that time. Than, the december wins add up to ~$410,000 worth of BTC, nearly ~$300,000 in June, and well over 100k+ for the remaining months. No offense, but I can't see this casino paying out over $1,000,000 worth of BTC in winnings... I don't see the traffic, and you would need a ridiculous bankroll to keep the site going (in which case why bother selling it? You could easily hire someone to manage the site if your making that good of money).
Again, Im not trying to come off as an asshole, but the numbers dont make a lot of sense.
Thanks for sharing your thoughts. I'll try to address all of your concerns to the best of my ability.
We haven't released the financial numbers to the public because one of the founders does not feel comfortable doing that. He is primarily concerned with his privacy. He doesn't want people to be able to link his personal identity to how much money he has made. He also would prefer the public to not know the specifics of how much the site is making. I can sympathize with his concerns, and I respect his wishes.
With that said, send us an email with a PGP public key and a few words about your experience running an internet business, and we will send you the complete financial information for the business.
Our profits are not just a result of the price of BTC skyrocketing. Most of our profits (in USD) have come when the price of BTC was already high. In our financial documents, we also show what our monthly profits were in USD using the average price of BTC for that month. We have big profits because players are using the site and are making big bets.
It certainly makes sense that a serious buyer would want to discuss the purchase price in USD. This is totally fine. We initially tell people that email us that the site earned 2000 BTC last year just so that they have some idea how much money is involved. If they had hoped to buy a site for 100 BTC, that information will quickly show that it's not possible. The sizes of our jackpot prizes should also be an indication of this. Again, we have financial information available in USD and BTC.
We know that Bitcoin businesses are risky, and we know that we cannot sell this site at a profit multiplier typical of online businesses. The 2000 BTC statement was just an initial piece of information, not a starting price. We are willing to sell the site for less than a year of profit. This means that if you operate the site for perhaps 3-6 months you will make your investment back, and then everything else after that is pure profit. If you invest extra in marketing and promotion, you could further reduce this time.
The huge win on May 8, 2014 was also a shock to us. We were stunned that a single jackpot could result in a win of over 700 BTC. What had happened was that our 0.01 BTC slots jackpot had gotten very large. I believe it was over 300 but I could be wrong. A single user then decided to try to win the whole thing, and had a large pool of Bitcoins to make it happen. Unfortunately for him, it took a lot of bets before he finally hit the jackpot. This caused the progressive jackpot to swell in size, which he then won back. Our games are provably fair, so we had absolutely no control over how many games would be needed to win that jackpot. He could have won the jackpot after 1 game, or it could have taken millions. Please keep in mind that we also have a lot of slots jackpots that get hit before their expected size. Because a jackpot is pretty rare, there is a lot of variation in this respect.
The large wins that you see for the months of December and June are 100% accurate. Some players do come to our site and win big. There were two giant Slots jackpots in December that added up to over 400 BTC. We absolutely paid those coins out. We have done the math and our business allows us to make a good profit and still give out large prizes. Sometimes users return to this forum to talk about a big jackpot they just won, and we are grateful when they do that.
