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Current Time:
01:31:29 (GMT)

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Volume:
3,303,417

Value Traded:
L$2,790,801.08

View Prospectus

General Details

Company: Montana's Poker Room (MPR)
Outstanding Shares: 30,000,000
Company Website:

Board of Directors

Chief Executive Officer: Montana Ryder
COO: Moana Carmona
Advisor: Leon Spice
VP of Property Management: Forda Fairlane
Advisor: Delicious Demar

Prospectus

CEO's Real Life Name: Private
CEO's Real Life Location: Private

Cash on Hand: L$250,000.00
Land Owned: 83,154m2
Land Value: L$16.00/m2
Net Tangible Assets: L$1,580,464.00

Monthly Income: L$863,000.00
Monthly Expenses: L$470,000.00

Chairman's Letter

Dear Investor,

The IPO of Montana’s Poker Room (MPR) presents a unique opportunity to be involved with one of the most active and established market sectors of Second Life (SL) – gaming – and purchase an equity position in one of the most well-known and established brands in that industry.

Simply put, “Montana’s” is one of the most well-known poker houses in Second Life, and you have a unique opportunity to own a piece of the action.

Through solid management, and careful planning, MPR has seen incredible growth in over the last three months even while most poker rooms stagnate and flounder. MPR plans to expand even further and grab a stronger foothold on this market.

Everyday new poker rooms start up and fail, while our strategy has increased profits and the player base. We would like to invite investors to get a share of the poker business, without having to personally open another Casino/poker room and risk failing.

Best,

Montana Ryder

Business Overview

Montana’s Poker Room (MPR) operates a full-service poker house offering cash and tournament Texas Hold ‘em poker games to Second Life Residents. We also have a profitable real estate holding division, and are in strategic partnerships with businesses developing products for the SL gaming industry.

MPR enjoys a “top tier” standing in the market sector and is ranked as one of the top three poker operators in Second Life in terms of market share. Our estimates place our market share at 25% of overall gaming operations (and growing).

Our successful operations model allows for a fully-staffed gaming floor running games 24/7 using the current industry-standard VGA 2.0 gaming platform. We are in strategic partnership arrangements with companies developing the next generation of gaming platforms for SL and will upgrade as needed to maintain a best practices standard of gaming quality. Long-term strategies call for partnerships to develop other popular gaming options to complement the Hold ‘em games, such as Hi-Lo, Omaha, Pineapple, and other commonly played games in online poker.

MPR has enjoyed tremendous growth since company founding, particularly in the 1st Q of 2007. This is in part due to the rapid growth of residents in SL in general and in part due to capture of market share through the creation of unique and proprietary gaming options, and sales and service models.

MPR is the creator and sole owner of the strongest tournament brand in Second Life, the Montana’s Poker Series™ (MPS). This prestige event is extremely popular in the SL poker community, currently has no competition in the marketplace, is a very profitable source of revenue, and has spun off a new, and successful supporting brand, the MPS Circuit Series™. If you want to make a name for yourself as a true “player” in the SL poker community, doing well in the MPS is a must.

Through strategic partnerships, MPR was involved with the development of the recently released Realtime Poker HUD™, a subscription-based information management system that allows poker players to see a real-time status of what games are being spread at subscribing poker rooms at any given time from anywhere within Second Life. It is rapidly becoming the best practices industry standard poker Hud in SL.

This IPO is being offered, in part, to fund our ability to manage infrastructure and staffing needs in the face of such rapid growth in the SL Poker community. MPR’s business model has been successful due to many factors:

An increase in the overall market sector in conjunction with the dramatic explosion of the overall SL resident community (now over 4,000,000 million residents).

Constantly increasing growth of market share month-over-month due to a motivated, strong, experienced, and well-trained sales and customer service staff focused on growing the player base
The ability to operate a true wager-based online poker experience that provides a quality level of play for serious poker players limited in their ability to play wager-based poker in the face of restrictions to online gambling in the United States

A focused marketing strategy on developing a quality gaming experience for European poker players in their native tongues (with particular emphasis on the rapidly expanding Francophone market segment of SL)

A diversifying business portfolio starting with an SL tried-and-true real estate holding and management operation that provides a profitable and constant revenue stream independent of time of day or other fluctuations in gaming operations.

To date all profits have been reinvested into diversifying the holdings of MPR, with primary emphasis on expanding real state holdings in more popular and high-traffic regions. With the looming advent of a correction in the real state marketplace, we believe this initial strategy remains sound as revenue is generated from rents, as opposed to appreciation of equity.

Our plan is to expand our marketing operations, reinvest in poker operations to maintain scalability with growth in overall market and our market share, expand our land holdings, and further diversify the corporate holdings into minority equity positions in solid companies in both the gaming and non-gaming markets.

Business Strategy

MPR’s business focus is on managed growth to deliver the highest return on equity (ROE) for shareholders. A generous dividend goal of 80% is planned for investors, but we believe with solid management and strategic planning, increased share price should be achieved through vigilant focus on ROE.

Using a best practices business operations model and a corporate philosophy of exemplary customer service, we plan to continue our growth in market share through maintenance of a program of stringent hiring, training, and monitoring of player experience to ensure the highest caliber of product offering in the industry.

We will use increased capital to fund an aggressive marketing plan to grow the MPR and MPS brands, as well as develop new brands, and gaming opportunities for our customers. With experience running the premier poker tournament series in SL, we are confident that we can build on past successes.

We will expand our gaming operations on a managed growth model to ensure scalability necessary to maintain our very high quality assurance standards.
We will use increased capital to diversify our holdings to develop a steady non-gaming revenue stream to hedge against any fluctuations in market stability or growth.

Business Strengths

One of the most trusted names in SL poker, a very valuable name brand, as well as knowledgeable management staff who is highly motivated toward success. Offering cutting edge events and technology that all helps create a very loyal player base as well as a high repeat customer ratio.


MPR is to-date a market-tested and proven commodity.

MPR enjoys a “top tier” position in the SL Gaming Industry, being one of the most trusted names in SL Poker and one of its strongest brands.

MPR is the creator and sole owner of the most recognized, and played, “prestige” tournaments in Second Life – the Montana Poker Series™, and its spin-off, the MPS Circuit Series™.

MPR has seen consistent month-over-month increase in player base, and market share using a proprietary best practices model of hiring, staffing, training, and monitoring of customer experience. This has resulted in a high customer retention rate, as well as an influx of new customers.

MPR enjoys having on its board and executive team members with solid real world credentials in coding, marketing, business management, risk management, and poker.

MPR utilizes industry standard best-practices technologies in delivering game play, uses cutting edge technologies to improve the customer experience (i.e. the Realtime Poker Hud™), and has strategic partnerships to develop the next generation of playing platforms, games, events, and business methodologies within SL.

Market Overview

MPR currently holds 25% share of the total poker room market. With 300 tables currently available from VGA games, our major direct competition is limited to 3 other poker rooms. Some indirect competition does exist in the market, but is very minimal.

The current market capacity as of this posting is 3,000 available seats at VGA 2.0 tables, with some smaller competitors and emerging competitors adding capacity.

Market trends indicate capacity is poised to double, if not triple in coming weeks, not months as emerging products currently in development enter the market.

MPR estimates it holds 25% of the current total poker market.

Our direct competition is limited to four other poker rooms:

Myths Poker House – they have a slightly larger market share, but do not currently offer a regular tournament series, ranked tournament series, nor a real-time user-defined poker HUD. Myths is a strong, and recognized brand; we feel we compete well against them in our simulation management protocols (reduction of “lag”), product offering (the prestige and established MPS and MPS Circuit in addition to cash and tournament table games), technology (Realtime Poker HUD), management team, and best practices customer service protocols.

Four Deuces Poker House – we enjoy a larger market share than the Four Deuces, and have a stronger brand name. They spread cash and tournament games, and run the first-past-the post ranked tournament series in Second Life, as well as other specialty gaming options. They are subscribing to the Realtime Poker HUD. They do not currently offer a regular tournament series. The Four Deuces is a strong, but slightly less recognized brand. We feel with our larger market share, our being the first publicly-offered poker company, our management team, and operations structure, as well as an aggressive marketing strategy, we can increase our market share over the Four Deuces.

Scores Poker House – while another established poker operation in SL, they have consistently maintained an even smaller market share, and do not currently offer a regular tournament series, ranked tournament series, nor a real-time user-defined poker HUD. Due to our overall market position and growth, we do not feel that they pose significant pressure on our market share.

Zanetti Poker House – they are newer, less established, and have a small but loyal market share. They do offer a regular tournament series, but it is still new and untested in the market. They offer a ranked tournament series, and are subscribing to the Realtime Poker HUD. Due to our overall market position and growth, we do not feel that they pose significant pressure on our market share.

There are numerous other smaller poker operations, but as they have been coming into and out-of existence with rapid frequency, and collectively their entirety represents only a minor fraction of the overall market, we feel their impact to be minimal, if not slightly beneficial by bringing in additional players into the market through other channels.

Use of Capital

purchase cost of 4 islands:

tier on 1 island for 3 months:

Salaries for 3 months:

Programming:

Advertising:

Risk Factors

MPR believes the primary risk to investors are external forces outside the operations model of the company.

These forces are risk to:

• infrastructure (downtime to operations due to the activities of Linden Labs),

• interruption or interference with operations due to simulation factors (lag, “griefing”, etc…),

• market volatility (the stability of the foreign exchange (fx) risk due to market management by Linden Labs),

• and regulatory risks (some of the operations exist in areas where regulatory constraints have yet to be fully determined).

It is important to note that in our assessment these risks are borne equally by all entities in this market sector, and should any one of them affect the profitability or ROE of MPR, the initial effects would be felt by all businesses in this class.

In short, while these factors exist to present risk to investors, the operations of MPR are no more or less risky than other businesses in this class.

MPR employs a strategic risk management approach to mitigate these factors:

• Infrastructure risk is inherent in SL, and is borne equally by all market sectors operating solely
“in-world”. MPR will retain this risk.

• Operations interruption risks are one area where MPR believes we have a competitive advantage to other operators in this sector due to a comprehensive strategy involving simulation design, land management, and “rapid response”.

MPR employs a team of “top tier” scripters, coders, and designers with a strong “real world” pedigree to employ best practices standards in simulation design and management, with an eye of reducing the amount of data (prims) needed to create a quality environment.

• MPR is employing a strict best practices model of land management in adjacent properties to mitigate and minimize external simulations affecting company operations; this is analogous to creating enforceable “noise pollution” standards on adjacent properties.

• MPR retains a team of professional coders on staff and in-world as a “rapid response team” to diagnose, mitigate, and correct any issues affecting operations due to “lag”, or “griefing”.

• Market volatility is a risk inherent in all SL operations, meaning that the stock price could go up and down based on the changes in price between Linden Dollars and other foreign currencies. Investors are advised to review market history on the Linden Exchange to assess this risk. We feel that fx risk has been well managed by Linden Labs, and currency price has remained stable over the short and mid-term.

• MPR has the ability to manage this risk with adjustments to pricing

• As well, with any growth operation or industry, there are inherent, and unforeseeable risks affecting stock price due to market factors. Your stock value could go up or down.

• Finally, regulatory risk is a real factor with gaming operations, as there has been no clear decision in the US market as to how poker in Second Life relates to other on-line poker operations under restrictions by the US Dept. of Justice (DOJ). This risk is again borne by all operators in this market class, as well as supporting companies, and should a regulatory decision affect MPR operations, it would be shared by the entire market class. It is the position of MPR that, as all business is conducted solely in Linden Dollars, and per the Terms of Service (TOS) Linden Dollars have no real value, are not guaranteed convertible, an are merely a representative share in intellectual property rights, we are operating in compliance with applicable regulatory constraints.

MPR will of course, comply with any and all applicable regulatory jurisdictions as well as the Second Life TOS.

As the gaming sector of SL is very well established, the poker market segment within that sector well established, and MPR being a tested, growing, and profitable concern within that market sector, internal risk is relatively limited as MPR enjoys a high customer retention rate, and maintains diversified and diversifying holdings.


Management

CEO: Montana Ryder
Montana Ryder has a single purpose in SL ,to build a successful profitable business. Since the initial seed of about 250,000L she has grown the business to 370k in profit per month within three months and expect to double that growth in the next 30 - 60 days.

COO: Moana Carmona
From day on Moana Carmona has maintain a poker room that welcomes repeat customers with a loyal player base. Always striving to find and make all players welcome and happy with the experience they find at MPR. Moana is set on building up the SL poker base to compare to any other online site, and having the tables and room to seat them at all hours of the day.

VP of Property Management: Forda Fairlane
Forda Fairlane took Second Life by the horns and went full speed ahead from day one. In the short time that she has been in SL, she has become a business entrepreneur who has built up 2 large clothing stores with her own line of quality clothing. She also has a thriving professional portrait studio where she combines her real life professional photography skills within the world of Second Life.



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