BitDice Casino Quarterly Report: Q3 2018 Part 1

Financial Results Q3 2018

During the third quarter (1 July — 30 September) of 2018, BitDice Casino earned a net operating profit of USD 245 239 or USD 0,00245 per CSNO token.

Distributable profit of 70% amounted to USD 171 668 or USD 0,00172 per CSNO token.

Profitability deteriorated during the quarter as the cryptocurrency market has remained weak and depressed by the continuing slump in alternative coins market.

Players activity also remained rather subdued, although margins improved decently and impacted results in a very positive way.

Product segment overview

A total of USD 91 585 116 was wagered throughout the third quarter of 2018, that was more than in the previous quarter in USD terms but less in the coin’s terms. BitDice continued to hold strong positions against the rest of competitors.

Comparing to an average quarterly wager of last year, the Q3 2018 wager continued to fall further for all cryptocurrencies, except for BlackJack with Dogecoin being played more often this time around.

Average bet size remained stable for Bitcoin but fell sharply for ETH and LTC as the market price for those coins collapsed further. For DOGE and CSNO tokens, the average bet has increased with more aggressive players participating in Dice and BlackJack games.

House gross income in terms of players lost best has totaled USD 327 689, and was almost split evenly between Dice and BlackJack. Slots have traditionally lagged behind. This is the first time BlackJack has gained significant traction will Dice game having slowed down.

In terms of margins, the picture has significantly improved. All the games across different segments and currencies have shown positive margins by far exceeding the average ones. CSNO was a huge outlier as an aggressive player pursued a high wager game until having lost a significant value of coins.

In USD terms, the margins also remained uptick. We always draw our investors’ attention to the fact that the margins above house average may have a temporary effect and is always a surprise factor for everyone.

Clients deposits saw minor slump across all the currencies, but significant outflow was registered in CSNO as probably many withdrew the coins before the dividend payout register day. LTC deposits saw bigger than average outflow too.

Running Costs

BitDice Casino seeks opportunities to minimize costs during prolonged bear market. In the third quarter of 2018, BitDice has incurred a total cost of USD 82 450, which was more than 10% less than in a quarter before. The cost structure remained typical with salaries being the major expense.

Balance Sheet

At the end of Q2 2018, assets of BitDice Casino slightly increased and amounted to USD 12 175 186 after dividend payouts.

At the end of the Q3 2018, assets decreased by roughly 20% due to a severe slump in the ETH asset prices and amounted to USD 9 814 992 before dividend distribution:

Annualized dividend yield in this quarter has lowered to 9,4%. The company did not perform any hedging activity and has been fully exposed to the market, including to ETH that unexpectedly lost big time during this quarter. BitDice believes that the crypto market will stabilize in the next few quarters but will be open to possibilities for hedging or selling some of its crypto exposure.

At the end of Q3 2018, Clients deposits with BitDice Casino amounted to USD 202 009

Distributable Profit

According to BitDice Casino profit distribution policy, every token holder that possesses a balance with a value greater than 1 is entitled to receive quarterly dividend, i.e., 70% of the net profit earned pro rata its holding.

As a result of its Q3 2018 economic activity, BitDice Casino earned net operating profit in amount of USD 245 239.

Effectively, the total profit of USD 245 239 is subject to 70% profit sharing among CSNO token holders.

Every token holder is entitled to receive USD 0,00172 per token (0,172 cents per token) or equivalent in ETH. Dividends will be paid out from the outstanding USD balance on the Casino’s book.

BitDice has made a snapshot of token holders as of September 30, 2018 and will distribute the dividends according to the list of CNSO token holders on September 30, 2018.