Here is the article published by The Shrink------
BET CAMELOT NEEDS A WHITE KNIGHT ARMED WITH CASH
Written February 25, 2002 by The Shrink
As if the ACES GOLD fiasco is not bad enough, another sports book is experiencing severe financial problems. If someone does not come to BET CAMELOT?s assistance immediately, more gamblers are going to be slow-paid, and then ultimately stiffed.
Well-liked by gamblers, Mark Del recently has struggled to keep Camelot afloat.
The Prescription is sad to report this story, but feels obligated to keep players aware of the situation.
After learning of Camelot's depleted funds and slow payout situation, The Prescription waited a week with this report in the hope another sports book would step in to either buy or merge with the fledgling bet-shop.
Camelot, with a decent player-base and good reputation, should have been a solid candidate for a buyout. Mark did contact many sportsbooks last week to ask for help, and there were interested parties, however the Aces situation has made sports book owners gun-shy about further investing or expanding operations. Unfortunately, Mark may have asked for help too late.
Starting today, people can expect to be slow-paid by Camelot. After dipping into post-up money months ago, a succession of bad months quickly chipped away at this reserve.
Although Camelot has some funds, most of them are tied up in various floats such as PayPal, Western Union, NETeller and with its credit card processor. Mark has stressed he will do everything to continue operations and pay all players.
However, my estimation is that it's simply a matter of days before Camelot's fairytale ride will end. The current run on the bank simply will cause slow payments to become no payments in short time.
Once again, the TRUST of gamblers has been compromised as another sports book tumbles down a path to destruction. To a gambler who only wants his money, the reasoning is ultimately moot; but let's explore it.
I believe the reason Camelot is experiencing financial problems is similar to the Aces situation: mismanagement and excessive bonuses.
When I interviewed Mark, he said, "I first dipped into the post-up monies in either late October or November. I knew it was wrong, but I had no other choice."
He cited "wise guys" as the main reason for his cash flow problems.
However, when I reminded Mark he could have turned down "sharper" money, he did not offer any plausible reason for continuing the practice. Underscoring the necessity for a reversal in his thinking was the fact that he consistently was losing that battle.
Mark limited the amount of money he would accept from "wise guys," but apparently not enough.
Mark revealed he also believes the Aces situation caused a run on his own bank. Most of the sports books with which I spoke said it is normal for people to withdraw money after the Super Bowl. Apparently, Camelot's margin was too thin to survive that seasonal occurrence.
Initial under-capitalization (a half-million dollars to open and operate Camelot), then failure to act quickly, are other factors I believe contributed to Camelot?s hardship. In this case, it was not a bad person who led to the downfall; just bad decisions.
With a healthy, active player-base, Camelot does have worth. The question now becomes a matter of valuation to a prospective buyer.
Camelot's post-up and payout liabilities on paper total only $900,000. Its operating costs are said to be about $50,000 per month. Although licensed in Belize, Camelot relocated to Kahnawake, Quebec, several months ago and is in the process of moving to new, nearby office space this week.
Camelot has a current active player-base of 300 to 400 gamblers. Its total player-base is much higher.
The owner says, "I believe we can survive with a cash infusion of $250,000, but $500,000 would be better, of course."
If someone does not step up soon, another sports book will soon be out of business.
One big difference between Aces and Camelot lies in the fact that Camelot is coming clean and asking for help, whereas Aces decided to elope with players' money. Mark did ask that I keep this story under wraps for two more days, however the financial situation is so dire that I made the decision to inform gamblers in order to limit further exposure.
Those interested in talking with Camelot can call Mark at 1-888-668-9886.
