The PBC product is a product that is developed to service play preference, channels to market and game types for the next 10 years. The refund mechanism will provide a safety net for the players, while still allowing strong profits for the founders of PBC. The uniqueness of the refund product will ensure extensive growth in player acquisition and the products on offer cater for changing attitudes to new products and channels.
In order to protect players from serious losses, acquire players more effectively and to increase overall player lifetime value, PBC intends to give all losses back to their players. A percentage of the losses will be paid into an annuity product (see Appendix 1) and the remainder can be taken as profit.
The financial viability of this new business model relies on how much the offer of 100% refunded losses will increase player lifetime value and what percentage increase will we see in player acquisition numbers.