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Fantasy sports are growing at an even faster rate in the UK than in the US. All over Europe, people have grown up with newspaper versions of fantasy sports, where fans would mail in their team of the week and the newspaper would publish where the fans finished in the standings. Today, that model has moved online in different countries throughout Europe. Anyone in the US with a half-decent website and a half-decent staff can build a daily fantasy sports site.
This is part of the reason why we are seeing so many new entrants into daily fantasy sports marketplace. When we were building Mondogoal, of course we were focusing on soccer, and realised the importance of being based in Europe. We made a strategic decision very early on to base our company the Isle of Man. Our servers are housed there, our banking and accounting operations are based there, and two of our directors are based there as well.
Because we made the strategic decision to base Mondogoal in a European territory, that allowed us to pursue a gaming license in the Great Britain includes England, Wales and Scotland, but not Northern Ireland , and it eventually sets us up to tackle the European market. A US or any non-European entity will have great difficulty going after the same license, as it would have to set up an entirely new company in the Great Britain before even thinking about applying for a gaming license.
Given the way the European Union is structured, one might think that you could go and get a gaming license that would allow a company do business all over the EU, but gaming licenses are a matter of domestic law and we have to take a country-by-country approach. Italy, Spain, France, and Germany, amongst others are pretty tightly regulated. So, in Italy for example, rather than pursuing our own costly and time-consuming gaming license, we have decided to partner with a company that already has a license.
The biggest problem in Brazil right now is that the market is not as developed as far as people using the Internet in general and credit card penetration is a lot lower as well. In order to get a gaming license, there is a rigorous vetting process from reporting processes to setting up player protection features where our users can set monthly limits for themselves.
Before entering the British market, we first needed to get a license in the Isle of Man. The Isle of Man Gambling Supervision Commission does such a rigorous job of vetting applications, and we submitted a page business plan as part of the process. When we built our platform, our time to market was initially slowed by an intense focus on becoming operational in Europe.
That said, the Isle of Man Gambling Supervision Commission told us that we were the fastest-approved new gaming license in the history of the island. The Isle of Man license was recognised in the Great Britain until very recently, but a new law went into effect on 1 November called the Gambling Licensing and Advertising Act , which requires companies wanting to remain in the British market to secure a license from the Gambling Commission.
The Gambling Commission told us they were extremely pleased with our diligence and thoroughness in the Isle of Man, and as a result, they were quickly able to grant our British license. Thus, we are focused on making sure we do things by the book and adhere to our licensing requirements.
Daniel also has twenty years of experience working in international law throughout Europe, and he has been our point person in working with the commissions in both Great Britain and in the Isle of Man. First, the US market is very different than the Great Britain in this respect. When you do a deal in the US, there are typically revenue sharing arrangements where the individual team is required to share the net proceeds with the rest of the clubs in the league. With regards to image rights specifically, each league has its own regulations.
While, in Italy and Spain, we have been asked to show a minimum of five players not just three. One of the great things about working with multiple teams from our perspective is that in some cases, what works well in one market or for one team, may not work well in another market.
In general, though, what works with one club usually works with all clubs. Right now, our focus is on the top tier of the English Premier League. It takes us the same amount of time to produce landing pages, banners, and all kinds of other marketing assets for a big team as it does for a small team. We have found that the smaller clubs can move faster and still activate large fan bases. The key for us is to educate the British audience.
The response we get in Britain has been overwhelmingly positive once the concept of daily fantasy sports is explained. However, after meeting with us they realised that if activated correctly, they could end up making enough from the partnership to pay their entire front office costs. I think Twitter, for better or for worse, is not a great vehicle for Mondogoal right now. The United States has a long history of gambling regulation.
Congress passed the Anti-Lottery Act in prohibiting the transport of lottery-related materials across state lines. Congress passed the Bradley Act in with three goals in mind :. The Bradley act came after states began to consider legalized sports betting to increase tax revenue.
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