Internet Gaming Operator

LVFH – Introduction
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Publicly listed on the TSX.V and in USA on OTCBB
Entered the online gaming business in 1999
Developer, licensor, and operator
Started in poker and now diversifying into other
online gaming areas such as casino and bingo
Poker aggregator for small to midsize sportsbooks
and casinos
Small and focused internet gaming play with strong
growth potential
LVFH – Corporate Structure
LVFH
(Vancouver, Canada)
• Software Development Entity
100%
SUBSIDIARY
100%
SUBSIDIARY
100%
SUBSIDIARY
100%
SUBSIDIARY
Action Poker Gaming Inc.
(Antigua)
Action Commerce Limited
(UK)
APG Enterprises Limited
(Cyprus)
APG Enterprises Limited
(Armenia)
• Owner of Intellectual Property
• Licensed for Interactive Gaming
in Kahnawake
• Payment Processing Entity
• Merchant accounts with Visa,
Mastercard, Neteller, Firepay,
Citadel
• Operational Entity
• Responsible for customer
service, cashier and member
services
• Software development
entity
LVFH – Business Model
Internet Gaming Operator
• Sites: ActionPoker.com, TigerGaming.com,
PokerInCanada.com,
PlayVegasFromHome.com
• Competitors: PartyPoker.com,
PokerStars.com, 888.com
Turnkey Software / Services Licensor
• Currently 30 licensees
• Competitors: CryptoLogic, Tribecca
LVFH – Poker Operations
Action Poker Network
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100% ownership and control of Action Poker Network
Players from multiple poker sites compete in a single centralized
room removing the critical mass barrier of entry for smaller operators
LVFH – Poker Operations
www.tigergaming.com
www.actionpoker.com www.pokerincanada.com
• Owned and operated by Action Poker Gaming, Inc.
• Provide real money and fun money online poker
games and tournaments
• 100% of rake retained
• Currently account for approx. 70% of all Action
Poker Central Card Room room traffic and gross
rake
LVFH – Poker Operations
Advantages / Differentiators
• The lowest tournament buy-ins in the
industry from 6¢. A number of players won
seats to the World Series of Poker for 14¢.
• Aggressive promotions
• Land based casino partnerships
• Regional focus e.g., PokerInCanada.com
brand and tour
LVFH – Poker Operations
LVFH – Poker Operations
• Innovative first to market campaigns
e.g., .net in Canada
• Trusted Branding Partnerships
– LA Clippers partnership for
ActionPoker.com
–Toronto Blue Jays partnership for TigerGaming.com
LVFH – Casino Operations
www.PlayVegasFromHome.com
• Owned and operated by Action Poker
Gaming, Inc.
• Launched at the end of Q2 2005
• Shared wallet with poker operations
LVFH – Software Licensing
• http://www.ActionPokerNetwork.com
• Deal structures: Upfront license fee and
ongoing royalty % of gross rake
• License Fee: US$10K – US$100K
• Ongoing Royalty: 20% – 50% of the gross
rake
• Packages Include: customer service, payment
processing, gaming licensing, hosting,
website development and software branding
LVFH – Software Licensing
http://www.superiorpoker.com
Customer Service: [email protected]
Cashier: [email protected]
License Fee: US$30K
Ongoing Royalty: 30%
LVFH – Software Licensing
Advantages /
Differentiators
• Very few options for small to midsize
operators who are not large enough to
create critical mass in their own network
• Flexible licensing options including
completely stand alone rooms or hybrids
where operators still control banking and
customer data
LVFH – Software Licensing
LVFH – Recent Growth
• Closed CDN$8.1 million bought deal offering in May
2005
• Establishment of offices in Cyprus and Armenia
• Continued feature additions to poker offering
• Establishment of online casino offering
• Expanded licensing offering targeting small to midsize
casino and sportsbook operators
• 3 consecutive quarters of profitability and momentum
growing
LVFH – Growth Momentum
Recent Quarterly Financial Performance
$ 3,389,665
$ 3,500,000
$ 3,000,000
$ 2,684,624
$ 2,500,000
$ 2,084,056
$ 2,000,000
$ 1,500,000
$ 1,073,463
$ 1,000,000
$ 500,000
$ 503,032
$ 276,676
$ 282,979
$ 350,688
$ 364,729
$ 160,000
$ 515,857
$$ (500,000)
$ (458,379)
$ (429,508)
$ (530,878)
$ (1,000,000)
Q1 '04
Q2 '04
*Adjusted for non-recurring items
Q3 '04
Revenue
Q4 '04
Q1 '05
Q2 '05
Q3 '05
Net Income (Loss)*
• Continued strong growth anticipated through 2005
and 2006
LVFH – Recent Financials
LVFH – Recent Financials
LVFH – Future Growth
• Continued growth of poker and casino
operations
• Addition of bingo and skill games to product
offering
• Further expansion of development office in
Armenia
• Continued consolidation of small to midsize
operators into the Action Poker Network
• Diversification of product delivery medium into
mobile phones and interactive television
LVFH – Company Overview
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Listings - TSX.V: LVH, OTCBB: LVFHF
Closing Price Feb. 16th: CAD $0.33
Market Capitalization: CAD $30 million
Head Office: Vancouver, BC
Operations Office: Limassol, Cyprus
Development Office: Yerevan, Armenia
Total Employees: 80
http://www.lvfh.com
LVFH – Management and Board
Management Team
• Jake Kalpakian – President and CEO
• Bedo Kalpakian – CFO
• Vahe Baloulian – COO
• Nathan Damianos – VP Operations
Board of Directors
• Bedo H. Kalpakian – Chairman
• Jake H. Kalpakian – Director
• Neil Spellman – Director
• Gregory T. McFarlane – Director