Opportunities in iGaming

iGaming Entrepreneur Conference
Opportunities
in iGaming
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2
WELCOME
CONTENTS
The appetite for investment in iGaming startups is at an all-time high.
Angel investors, venture capitalist, incubators and accelerators are
all seeking opportunities in the sector following recent licensure and
regulation. However, for an industry outsider, finding investment
opportunities has been a difficult task.
Likewise, entrepreneurs in iGaming want to find investors outside the
2 Thank you sponsors
3
Welcome
traditional realm of other successfully exited iGaming entrepreneurs,
and have found it difficult to identify the right angel investors or
the right individuals in large VCs who understand the massive
opportunities in iGaming.
That is what prompted us to launch the iGaming Entrepreneurs
Conference and prepare investor opportunity bundles like this
4-5
Anakatech
6-7
Asylum Labs
8-9
BlockEx
one. We want to get interested investors in front of exciting
entrepreneurial opportunities.
Looking back at the dotcom venture capital fairs, and the similar
difficulties they helped entrepreneurs and investors overcome, we
are hoping to nurture a symbiotic ecosystem between investors
and projects that will create a cycle of investment, growth and
development in the iGaming sector.
Thank you for being part of our vision, and thank you for recognizing
the outstanding individuals, ideas, projects and opportunities iGaming
can bring.
10-11
FastFantasy
12-13
Game Miles
14-15
Greenzorro
16-17
Hatchasia
18-19
Highlight Games
20-21
MachoPoker
22-23
Mowjow AB
24-25
NYLV Sports
26-27
Pariplay Ltd
28-29
Player Index
30-31
RankingHero
32-33
Sportego
34-35
Sportito
36-37
WantMyBet
Michael Caselli
Publisher & Editor In Chief
iGaming Business
3
ENTREPRENEURS
Anakatech LTD
Established 2010 by 4 partners - 2 are active in the
company as CEO and CTO and 2 are investors.
Anakatech (www.anakatech.com) is a software provider for
the iLottery and iGaming industry, specializing in scratch
games, instant win games and slots.
The Anakatech group headquarter and Operations is in the
center of Sofia, Bulgaria and R&D, Marketing, CRM services
and Data analytics in Tel-Aviv, IL (www.netomedia.com). The
group has 95employees in total in both locations.
The Anakatech Group holds a B2B Maltese license (Class 4)
and is B2C license ready (Class 1/4).
What do we provide and where do we operate?
The Anakatech Group provides and offers a turnkey solution
of soft gambling services to its Igaming and Ilottery partners –
from game syndication services, through white label solutions,
to full turnkey gambling solutions.
Our Games can be provided for PC and mobile in state of the
art HTML5 versions for syndication.
The group was developed to have several revenue streams;
B2C (currently active through its clients), National Ilottery
B2B (In negotiation with 1 EU client), and B2B Html5 games
4
syndication (launched 1 month ago and in negotiation with
several potential partners and large content distributors).
Currently, the Group serves 1 clients with 3 online brands
running (web and mobile).
Those 3 brands currently operate mainly in Europe (They
are not operating in USA or UK markets due to regulation
procedures).
An additional new client, which the group has signed an
agreement with, is holding a curacao license.
Business Performance
Looking forward:
1) Become a large B2B games syndication supplier (Mobile and
Web) of HTML5 scratch and slots.
2) Vary our game offering through increasing our game studio
output and integrating selected games from 3rd party
providers.
3) Develop regulated UK, Maltese and Curacao self-managed
brands to generate B2C business and profitability through
regulated markets.
4) Have an advanced and fully developed backend iGaming
platform catering software & white labels to the iGaming
industry.
5) Leverage on our marketing and operational capabilities to
enter the more traditional casino areas.
6) Create i-Lottery partnerships of our software games and
services to a governmental lottery in EU and USA. (Like the
Michigan Lottery).
B2B Partnership
What do we need?
The company is currently profitable
and self-sustaining, investing most of
its capital in its intellectual property
Via R&D.
We are looking for a strategic
investment in order to speed up our
growth path.
Additional capital will allow us to
advance our strategic goals faster
and shorten the time to market of
several of our revenue generating
projects.
5
ENTREPRENEURS
Asylum Labs
ASYLUM LABS
Asylum Labs is a mobile game developer focused on
creating true multiplayer games for both free-to-play
and real-money channels. AL brings innovation in both
gameplay, technology and the definition of “social” itself.
Our proprietary ArcLight Platform enables the company
(and any B2B partners) to develop games quickly with
advanced social features.
Corporate overview
Website
www.asylumlabsinc.com
Market
Mobile Social Casino & iGaming
Market size
150B
Stage
Seed, lead by William Hill
Seeking
500K USD
Tractiton
2 games shipped, main product Wild Party Bingo
WPB ARPDAU
0.09
0.08
0.07
0.06
0.05
0.04
0.03
0.02
0.01
0
Month 0
6
Month 3
Month 5
Month 8
Month 12
Traction on Wild Party Bingo
DAU / MAU
7,000 / 40,000
ARPDAU
09 USD
Platforms
iOS, Android, Yahoo, Facebook, Amazon
ARPPU
$36.00 USD
Total Players
320,000
Gross Annual Rev
250k USD
Shipped
Lucky Ace Slots, Wild Party Bingo
The Problem
• Current ‘Social’ Casino games lack innovation, and have no true social functionality. They are just not very SOCIAL.
• Rising UA costs mean Retention is more important than ever.
• Most Social Casino offerings lack ‘real world’ rewards.
• Multiplatform development still difficult and expensive; even more so for cutting-edge social features.
The Asylum Labs Solution
• Our games are “truly social”, meaning deep
focus on player-to-player interactions.
• Social 2.0 delivers strong retention through
a focus on community.
• We offer a variety of real-world rewards
making the games more like real ‘gambling’.
• ArcLight Universal Platform delivers true
Social Casino games quickly and costeffectively.
Jason Kaehler,
CEO
[email protected]
831.427.9904
7
ENTREPRENEURS
BlockEx Digital Asset Exchange Platform
Blockex (Digital Asset eXchange Platform) is a multiasset trading platform, built for next generation assets
allowing retail trading firms, institutions and governments
to trade and issue digital assets. The Blockex DAXP is
protocol agnostic and able to interact with all digital asset
frameworks (Credits, Ethereum, Bitcoin, etc).
BlockEx’ financial services leverage the partnerships required
to execute our core business. Providing our clients with
access to BlockEx’s vast network of banking partners, CSPs,
as well as legal and regulatory experts. BlockEx clients
include governments, institutions and trading firms requiring
consultancy on asset creation, institutional trading and trading
software integration.
Delivering both technology and services BlockEx as the
trusted authority with regulators, traders and trading firms as
well as providing access to the very best digital assets as they
become available.
Built to be regulator-friendly with compliant business
processes, BlockEx self-regulates where regulation does not
exist and works with regulators where it does. We are focused
on becoming the Trusted Authority in the new financial world,
powered by distributed ledger and cryptographic-based
securities.
Milestones to date achieved:
• Xstock.io proof of concept launched
• Approval from CSSF in Luxembourg to operate without a
license.
• Processing partnership with Secure Trading.
• Secured first brand partnerships.
• Agreed to terms with first Financial Services client.
Primary Use Cases (examples not limited to)
• Governments or Institutions looking to issue asset backed
tokens or cryptocurrencies in an effective and compliant
manner.
• Institutions looking to run algo/hft via API only.
• Brokerages looking to run retail trading digital asset exchange
• Federated KYC (B2B, B2G)
Product Offering
BlockEx Pooled Liquidity Exchange, a lighting quick HFT
matching engine built to meet the needs of traditional
banking institutions and retail trading firms. Its pooled liquidity
matching engine provides trading firms access to an active
trading environment at any level of required volumes.
8
With a fiat and digital asset clearing and
settlement system, E-wallet infrastructure and banking
partners, Fiat and Digital Assets are secure and easily
accessible.
Technology
•
•
•
•
•
•
•
•
•
•
•
•
HFT Matching engine
Deep institutional and Blockchain integrations.
Fiat and Digital Security Clearing and Escrow Management
E-Wallet
Copy/ Social Trading option
Robust Back Office
Federated KYC (B2B and B2C)
API based to allow for fast 3rd party integrations.
Data Feeds
FIX integrations est. Q1 2016
Leverage trading est. Q1 2016
White Label Introducing Broker package
BlockEx’ financial services leverage the
partnerships required to execute our core business.
Providing BlockEx clients with access to its vast network of
banking partners, CSPs, as well as legal and regulatory
experts. BlockEx clients include, governments, institutions
and trading firms requiring consultancy on asset creation,
institutional trading and trading software integration.
• Digital Asset Consulting
• Asset creation, trading and regulatory consultation.
• Banking and PSP introductions.
Revenue Streams
· A
PI Trading (Market Makers, Institutional Traders,
other exchanges)
· Trading Fees (Retail BlockexMarkets
· High margin consulting
· Federated KYC
· Data Sales
· Market Making
· Cross exchange arbitrage
Revenue from brokerage
partners (white Labels)
·
·
·
·
Set-up fees
Revenue share on trading
Payment Processing (rev share with PSP partners)
Forex arbitrage on payments
What is a Digital Asset?
A digital asset can be a cryptocurrency, or digital security i.e. smart
contract or smart bond it can also be an asset backed token.
A digital asset can be defined in many ways. Blockex
considers any object created on top of a blockchain or
distributed ledger technology to be a digital asset. This is not a
legal definition but part of a branding effort to move attention
away from the reputational risk of “Bitcoin”
Where we sit in the value Chain.
We are:
A technology platform combining:
• HFT exchange platform
• Tools for leverage and advanced order types
• API access for institutions.
Examples
Digital Currency
Bitcoin, Litecoin
Asset Backed Token
DigiX (gold backed token)
Smart Contract
UBS Smart Bond
Government Use Case
Isle of Man land company
registry, Honduras Land
Registry
Digital Asset Frameworks
Bitcoin, Credits, Etherium
Founders
•
•
•
•
•
Federated KYC for B2B, B2C & B2G
E-Wallet
Data feeds
Integrated 3rd party frameworks for asset creation
Brokerage provider
We offer consultancy for institutions and governments on:
• Asset creation
• Asset sales
• Regulation/Compliance
We are regulator friendly. We will be THE Trusted Authority
We are not:
• A Digital Asset framework
• Digital Asset framework dependent.
• A digital currency wallet
• A payment processor
Company Structure
Investment Opportunity
Convertible Bridge Loan
- $1,500,000
- Cap on series A of $9,300,000
- 8% Interested
- Yearly Terms 1-3 Years
- 15% Discount rate on conversion
- Preemption Rights
- 6
times liquidation preference.
(You will receive a min 6 times your investment
from total combination of dividends, royalties
and or liquidation event)
Royalty & Dividends
Dividends will be paid equally Pro-rata with founders
and other share-holders. Dividend will be paid once the
company becomes profitable.
Adam Leonard, CEO
With 20 years of marketing and technology
experience, Adam has been active in the B2B
sector of the eGaming space since 2003. Currently
running consultancy for Digital Currency, Fintech,and
financial Services businesses with a focus on ad-tech,
payments and regulation.
Christian Papathanasiou, CTO
One of the world’s foremost cyber-security
experts, Christian worked previously as an SVP for
Citigroup Global Markets where he was responsible
for securing the architecture of mission critical
applications like Citi FX Velocity.
Aleks Nowak, COO
Immersed in the crypto-currency space since 2011
having worked on numerous alternative currency
projects, Aleks now sits on numerous high level
Digital-currency working groups focused on the
regulation of Digital-currencies.
Ben Robinson
10 years building and managing successful sales
teams, with responsibility for delivering ambitious
P&L budgets in technology and media sectors.
9
ENTREPRENEURS
FastFantasy
FastFantasy is an innovative new US & UK-based daily
fantasy sport (DFS) platform, built for B2C and B2B2C in
regulated and pre-regulated markets, via mobile, retail &
online channels.
1717 Pennsylvania Ave NW, Suite 650, Washington DC 20006
Our games are offered as multiple/accumulator formats (in full US legal compliance) enabling players’ action in top-tier global
sports (football, basketball, cricket, rugby) & national sports markets (American football, baseball, hockey), down to the smallest,
limited area markets and niche sports. At the root is our proprietary platform, built to serve the unique risk management &
market making needs of “data-composite”, real-money sports gaming. Our games offer margins >30% (compared to < 7% margins
of FanDuel & DraftKings), giving us far greater partnering & revenue-sharing opportunities in the rapid-regulating US market
and beyond. FastFantasy is a venture-backed startup, with Raptor Group (James Pallotta, owner AS ROMA & co-owner BOSTON
CELTICS) and Denham Capital as lead investors.
Our Team
Corporate overview
Joe Brennan Jr. Chief Executive Officer, Chairman;
IMEGA, AOL, Nextel
Sector
Fantasy, eSports, Betting
Market
CY’15 = $3.7bn; CY’20 = $17.7bn
Melissa Blau Chief Financial Officer, President;
Hard Rock, Tropicana, DE Lottery
Minimum
Investment
$50,000
Valuation
$20,000,000
Investment
Round
Series A
Joseph Bunevith Chief Operating Officer;
BetAmerica, DeucesCracked
Catherine Jung Chief Software Architect;
BodogAsia, Victor Chandler, Merrill Lynch
Ian Parkins Senior Software Engineer;
The Guardian, BodogAsia, The National Strategies
Larry Everling VP of Marketing;
Comcast, Ogilvy, Fleishman-Hillard, AOL, Nextel
10
Market Analysis
FastFantasy has opportunities as both a B2C operator and
a B2B2C provider, to regulated gaming firms (lottery, casino,
racing, sports book), media companies, and consumer brands
looking to use sports gaming to drive customer engagement.
Fantasy Sports are “data-composite” propositions utilizing
athletes’ statistics to create scoring formulae, determining
which athlete exhibited better performance in a given
sport (football, cricket, American football, baseball, etc).
Due to federal laws in the US that prohibit regulated sports
betting in all but four states, fantasy sports have become
the most popular way for fans to participate in real-money
sports gaming. The four major professional North American
sports leagues (NFL, NBA, MLB, NHL) have varying degrees
of ownership and partnership with a growing number of
operators. However, opportunities in international markets
have only begun to be contemplated.In its core market, daily
fantasy sports have seen recent explosive growth:
• 4000% growth in four years (Eilers Research)
• Total stakes CY2015 = $3.7bn, expected to grow to $17.7bn
by CY2020 (Eilers Research)
• 56 million fantasy sports players in US & Canada; $467 per
person spend (Forbes)
• 66% male, 44% female; avg. age = 34
(Fantasy Sport Trade Assoc.)
Business/Opportunity
FastFantasy is built with the now rapidly-regulating US market in
mind, to establish a competitive advantage over current market
leaders by offering games that excel in ring-fenced, limitedsized state & local markets. By employing multiple/accumulator
formats offering fantasy scoring-based propositions by sport,
and backing our own financial risk, we provide partners and
players action from the very first customer into the game. This
is in contrast with the tournament-based, pool & rake model
employees by firms like FanDuel & DraftKings, which must have
a borderless, free market to generate sufficient liquidity and
critical mass to be able to run their games. Given enormous
acquisition costs driven by traditional media spend, prize pool
subsidies to fill out guaranteed tourney prizes, and high churn
Financial Projections
Year
rates among casual players, the existing leaders will find it hard
to pivot into these markets, further hindered by their partners
in the professional leagues and their strict rules against
gambling investments.
Our proprietary platform (patent pending) enables us
to make markets and manage risk across a host of popular
sports, both global & national. It also enables us to make
markets in niche sports and activities where it is difficult to
generate any critical mass & liquidity to support the
DraftKings/FanDuel models.
Unique Attributes
• Fully compliant with Federal requirements for fantasy games
• Quick pick games appeal to broader market
• High margins compared to FanDuel/DraftKings
(>30% compared to 7%)
• Multi-channel, available to mobile, online, retail and API
• No overlay or dependance on tournaments to drive liquidity
• Only DFS format easily portable to international markets
Milestones
• F
urther development of unique platform games,
including in-game formats
• E
xpansion into regulated international markets
(UK, AUS, ITA)
• Licensing & compliance in regulated US markets
• L
ocalization of mobile, online channels for
international markets
Revenue
Investment Information
2016
$50.0m
• S
eries A: seeking $5 million on $20 million valuation
• S
eed round raised $850,000 to $4.0 million post-
2017
$98.1m
valuation
• Convertible debt-to-equity
2018
$141.3m
Exit
M&A with leading DFS firm,
gaming corp, licensed bookmaker,
media company; IPO
Joe Brennan Jr: [email protected]
Melissa Blau: [email protected]
11
ENTREPRENEURS
GameMiles
We are a highly-experienced team of gaming industry
professionals that continue to bridge the gap between
two large and rapidly growing industries; loyalty reward
programs and online gaming. Loyalty miles/points is already
the largest currency in the world,and is growing at an
average of 10% per yearIt’s growth increases exponentially
each year because top airlines sell massive amounts of
currency to credit card companies.
Online gaming generates over US$40 billion internationally. In the
US alone, experts predict a $7 billion market for online gaming
will develop as early as 2017, as a result of recently enacted
legislation, the introduction of new gaming verticals, and a strong
perceived market demand. GameMiles’ goal is to be the first
and only gaming destination for frequent flyers and other loyalty
members to play their favorite games with their rewards currency.
GameMiles’ state of the art, proprietary technology, as well as
our first-mover advantage, has situated our business strongly
in this nascent market. By developing strong relationships with
Senior Team
Gonzalo de los Rios, CEO, a 15-year executive from
the gaming industry, including expertise in online
poker, bingo, sportbooks and casinos. Gonzalo studied
Finance and Business Administration at the University of
California, Berkeley, and holds a Masters in Economics
from the University of San Francisco.
Marcelo Paladini, Chairman and President, is an
innovative and award-winning entrepreneur, and former
co-founder and CEO of a top US payment processor.
Gian Perroni, COO, an iGaming executive with 18 years
of online experience, including gaming site operations
and affiliate program direction and management with
expertise in both online and traditional marketing.
Evelyn Bertolucci, Sales and Marketing, an executive with
over 12 years of experience in the loyalty marketing and
gaming industry.
Chris Anderson, CFO, a finance executive with 20 years
of professional experience in the technology, banking and
software sectors.
12
airlines and gaming sites and demonstrating the value that is
waiting to be unlocked in flyers’ unused airline miles, we have
positioned ourselves as the link between rewards programs
and online gaming, and we provide online gamers with access
to a large e-wallet that was previously restricted.
Founded in 2013, GMN Holdings, Ltd. (“GameMiles”), and its
subsidiary company Miles & Points Entertainment, Ltd., (“MPE”),
offer the first-ever solution designed to connect loyalty reward
programs offered by airlines, hotels, and credit card companies
to the igaming industry operators. Frequent flyers and other
reward program members have the opportunity to use their
miles and points as cash to play games at their preferred
gaming sites or at a customized loyalty program gaming portal,
or to purchase and play their favorite game titles.
Our business comprises two distinct, complimentary
business models:
(i) White Label
Branded Site: Using our proprietary gaming platform, players
can utilize their loyalty program miles/points currency to play
social, skill, arcade or casino games to win more miles and
exciting prizes at our white labeled gaming site.
Game Store: Game Miles is launching a new online game
store that will facilitate the purchase of games through the
use of loyalty currencies. These games will be provided by
download or direct shipping depending on the titles, and the
site will also offer in-app purchases, game-play currency sales,
peripherals and game systems.
Game publishers include the biggest and best in the industry,
including EA Sports, Sony, Paramount, Bethesda, Sega and
hundreds of others, and the game store will feature thousands
of unique titles.
Loyalty clients will be able to provide their members with
the opportunity to obtain these games using their loyalty
currencies; either through a direct integration of our games
library onto their own loyalty program site, through a custom
branded website, or by using their loyalty currency directly on
our own branded GameMiles.com website.
(ii) Gaming Network
For players that want to play at their preferred gaming sites,
the GameMiles website is an exchange platform that converts
miles and points into real cash deposits at the most renowned
online gaming sites in the world, where members can covert
their miles to credits to play they favorite games.
In this way, gaming operators benefit from solving two main
difficulties the industry faces today:
1) Member acquisition
Gaming operators will openly receive new members, especially
some that never deposited their own money in this industry
but are willing to use their miles as deposits to play the games.
2) Increase player value
Gaming operators will see an increase in the amount spent per
member, now that they have a new wallet to tap into. When
members run out of cash they can access their miles balance t
GMN has a knowledgeable Advisory Board with high experience
in both industries;Loyalty and Gaming.
Market Conditions
The loyalty program and gaming industries are both strong
markets and are poised for significant, continued growth. The
timing to bridge the gap between these two industries is ideal.
Loyalty Providers
With more than 200 programs, airlines hold 325 million
members, hotels present more than 195 million with a 37%
growth rate since 2006, and the banking industry has 420M
members with an 80% growth rate since 2006.
The entire loyalty industry has a experienced a 10% annual
growth rate, so every year we see new programs in different
industries, including supermarkets, beverage companies, retail
stores, payment methods, ecommerce providers, coffee shops,
and more..
Our Competitive Advantages
Our solutions provide a significant technological advantage
over other market competitors. The following list represents
a few of the more significant technological and business
differentiators that not only provides barriers of entry to
others, but also provide us with significant shareholder value:
• Customized Platform – We own our gaming platform and
source code software
• D
eveloped strong loyalty industry relationships, including
significant brand awareness of GameMiles
• Long track record in the gaming industry
• Already integrated with multiple loyalty partners (Airlines and
third party software providers).
Clients And Partners
We have already signed several major partner contracts
and continued making significant progress in our sales
pipeline, including programs of British Airways, Iberia,
United, Air France, Avianca, AirBaltic, Alitalia, Choice Hotels,
LAN, Etihad, amongst others.
Financial Summary
We have a goal to partner with the top 15 to 20
global loyalty providers by Y4, representing a market
penetration of 10% worldwide. Net revenue projections
are estimated to be $26 million by Y4. The company is
on track and anticipates to reach a break even monthly
cash flow in 2016.
The Offering
The primary purpose for additional investment capital is to
scale our existing core platforms and expand into regions
where gambling regulations permit the use of digital
currency for gaming purposes.
Offering Amount:
Terms:
Closing Date:
US$ 250,000 notes of GMN Holdings,
Ltd. Up to a max of US$500,000
Convertible notes. 15% discount.
6M CAP.
Anticipated closing date November
30th, 2015.
Gonzalo De los Rios
CEO - GMN Holdings, Ltd
[email protected]
M: +1 415-225-6104
13
ENTREPRENEURS
Greenzorro
Greenzorro is an innovative casino and sports betting
operator that combines gambling with investing in an
integrated platform to minimize players’ losses. Players
can enjoy the thrill and upside while being protected from
the downside as Greenzorro transfers all players net
gambling losses in individual investment accounts.
Executive Summary
Players can select from a variety of investment
Investment Information
portfolios to allocate their funds or cash out immediately,
Company name
Greenzorro Ltd (UK)
depending on their risk appetite, and make returns.
Sector
Online Casino
& Sports Betting
Investment amount
$1,000,000 (£650,000)
Pre-money valuation
$5,000,000
launch operations in a few test markets before scaling up.
Equity offered
20%
Market Analysis
Expected close
January 2016
Current round
Seed
Type of investment
Equity
Greenzorro aspires to return from 40% up to 90% of
players’ losses, while allowing them to keep all winnings.
Greenzorro makes money by charging fees on the invested
amounts. The company after completing several key
milestones, is now raising its second round of funding to
Greenzorro is a B2C business that will initially focus
on the casino and sports betting verticals. The initial
target markets will be Europe and Canada, starting with
Sweden and UK and gradually expanding into additional
markets with an approximate size of US $12 Billion. In
a later stage (post 2018), Greenzorro will expand into
other geographies and verticals like horse racing, poker
Uses of Funds
Platform Launch & Operation
27%
to large ticket players (‘whales’).
Marketing Costs
19%
The Business and Opportunity
Staffing
(Development, Marketing & Support)
39%
Other Operational Costs
15%
etc. Regarding client segments, due to its business
model, Greenzorro is expected to be more attractive
Opportunity
Greenzorro’s business model is unique as
it addresses the key pain point of the industry head
on. Prospective user surveys and deep dive interviews
have shown that the concept excites players’ and is
Mechanics
telling of imminent very high adoption rates with very
The mechanics of Greenzorro work as follows: At the end of each
low customer acquisition cost. As Greenzorro is
month, Greenzorro sums all players’ wins and losses across all
now on seed stage about to launch its product, it is
games and credits the net losses minus Greenzorro OPEX in
a great opportunity to join an innovative, industry
newly investment accounts that are owned and controlled by the
disrupting company early on, and benefit from
players. With this mechanism, up to 90% of players losses can be
its success.
returned, subject to hold period and portfolio choice.
14
Financial Projections
US$ Millions
2016
2017
2018
2020
2022
2025
5
15
60
250
480
829
0.1%
0.2%
0.4%
1.6%
2.8%
4.2%
Gambling Net Income
3
8
30
125
240
415
Cumulative Invested Amount
2
7
28
155
421
963
Net Income (Investment)
0
0.1
0.3
5.2
15
34
Revenues
MS % in addressable Market
US$1 Billion valuation at 30x net income
Technology
Greenzorro will initially launch its casino and sports betting
platform through a white label solution while integrating with
interviews has shown that 80% of players are interested and
excited to play upon launch (also supported by sign-ups)
- D
ue to its unique concept, Greenzorro has already achieved
the investment platform. The software for the investment side
a very low customer acquisition cost (in pre-launch sign
of the business will be developed in partnership with existing
ups), and only a fraction of what is typical in the industry.
Fintech software providers to leverage existing systems. The
integration with the gambling component will be done in
house and before the product launch (expected Q2 of 2016).
Expected growth
Greenzorro is expected to grow very fast post launch
due to two factors:
- C
onsumer research in the form of surveys and deep dive
Akis Stark:
[email protected]
Alex Chatzieleftheriou:
[email protected]
About the team
Alex Chatzieleftheriou: Alex has been working as a
Samsung group, including Samsung Securities and
strategy consultant for McKinsey for 7 years where he
Samsung Ventures. He then joined RPX, a company
worked mainly in finance (PE, IBs) and in operations
investing in patent acquisitions and management, where
practices, before moving to Samsung under the chairman’s
he was responsible for M&A activities, partnerships and
strategy group. He has also founded a start-up in the
fundraising. Michael holds an MBA from Chicago Booth and
vacation rental space that has successfully raised seed
a BA in Economics from Duke.
funding and is now at US 1.5M revenue run rate in 2.5
years of existence. Alex is also a gambling enthusiast. Alex
Akis Stark: Akis has been working for Google in Strategy,
holds and MBA from INSEAD and and MSc in Decision
Sales and Operations, before moving to Samsung under
Sciences from Athens University
the chairman’s strategy group, where he has been leading
transformational projects for a number of group affiliates.
Michael Gill: Michael has been working with Blackrock
He has started Weingrow partners, a private investment
where he was responsible for portfolio construction and
vehicle that has invested in various start-ups, as well as
management, before moving to Samsung’s strategy group,
initiated a land based casino project in S.Korea under a
where he led the finance group and was responsible
JV with the Korean government. Akis holds and MBA from
for formulating the strategy of financial affiliates of the
INSEAD and an MSc in Engineering from Imperial College.
15
ENTREPRENEURS
Hatchasia
Hatchasia, Inc. is an IT and business process management
services (IT-BPM) company based in the Philippines,
specializing in the iGaming space. The Philippines, as a leading
global provider of outsourced services, is known for quality
service delivery at competitive rates. Hatchasia has access to
the ecosystem in the Philippines and Asia to enable iGaming
companies to outsource their non-core work.
3F Bonifacio Technology Center,31st Street corner 2nd
Avenue,Bonifacio Global City, Taguig, Philippines 1634
Executive Summary
Hatchasia is presently a subsidiary of DFNN, Inc. a listed
technology company on the Philippine stock exchange
(PSE:DFNN). As a result of the paradigm shift of its parent
company towards gaming, licensing and sports betting
operations in 2010, Hatchasia also followed suit in 2014 by
partnering with an investor group with deep experience and
networks in the Asian gaming industry.
With the positive growth prospects of the global online
gaming sector, coupled with the tremendous uptake in the
Philippine domestic gaming sector in recent years, the timing
is right to realize Hatchasia’s potential as a niche player and
provider of back office support services to the Asian and global
gaming industry. Building the capabilities as a provider will
allow Hatch to eventually expand into other regulated gaming
verticals such as owning its own iGaming outlets.
Market Analysis
iGaming Business Process Management
The target market is B2B, iGaming companies that require back
office support services such as technical support, customer
service, software development, graphics and animation,
database and website maintenance, software testing and
certification, and payments solutions.
The global online gambling market will continue its doubledigit growth. According to Marketline, iGaming revenues were
US$27bn in 2010 and are projected to hit US$58bn by 2018. 1
European gaming companies currently operating in the
Philippines, but focused on internal shared services work
include Playtech and William Hill Shared Services. Both
companies each have over 1,000 employees at their respective
facilities. Betsson has over 150 employees doing customer
service for their various clients.
Land based iGaming Outlets
Additionally, Hatchasia is building strategically located,
nationwide iGaming outlets which caters to local gaming patrons
and provides a scalable test bed for gaming technologies in
e-bingo, e-casino, virtual sports, sports betting and others.
16
Summary Data
Sector
IT-Business Process Management
Services for iGaming, Philippine
land based iGaming outlets
Required
Investment
$10 million
Enterprise Value
$18.7 million
Investment Round:
20%
Expected close
2nd Round
In the Philippines, analysts forecast that the gaming market
will grow by 15 to 20% p.a. over the next 3 years and will
become a US$4.8bn market by 2017. 3
The Business and Opportunity
Hatchasia is a business process management company
based in the Philippines and is focused in the iGaming space.
The Philippines, as a leading global provider of outsourced
services, is known for quality service delivery at competitive
The Team
The executive management team is headed by an
experienced Filipino IT-BPM executive with over 15 years of
experience together with Japanese, Taiwanese and Korean
IT and gaming professionals with over 30 years of combined
experience in the Asian iGaming market.
The CEO, Mr. Ron Arambulo, who has close links with the
DFNN group being a former director DFNN. Prior to joining
he was formerly the Vice President and General Manager of
ePerformax Contact Centers, Finance & Accounting Service
Delivery Director at Accenture, and more recently, the
Executive Director for Finance and Shared Services at the
IT-Business Process Association Philippines (IBPAP).
rates. Hatchasia has access to the ecosystem in the
Philippines and Asia to enable iGaming companies to
outsource their non-core work.
Hatchasia is presently a subsidiary of DFNN, Inc. a listed
technology company on the Philippine stock exchange
(PSE:DFNN). As a result of the paradigm shift of its parent
company towards gaming, licensing and sports betting
operations in 2010, Hatchasia also followed suit in 2014 by
partnering with an investor group with deep experience and
networks in the Asian gaming industry.
and hopes to engage in a public listing in 2017, the first
Philippine company in this niche sector to do so.
Milestones
The company’s key milestones over the next 3 years are to
achieve the following:
• Obtain a First Cagayan license by Q2 2016
• Grow iGaming BPO revenues 5x by 2017
• Provide funding opportunities and an exit strategy to
investors by listing on the Philippine Stock Exchange by
Q2 2017
• Create iGaming services presence in Japan, Korea, China
and major ASEAN countries from the Philippines by 2018
• Increase wholly owned land based iGaming in the
Philippines by 1,000 EGMs in 2017 and to 2,000 EGMs
by 2018
Unique Attributes
Hatchasia is a subsidiary of DFNN, Inc. a holding
company listed on the Philippines Stock Exchange (PSE: DFNN).
DFNN is the owner of several gaming licenses to operate
within the Philippines. Hatchasia provides customer service
support to DFNNs electronic gaming machine
(EGM) product with a growing network of approximately
1,300 EGMs in 75 locations nationwide.
Hatchasia uses gaming specific software and can include
turnkey implementations, website development, digital
marketing, software development, testing and proofing and
other non-voice work such as e-wallet and payment processing
and technical support. It has the flexibility to take on other
support work that its clients may require.
Hatchasia aims to be a niche player and provider of back
office support services to the Asian and global gaming industry
including First Cagayan Leisure Resorts Corporation (FCLRC)
designated locations facing international jurisdictions.
Building the capabilities as a provider, will allow Hatchasia
to expand into other regulated gaming verticals such as
owning iGaming outlets which caters to local gaming patrons
and provides a scalable test bed for gaming technologies in
e-bingo, e-casino, virtual sports, sports betting and others.
Investment Information
Hatchasia estimates its minimum Enterprise Value at
US$18.7 million, using an average EV/EBITDA multiple of 8. 5
Hatchasia seeks to raise up to US$10 million. US$5.0
million would be used to invest in growing its operational
capacity and diversify technology platforms to service
more clients outside the Philippines. US$5.0 million would
be used towards growing the base of EGMs and iGaming
outlets across the Philippine market.
The company is open to negotiating the investment
approach and deal structure with potential investors
depending on mutually agreed investment objectives.
The company is open to an investment via equity or
convertible notes.
Financial Projections
The company expects to deliver US$2.5 million in new
business from current and pipeline customers translating
to EBITDA of US$1.3 million in 2015 and net profit of
roughly US$834,000. By 2016 4 the company will be
introducing gaming related revenues from local and
foreign gaming operations to complement its IT-BPM
revenues and will contribute to 38% of revenues by 2017.
Gross margins are expected to be higher than the IT-BPM
industry average due to the higher premiums charged and
corresponding skill sets and jurisdictional compliance
required for this highly regulated industry.
In terms of possible exit strategies for investors, by the
end of 2016 Hatchasia will have met the minimum criteria
to list on the Second Board of the Philippine Stock Exchange
Ron Arambulo
President & CEO, Hatchasia, Inc.
[email protected]
+63 2956 7777
+63 9175 975755
1
‘Global Online Gambling’, MarketLine
(February 2015); H2 Gambling Capital;
‘Online Gaming Should Continue
Its Winning Streak in 2015’, Dundee
Capital Markets (January 2015)
4
No taxes payable in 2015
and 2016 as the company has
net operating loss carry over
(NOLCO) from prior years that will
offset profits.
3
‘ Philippine Gaming the Better
Alternative’, Macquarie Research
(January 2015)
5
Morgan Stanley Global Gaming Report,
March 2015, Morgan Stanley Playtech
Limited, July 2013
17
ENTREPRENEURS
Highlight Games
Highlight has developed a unique, proprietary protected
virtual wagering product applicable to every major sports
league around the world that integrates real play archived
sports footage.
Highlight’s B2B products can be sold by all gaming
companies, lotteries, social and fantasy sports operators,
both online/mobile, retail and social using its worldwide
sports league footage.
Game link
Partners
http://youtu.be/dpUyMh8tcNI
Highlights
One of gaming’s world leading global distributors estimates
Highlight Games’ programs (excluding VLT and FOBT sales)
can generate £300m annually worldwide in GGY, with
Highlight realizing £60 million in licensing fees.
Deal negotiations concluded with Tier 1 bookmaker for
launch of ‘Flashback Footy’, Q1 2016.
Significant interest from a number of the leading
bookmakers for both online/mobile and retail opportunities.
Significant interest from a leading machine manufacturer for
retail deployment into several UK bookmakers and worldwide.
China: Highlight have concluded terms to launch Flashback
Footy in 2016 with established China partner. Potential initial
income to HG £20,000+ per day.
Overview
Formed in 2014, Highlight is both a game developer and
Financial Projections
2016
Profitable
2019
EBITA £20+m
2019
Cumulative Cash Balance £32.7m
media acquisition company, formed by former gaming COO
and a Senior Sports Producer.
Founders dedicated to creating unique and proprietary high
volume, high frequency programs across all gaming sectors.
Initially targeting online/mobile and retail gaming within the
multi £billion global sports betting market. Plus, Highlight’s
programs are applicable to all gaming verticals - Retail/ FOBT,
Slots, VLT, Virtual around the world.
18
Target Opportunities:
UK / Italy & Global
Focus:
Online / Mobile & Retail
Intelectual Property:
UK, U.S. and PCT patent filings in place.
Why Invest In Highlight Games?
The existing virtual games market is buoyant generating
€1.2b+ in Italy alone in the last 12 months and €3b+ globally.
Huge amounts of money are being spent in the existing
Don’t just take our word for it, key industry
experts have said the following:
Industry quotes:
market, deploying ‘PlayStation’ type “cartoon” animation
‘’Your game is genius’’
graphics to achieve lifelike images. What Highlight bring to
- European gaming regulator.
the multi-billion Virtual market is “Reality” - what players
want to see is the REAL thing. Real players, real teams, real
‘’Your game puts the soul back into virtual’’
commentary. Highlight with their IP protected products create
a new gaming event from compiling archive sports footage.
Players can bet on the outcome of the events created in
exactly the same way as sportsbook players bet on live games.
Our findings indicate that Highlights products appeal to
those betting on the live game, so before, during and after
the live sports events, players have the opportunity to play
Flashback Sports and bet on action featuring the same two
teams. Playable on demand 24/7, Highlights products gives
players choice of what teams to select, and the option to play
on mobile, online or in retail.
Key Deliverables In 2016.
• Go live with Tier 1 UK Bookmaker, then Italy, China and
secure other deals with gaming partners.
• Securing rights & developing games with target sports
- Product Manager, UK Tier 1 bookmaker.
‘’Best new sports game I have seen in years’’
- Senior Executive, UK Tier 1 bookmaker.
Investment Information
£1.5m equity investment plus participating secured debt
offering of £1.5 for rights acquisition.
This start-up round of investment will launch Highlight
programs within multiple venues and worldwide sports.
The investment in combination with the IP protection
puts Highlight in the position to acquire key worldwide
sports rights and exploit opportunities in Europe, Asia
and beyond with our gaming partners.
leagues around the world.
• Ensuring global development and distribution strategic
partnerships concluded and in place.
Tim Green,
Managing Director,
[email protected],
+44 7799 004 371
Stewart Whittle,
Director,
[email protected],
+44 7743 479 056
Disclaimer
This preliminary information has been prepared by Highlight Games for information purposes to assist the recipient in deciding whether to proceed with further analysis
of a potential transaction relating to the Company. The information set out herein is preliminary and should not be relied upon for any purpose. None of the Company, its
directors, employees or associates makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein and
such parties shall not have, to the fullest extent permitted by law, any liability for the information contained herein or any omissions there from or for any reliance that any
party may seek to place upon such information..
19
ENTREPRENEURS
MachoPoker: Marketing Investment
for Proven Social Gaming Brand
MachoPoker, a regional free-to-play social gaming brand
with 8 years of successful operations, featuring crossplatform casino and poker games, is looking for USD$3.9M
marketing investment over three years to expand its
operation internationally on MachoPoker.com.
What is MachoPoker?
MachoPoker’s own prize-driven, free-to-play tournaments are
unique in the sector, and have created a social gaming room
where players can actually win prizes while playing for free.
This approach has brought notable returns on any marketing
investment into operations in Hungary and the brand is
prepared to capitalize on the local success to go global with
the product. Community content has been built over years of
experience in managing the portal, connecting players to the
game through regular events like tournaments, competitions,
bonuses, news, multimedia content, and social features. As a
freemium app, revenues are generated from optional in-app
purchases of virtual chips and VIP subscriptions with a solid 4%
conversion to deposits.
The success of the business
You can rely on the local success of the portal, which is
supported by an experienced management and development
team, who keep it fresh with new features, platforms, and
built-in marketing, promotional, and administrative tools. The
marketing and creative teams have been promoting the game
effectively on social channels and through affiliates, using
our robust back-office system to analyze data when running
campaigns, fine-tuning bonuses, focusing on selected player
pools with targeted messages, and in general maximizing
the efficiency of player acquisitions and conversions. This
combined know-how has resulted in amazing ROI that can be
increased even further on an international scale.
Market potential
MachoPoker is posed to claim its stake in the rapidly emerging
B2C social gaming market for fun-mode social casino games
with your marketing investment. Facebook applications like
Zynga Poker paved the way for a revolution in online gaming
on Facebook, and more recently mobile markets, with online
20
real-money operators, software providers, and brick-andmortar casino groups making massive investments (ex:
Doubledown, Slotomania, MyVegas, WSOP) towards social
gaming expansions. With the loosening of gaming regulations
in the United States, there is an enormous market potential. As
Superdata’s research shows, the social casino market is valued
at US$4.40 billion in 2015 and projections of Transparency
Market Research until 2019 place market value at $17.40
billion, growing at a robust CAGR of 16.1%.
Competitive advantages
With investment into MachoPoker.com, your entry into the
international social gaming market is immediate, with a proven
product. There is a true scarcity of social gaming apps that
offer real benefits to players in the form of legal prizes, so
MachoPoker is almost singularly unique by using this model.
Also, the “Macho” theme of the portal is a niche, since the only
two similarly positioned products in this space, Playboy and
UFC, have both closed shop. Stable brand partnerships will be
created through our affiliate system, which allows us to work
with a whole range of marketing and media partners, sponsors,
or brands, with exact tracking and monitoring of the results.
Marketing plan
MachoPoker plans to use its marketing know-how to effectively
spend the investment by promoting the game on international
markets, mainly focusing on the U.S., Australia, and Europe.
Marketing channels will include advertising on Facebook,
Android Marketplace, Play Store, Apple Store, and Amazon app
stores, alongside standard online and mobile performancebased campaigns, SEO strategies, integration to game
aggregators, and affiliate partnerships, as well as sponsorships
with key entities. A significant part of the marketing spend
(~20%) will go towards weekly prizes in a range of tournaments
and competitions.
Investment
Revenue
Profit
ROI
Year 1
$1,300,00
$1,722,000
$422,000
32%
Year 2
$1,300,00
$2,798,250
$1,498,250
115%
Year 3
$1,300,00
$3,134,578
$1,834,578
141%
TOTAL
$3,754,828
$4,000,000
Investment
$3,000,000
Revenue
Profit
$2,000,000
$1,000,000
$0
Year 1
Year 2
Investment breakdown
The marketing investment, set at $3.9 M in this example,
is broken into three annual investment rounds of $1.3 M,
consisting of marketing costs ($1M), prize budget ($250,000),
and operational/management costs ($50,000). On our
current brand, top depositors have lifetimes of over three
years, continuously generating revenues based on the initial
marketing spend. Based on our data from the past three years,
using conservative estimates due to economies of scale and
different player costs vs player values, we project incremental
ROI’s for each successive year of the investment – 32%, 115%,
and 141% respectively, an average ROI of 96% for the entire
period, with a projected IRR of 44%. The table and graph above
show the annual Profit and Revenue calculations, with software
licensing costs (30% of revenues) already deducted from totals.
Gábor Dán
CEO
[email protected]
+36-70-452-2510
Year 3
Interested in owning your
own social gaming software?
Please contact us is you wish to own the technology and
build your own gaming operation. The offer includes
an entire portfolio of poker and casino games – multiplayer texas hold’em poker and single player slots games
and video poker variants, as well as casino and poker
tournament systems – on a multi-player gaming network,
and the source code for the entire system behind the
games – game servers, Flash and Unity front-ends,
databases, back-office systems, websites, admin sites and
all designs. The system has been running for 10 years,
with several major revisions and upgrades, continuously
expanded and fine-tuned through ongoing operations.
The technology allows for immediate entry into the
social gaming market through B2B and/or B2C strategies.
We have built the system with a multi-partner approach
and architecture entwining all levels of the product from
custom app deployment and skinning, to localization,
affiliate partnerships, user registration and ownership,
payment processing, player liquidity, back-office
management and data monitoring.
21
Mowjow
Logos
ENTREPRENEURS
Logo mark
Mowjow AB
Word mark (used alone)
The picture quiz where it pays to be smart.
We’re offering a great opportunity to take a stake in the
booming mobile gaming market in a unique pre-IPO
Series B funding before listing at Nasdaq OMX First North.
Word mark
Executive Summary
We have created “The Ultimate Prize Quiz”, a unique skilledbased picture quiz on all devices with prize and cash
tournaments in 30+ languages. With a tremendous potential
ahead and 500,000 beta rounds played, we are ready for
Summary Data
Company
MOWJOW AB
Sector
Skill based quiz with prize
and cash tournaments
Business Model
Freemium Business Model
Investment
€1m
Enterprise Value
€10m
Investment Round
Seed II - Commercial Launch
commercial launch and is now seeking additional seed funding.
A concept with a difference
Mowjow
players can enjoy
all the fun of a delightful picture quiz
Combination
mark
with stunning imagery from Getty Images while also being able
to challenge friends or play prize and cash tournaments.
With great prizes in gadgets, escapes and even cars there will
be something for everyone. Add life-changing money jackpots
of €100,000 and €1 million into the mixer and you start to see
why everyone’s will rush to inject a bit of Mowjow into their life.
We have combined the best from the traditional quiz with
the thrill that comes from playing for real prizes. Add a playerfriendly freemium business model and a greatly rewarding
crowd marketing concept, and the experience is new in the
world of quizzing.
The proprietary gaming platform utilises the latest
Icon mark
technologies
such as asynchronous processing and
document and graph databases. This foundation enables
agility and versatility in serving the connected and social
lifestyle of the players.
We are also bringing a fresh and intelligent approach to our
crowd marketing concept that innovates they way players being
rewarded for engaging and sharing.
Welcome to a huge market
The world has transitioned to a mobile way of life. With
billions of consumers growing thirsty for mobile games, we aim
to seize a benchmark opportunity in the popular trivia segment.
We appeal to a broad audience and position ourselves
22
at the attractive intersection of gaming and gambling. We
estimate the global addressable market to be more than €10
billion. Legally accessible in more than 200 territories, we
are potentially tapping into an audience upward of a billion
consumers. We define our target customer as being between
20 and 40 years old, with slight bias towards the female gender.
We are profitable with less than hundred thousand paying
players. In an era when games acquire players in the millions
and generate astonishing profits, we believe that Mowjow can
be “the next big thing”. We represent the next generation of
quiz games.
Passionate people
Mowjow has a great team of 15 dedicated people, and its
founder Andreas Christensen heads up the team. Andreas is an
experienced entrepreneur and investor with the personal drive
and commitment to building a leading entertainment brand.
Andreas’ education is MSc studies in Business & Economics at
the Norwegian Business School.
Our leading technology man is Igor Krajisnik. As CTO
Igor is responsible for all technical development,
deployments, maintenance and server management. Igor
holds a four-year university degree in Information Technology
and is also a graduate economist.
The primary commercial man is Jan Johannessen. As CCO,
he is managing the commercial game development and
marketing activities. He’s also a keen gamer, an investor in
start-ups. Jan holds a degree in Marketing from the Norwegian
School of Economics.
Our advisors are important and the strategic brand
design and communications advisors Torbjørn Kvien Madsen
(Saatchi & Saatchi, DDB and McCann) and Henning Gjerde
(founding partners of Notch) are important contributors at
the current stage.
There’s gold in them thar hills
serious traction in the market.
Having said that, we are very realistic about the way ahead.
We are profitable already at “only” 100,000 paying players.
What’s next?
With a well-iterated concept and more than 500,000 games
played amongst our 5,000 beta players, we are now ready
to execute our go-to-market plans and grow the game. To
facilitate this commercial launch, we are now seeking €1 million
and upwards in additional seed funding. This funding will help
launch and grow the game commercially.
Subject to a viable commercial launch, we will proceed with a
leading corporate finance banker in Stockholm to raise upward
of €5 million in pre-IPO funding (“Letter of Intent”).
The corporate bit
We are currently at the pre-revenue stage and have not yet
recorded any revenue.
We have projected a total player growth up to 3 million
paying players over the period of three years, whereby we
expect to reach 500,000 paying players after one year.
The income will come from sale of tournaments entrance
tickets. These are priced at €0.10 for each ticket and sold in
increments of €10 for 100 tickets. Payments are made by credit
cards through our global gateway operated by WorldPay.
In the first commercial year, the monthly Gross Gaming
Revenue (GGR) is considered to grow from a few hundred
thousand at the beginning towards about €3 million at the year
end. The gross revenue comes from the sale of tickets.
The total GGR for the first year is projected at €75 million
while the second year is projected at €200 million and further
growing to €1 billion in the third year.
The efficient Net Gaming Revenue is in general about 2025%. The total NGR for the first year is projected at €7.5 million
while the second year is projected at €70 million and further
growing to €200 million in the third year.
Our Enterprise Value is estimated at €300 million, €450
million and €1 billion respectively over the first three years
based on a pricing of GGR x 4. The share value is concurrently
projected upward from €5 to €50 in this period.
The business potential is massive, however, even with a
modest achievement of these estimates, the profitability could
be amazing. The question is obvious; can this be possible?
Well, we have seen successful gaming companies like King,
Minecraft and SuperCell raking in humongous profits way
beyond our wildest dreams. So, yes it possible if the game gets
The holding company is based in Sweden while
operations and development take place in UK and
Ukraine. The share capital is €3 million divided into 30
million shares. The seed funding to date comes from the
founder and 500 crowd investors. The current market
capitalisation derived from the existing investments is
€10 million.
There are more than 500 investors in Mowjow today.
We aim to provide exit opportunities with a planned
listing at Nasdaq First North in Stockholm in due
course. The founder Andreas Christensen and related
companies control about 65% of Mowjow. The shares in
Mowjow AB is registered in Euroclear Sweden with ISIN
SE0006453510.
We are offering new investors an attractive investment
opportunity to take part in a highly profitable gaming
venture and support a very committed team.
We are now seeking €1 million and upwards in equity
seed funding.
Please contact us for details and make sure you are
there from the beginning.
Check out our video at
www.mowjow.com.
23
ENTREPRENEURS
NYLV Sports
NYLV Sports is a new member subscription service
company and the exclusive licensee of The Linemaker’s
brand and intellectual properties. Absolute Sports Info/The
Linemakers is a four year old company that built the first
broad-based consumer content and information brand
for the sports wagering enthusiast in North America – a
$400 billion industry.
NYLV Sports is a wholly owned subsidiary of Leiweke AC – a
25 year old sports and entertainment property development
company with offices in New York and Las Vegas. The
Leiweke name has become synonymous with the sports
and entertainment business. The family has developed and
operated some of the most iconic brands in the business.
Summary Data
The funding vehicle is NYLV Sports - a membership subscription
service provider for sports betting enthusiasts. NYLV Sports is the
exclusive licensee of The Linemakers brand and all intellectual
property. The basis of their services is American sports.
Executive Summary
In 2011 Leiweke was one of the founders of ASI - Absolute
Sports Info - and launched their sports betting enthusiast
initiative under a brand - The Linemakers. Mr. Leiweke raised
over $2 million of investment capital into The Linemakers’
initiative, including a major investment by Las Vegas hotel and
casino owner and licensed gaming operator, Michael Gaughan.
In their first year they sold 26 weekly shows to the Discovery
Network - the first ever licensed sports wagering TV program.
They established The Linemakers brand as the expert voice and
credibility for the sports wagering category, taking a Wall Street
News approach to an economic segment that’s three times
larger than distilled spirits. In 2012 The Linemakers migrated
to digital platform content and signed a distribution agreement
with Sporting News/Perform. Over the past couple of years
The Linemakers growth has been quite remarkable. The digital
audience during football has grown 500% since launch and
averages close to 1 million monthly uniques. The company has
achieved its initial business objectives of achieving substantial
organic traffic and becoming the #1 go-to source for sports
wagering information and becoming the credible voice in a
$400 billion North American industry with a global audience.
The business plan from the onset was to develop a
subscription model. In July of this year, Leiweke AC founded
NYLV Sports. NYLVSports.com will soft launch in November,
2015 with a base subscription model that will provide expert
behind-the-counter commentary on featured North American
sports events. Initially these are weekly subscription packages.
24
The Team
Founded by seasoned sports executives, The Linemakers
are a group of highly respected current and former Las
Vegas race and sports book operators in Las Vegas,
Nevada, who provide daily editorial, video on demand,
and membership subscription services.
NYLV Sports has signed an exclusive licensing agreement with
ASI for perpetuity for The Linemakers brand. The subscription
product will initially be introduced to an existing 15,000 opt-in
registered users who receive The Linemakers newsletter. At
Market Analysis
• 5
3 Million people in the USA bet on sports each year
(1 out of 6 Americans) source: Gallup
• 200 Million people worldwide bet on the NFL Superbowl
each year source: NBC News
• $380 Billion is bet on sports in the US each year;
source: NGISC
• $600 Billion is bet outside the US on sports each year.
Of this, $60B (10%) is bet on US sporting events. This
segment is growing at 20% per year; source: American
Gaming Association
• 79% of sports wagering enthusiasts in the US are
college educated; and 62% make over $50,000 per year;
source: Sports Consumption Overview – University of
Massachusetts study
In short, the market size potential for NYLV Sports
and The Linemakers – both ad-based offering and its
subscription offering – is utterly enormous.
the end of the Sporting News distribution agreement, The
Linemakers content will reside on NYLV Sports.
Business Opportunity
• N
YLV Sports has signed an exclusive licensing agreement
to take over the operation of The Linemakers brand and all
associated intellectual property on a shared revenue basis.
NYLV Sports will incorporate The Linemakers into their online
initiatives.
• The Company’s subscription model promises to be highly
lucrative – even at modest participation numbers.
• The Linemakers is already considered the #1 go-to source for
information on sports betting. And through its extraordinary
organic search draw, it has access to millions of engaged
sports betting enthusiasts. The next logical evolution of the
business is the offer subscription packages to these avid users.
• The NYLV Sports revenue model assumes that less than 1%
of the current in-season active editorial base of 1M UMV per
month will actually sign up to become paying subscribers.
Over the next 3 years the Company projects that this number
will grow.
• NYLV Sports has operating budgets offering all sports seasons
and have expense projections and resources finely tuned.
• NYLV Sports subscription revenue projections are sober
and attainable based on existing audience, careful market
research, and have not factored in potential affiliate
agreements.
Unique Attributes
The Linemakers:
• Unique Approach Launched with industry giant to gain
scale from inception – saving $Ms in startup costs;
• Unique Structure – Extremely low Opex means low risk,
and high net margins
• Proven Demand/Traffic Growth – Over 300% yr on yr
growth; Brand ranked as #1 source of sports betting
info in national survey
• Unheard of 90% of Traffic is Organic – Top of Google
rankings; view to completion of videos over 80%
• Addressable Market is Huge – 53m Americans bet on
sports each year; $400B US market size;
NYLV Sports:
• Lucrative business – Subscription model has potential
to be extremely lucrative – even at current, conservative,
adoption
• Seasoned Team – Experts in this discipline and known
throughout the media and sports communities;
• Titanic shifts underway in Industry – Potential change in
legality of sports betting could have dramatic, positive,
impact on valuation of business
Status/Achievements
• T
he Company’s unique approach and structure give it
an extraordinary edge in the market:
• The Linemakers digital audience during football season
(Sept-Feb) has grown 500% since launch and averages
close to 1mm monthly uniques
• The Linemakers has generated around 6 million video
plays, over 20 million page views and almost 14 million
total visits through the end of 2014.
• The Linemakers is backed by Nevada licensed gaming
operators and has exclusive access to Nevada Sports
Book operations
• The company has achieved its initial business objectives
of achieving substantial organic traffic, becoming the #1
source for sports wagering information and the most
credible voice in a $400 billion North American industry.
• NYLV Sports will leverage The Linemakers’ volume
of a highly targeted vertical audience to create a
unique opportunity to build branded subscription
products and affiliate agreements – always the
founders’ business plan.
Outstanding Growth Statistics/Organic Search
• After only four seasons in the market, The Linemakers
brand has become so popular that for most searches
associated with sports betting they are on the very first
page for Google results - usually in the top 5.
• During Football season - their first and strongest
sport - the organic search results are usually in the
top 3 or better
Investor Info
The Company will launch NYLVsports.com in November,
2015, funded through a friends and family round.
Investment capital will provide ongoing NYLV site
development to incorporate Linemaker’s content,
promotional campaigns and additional staffing. The
Company is projected cash flow positive in 2016. This
is a start-up investor round. $500,000 in troughs with
benchmarks.
Projections and valuation upon request.
Terry Leiweke
[email protected]
25
ENTREPRENEURS
Pariplay Ltd
Pariplay is an established provider of iGaming solutions,
iLottery systems and quality games content to a variety
of online and land based operators. The company is
incorporated in the Isle of Man with a Network license in
addition to a UK B2B and B2C gaming licenses.
Executive Summary
Pariplay has several blue chip customers and serves iLottery
content to a major lottery provider in the USA. Pariplay also
facilitates emerging market operators in penetrating new
markets and serves multiple partners with its unique content of
RNG, Fixed-odds, Class 2 and Social games.
Founded in 2011, the company is now wholly owned by its
founder Mr. Gili Lisani, with an R&D center in Tel Aviv, which is
held by the parent company in the Isle of Man. The group is in
the process of obtaining the prestigious Gibraltar gaming license
and by the middle of November, will receive its On-Premise
certification for Indian Tribes in Oklahoma.
Market Analysis
• 5
1% of the world’s population take part in some form of
gambling every year.
• Between 2005-2015 iGaming has grown on an CAGR of 23%.
Summary Data
Sector
iGaming software, iLottery and Games
Required Investment
£5,000,000
Enterprise Value
£10M
Investment Round
1st round (after founder’s investment)
• In 2014 the global revenue from online gambling reached
$37bn approx. 9% of the Global gambling market.
• Land based casinos accounted for $146bn of global gaming
revenue with the US casino accounting for 46%vof it with $67bn.
• In 2014 U.S. tribal gaming reached a record revenue of $28bn.
• Traditional land based casinos are shifting to internet based
software on their premises in order to maximize revenue and
leverage new age technologies.
• While the online gaming market is expected to grow at a
Team
Gili Lisani, CEO – Gili is an experienced
entrepreneur with a focus on high
performance systems and innovative
tech solutions. Gili started in the evergrowing ecommerce industry and
became an expert with a proven record
averaging 2M USD monthly sales.
Gili has been in the gaming industry
for the past 8 years and has become
an expert in iGaming systems with
a comprehensive understanding of
both B2C and B2B. Gili is driven by his
passion for delivering superior systems,
excellent content and innovative
iGaming solutions.
Adrian Bailey, MD – Adrian has over
10 years of experience in the gaming
sector, he held VP Marketing and
Managing Director positions in two of
the largest gaming companies in the
world (Neogames & Caesars Interactive
26
Entertainment) being instrumental to
the strategy and growth experienced in
both. Adrian has created, managed and
led multiple marketing and operational
teams including retention, support
and the full scope of player acquisition
departments.
Michael Wolman, COO – Michael
has more than 20 years of experience
in the online gaming industry.
Michael is a serial entrepreneur;
He co-founded Aduva (sold to Sun
Microsystems in 2003 for $15M). He
also founded SeeViewMedia, a large
affiliate company and previously held
the position as Head of Operations
for Caesars Interactive Entertainment,
running the online casinos in New
Jersey & Nevada.
Jonathan Abratt, CFO – A senior
strategic Finance, Operations, Risk
and IT executive, Jonathan has over
15 years of experience in exciting
companies such as Ernst & Young (IT
Audit & JV Operations), Wonga (COO),
888 Holdings plc (Group Treasurer,
ePayments Lead) and most recently
Zapper (Senior Vice President).
Jonathan has a proven track record of
exceeding profitability goals and driving
increased revenues and market share.
Shay Mardan, CTO – Shay is
a dynamic and revolutionary
technologist. His expertise and
knowledge of systems, programing
and computers from his time in the
Israel Defence Forces serving in an
intelligence unit, has made him a
prodigy in the field since his teens.
Shay received 3 merit awards and
has been nominated twice to the
President’s decoration for excellence.
CAGR of 12% between 2015-2020 reaching USD 78bn, while
Mobile Gambling GGY is expected to grow with a CAGR of
18% reaching USD 57bn in the same period. This suggests a
stronger opportunity in the mobile gambling market.
The Business and Opportunity.
Pariplay’s core business is to serve operators with new
technology iGaming and iLottery systems in addition to its
games studio that is responsible for multiple math solutions
and financial modules. Pariplay charges a % of all profits
generated on the operators’ business in addition to agreed
success royalties for its games, however Pariplay is flexible with
its various commercial models so as to operate a wider variety
of geographically located customers.
Pariplay’s extension of its core system is it’s new OnPremise Mobile Gaming platform, which has definite blue sky
opportunities for Pariplay in North America, Asia and elsewhere
globally. The company is excited with the potential opportunities
presented by such a system and especially with the company’s
deep understanding of Class 2 content, this vertical is poised to
redefine the North American digital gaming landscape.
Establishing a strong presence in both North, Central and
South America, Macau and the Phillipines will enhance the
• A
bility to close exclusive deals with high profile brands,
leveraging a wide network of connections and subject matter
experts.
Investment Information
Pariplay is seeking an investment in order to aggressively grow
the company, and show case the On-Premise Mobile Gaming
System as well as increase the company’s global footprint for
both online and land based operators in all developed and
emerging gaming markets
Today the company is well efficient and well organized with
various policies, protocols, and procedures and is fully ready for
an immediate and smooth expansion.
Financially the company has growing revenues of
approximately $1.8M per year and expects a growth of
approximately 300% in 2016.
With the cash injection, Pariplay expects to demonstrate
impressive growth in 2016-2017 while retaining defined
portions of the injected capital for future strategic and growth
opportunities according the envisioned roadmap.
Financial Projections
company’s performance and will position Pariplay as the global
leader of On-Premise solutions. In addition, Pariplay plans to
Revenue
Gross
offer this unique solution in the form of Virtual Lottery Terminals
structure
Revenue
(VLTs) thus enabling land based casinos to access a huge catalog
of games from a single device (Mobile or Terminal).
Cost
structure
Unique Selling Points
• A
nonymous Play, Cashless and TITO (Ticket In, Ticket Out)
environment is unique to Pariplay among all iGaming platforms.
• Pariplay’s technology, games and platform have been
developed in a highly modular manner enabling Pariplay
to expand into new verticals and bolt on newer and value
adding solutions, such as On-Premise Mobile Gaming
connecting land based operators and their local customers
with global digital content.
• Pariplay has an excellent understanding of the various
gaming markets, verticals and related technologies, and with
a myriad of industry connections and a wide diversity of
operators, the company possesses a wealth of knowledge of
regulatory, legal, jurisdictional nuances facilitating the swiftest
deployment of new operators or new technologies and
content to existing operators.
• Exclusive patent on Reverse Pari-Mutual lottery system, which
attracts the instant player.
• Pariplay’s next generation content / games HUB is a single
integration for operators to access multiple content
providers and their content. The HUB proudly features 9
different vendors with both new vendors and content being
regularly added.
HR Costs
Operational
costs
EBITDA
EBITDA
2015
2016
2017
$1.8M
$6M
$12M
$2.2M
-$3.6M
-$4.5M
-$0.9M
-$1.95M
-$2.6M
-$1.2M
$0.45M
$4.9M
Milestones
• Expansion of Israeli R&D team.
• Licensing & Certifications in new jurisdictions; Gibraltar,
New Jersey and Macau.
• Setup offices in Gibraltar, USA and Hong Kong.
• Strategic marketing to increase deal flow; Business
Development initiatives and explicit presence at
industry and related conferences.
• IP Licensing of Premium / Branded content.
• Game and Platform development and enhancements.
• Class 2 system certification.
• Increase Patent footprint.
Contact Details
CEO: Gili Lisani
E-Mail: [email protected]
Tel: +972 73 206 0188
27
ENTREPRENEURS
Player Index
Player Index™ is a real money fantasy league business which
will also provide a traditional bookmaking service and casino.
We are a start-up business partnered with an established
software provider. We are looking to raise £1,000,000 for
18.3% equity in the business.
Executive Summary
Player Index™ is a unique idea of gambling on individual
sportsplayers over a period of time. Be that a day, a season,
or any timescale in between. All sportsplayers are issued a
‘share price’ at the beginning of the season which reflects how
they are anticipated to perform. The player’s ‘share price’ will
fluctuate depending on their performance, injury concerns
and market sentiment. The price will be based on a fixed
scoring system, provided by OPTA. Amelco (UK) Limited will be
the software provider, and partner to PlayerIndexTM.
The Team
Damian Walton – CTO, Project Manager
Previously global head of technology at Prebon Yamane
(now Tullet Prebon plc) set up AMELCO Ltd over 9 years
ago. Damian is CEO of AMELCO and is responsible for its
90 employees.
AMELCO Ltd – Software provider
Amelco (UK) Limited will be the software provider to
PlayerIndexTM. Over the last 9 years Amelco (UK) Limited
have been developing trading systems and real time
analytics solutions in the sports betting domain. Its core
team has a combined 60 years’ experience in the sports
betting industry.
Rory Jenkins – Commercial Director / General Counsel
Rory studied law at Downing College, Cambridge
University and qualified as a solicitor in 1997 with Herbert
Smith. Rory achieved the sporting distinction of obtaining
a triple blue in rugby, cricket and athletics at Cambridge,
going on to play rugby for Harlequins and an England XV
in Argentina.
Andrew Cox – Managing Director
On leaving Harrow School, Andrew spent several years
playing cricket before moving into the city. Andrew spent
over 8 years in Equity sales, dealing and private client
stockbroking with JM Sassoon and WH Ireland.
people who actively play Fantasy Sports in North America of
which 8.9 million play daily fantasy sports.
Daily Fantasy Sports entry fees are expected to grow from
$3.7 billion in 2015 to a staggering $17.7 billion in 2010. This
is also substantially higher than Eilers base forecast of $14.5
billion just one year ago, and is expected to continue growing
at an expedited pace.
The average player spends $452 per annum consuming data
as well as buying into leagues but according to FanDuel the
amount spent per player is about 50% more for daily fantasy
players than season long.
The UK Gambling Commission (UKGC) revealed financial
figures for the 12 months ending September 2014 which
showed the UK gambling industry is worth £7.1 billion, not
including the National Lottery.
This figure is an increase of £327 million (up 5%) when
compared to April 2013 to March 2014.
Competition
In terms of competition, USA are the most advanced regarding
fantasy sports.
The 2 main players in that space are FanDuel and DraftKings,
both with a market cap in excess of $1 billion. They dominate the
market with an estimated 55% and 40% share respectively.
DraftKings - Have recently signed a $300million deal with
FOX. This investment values DraftKings at $1.2billion. They
reported taking $304 million in fees and circa $40 million in
revenue for 2014.
FanDuel - recently raised $275million largely from KKR,
Google and Time Warner. The total now raised since 2009 is
$363million. The company is not yet profitable and worth over
$1billion.
The UK has numerous free to play fantasy league sites run
by newspapers, privately owned companies and football sites.
The Fantasy League launched the original UK Fantasy League
in 1991 and now has 25 full time staff and over 20 million
‘Facebook likes’.
At this moment there is no direct competition to PlayerIndex.
Target Market
The Business
According the Fantasy Sports Trade Association (FSTA) in
conjunction with IPSOS, there are currently 56.8 million
Player Index™ is a unique idea of actually gambling on
individual sportsplayers over a period of time. Be that a
28
Financial Projections
Calculating financial projections for any unique business is difficult as there are no similar figures to base the projections on.
Our figures are based on user placing a £50 trade once a week. Our commission rate is based on 5%
3 months
6 months
1 Year
2 Years
3 Years
Commission %
5
5
5
5
5
Trades per week
1
1
1
1
1
1000
5000
10,000
20,000
50,000
£50.00
£50.00
£50.00
£50.00
£50.00
£130,000
£650,000
£1,300,000
£2,600,000
£6,500,000
No of Users
Average Trade in £
commission per year
match, an event, a season or a year. Initially we will be
concentrating on Football, Golf and Tennis before very quickly
moving into North American sports.
All sportsplayers are issued a ‘price’ at the beginning of the
season which reflect how they are anticipated to perform. This
price is the same points scoring system as traditional Fantasy
League games. ie. Points are scored for good performances
(goals, assist, etc.)
The player’s ‘price’ will therefore fluctuate depending on their
performances, injury concerns and market sentiment.
Unlike Fantasy Football teams, you do not need to pick a
complete team, you can choose one player or as many as you
like in a range of different sports.
The ‘fantasy shares’ will be tradable 24 hours a day, 7 days
a week. At the end of the season, any unsettled investments
are closed and the money returned; this stops stagnation in
the market and requires customers to reopen positions at the
beginning of the next season.
Initially, whilst illiquid, Player Index™ would act as the market
maker and take positions. Our unique Player Index algorithm
allows us to identify any potential risks, hedges and limits, as
well as how we can maximise our profit.
As popularity and liquidity increases, potentially the market
will set itself similar to Betfair. This is the ideal scenario
whereby we take a commission for matching deals with no risk.
Player will be able to buy and sell the individual sportsplayers
- as with Betfair, collateral will be needed.
We are attempting to mirror a stock market style portfolio.
Ie. High risk, medium risk, low risk. Some players who are lesser
known and not guaranteed a starting place can be bought
cheaply and make spectacular gains.
The business is incredibly easy to increase in scale. Once
the basic algorithms are written and proven, the model can be
used for any sport, in any league, in any country.
We will also be able to offer specific tournaments such as
World Cups, Champions League, IPL, Euros, etc, as well as
‘virtual’ tournaments.
We will be offering a free to play site which will run
concurrently.
Exit Strategy
PlayerIndex foresees attempting to exit the market
within 2-5 years. The most likely strategies will be; IPO,
M&A, Licensing / White-labelling.
Investor Information
As of today, PlayerIndex has received £210,000 in
funding, with a further £150,000 pledged. We are
looking to raise a total of £1,000,000 for 18.3% equity
in the business. This money will allow us to complete all
software and algorithm building for the business. We will
be ready to ‘go live’ 16 weeks after funding is completed.
Andrew Cox
[email protected]
+44 7721 430 319
Rory Jenkins
[email protected]
+44 7930 566 025
29
ENTREPRENEURS
RankingHero
RankingHero is a scalable community platform for iGaming.
We plan on becoming the n°1 acquisition & retention tool
for several verticals, starting with poker & now diversifying
further with several B2B white-labelling deals in talks.
Fantasy & Esports in particular are perfect fits.
High concept
Scalable community platform for iGaming. Launched in poker,
ready for Fantasy, eSports, and more.
Elevator Pitch
Our innovative technology combines big data
(results & rankings) with user-generated content. First
launched as a recognised poker brand in June 2013,
we raised €750k. In year 1, we gathered data on 400,000
players and launched our beta. In year 2, we’ve grown a
sizeable community with 300 messages posted daily and
200,000 monthly unique visitors against strong headwinds.
This year we launched “HeroScore”, the first influence ranking
for poker - featured in most poker media, & “Habitat” our
unique gamification system.
Players seek friends & recognition. Initial results show
that engagement of existing players goes up 66% once they
onboard our community. This puts us in a unique position to
create market-leading communities either as affiliates or on
Opportunity
Investment Type
Series A
Financing sought
EUR 1.3M
The Team
Our team is made of passionate web marketing experts,
poker ambassadors, & business veterans. Our portfolio
sites total 30 Million pageview per moth.
Our setup is unique: 5 founders that have known each
other/worked together for years. Three founders lead the
product team (7 employees) in Bulgaria. The other two
founders manage the strategy & business development
from London. The result: a frugal company burning
30,000/Month and ready to scale up efficiently.
behalf of operators, connecting with the in-game customer
experience directly.
Bingo, Finance, and wider eSports & sports league markets.
Total addressable market
In growing markets acquisition is much cheaper: we expect
Top down: Poker market is worth $4Billion/Year. Fantasy
& eSports Betting expected to reach $1Billion each within
5 years. In poker, leading communities have consistently
captured 15% of the entire market as affiliates, making a TAM
of $750+ Millions. With white-label deals we can also enter the
30
Bottom-Up: We acquire users in poker at a CPL of <€5.
CPL’s of €1.5. The LTV or our users is expected to be over
€5 knowing the operator’s CPA (between €30 to €200) and
assuming a typical referral conversion rate of 5%.
We budgeted €300,000 for acquisition in the 15 months
post Series A.
Assets
700k war chest for marketing
- W
orld’s largest live poker results database: 427,000
- 3
00k to acquire initial customers (buying existing
communities, media buy, affiliation deals…)
- 150k for B2C events presence, sponsoring leagues, etc
- 100k to distribute prizes to customers
- 75k to create exclusive content with freelancers (twitch
channels)
- 75k contingency
+ all revenues reinvested for the next 15 months
players / 1,700,000 participations / 1593 casinos
- 1
5,000 high value poker members, who collectively
earned $270 Million in live poker tournaments.
- P
hil Hellmuth’s endorsement. Poker’s #1 celebrity and
most titled player in the world.
- “ HeroScore” algorithm aka “Klout for poker”. Featured in
most poker medias globally, & adaptable to any game.
- S
ocial platform. Our API connects with Twitter,
Facebook, PhpBB forums, poker clients…
- B
ig data algorithms. Our automated tools grab data
from emails, websites, text clips, user suggestions. Data
is cross-referenced and reconciled with little human
interaction.
Roadmap: next 6 months
P&L & Exit
Year 1
€285,000 in revenues.
Year 2
€1.3M in revenues, Breakeven point
Year 3
€1.6M EBITDA
Possible exit
Purchased by an iGaming giant
(Ballys, MGM, Caesar’s Interactive,
Amaya, NYX, Microgaming…).
- Integrate poker product into a poker client
- Develop the new B2C vertical
- Mobile porting
Pokerstrategy.com, poker’s #1
community, sold to Playtech for
$38 Million
Roadmap: 6 to 15 Months
Better exit
-
Validate the minimum version for first new vertical
Market aggressively, start affiliation revenues
B2B White label deals begin
Revenue stream starts
Break even getting closer, increase marketing spendings
What we’ll do with the money
- 6
00k for staff, offices, legals etc for 15 months
- B
urn goes gradually from 25k to 50k over 15 Month
- 6
x IT guys
* Web: 2x new senior dev, 1x junior, 1x frontend dev
* Mobile: 1x new dev ios, 1x dev android
Don’t. Become
facebook for gamers & sports fans.
Adrien Bacchi
[email protected]
+35 9878 316457
Nicolas Levi
[email protected]
+44 7962 252949
Pedro Canali
[email protected]
+33 7500 932598
31
ENTREPRENEURS
Sportego
Sportego is B2B & B2C fantasy games developer focusing
on generating income and fan engagement for professional
sports clubs. We connect clubs with their fans, using
gaming products to converts users in and out of the
stadium.
We generally focus on a club’s social channels, generating
revenue for the club with branded cash based games. All
games are branded with the games based solely on the club’s
fixtures. The platform can be used as a free to play game or as
pay as you play with the free game offered to clubs at a cost
and the pay as you play operating on a revenue share basis.
The Premier League has a total social reach of 295,000,000
million however all of that is owned by social media platforms.
From our discussions with clubs we have learned that they
have not yet discovered a consistent way to mine data and
convert that social following in to regular match day income.
We have also learned that clubs wish that fans would enter
grounds earlier as this would offer opportunities to generate
revenue.
In addition, the Championship, the second tier of English
football has a digital reach of 10.8 million, the majority of
which is UK centric.
Here at Sportego we have looked to solve these issues.
We have developed games based on actual club fixtures,
branded for the club. We have seen in our first year of full
operation with the SSE Airtricity league that we can deliver
33% conversion from social channels, over 10 minutes of fan
time per week and have been downloaded by 1 in 10 fans that
attended a live game.
We want to take this potential and transfer into the UK
market with added benefits. The main one would be to adding
a cost element to the gamification, offering fans the chance
to pay for the right to win exclusive prizes from clubs. Prizes
that everyday money can’t by such as signed shirts, meet the
player’s experiences and match day hospitality experiences.
The entry for the game would be £3 and the pots generated
would be split between club and Sportego.
32
The share revenue market is worth 38 million in the UK with
the fantasy football market valued at £600 million with over
5 million players. Market estimates indicate that 1 in 8 would
convert from free to play season long games to daily cash
games, however we have developed an easy to play game
where fans must just select 5 players. The revenue share
market has never included branded cash based games for
clubs and leagues.
Typical arrangements between clubs and fantasy/betting
providers have been on a strong commercial level whereby
users are taking to a branded page and sign up to generic
products. We are offering a unique experience based on that
club’s fixtures. The fans get the chance to pick players they
are familiar with and we help them with stats.
Not only that but with geo-tagging capabilities and in-app
notifications we can target fans with messages to play the
game, go into the ground or take up a partner offer. We
are also working on technology that would allow fans to
communicate and please bets via the app without signal or
Wi-Fi, making us a cost effective connected stadium solution
with ready to market club content.
Unity 3D games, in conjunction with Irish company Sports
Carver, and Quizzes will also be included in the apps ensuring
that outside of match-day there is plenty to ensure fans
are entertained while there is also a chat zone for fans to
communicate during the game.
Leader-boards and stats are updated in rea-time and our
platform has been built to support multiple feed providers
meaning we can move across sports easily and can adapt to
be more flexible. Our system also has a tagging element to
it, meaning where there is no official feed we can step in and
capture the data from games.
295 million
£600 million
total social reach of the Premier League
fantasy football market value
33% conversion
10.8 million
from social channels in our first year
We has also developed a B2C game, www.fanfeud.co.uk, a
daily pick 5 fantasy game based on the Premier League. The
site is fully compliant with the UK gambling commission and
has a pool betting license for the UK. We recently passed
our first security audit without issue and have also recently
integrated with Skrill and Optimal payments ensuring a
strong customer experience when paying for services. In
the absence of marketing budget we have adopted our own
strategy, producing content on a daily and weekly basis. Our
blog, developed in-house with a freelance team of 11 writers,
produces over 20 pieces of fantasy content a week with over
50,000 unique views a month and a conversion rate of .50%.
We have also have our podcast which is aimed to help the
brand. The weekly fantasy football show features fantasy
football players with large social followings and currently
achieves 2,500 listens a week.
We have been developing games and apps since July 2014 and
have met with clubs in the UK and Ireland to discuss their pain
points in relation to fan engagement and match day revenue.
In 12 months of full-time operation, we have worked with the
European Rugby league, Northampton Rugby and are presently
working with the GAA, West Bromwich Albion, Chesterfield FC,
Bury FC, the SSE Airtricity League and Basketball Ireland. We are
currently at the final stages of deals with a number of leading
clubs from the UK, Europe and South America.
the digital reach of the Championship,
the second tier of English football
Our B2C marketing strategy is based on content with our inhouse blog and podcast reaching over 60,000 people a month
while on the B2B side, we have established relationships
with a number of key agencies, most notably, Fanaticusinc,
Sportsquake and former commercial director, Laura Miller.
All three facilitate introductions to club and leagues in the
UK. In addition, Linkedin and brand ambassadors help.
Trevor, the founder, has over 2,300 connections on Linkedin,
all from commercial and marketing backgrounds in sport
while brand ambassadors, such as Billy Joe Padden (former
Mayo footballer) Brian Carey (former Manchester United and
Leicester City defender), Tomas O’Leary (Munster scrumhalf), Jimmy Bullard (ex-Fulham) and Terry Phelan (ex-Chelsea
and Man City) have proved instrumental in facilitating
introductions to key club officials.
Trev Keane
e: [email protected]
t: 00 0353 872176 167
www.sportego.ie
www.fanfeud.co.uk
https://ie.linkedin.com/in/trevkeane
33
ENTREPRENEURS
Sportito
Sportito offers fantasy sports with daily games for real
money. Players can draft a new team at any point, face-off
with another player, but for real money.
The player whose team has the most fantasy points at the
end of the day’s games wins the cash prize, so no season
long commitment. The game will be integrated with Twitter
and Facebook, allowing you to brag about your wins. It will
cover Soccer, Basketball, Tennis, Volleyball, American Football,
Baseball, Ice Hockey focusing first on Europe and then
expading to emerging markets (Africa, India, South America).
www.sportito.com
Sportito has a different take on the traditional fantasy
sports game model used in Europe introducing: a higher
frequency model - cash prizes - high-quality real-time data.
Instead of games lasting the whole season, players
play and win in as little as a day. In traditional fantasy sports
leagues, league winners are only declared after the entire
season ends and players often drop out as the season
progresses. In Sportito the leagues last one day or the
weekend and prizes are paid out immediately as soon as
games finish.
Sportito books revenues from taking a 10% commission on
each of the match-ups, although when you sign up you can
play also for free.
Company Structure
Sportito, as the parent company Superscommesse, is
currently based in Italy, the second biggest european
country for sports betting, after UK. Plan is to base new
offices in Berlin and Amsterdam.
Superscommesse is the leading odds comparison
site in Italy with about quarter of a million users and
partnerships with top 25 bookmakers in the worlds
such as Bet365, WilliamHill, Bwin, Paddypower, 888
and RCS Media.
Investment Highlights
• H
uge market size: In 2014, 42 million
fans (57m in 2015) in the U.S. +
Canada (38% of total market) spent
an estimated $15 billion on fantasy
sports, according to the Fantasy
Sports Trade Assn. Average annual
spending per fantasy players is $465
up 70% yoy.
• Fantasy Sports trend: fantasy sports
is a new disruptive online consumer
technology industry, such as airbnb
(travel), candy crush (games), spotify
(music) or netflix (movies), a new way
34
to consume and watch sports.
TV ratings for DFS tournaments
begin to surge.
• Proven and successful model: in US
fantasy sports companies raised a
total of $862.7M, FanDuel, a leader
in this space, has recently
surpassed a $1 billion valuation.
In Europe there are no strong
competitors.
• Q
uick expansion opportunities:
due to easiness of technology
development Sportito can expand to
DFS untoched markets (Africa, India,
South Americas) and sports (Cricket,
Rugby, Volleyball).
• Strong management team & assets:
the team has prior experience
from eBay, PayPal, Expedia, Bain
& Company, McK and Deutsche
Bank. Sportito is incubated by
Superscommesse.it, a leading italian
odds comparison and sports news
site, and can leverage user base (a
quarter million users) and traffic
(>100M years page views).
Financial Overview
€50,000,000
€45M
€45,000,000
Turnover
€40,000,000
Revenues
€35,000,000
€30,000,000
€25,000,000
€18M
€20,000,000
€15,000,000
€10,000,000
€5,000,000
0
€1M
€4.5M
€1.8M
€100,000
F2015
F2016
F2017
Financial Projections
2016
2017
Investment Information
Turnover
18M€
45M€
Investment Type
Series A
Revenues
1,8M€
4,5M€
Financing sought
EUR 5M
(2,5)M€
(1,9)M€
break even in Q4
Use of proceeds
EBITDA
Active players
$0.45M
300K
• Product development (website,
IOS and Adroid)
• Service expansion (add news
sports to initial Soccer focus)
• Geographical expansion (from
Europe to Africa, India and South
America)
• Player winnings, ability to offer
guaranteed league prizes to
attract players
• EU Gambling licences acquisition,
each country has its own
Gambling regulation
Management Team
Riccardo Mittiga
CEO
Founder of Superscommesse, Head of International
at eBay, 7 years’ experience in ecommerce and web
applications
Simone Razzano
CTO
At Expedia, 10 years’ experience in building mobile
platforms, web application and apps
Riccardo Mittiga
e: [email protected]
https://it.linkedin.com/in/mitric
Phone: +39 0689 872657
Mobile: +39 3473 571882
35
ENTREPRENEURS
WantMyBet
WantMyBet is the ‘eToro’ of sports betting.
The social network for football betting (soon to be more
than football) where users find the best bets from the
best people with all the stats needed to back up their
predictions. View track records of users tips accompanied
by Opta stats to help players make informed decisions
their betting selections.
We bring down barriers to entry and make football betting
easier.
Summary data
Sector
Sport Betting Software / Social
Network
Required
Investment
£259,000 (for 7%) EIS Qualified.
Enterprise Value
£3.7m (based on current
investment round valuation)
Investment
Round
2nd Round: £370K for 10%
(£111K for 3% already funded)
Market Analysis:
Our target market is football-loving males aged 18 – 35.
We are just launching with football for launch, expanding
into Horse Racing, Golf, and Tennis in H1 of 2016.
We gathered market research from a UK
betting Mintel report that stated:
- 71% of smartphone gamblers who believe that
betting on sports is a social thing to do.
- 68% of sports bettors who consider it important to
research form / statistics before placing a bet.
We feel these are two key areas that the sports betting
industry is not currently accommodating for. WantMyBet
aims to satisfy these user needs, through a combination of
statistical information / user generated rationale, overlaid
with social competition. (Who is the best at betting out
of you and your mates? Time to actually prove it.)
There are hundreds of tipping accounts on Facebook and
Twitter. Football fans love a tip and love to share a tip. Only
problem is, all of these channels have no insight and not
track record. People are following blind in the hope of glory.
The Business Opportunity:
We have highlighted the areas in a bettor’s user
36
journey that are frustrating resulting in a decline
in betting or barriers to entry. These are:
- Ease of sign up: We have made it easier for user to
sign up to any of our bookmaker partners through a
deep level of integration with their API’s. This level of
integration is currently only available by a handful of
bookmakers, further proving they WantMyBet are on
the forefront technology in the gambling industry.
- Ease of placing bets: Users can easily place a bet through
our platform with on of our launch partners. This is a
seamless experience and from initial feedback from our
beta users: “Easier that placing bets on a bookmaker site”.
- Providing an additional rich insight of stats to accompany
each bet: Through use of Opta stats, BettorLogic
(integration early 2016), and user insight we’ll be providing
a combination of qualitative and quantitative stats, helping
the user make informed decisions before they bet.
- Ease of discovery of bets: We surface interesting bets and
through use of smart filtering we allow users to easily
find the best tipsters for a specific market. E.g. The user
with the most 4 fold Accumulator wins on the platform.
- Categorise users by their betting behaviour: We
categorise all our users into 3 different risk types based
on the odds the normally bet/tip on. (Cautious <5/1,
Risky 5/1 – 25/1, YOLO >25/1). This allows users to
resonate with others who are the same as them.
- Rewarding users for their activity: User retention is a
very important to us. We’ll be providing gamified user
task cards rewarding those to who complete them.
- Demonstrating users track records so we can
create competition. This also allows users
to work out the credibility of the tip.
- Social competition: As demonstrated in fantasy football,
competition between friends is a big deal. Therefore we
are allowing users to create mini leagues for their betting
/ tipping activity. Just as with fantasy football, users will be
able to invite their friends to join using a unique invite code.
All in all. We make betting easier.
The Team
Management:
Olly Joshi – Founder / Commercial Director
Bournemouth University (Marketing), Post university:
Digital Marketing (AKQA - Nike Global Football) & brought
out a running app outside of the day job (VIA – Named in
the top 500 apps in the world by The Sunday Times in)
Tom Gooday – Founder / Operations Director
Bournemouth University (Interactive Media Production),
Post university: Project Management (Collective London)
& brought out a running app (VIA – Named in the top 500
apps in the world by The Sunday Times in)
Will Chapman – Founder / Creative Director
Bournemouth University (International Business
Management), Post university : Secured investment from
ASOS to build an innovative social app (Who’s Going)
Rest of the team:
Daniel Forer – Full stack Developer (Lead Developer)
Alvi Dandolo – Back end Developer
Stefan Chifchiyski – Front end Developer
Callum Foster - Social Media Executive
Unique Attributes:
We have built a site from scratch that takes bookmakers API’s
(all of which are in different formats) and standardized them
to be deeply integrated into our platform. This allows users a
unique and more enjoyable betting experience in the following
ways:
- U
sers fill ONE form upon signing up and then select
which bookmakers they would like to sign up to. We then
automatically sign them up.
- If users already have an account with one of our partners
then we allow them to connect their existing account.
- T
his allows users to place bets directly from our site, the only
part of the user experience that currently (takes the user
temporarily off site is when they deposit – this is only going to
be the case for a short amount of time. We are working on a
payment API.)
- O
dds comparison available on site across all our partners.
- V
iew bookmaker wallet on our site
- V
iew Opta stats associated with a chosen bet to give the user
additional insight.
Milestones:
The next round of investment will cover the following:
- D
evelopment of the native app for both Android and iOS.
Currently WantMyBet is a fully responsive mobile optimize
web platform.
- B
uild our own payment API to integrate payment (currently
the only aspect not integrated from our back end)
- Introduction of 3 new sports (Horse Racing, Golf and Tennis).
Currently the site is just football.
- G
row the WantMyBet development team
Three year financial projections
Turnover
Costs
EBIT
Year 1
£325,313
£473,113
- £147,801
Year 2
£2,183,750
£1,158,000
£1,025,750
Year 3
£4,032,150
£1,325,200
£2,706,950
Three year valuation
P/E
X10
X15
X25
Valuation
£27,069,500
£40,604,250
£67,673,750
Exit:
Trade sale after 3 years.
Investment Information:
Previous investments:
- P
artnership with a digital agency to build the platform and
brand. £187,500 value of costs for 25% equity.
- S
eed: £150,000 for 10%
Sought after investment:
- R
ound 2: £370,000 for 10% (£3.7m valuation) EIS qualified.
- A
lready raised £111,000 (3%) of this from a global football
loving musician (Great from a PR angle)
- T
herefore, remaining investment to raise £259,000 for 7%.
- T
he company has no outstanding debts.
Olly Joshi, Commercial Director
E: [email protected]
T: +44 7780 662 086
Tom Gooday, Operations Director
E: [email protected]
T: +44 7931 819 055
Will Chapman, Creative Director
E: [email protected]
T: +44 7739 412 343
37
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