... I have an impression that you guys, 8Bet, take zero money for yourself and that all the deposited(spent on tickets) money are distributed among the winners. So, my first question is: do I have the right impression?
Yes, quite right. The model is 100% return, zero edge.
And, if I do, then my second question: when do you plan to start making profit?
The short answer is that we don't plan on making a profit. 8BET isn't a business in the traditional sense, with shareholders and investors looking to take profits. 8BET is operated and run by players - those of us
players that want to see a system like this exist in a world where we as players have been fleeced by the house edge for far too long. We've blogged about why we see
traditional gambling as flawed and how we think
we can do better. In short, we are right now experiencing the perfect storm of technologies that make it possible for players ourselves to significantly disrupt the gambling industry - blockchain, cryptocurrency, and strong cryptographic principles such as Provably Fair.
I mean, you can't just give away your money endlessly, right?
But
we (as in those actively working on 8BET) are not giving away
our money. It was never our money to start with - the money all belongs to the players who put it in themselves. We're just allowing for it to flow back to the same group it came from. Of course, not everyone gets back exactly and only what they put in - there are winners and losers (after all, that's why we gamble) but over time and on average the return across ALL players is 100%.
Yes there are operational costs (hosting etc.) but these are trivial in the greater scheme of things. We project that donations (either direct or from players in Donate mode, who donate 5% of
winning tickets) will easily cover these as we scale.
Development is distributed amongst a talented team of individual contributors, 100% remote, using open source stacks where appropriate, self-organising and collaborating online - in fact we've been overwhelmed by offers to contribute technical skills - and take this opportunity to apologise to those still being vetted or awaiting projects. We're working on it!
Overall, it looks like a great concept. Good luck to all the participants!
Thanks! We hope other will also be inspired by this model and follow suit - building the next generation of gambling apps that put the power in the hands of players!