Esports Gaming & Wagering Company Investor Presentation – August 2020
Forward Looking Statements The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of the Act. 2
Esports Entertainment Group Overview GMBL is a licensed online gambling company with a specific focus on esports wagering and 18+ gaming, offering P2P (player-to-player) fantasy, pools, • fixed odds and exchange style wagering on esports events in a licensed, regulated and secure platform. Esports Entertainment Group is uniquely well-positioned to take advantage of two emerging mega-trends in consumer entertainment, 1) the explosion • of esports and video game consumption, particularly amongst younger millennials and Gen Z, 2) the expansion of legal online gambling throughout the US. Esports -GMBL intends to be a leader in the growing sector of Esports entertainment and Key Stats real-money wagering. NASDAQ: GMBL -The company’s VIE.GG platform offers fans the ability to wager on all professional Esports events for real money in a licensed and secure environment. Recent Price $ 5.75 -Potential future strategic opportunities include, 1) launching a tournament platform, 2) creating branded leagues, 3) monetizing content created. Market Cap $ 55.6M Online Gambling Shares 9.7M -In April 2020, GMBL became the first US-based iGaming company to list on the Outstanding NASDAQ. -In July 2020, GMBL acquired Argyll Entertainment, a licensed online gambling Float 2.3M company in the UK and Ireland with > 100K registered users and $12 mil in revenue As of June 12, 2020 in 2019. -The company intends to pursue M&A of other online gambling assets with licenses in strategic jurisdictions. 3
Esports Entertainment Group Investment Highlights The Esports audience is a massive and rapidly growing (590 mil by 2022) Favorable demographics & diverse global reach Esports monetization has dramatic catch-up opportunity vs traditional sports Large endemic & non-endemic sponsors want exposure to the sector Esports wagering handle is projected to be ~$13 bil in 2020 Covid-19 has proven that traditional sports bettors will bet on Esports GMBL has affiliate partnerships with leading Esports organizations and influencers VIE.GG is the most transparent Esports betting site Aggressive M&A strategy targeting successful iGaming operators and Esports Assets 4
Sizing the Opportunity What is Esports? Esports Worldwide Audience Size (millions) Esports is organized competitive video gaming that is watched as • a spectator event. During COVID-19 lockdowns, Esports have exploded in popularity. • In April alone, 1.8 bil hours of content were watched on Twitch (up 125% yoy). • Over 80 U.S. colleges now offer Esports scholarships **Despite the vast amount of eyeballs, Esports remain dramatically under-monetized relative to traditional sports** 5 Source: NewZoo
Sizing the Opportunity Favorable Demographics Endemic & Non-Endemic Sponsors Investing in Esports Esports’ main audience is young, digital native and affluent. • The increasing prevalence of cord-cutting and ad-blocker usage has • made gamers a cohort that is hard for advertisers to reach through While the average traditional sports fan is in their 50s, the • traditional media. average age of an Esports fan is only 26 (according to Nielsen). Esports offer an opportunity for advertisers to communicate with • Over 30% of Esports enthusiasts have an annual income of over • gamers where they are, on digital platforms like Twitch. $90K. Research has found that esports fans are more likely to be influenced • The Esports audience is globally diverse, with over 50% coming • by their favorite team being sponsored by a brand than traditional from Asia Pacific. sports fans are. The Esports audience skews younger and is global in nature Esports Viewers by Age Esports Enthusiasts by Region 6 Sources: NewZoo, Nielsen, Company Websites
Esports Betting Total Addressable Market Esports Wagering Handle ($, bil) Narus Advisers estimates that ~$13 bil will be wagered on Esports in 2020 • The shutdown of traditional sports during Covid-19 has proven there is an • appetite from bettors for Esports content. During the lockdown, over 50% of bets on Argyll’s platform were on Esports. As sports betting has become more widely accepted in the United States, large • publishers like Activision Blizzard and Electronic Arts have gotten more comfortable with betting on their IP. Activision recently formed a partnership with Sportradar and during an investor call Electronic Arts CEO Andrew Wilson mentioned gambling as a potential growth area for the company. Esports Betting Volume By Game Historically MOBA’s and FPS games have been the most common titles to bet on. However, during the pandemic “simulation **We believe the peer-to-peer, skill-based wagering games” such as Madden, FIFA, NBA 2K and F1 Racing market will be significantly larger at maturity** became very popular. 7 Sources: Narus Advisors, Eilers and Krejcik Gaming
Introducing Esports Entertainment Group’s VIE.GG platform VIE.GG’s Competitive Advantage Esports betting began primarily through unregulated sites but it is now migrating to regulated operations. • EEG provides a safe, compliant platform and our Nasdaq listing provides full transparency through SEC filings. • Malta and Curacao gaming licenses (covers 149 jurisdictions globally); UK and Ireland license through Argyll Entertainment; NJ license pending • Over 100K registered players through Argyll Entertainment. 8
Key Strategic Partnerships Allied Esports was named to Fast Company’s World’s Most • Signed multi-year partnership with Dignitas, one of the most • Innovative Companies list for 2019, Allied Esports is a premier iconic and recognizable brands in esports and owned by Harris esports entertainment company with a global network of Blitzer Sports and Entertainment (HBSE). dedicated esports properties and content production facilities. Other HBSE assets include the New Jersey Devils, Philadelphia • EEG will be the title sponsor of the inaugural VIE.GG CS:GO • 76ers, and the Crystal Palace. Legend Series Tournament. Leading independent corporate finance and equity capital • HBSE Co-Founders: markets adviser specializing in online gaming. Josh Harris - Co-Founder and Senior Managing Director of Apollo Global Management Akur will help EEG with our aggressive M&A strategy, targeting • successful iGaming operators that have gambling licenses in David Blitzer - Global Head of Blackstone’s Tactical Opportunities strategic jurisdictions. group 9
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