It struck us as odd and it seemed more odd the more we researched...
Many of us have been sucked in to network marketing schemes before. It might have been plastics, skin care products, investments or any other category of products. But, internet gaming and the financial transaction processing that goes along with it???? Okay, we're willing to listen.
A reader approached us about a recruitment letter from a company he called Cyber Space Gaming. He described it as "a pyramid scheme that uses multi-level marketing (MLM) to distribute a debit card to be used in gaming." Okay, we're still curious.
He pointed us to http://www.netwaymarketing.com so we took a peek and found some very interesting material both in print and in their audio segments.
Among the talk of downlines and multi-levels, we deciphered a system whereby people bring in others to hawk a debit card from the EuroTrust International Bank. This card would, in turn, be used to gamble on the internet with a portion of the "gross revenues" of the gambling operation going back to the person who signed that patron up. Interesting concept. But, it gets a little more confusing (and concerning) from there.
But, before we get too far along, let us give you some background on the company as noted on their website.
Netway Gaming Incorporated is a Nevada corporation which says they "utilize a Multimedia PC application which will allow the user to connect from anywhere in the world and gamble for real money as if he/she were live, in a casino." The company plans to offer all casino games currently being offered in Internet Casinos around the world. Several Internet Casino games are currently available and other games will be available as soon as the programs are completed.
They also plan to feature their own sports book. "An 800 number will be provided to members, so they can place sporting wagers offshore, or you may use your Netway Gaming Internet Connection and place their wagers on the Netway Gaming webSite. Daily odds and betting features will be available on the site. The sports book feature will contain all forms of sports wagering, horse racing, etc., currently available at Casinos around the world." In an audio file on the site, director Ken Kelley, notes that it will have an affiliation with Caesar's….a connection which is highly unlikely. If true, it would indeed be ground-breaking…..but, please!
The promotional materials continue to discuss the basics of the system. They say they'll utilize a "crypto logic security system for all transactions." Netway says their "Internet Casino will feature 3-D rendered graphics and animation. The program will utilize synthesized voices from dealers who will prompt the player throughout all stages of the game. The players will feel they have walked into one of the plushest, casinos in the world. In the very near future, Virtual Reality computer programs will ultimately allow their players the choice of playing tables, the number of players at the table and even to converse with the dealer and the other players." Hot stuff if they can make it happen. And, you know how MLM relies on the social nature of human animals….that's clearly reflected in the fact that "The Netway Player will be able to select the players they would like to play the game with, in other words, 'YOUR OWN - NETWAY CASINO PARTY'!"
From there, Netway officials jump into details on the debit card arrangement they have developed. It's a percentage deal where uplines who recruit Netway participants to sign up for the gaming services will receive a portion of the profits. The relationship is with EuroTrust International Bank, which according to MLM materials is located in Brazil. However, the materials also reference that the effort is being co-sponsored by two banks located in Sao Paulo SA (Banco Patente S.A. and B.B.A. Credit Amstall).
Nevertheless, here are the facts of the deal as quoted directly from the Netway site.
"From their Netway, participants in the EuroTrust International Marketing Program will be entitled to receive a portion of the total monthly gross revenue from NetWay Gaming Inc., in the form of an enhanced interest. This enhanced interest allocation will be based on the total average secured deposits on the credit cards
Divide proceeds to be distributed by total secured credit card deposits :
| Monthly proceeds to be distributed in accordance with marketing agreement | - $ 20,000,000.00* |
| Total secured credit card deposits | - $ 200,000,000.00 |
| $20,000.000 divided by $200,000.000 = $.10 Cents |
- These monthly proceeds will be determined by the marketing agreement between EuroTrust International Bank and NetWay Gaming Incorporated, and will be based on 20% of the total gross revenue of the NetWay Gaming WorldWide Casino. This 20% will be distributed to the NetWay Marketing Plan in the following percentages:
|
The disbursement of the 10 cents will be made as follows:
| Participant's deposit - | 30 % of 10 cents equals = | $ 3.0 cents |
| Participant's first level deposits - | 10 % of 10 cents equals = | $ 1.0 cents |
| Participant's second level deposits - | 10 % of 10 cents equals = | $ 1.0 cents |
| Participant's third level deposits - | 10 % of 10 cents equals = | $ 1.0 cents |
| Participant's forth level deposits - | 15 % of 10 cents equals = | $ 1.5 cents |
| Participant's fifth level deposits - | 25 % of 10 cents equals = | $ 2.5 cents |
| Total Disbursement: $ 10.0 cents |
The following is a example of Disbursement for one EuroTrust Marketing Member who introduced ten people and they introduced ten and they introduced 10 through five levels - This example has your deposit at $200 while the other participants have $100.00 each on deposit with EIB:
| Initial Deposit - | $200.00 X 3.0 cents equals | =$ 6.00 |
| First level deposits - | $1,000.00 X 1.0 cents equals | =$ 10.00 |
| Second level deposits - | $10,000.00 X 1.0 cents equals | = $ 100.00 |
| Third level deposits - | $100,000.00 X 1.0 cents equals | = $ 1,000.00 |
| Forth level deposits - | $1,000,000.00 X 1.5 cents equals | = $ 15,000.00 |
| Fifth level deposits - | $ 10,000,000.00 X 2.5 cents equals | = $250,000.00 |
| Total Disbursement for the above Example: $ 266,116.00 |
Now, don't forget the requisite disclaimer for this…..as expected, here it is.
The examples included in this Handout, are to be viewed as EXAMPLES only and cannot be considered actual, or expected, returns that you will receive. The results of your participation are based not only on your ability to attract people to the program, but also on the marketing agreement between EuroTrust International Bank and NetWay Gaming Incorporated. The amount of monthly enhanced interest received will vary per account, depending on each participants secured account balance, the monthly proceeds received by EuroTrust International Bank from NetWay Gaming Inc., and the card-holders participation in the EuroTrust International Marketing Program.
They even have the full agreement with EuroTrust online for all to see. For those who love the details of the deal, here's what Netway offers.
EUROTRUST INTERNATIONAL BANK SECURED CREDIT CARD
EUROTRUST INTERNATIONAL BANK - Has entered into a marketing agreement with NetWay Gaming Incorporated. EuroTrust International Bank will issue secured credit cards that will bear enhanced interest. To receive an enhanced interest return, the applicant must first apply for a secured credit card and be approved by EuroTrust International Bank. The applicant is required to maintain a minimum balance of $100.00 (Dollars) of security in his/her credit card account. Participants in the EuroTrust International Marketing Program may choose to deposit any amount more than $100.00 and they will earn an enhanced interest on those deposits. All applicants will have a credit limit that is equal to his/her initial credit deposit. The credit limit of any participant will increase upon request by the participant and approval of EuroTrust International Bank. Any person who applies for a secured credit card is immediately entered into the EuroTrust International Marketing Program and will receive an enhanced interest return on his/her credit account balance. The amount of interest received will vary per account depending on the account balance, the amount received by EuroTrust International Bank from NetWay Gaming Incorporated, and the card holders participation in the EuroTrust International Marketing Program.
Deposits and Fees required for Credit Card Issuance
All Secured Deposits will be made in US Currency - All Major Credit Cards Accepted -
- The EuroTrust International Bank Secured Credit Card is not available to individuals under the age of 18
Initial Secured Deposit of $100.00 Dollars:
- $100.00 initial deposit into the member's interest-bearing account.
A One-Time Application fee of $83.75 - Discounted to $75.00 if paid by cash or check:
Sign up bonus rewards - EuroTrust secured cardholders can receive sign up bonus rewards for introducing EuroTrust International Bank to others. These fees are credited to members secured credit card accounts.
| First level Bonus Reward | - earns him/her $25.00 dollars for each new EuroTrust approved credit card applicant. |
| Second level Bonus Reward | - earns him/her $10.00 dollars for each new EuroTrust approved credit card applicant. |
| Third level Bonus Reward | - earns him/her $ 5.00 dollars for each new EuroTrust approved credit card applicant. |
| Forth level Bonus Reward | - earns him/her $ 5.00 dollars for each new EuroTrust approved credit card applicant. |
| Fifth level Bonus Reward | - earns him/her $ 5.00 dollars for each new EuroTrust approved credit card applicant. |
SIGN UP BONUS REWARD EXAMPLE: Introduce the EuroTrust International Bank to 10 people who each market to 5 people Your Total Marketing Bonus would be = $39,500.00 (see example below)
| You introduce ten people on your 1st level | 10 times $25.00 equals $ 250.00 |
| Those 10 introduce 5 people each on your 2st level | 50 times$10.00 equals $ 500.00 |
| Those 50 introduce 5 people each on your 3nd level | 250 times $ 5.00 equals $1,250.00 |
| Those 250 introduce 5 people each on your 4rd level | 1250 times $ 5.00 equals $ 6,250.00 |
| Those 1250 introduce 5 people each on your 5th level | 6,250 times $ 5.00 equals $ 31,250.00 |
| Total Referral Fee Bonus - $39,500 |
As recently as late March, Netway was moving ahead with the development of this MLM scheme. They noted in an update that they had verbally agreed to purchasing casino software from a vendor "with all the new bells and whistles and will be upgraded as new technology is developed. The casino site will feature nine different game programs, they are: blackjack, poker, craps, roulette, baccarat, slot machines, hold em, video poker and pai gow poker." However, a check with the vendor they referenced noted that they had applied to get the software but were "turned down."
They added further that the Casino will be monitored and audited monthly by the International firm of Price Waterhouse. In an upcoming report, they plan to report the progress on their new VISA card number, Casino & Sports Book, checks by fax or Internet, Thursday night conference calls, fax on demand, genealogy software installation (what's that about????) and corporate phone numbers.
Geoff Bacino, portrayed on the site as Netway's Washington lobbyist, says he was asked to give info to their organization on a conference call March 9 but has no contract to represent them. He also adds that Ken Cory, who Bacino notes is a former Comptroller of the State of California and well known in financial circles, is apparently involved with the company. Indeed, Mr. Cory's name is listed on the site as being involved.
What concerns IGN is the naivete with which consumers might be drawn into this endeavor which may be risky not only from a financial but also a legal standpoint. The claims, as often happen in MLM schemes, can be outrageous. At one point, in an audio conference call on the site, the principals claim that some internet gaming sites are generating $80-$100 million/month. Boy, wouldn't that be nice!! While they also offer the caveat that this is in a beta test by a Toronto firm (likely referencing either Playstar or GalaxiWorld), these nuances are lost on all but the most educated about the industry. The Netway officials quote the projections of a "$10 billion industry" where Netway can certainly "control 20%-30%" of that industry. One can hear the dream of riches in the voices of the participants questioning the principals on this call.
Add to that the misinformation projected about recent criminal complaints among US citizens in the industry as well as poor data on the pending federal legislation and you have a recipe for problems among those who may buy in.
This especially true when you see the materials being distributed by the people in the network. Some of the items which caught our attention are:
WHERE ARE THE CASINO HEADQUARTERS?
The casino is registered in Las Vegas, Nevada. Corporate headquarters will also be located in Las Vegas.
IS INTERNET GAMING ILLEGAL?
No! Internet gaming is not illegal. If the casino is located outside of the United States it does not fall under US law. The online casinos which were recently shut down were operating illegally in the United States. The US Government is currently trying to figure out some way to regulate Internet gambling. However, the US would have to sell the idea of banning online gambling to the whole world and get the whole worlds support to do so. Most likely that will not occur.
WHERE WILL THE CASINO BE LOCATED?
The casino will be located in Antigua and the sport book in Costa Rica.
So, now, the mantra of Caveat Emptor or Buyer Beware, which has been a must in the internet gaming industry is now being stretched to its fullest.
And the MLM marketing begins.... take a look at this entry into Deja News.
For a look at the how this company's plan is being marketed by one of the promoters, you can see it at
http://www.junycorp.com/.