RaiseBet.Com Online Casino and Sportsbook website upgrade

GBA 573

Ernesto Gutierrez

Introduction

• Online Casino and Sportsbook affiliate of West Atlantic Gaming based in Antigua

• Trillion Dollar Gambling industry, 75% of revenues posted outside the U.S.

• Oligopoly competitive structure- product differentiation gives a competitive edge

• 7000 online casinos

Business Objective

• Upgrade RaiseBet.Com website to increase conversion rate or player sign up

• Add flash content like MajorBet.Com for example

Current Situation

• Website looks unappealing

• Upgrade the website to increase conversion rate from 5% to 10%

Critical Assumption and Constraints

• $ 120 profit/person/month

• Website marketing will drive 100 visitors to the website per month and add 5 new players/month

• Web developer labor cost of $50 per hour

• Current website host can support the new developments

Analysis of Option and Recommendation

• $600 increase in profit per month from 5 extra players converted

• $14,400 total cost for upgrade

• Break even in 24 months or 120 players

• Shorter break even if profits are used to drive more visitors to the website

Preliminary Project Requirements

• Casino back end is set up

• Available web developer with their own web development software

Budget Estimate

• $14,400 in labor cost

-$4,000 Project Design

-$4,400 Development

-$6,000 QA/Support/Interface

• No cost for Project Manager

Schedule Estimate

• 340 labor hours or 42.5 days

• 80 hours for Project Design

• 96 hours for Development

• 164 hours for QA/Support/Interface

Potential Risk• 90% 5 players added/month

• Assumption of $120 profit /player/month is partially true:

– 72%- $120/player/mo

– 9% - $12/player/mo- 20 yr break even point or 1200 players, not acceptable

– 9% -$0/player/month, -$14,400

• 10% no player increase/month

• -$14,400

Exhibits

Labor Labor Material Travel Other Cost HoursHour Cost Cost Cost Cost

1.1 Develop Functional Specifications 24 $50.00 $0.00 $0.00 $0.00 $1,200.00

1.2 Develop System Architecture 0 $0.00 $0.00 $0.00 $0.00 $0.00

1.3 Develop Preliminary Design Specification 8 $50.00 $0.00 $0.00 $0.00 $400.00

1.4 Develop Detailed Design Specifications 16 $50.00 $0.00 $0.00 $0.00 $800.00

1.5 Develop Acceptance Test Plan 8 $50.00 $0.00 $0.00 $0.00 $400.00 $4,000.00 80

2 Project Development 40 $50.00 $0.00 $0.00 $0.00 $2,000.00

2.1 Develop Components 40 $50.00 $0.00 $0.00 $0.00 $2,000.00

2.2 Procure Hardware 0 $0.00 $0.00 $0.00 $0.00 $0.00

2.3 Development Acceptance test Package

8 $0.00 $0.00 $0.00 $0.00 $0.00

2.4 Perform Unit/Integration Test 8 $50.00 $0.00 $0.00 $0.00 $400.00 $4,400.00 96

3 Install System 8 $50.00 $0.00 $0.00 $0.00 $400.00

4 Train Customers 0 $0.00 $0.00 $0.00 $0.00 $0.00

5 Perform Acceptance Test8 $50.00 $0.00 $0.00 $0.00 $400.00

6 Perform Post Project Review 0 $0.00 $0.00 $0.00 $0.00 $0.00

7 Provide Warranty Support40 $50.00 $0.00 $0.00 $0.00 $2,000.00

8 Archive Materials 4 $0.00 $0.00 $0.00 $0.00 $0.00

9 Project Management 40 $0.00 $0.00 $0.00 $0.00 $0.00

9.1 Customer Progress Meetings/Reports 0 $0.00 $0.00 $0.00 $0.00 $0.00

9.2 Internal Status Meetings/Reports 0 $0.00 $0.00 $0.00 $0.00 $0.00

9.3 Third-Party Vendor Interface 16 $50.00 $0.00 $0.00 $0.00 $800.00

9.4 Interface to Other Internal Agencies 16 $50.00 $0.00 $0.00 $0.00 $800.00

9.5 Configuration Management16 $50.00 $0.00 $0.00 $0.00 $800.00

9.6 Quality Assurance 16 $50.00 $0.00 $0.00 $0.00 $800.00 $6,000.00 1640 $0.00 $0.00 $0.00 $0.00 $0.00 0 $0.00 $0.00 $0.00 $0.00 $0.00

0 $0.00 $0.00 $0.00 $0.00 $0.00 0 $0.00 $0.00 $0.00 $0.00 $0.00

340.00 $0.00 $0.00 $0.00 $0.00 $14,400.00

Project Task Total per Task

1 Project Design

24 $50.00 $0.00 $0.00 $0.00 $1,200.00

Other:      

     Sub-Totals:

Risk (Contingency)TOTAL (scheduled)

     

Comments: (List assumptions for costs as appropriate.)      

I will be doing the Project Management at no cost. Software used has already been purchasedpreviously from old website development projects.