We are writing today with an unfortunate update. We have decided to discontinue our crowdfunding campaign and swiftly refund 100% of your investment. We want to thank each and every one of you for your generous support. It has meant a lot to us to see the excitement build around our company over the last couple months.
This difficult decision comes on the heels of two sudden changes in the industry. As operators, we have inside insights into these unexpected changes and new regulations. We also see how they will be implemented and the impact they would have on the business. While there is always risk in investing, the changing landscape injects more uncertainty and risk than we are comfortable with.
In the interest of full transparency here are some of the changes that influenced our decision:
1. Adverse regulatory changes in several states including the removal of our license to operate in multiple major Northeast states and significant increases in taxes, fees and other costs.
2. Recent negative press and public backlash due to concerns of animal safety. This has caused the California state regulatory body to resign, and there is a good chance that California and other state legislatures across the country will introduce bills to restrict or end racing in their states in the near future. California alone represents about 25% of our business.
We have decided that the future for Derby Games is too uncertain with these sudden changes to accept any more outside investment. We plan to continue to operate the best we can, but with no infusion of cash it will be a difficult road.
We hope you understand why we made this decision, and that ultimately we believe the decision is in your best interest.
You may be wondering how this impacts you. What happens to my investment? 100% of your investment will be refunded in the form of payment you used. There is no need to request it. It will be done automatically. There will be no Crowd SAFE or any other security issued.
There are so many more opportunities to invest on Republic with great companies that are doing amazing things. We hope that you continue to invest in companies you believe in, and wish you great returns in the future!
The Derby Games Team