Building the leader in betting, gaming, and interactive entertainment - 12th August 2021
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Building the leader in betting, gaming, and interactive entertainment 12th August 2021
Today’s agenda
Entain’s platform for growth Jette Nygaard-Andersen
CEO
Entain Technology Sandeep Tiku
COO
UK Digital Dominic Grounsell
MD UK Digital
Q&A Presenters and Rob Wood
Unparalleled Growth Momentum and Profitability
Entain is a truly differentiated interactive entertainment business
Unparalleled Growth Momentum and Profitability Truly Global Market Leadership
22 29-30%
#2 #2 #2 #2
UK US Germany Italy
consecutive quarters Online EBITDA margin #3 #1 #1 #3 Partypoker
of double-digit online growth (FY21E)1 Australia Georgia Brazil
(global)
Diverse Product Offering with Omni-Channel Capabilities Robust, Reliable, Market-Leading Technology
3,000+ 2M 99.95% 120+
Technologists Daily bets Service availability (>99.9% Changes per day with zero
through platform every year) downtime
SPORTS CASINO BINGO POKER RETAIL
Bespoke Customer Offering Ensuring Quality User Experience Proven Digital Expertise Powered by Advanced Data & Analytics
25M 71% 300+ 160M+ 100+ 50+ ‘000s
Betting offers from in-house BetMGM customers In-house games Customer data Content AI prediction Personalised offers
trading platform, across 90+ playing on in-house and profiles based on recommendation models from data-powered
sports and 200k+ in-play events exclusive content 250TB of data models CRM technology
Significant Regulatory Experience Leadership in Responsibility
100 645 99% ARC
Licenses across 27
countries globally
Experienced Legal and
Compliance personnel
Revenues from regulated and
regulating markets Advanced Responsibility & Care
For notes see appendix 3
Industry-leading Entain Platform provides unique competitive
advantages and powers growth
M&A and
Leading People Global Scale and Brand Integration
Technology and Talent Awareness Track Record
Content Creation Customer Relationships Marketing Regulatory
and Products and Data Excellence Expertise and
Responsibility
4
Evolving our strategic narrative
VISION The world leader in betting, gaming and interactive entertainment
PURPOSE Bring moments of excitement into people’s lives
STRATEGY
SUSTAINABILITY GROWTH
⬢ Regulated ⬢ Leadership in the
markets U.S.
⬢ Lead on ⬢ Grow presence in
responsibility core markets
ENTAIN
⬢ Best-in-class PLATFORM ⬢ Expand into new
regulated markets
corporate
governance
⬢ Extend into new
interactive
⬢ Investing in people entertainment
& communities experiences
5
We are winning in the U.S.
BetMGM is the established #2 operator with significant runway for growth and profit generation
Overall Estimated National Market Share2
35%
$32bn 20-25%
30% COMPETITOR 1
25%
Long-term total addressable Expected long-term
20%
BetMGM market (TAM) U.S. market share
COMPETITOR 2
15%
30-35% $1bn+
10%
COMPETITOR 3
5%
Expected long-term Forecasted 2022
EBITDA margin net revenue
0%
Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21
For notes see appendix 6
Growing share across all markets in the US
BetMGM market shares2
35%
#1 30%
30%
Q2 2021 iGaming
Leader in iGaming
market share2,4
25%
20% #2 22%
15%
US Sports betting & iGaming Q2 2021 total
operator2,4 market share2,4
10%
5%
35% 32%
0% Q2 2021 market share
Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21
Q2 2021 market share
in Tennessee OSB4 in Colorado OSB4
Online Sports L3M iGaming L3M All Markets L3M
7
For notes see appendix
Leading growth in the global online regulated market
Strong TRACK
STRONG track RECORD
record OF
of growth
GROWTH Online
ONLINENGR (£M)AND
NGR (£M) andY/Y
y/yGROWTH
growth
900
41% 23%
32%
800
28%
23% 50% 22
700
23%
19%
online NGR growth5 Online EBITDA Consecutive 600 11%
17% 11%
in Q2 2021 growth in 2020 quarters of double- 15%
Online NGR (£M)
digit online y/y 500
29% 18%
25%
growth 26%
15%
400 13%
18% 12%
17%
22% 25%
24%
300
29-30% 20% 200
EBITDA margin 3-year CAGR in
FY21E1 Online NGR
100
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2016 2017 2018 2019 2020 2021
For notes see appendix 8
Further high-quality growth built into our existing markets
Well-positioned to deliver growth from existing markets
GGR IN ENTAIN’S CURRENT MARKETS
Online and Current Retail Market (2020-Long-Term)
MORE
NEW BETTORS
AND GAMERS
MORE SPORTS
BETTING GAMING +c.$30bn
25-40% 30-69% 26-63%
of adults in Entain’s of adults in Entain’s of adults in Entain’s existing 2020 -
existing markets6 are existing markets 6 markets 6 indicate an interest 2025
to participate in gaming
not betting today but
are interested in
indicate an interest
to bet somewhat or somewhat or CAGR %
betting/gaming significantly more significantly more
8.3%
$70bn
$59bn
97% 87% 100% $40bn
of online NGR from of online NGR from Revenue from
markets7 where we markets8 where online regulated markets
are growing >10% penetration by end of 2023
is
Growing new regulated market opportunities
Significant opportunity in new markets9
2020 - PROJECTED
LONG-TERM CAGR %
c.50 $40bn $40bn 15%
New market
Potential new
opportunity $9.6bn LatAm 22%
markets (online and retail)
$24bn
$11.5bn Africa 19%
$5.2bn
Track record of $10bn $6.3bn
Significant
accretive M&A regulatory $1.3bn Europe 11%
$1.3bn $18.5bn
experience $2.1bn
$12.4bn
$6.6bn
2020 2025E Long-Term
Note: Numbers may not sum due to rounding.
Sources: H2GC, VIXIO, World Bank Development Indicators, Activate interviews and analysis
10
For notes see appendixSignificant revenue opportunity of c.$142bn from current
business areas
$70bn $32bn $40bn
GGR opportunity in North America GGR New regulated market
existing markets10 market opportunity10 opportunity10
Sources: H2GC, VIXIO, World Bank Development Indicators, Activate interviews and analysis
For notes see appendix
11NEW GROWTH DRIVERS
Consumer trends opening new growth opportunities
Consumer trends
MORE BETTING MORE MORE
AND GAMING LIVE BETTING INTERACTIVE
CONTENT EXPERIENCES ENTERTAINMENT
MORE VIDEO MORE AUDIO MORE
FREE-TO-PLAY MORE
PROGRAMMING CONTENT SOCIAL FEATURES
GAMES
Opportunity for Entain to serve customers with an ecosystem of
adjacent content, games and social features
13Sports bettors are materially more likely to engage in much more
content than non-bettors
Additional adult11 sports activities participation12
Sports bettors13 are…
UP TO 2.8X UP TO 2.7X UP TO 1.9X
More Likely to watch More Likely to play More Likely to read
BETTING CONTENT FREE TO PLAY GAMES STATISTICS &
ANALYSIS
…than sports followers14 who do not bet
Sources: Activate Betting & Gaming Research Study (n = 21,570), Activate analysis
For notes see appendix 14Video gamers are more likely to participate in betting and iGaming
Global adult11 video gamers15 betting and iGaming participation12
Betting iGaming
Video gamers Video gamers
are are
UP TO 4.3X UP TO 4.5X
More likely to More likely to
participate in participate in
Bingo
Sports betting16 Non-Sports Casino iGaming17
Betting Event Betting Slots
Casino
Virtual Sports Esports Poker
Table Games
Betting Betting
Sources: Activate Betting & Gaming Research Study (n = 21,570), Activate analysis
For notes see appendix 15Video gamers expect more media content and social experiences
Global adult11 video gamers15 media activity participation12
Video gamers are…
UP TO 1.6X UP TO 1.5X UP TO 1.8X
More likely to watch More likely to use
More likely to listen to
VIDEO CONTENT AUDIO CONTENT SOCIAL MEDIA
Sources: Activate Betting & Gaming Research Study (n = 21,570), Activate analysis
For notes see appendix 16New Players
REAL MONEY GAMING
– Sports betting (i.e. online
By expanding our and retail betting on
traditional sports)
customer – iGaming (i.e. poker, bingo,
casino table games,
Consumer
casino slots)
offerings, Engagement
Powered by: –
CONTENT & MEDIA
Sports & betting media
enabled by THE ENTAIN PLATFORM –
–
Video and audio content
Streaming
– Statistics and analysis
our platform, we • People and Talent
• Content Creation
• Proprietary
Technology
– Free-to-play games
create powerful and Products
• Global Scale and
• M&A and Integration
Track Record
Brand Awareness • Customer
flywheel effects, • Marketing
Excellence
Relationships and
Data
New Users
further driving • Regulatory Expertise
and Responsibility
real money
gaming
INTERACTIVE
ENTERTAINMENT
– Esports betting
– Skill-based wagering
– Casual mobile games
(i.e. Social Casino)
New Gamers
17CONTENT & MEDIA
Driving user acquisition, engagement, and retention through
content and media
CONTENT, MEDIA AND ENTAIN IS ALREADY EXPAND CONTENT
GAMING ARE CONVERGING CREATING CONTENT IN
& MEDIA
THESE CATEGORIES:
• User acquisition • Building – in-house content
Audio Video creation capabilities
• User retention
• Increased engagement • Acquiring – strong M&A and
Sports & Free-to-play integration track record
• Community effects betting games
media • Partnering – existing and new
partnership opportunities
Innovative ways to interact
with content (VR/AR)
Source: Activate analysis 19Engaging our users with more content drives deeper engagement and
builds relationships
Sports and betting content
MOODY ON THE MIC
CORAL & ITV PARTNERSHIP Australia’s leading horse racing podcast
Producing a 10 month series of high quality featuring legendary trainer Peter Moody
documentaries about sporting greats
LADBROKES AUSTRALIA PRESENTS
Weekly original racing stories to
entertain and educate fans
Sources: Company Sites, Activate analysis 20Entain’s sports and betting media creates relevant and engaging
customer experiences
Sports and betting content
Bwin Content
Partnerships
⬢ Partnerships with high-reach
sports properties
– Driving traffic and bets by
integrating odds near relevant
sports content
⬢ Localised offerings tailored to
individual markets and consumer
preferences
⬢ Social, dynamic live tickers and
embedded news content
Sources: Company Sites, Activate analysis 21We are constantly updating our free-to-play offerings to bring new
users into the ecosystem and keep them coming back
Success from free-to-play games
NEDS' LIVE TRIVIA CORAL REWARDS GRABBER LADBROKES 1-2-FREE
A micro-market game to engage players Arcade-style game available daily to Score and match prediction game available
while sporting events are in-play users on the Coral platform weekly on the Ladbrokes platform
6 free-to-play
propositions currently
live across UK sports
brands:
• C.700k average cumulative
weekly customers playing
FTPs
• >70% average conversion
from FTP to real money play
• C.300k new customers
acquired by FTP in the last 12
months
Sources: Entain internal data, Activate analysis 22Leading the way in virtual sports experiences
Forthcoming innovative experiences
AR/VR Content
First-of-its-kind virtual reality
Sports Club experience
First-of-its-kind virtual reality Sports
Club experience
Innovation project together with
partner Verizon Media
Using a Quest 2 VR headset,
customers will be able to:
Play and compete with each other
in various games
Watch sports live streaming
Engage with our unique
propositions
Sources: Company Sites, Activate analysis 23THE INTERACTIVE ENTERTAINMENT OPPORTUNITY
Esports audiences are growing rapidly with strong affinity for betting
Video game and esports ecosystem
VIDEO GAMING DEFINITIONS BETTING APPLICATIONS
General Gaming
NON-RANKED18 • Consumers playing digital interactive
Skill-based wagering (Casual games)
VIDEO GAME PLAY
games for general entertainment Competitive play of skill-based games,
with players betting on their own performance
Organized & Structured
Competitive Multiplayer
NON-PROFESSIONAL
RANKED VIDEO GAMES • Amateur players competing based on Skill-based wagering (Amateur esports)
structured rankings determined by
Competitive play of skill-based games,
Professional skill and performance with players betting on their own performance
ESPORTS
(PROFESSIONAL)
Organized, ranked, • Professional athletes and teams competing Esportsbook
competitive play in official leagues and/or organized
(includes play and/or Platform for viewers to wager on esports competitions, offered
viewership)
tournaments by most traditional sportsbook operators
Source: Activate analysis 25Esports already competes with major traditional sports and events for
viewership
Viewership by League, Global, 2021
474M
281M
231M
105M
Esports Viewers
Sources: Forbes, NewZoo, Nielsen, Activate Analysis 26The esports wagering opportunity will grow to c.$12bn by 2025
Esports wagering market19
2020-2025E
CAGR
+c.$9bn c.$12bn 34%
c.$10bn 39% Skill-Based Wagering
Competitive play of skill-based games, with players
betting on their own performance
c.$3bn
c.$2bn Esportsbook
c.$1bn
c.$2bn 19% Platform for viewers to wager on esports
competitions
2020 2025E
Sources: Entain internal data, H2GC, Newzoo, PricewaterhouseCoopers, VIXIO, Activate analysis & interviews
For notes see appendix 27Unikrn leverages global player bases, offering both skill-based
wagering and esportsbook
Unikrn surrounds
Skill-Based
Wagering these esports
Example esports titles:
Bet on your own experiences with
performance, and compete
against others to win prize content & media
pools
and social
integrations
Social
Esportsbook
Bet on professional esports
competitions and events,
similar to traditional
sportsbooks Programming Streaming
28Entain and UNIKRN combination creates the first fully-integrated
esports platform
Key Capabilities Unikrn Entain
Skill-Based Wagering: Bet on your own performance
Products & Enhanced Esportsbook: Bet on esports matches and virtual esports events Traditional esportsbook
capabilities to
pursue esports Streaming: Watch esports streams and bet on favorite streamers
betting Social & Community: Interact with other users and engage with creators
opportunity
Original Content: Original news programming on esports & esports betting
Esports Data: In-play game data for skill based wagering
Scale: Global reach to support large-scale distribution
Capital Resources: Financial resources to support growth
Resources to Technology: Engineering resources and IP
support Data Analytics: Intelligent analysis of player data
operations at
scale People: Talent and personnel
Regulatory Experience: History of regulatory compliance across markets
Player Protection: Product features designed to protect players
Marketing Expertise: Experience and resources to effectively grow audiences
29Opportunity to extend into casual gaming categories that align with
our strategy
Key areas of attractiveness to Example:
EXAMPLE: social
SOCIALcasino
CASINOadult
ADULTmarket
MARKETsize
SIZE , 2020-2025E,
1928 global
, 2020-2025E, GLOBAL
Entain
2020–2025E
CAGR %
• Alignment with Entain’s core offerings and +c.$3bn
capabilities c.10%
• High-growth opportunities
– c.10%+ CAGR 2020-2025E
• Existing behavior among current Entain
audiences
c.$8bn
– More than 50% of Entain’s existing free-to-
play players transition to real–money gaming
c.$5bn
• Ability to attract new users to core offerings
– E.g. Significant proportion of social casino
players are current or potential bettors20
2020 2025E
Sources: Entain internal data, Activate Betting & Gaming Research Study (n = 21,570), Newzoo, SensorTower, Activate analysis
For notes see appendix 30New Players
REAL MONEY GAMING
– Sports betting (i.e. online
Entain’s flywheel and retail betting on
traditional sports)
drives user – iGaming (i.e. poker, bingo,
casino table games,
Consumer
casino slots)
acquisition, Engagement
Powered by: –
CONTENT & MEDIA
Sports & betting media
engagement, and THE ENTAIN PLATFORM –
–
Video and audio content
Streaming
– Statistics and analysis
retention, • People and Talent
• Content Creation
• Proprietary
Technology
– Free-to-play games
enabled by and Products
• Global Scale and
• M&A and Integration
Track Record
Brand Awareness • Customer
Entain’s unique • Marketing
Excellence
Relationships and
Data
New Users
platform • Regulatory Expertise
and Responsibility
INTERACTIVE
ENTERTAINMENT
– Esports betting
– Skill-based wagering
– Casual mobile games
(i.e. Social Casino)
New Gamers
31Unlocking significant market opportunities
Entain is moving from a $40bn to a $160bn total addressable market
INTERACTIVE THE ENTAIN
ENTERTAINMENT24 OPPORTUNITY
NEW MARKETS23 c.$20bn
U.S. MARKET c.$40bn
LEADER22
MARKET GROWTH IN c.$32bn c.$162bn
CORE MARKETS21
CORE INTERNATIONAL c.$30bn
GAMING BUSINESS
c.$40bn
Pre-eminent, Digital, Global Betting & Gaming Platform Integrated Global Ecosystem
Sources: Entain internal data, H2GC, VIXIO, World Bank, NewZoo, Sensor Tower, Activate interviews and analysis 32Sandeep Tiku 11 Chief Operating Officer Entain Group CTO 2014-2020
ENTAIN’S
SECRET
SAUCE
347 years ago, we set an ambitious target
Best customer experience
Strongest technology
2014 Awesome products
Build for the future
35While the competition assembled boxes,
we did something different
Linear approach
At Entain, we set about developing
Sportsbook Casino
Intelligent
Technology
Poker Bingo To power the growth of the business
To transform the future of the industry
Just assembling the boxes isn’t smart
36Intelligent powerhouse, real engineering outcome
37Precision approach, differentiated from the competition
Linear approach Cognitive approach
Run
processes
Start Play
Follow
up
Reactive - Chasing the customer Proactive - One step ahead
38Operating at Scale with Speed and Security
Large-scale global operations running seamlessly
7x
vs Amazon
71k+
Trading events per min
100+
Cyber attacks
Entain’s UK Brands handle 7x Entain’s Trading platform 100+ Cyber Security attacks in
transactions every Saturday generates 71k+ events per last 2 years
vs Amazon’s UK setup minute - comparable to leading with ZERO impact
on a Black Friday* stock exchanges to our services and customers
Notes: * Like for like comparison based on Statista Amazon report. Nov 23rd, 2018, Black Friday, Amazon UK reported 4.22M transactions that day. Each Saturday, Entain UK brands report 28M+ transactions (2018-2021+) 39
https://www.statista.com/statistics/1061675/number-of-total-transactions-on-amazon-uk-website-black-friday-and-cyber-week/Delivering powerful & agile operations
Five major projects delivered in one single day
1 2 12th May 2020 3 4 5
Ladbrokes migrated PayPal Germany Sportsbook migration Moved casino for Online gaming
to Entain’s platform regulatory change with from Gibraltar Coral & Ladbrokes launch ready for
(industry’s largest mandatory to Dublin to centralised West Virginia
migration to date) deadline application stack
40Delivering more for our customers
Improvement across the board
Increase in customer
Customer delight 10% delight since Jan ‘21
Improvement in time to set up a
More agile 476% new geography / market
Reduction in the time to integrate
More flexible 780% any 3rd party
Notes: Customer delight based on new customer engagement measurement framework and sentimental analytics
New market setup reduced from 8-9 weeks to 1-2 weeks 41
New third-party integrations reduced from 20-24 weeks to 2-3 weeks5+ years of double-digit growth
Total Entain Digital NGR (£m)
900
41% 23%
#1
800 32%
US Gaming
700
23%
28%
#2
600 19% Germany
11%
#2
17% 11%
15%
18%
500 29%
NGR £m
26% 25%
15%
UK
400 13%
#2
18% 12%
17%
22% 25%
24%
300
Italy
200
100
#1
Brazil
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021
42We are well-positioned to lead our sector
Performance against Top Digital Peers
4.1
Architecture &
1 5
Innovation 2.8
Technology 3.4
Entain has technology
Strategy & 1 5
Operating Model 3.0
3.3
in its DNA; the Group Technology
Procurement
1
2.5
5
has built a key Infrastructure &
Operations
1
4.1
5
differentiating factor Risk & Security
3.1
4.4
1 5
Management
3.1
Legend Entain Maturity Level Peer Average
(Top 15 percentile)
Notes: As recognised by a leading global research and advisory company
Top Digital Peers with revenues >5B USD, Operating in >15 countries, with IT spend >150M USD
431. AI First Strategy
2. Engineering Innovation
3. Development Ecosystem
4. Customer Protection
ENTAIN’S
5. Awesome Products
SECRET
SAUCE
442. Engineering Innovation
3. Development Ecosystem
4. Customer Protection
ENTAIN’S
5. Awesome Products
SECRET
SAUCE
451 AI First Strategy
CRM PERSONALISATION CUSTOMER 3rd PARTY
101010101110100110101010101010101010101010101010101010000111010101101
010101010101010100101011010011010100101001010101010101010011101101010
010101010010101001110101000101010100101010101010101010101010101010101
SINGLE DATA LAKE
010101010101010101101010101110100110101010101010101010101010101010101
010000111010101101010101010101010100101011010011010110101001010101010
101010011101101010010101010010101001110101000101001010101001101010101
REAL TIME FEEDBACK
AI ANALYSIS
MODELS MIXER
Connected information driving
step-change outcomes
461 AI First Strategy
Delivering value today
REVOLUTIONARY ✓ Hyper-personalised experiences for
every customer
AI-FIRST
✓ Far higher accuracy
STRATEGY
✓ Understands new customers in
Enabled by ▪ < 12 hours with 70% accuracy
Entain’s proprietary ▪ < 3 days with 90% accuracy
intelligent technology
✓ Real-time Voice of the Customer & AI
driving Entain’s product experience
471. AI First Strategy
3. Development Ecosystem
4. Customer Protection
ENTAIN’S
5. Awesome Products
SECRET
SAUCE
482 Engineering Innovation
Automated technology integrations Invisible migration, visible benefits
Ladbrokes & Coral
Online Monthly NGR (£m)
Self-Detect
Self-Learn Migration to Entain
platform
Self-Migrate
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 21 21 21 21
25m customers migrated recently
38% growth since migration *
ZERO IMPACT
* 12 months post-migration vs. 12 months pre-migration 491. AI First Strategy
2. Engineering Innovation
4. Customer Protection
ENTAIN’S
5. Awesome Products
SECRET
SAUCE
503 Development Eco-system
Central delivery eco-system powered by Entain’s relevance factor
UK 253 features planned UK 769 features shared 3x
Europe 42 features planned Europe 313 features shared 7.5x
MULTIPLIER
US 265 features planned US 453 features shared 2x
DELIVERY
1.5x
Casino 230 features planned
MODEL Casino 311 features shared
Others 687 features planned Others 1,770 features shared 2.5x
Average benefits per stream in 2020 of 332%
513 Development Eco-system, accelerating growth
Delivering scale with efficient operations
In 2018 Ladbrokes Coral By 2020 this was
depended on… reduced to… 50M £ Synergies in less than 3,000+ people
24 months
Corporate Operations
3 0 150% increase in delivery
throughput
Poker & Casino Platform
OUTSOURCING AGENCIES OUTSOURCING AGENCIES
Retail Development
1000+ people
Marketing Operations
250 0 Corporate Operations Sports Development
CONTRACTORS CONTRACTORS
Poker & Casino Platform Mobile Development
15 3 THEN
Scaling teams and moving functions to
NOW
TECH SUPPLIERS TECH SUPPLIERS
cost-optimized high-tech hub in India
521. AI First Strategy
2. Engineering Innovation
3. Development Ecosystem
ENTAIN’S
5. Awesome Products
SECRET
SAUCE
534 Customer Protection
Breakthrough scientific approach to player safety
1
FOCUS ON INTELLIGENT
BOTH APPROACH TO
CUSTOMER CUSTOMER BEHAVIOUR PRODUCT FEATURES RISK
BEHAVIOURS Keeping customers in their Safe Zone Continuously scanning our product for REDUCTION
& PRODUCT Setting behavioural baselines
hot-spots
FEATURES Making real-time changes to
Detecting spikes in their play
keep our customers safe
Customer Profile Academic Product Feature
2 Analysis Research Analysis
CARE CRAFTED
CREATES PERSONAL SAFETY NET TO EACH
A SAFETY
CUSTOMER
NET UNIQUE
▪ Dynamic Bet Limits
TO EACH
CUSTOMER
▪ Dynamic Deposit Limits Tailored to
▪ Dynamic Session Time Limits each customer
▪ Dynamic Feature Adaption
541. AI First Strategy
2. Engineering Innovation
3. Development Ecosystem
4. Customer Protection
ENTAIN’S
SECRET
SAUCE
555 Awesome Products
CASINO RACING SPORTS BINGO POKER
1000+ new features added every single year
56Continually driving down costs
Technology gross cost base as % of NGR
33% reduction since 2018
2018 2019 2020 2021
Cost / NGR %
57Accelerating growth
Product innovation driving further growth
• New Trading Platform
H2 2021 (4 years of investment)
• Proprietary group Bet Station
by H2, 2021
• Next-Gen Personalization Engine
by H1, 2022
58Ready for the next innovation curve
Innovation is disruptive
Guy Kawasaki tells the story of how ICE 1.0 (left)
became ICE 2.0 (right), through disruptive innovation
59Ready for the next innovation curve
We are at the forefront
TECHNOLOGY
LIVE
GAMING MEDIA
ENTERTAINMENT
YOUR SPORTS SOCIAL
pic DREAM pic
Innovation Lab & Brand Disruptive & Innovative Key
launch In 2021 Product Lines Partnerships
60Ready for the next innovation curve
We are investing 100%
£100M funded through
EVOLVE
in innovation
our cost
over the next 3
optimisation
years
programme
61Key takeaways
#1 Powerful technology ecosystems
#2 Years ahead of the competition
#3 Ready to shape the future of our
industry
ENTAIN’S
SECRET
SAUCE
62Dom Grounsell 11 MD UK Digital
UK digital market in consistent growth
UK Digital sector: Total net gaming revenue 2016-2020
+16%
+6%
+3% £6.0
Consistent growth for 15+ years
+18%
£5.2
£4.8 £4.9 Growth driven by customer penetration
£4.1 & innovation
NGR (£bn)
Tier 1 operators dominate
Out-performance requires leadership in
key capabilities
2016 2017 2018 2019 2020
Source: Regulus 2020 Market Data 64Diverse UK brand portfolio
Key Entain UK brands & lead propositions
17%
Sports Betting Sports Betting Slots NGR Market
Slots Slots Table Games share
Table Games Table Games Live Casino 2020
Live Casino Live Casino Poker
+2pp
share vs. 2019
Slots Bingo Bingo
Bingo Slots Slots
Table Games Live Casino Live Casino
Source: Regulus 2020 Market Data 65Diverse UK customer base
Key Entain UK brands – customer audiences
Opportunities to
GROW
Opportunities to
MITIGATE
MARKET
HEADWINDS
Diverse Customer Base: Ages Genders Lifestyles Product Preferences Playing Behaviours
66Unique & highly effective operating model
Customer Facing Brands
Driving the market level
growth agendas
World Class Centralised
Operational Functions
Ensuring consistency in Compliance Customer Services Enabler Functions
execution in critical areas & Player Protection & Operations Legal, HR, Finance etc.
Integrated Global Platform
Delivering cost efficiencies &
global consistency, stability & Product Core Systems Data
alignment
67Strong brand, customer & revenue performance
BUILDING STRONG BRANDS ATTRACTING MORE CUSTOMERS DIVERSIFYING OUR CUSTOMER BASE
Top UK Betting & Gaming Brands: % Customers Very/Somewhat (1) (2)
Monthly Actives Customers Jan 2019-May 2021 Recreational Player Volume 2019 vs 2020
Familiar
+76% +43%
2019 2020
IMPROVING CUSTOMER SATISFACTION DELIVERING MARKET LEADING GROWTH
(3) (4)
Av Weekly Coral Customer Satisfaction: 2019-2020 Operator 3 Year CAGR: 2017-2020
20%
+20%
15%
10%
5%
0%
2019 2020 Entain Comp Comp Comp Comp Comp Comp Comp Comp
UK 1 2 3 4 5 6 7 8
-5%
1) Nursery UK Digital Brand Tracker Q4 20. Q: How familiar are you with the following companies? N = >2000 Rest of
2) Internal Entain data Market
3) Entain UK Voice of Customer Survey N=>1000 -10% 68
4) Regulus Market Data 2020Four pillars of growth
Customer Insight, Brand Innovation Digital Marketing
Data & Analytics
Customer First approach
691. Insight, Data & Analytics
2. Brand
3. Innovation
4. Digital Marketing
Growth Pillars
70Analysis & synthesis of external insight
Analysis & synthesis external insight Identifying new growth opportunities
Market Size & Value Trends
Innovation Reports
Share Reports
Competitor Monitoring
Feedback Market Tracking
Csat Tracking & Analysis
Social Monitoring
Customer
Customer
Tracking
Satisfaction Insight
&
& Sentiment
Analysis
Customer Volumes
Brand Health & Customer Behaviours
Awareness Socioeconomics
Consideration
Image Tracking
Psychographics
Perception Geodemographics
Image Attributes ACQUISITION RETENTION
Opportunity Heatmap Opportunity Heatmap
71Innovating in customer research
Example: Leveraging neuro testing to optimise TV adverts
Develop TV Advert Neuro-Testing Study Rich insight to evaluate and
optimize advert
Measuring
Brain Response EEG Section 1
Section 2
GSR ET
Measuring Measuring
Skin Eye
Response Tracking
Analyses of combined EEG, GSR and ET
measurements allows us to identify where the ad is
performing and where we can improve.
72World class customer segmentation
Large scale research programme delivering in-depth Leveraging insight to create experiences tailored to
segment insights segment needs
CURRENT AUDIENCE ADDITIONAL FUTURE AUDIENCE
EXAMPLE EXAMPLE
Extensive Qualitative High Volume Detailed Factor &
Research Phase Quantitative Study Cluster Analysis
CURRENT
AUDIENCES
ADDITIONAL TAILORED TAILORED
FUTURE SEGMENT SEGMENT
AUDIENCES EXPERIENCES EXPERIENCES
73Leading edge data & analytical capabilities = data powered decision making
CUSTOMER COMMERICAL MAXIMISING CUSTOMER
Focus Areas UNDERSTANDING OPTIMSATION GROWTH PROTECTION
Commercial Compliance
AI Lifetime Value Analytics & AI Next Best Offer
Analytics &
Models Reporting Engine
Reporting
Marketing AI Driven KYC Engine
Key Customer DNA Personalisation
Capabilities Analytics Toolkit
AI Problem
Segment Analysis Bonus Abuse Gambling
Models Simulation Suite
Prediction
Engines
(Part of ARC)
World Class
Integrated Global Enhanced AI Advances Global
Foundations Management
Data Platforms Platform Analytics Tool Kit
Information Suite
741. Insight, Data & Analytics
2. Brand
3. Innovation
4. Digital Marketing
Growth Pillars
75Strong heritage and significant investment
Strongest heritage in the market Significant investments in advertising
Ladbrokes: Founded 1902 Coral: Founded 1926
Gambling Brands Share of Advertising Media Spend: YTD May 2021
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
Comp 1 Ladbrokes Comp 2 Comp 3 Comp 4 Coral Comp 5 Rest of
Brands
Source: Analysis of BARB & Nielson Tracking
76Building towards world class Brand Marketing
INNOVATING IN DIGITAL
HUMAN, CUSTOMER LADBROKES HORSE TINDER
CENTRIC
ADVERTISING
BLOCK BUSTER
CAMPAIGNS
FILM QUALITY PRODUCTION VALUES
77The brand power of Retail
>2.5k ‘window’ advertising
sites
Millions in potential media
value
High quality digital window
screens rolling out
Proprietary MarTech delivering
localised messages
Key competitive advantage
781. Insight, Data & Analytics
2. Brand
3. Innovation
4. Digital Marketing
Growth Pillars
79Ambitious, wide ranging innovation agenda
FREE-TO-PLAY SPORTSBOOK GAMING CORE JOURNEY
Market leading portfolio of games Driving engagement through Breadth & depth of best-in-class Making it easier & quicker for
across Sports & Gaming gamification content always available for customers to complete key action
customers
Integrated Global Platform
80Setting the highest possible bar for future innovation
Make it… Make it… Make it… Make it…
Example SIMPLER & MORE FUN & PERSONALISED STAY IN
Customer Needs
MORE ENTERTAINING TO ME CONTROL
INTUITIVE
Our Bar For
Innovation
811. Insight, Data & Analytics
2. Brand
3. Innovation
4. Digital Marketing
Growth Pillars
82Extensive Marketing Technology estate & innovative digital marketing
Entain MarTech Estate – Graphical Overview
Highly Targeted
Real Time Push
Campaigns Personalised
Customer
Marketing
Our MarTech estate incorporates best in class tools & platforms
from a wide range of leading suppliers
83Driving to the bleeding edge of what is possible
Customer Segment insight….
THE FLOW
Analysis
produces MARKETING FLY
optimization
insights
WHEEL
Future Priorities
Drive channel expansion
… drives ideal
proposition &
We then Linear Attribution creative selection
Next phases of MarTech expansion analyse Performance Performance for each
performance
customer…
using multiple
lenses
Deepen partnerships & integrations Customer Brand
Feedback Tracking
with key partners
Flow Marketing
… and drives ‘individualised’ campaign
execution:
Channel selection, Spend, Scheduling, etc
84Conclusion
Consistent track record of out-performance
Significant investments in critical capabilities to drive growth
Ambitious roadmap of innovation underway
Major scope for future growth, built around being data driven & customer first
World leader, not just category leader, in our key pillars of growth
85APPENDIX
References
1. As per company guidance with 2021 Interim results dated 12 August 2021
2. Total market share by GGR for retail, OSB and iGaming across all U.S., including jurisdictions where BetMGM is not currently active; internal estimates used where operator-
specific results are unavailable.
3. In markets that BetMGM is active.
4. 3-month rolling market share April 2021 to June 2021, based on BetMGM revenues as a percentage of state reported revenues.
5. Constant currency basis.
6. Includes Australia, Belgium, Brazil, Canada, France, Germany, Italy, Mexico, Spain, United Kingdom, United States.
7. Excluding Germany.
8. Excluding UK.
9. Markets in which Entain is not licensed nor currently engaging with regulatory authorities in preparation for licensing.
10. Projected long-term available market size.
11.Minimum age surveyed varied across countries due to betting/gaming age restrictions.
12. Global countries surveyed include: Australia, Belgium, Brazil, Canada, France, Germany, Italy, Japan, Mexico, Poland, Russia, Spain, United Kingdom, United States.
13. Sports bettors defined as those who have bet money on sports in the last 12 months.
14. Sports followers defined as those who have watched sports games or highlights, attended a sport event, or read articles/stats in the last 12 months.
15. Played video and/or mobile games on any device in the last 12 months.
16. Bettors defined as those who have participated in at least one betting activity (betting on sports, esports, virtual sports or non-sports events) in the last 12 months.
17. Gamers defined as those who have participated in at least one gaming activity (playing casino table games, bingo, poker, or slots with real money) in the last 12 months.
18.For non-ranked video games, players may be ranked according to performance statistics for multiplayer match-making to occur, to ensure fair level of play, and to support
social interaction (e.g. leaderboards), though this score is often withheld from the player, is not professionally-driven, and is not used in situations analogous with rank-
based competitions (e.g. players earning skill tiers, tournaments with payouts).
87References
19. Includes revenue from adults aged 18+ only.
20.Current bettors defined as those who participated in at least one betting or gaming activity in the last 12 months. Potential bettors defined as those who have not
participated in betting or gaming activities in the last 12 months but are at least slightly interested in participating in at least one in the future.
21. Core market long-term TAM (excluding the US) estimated to be c.$70bn based on GGR forecasts of current active geographies.
22. Incremental US long-term TAM of c.$32bn equals estimated forecast GGR of c.$14bn for U.S. iGaming, c.$13bn for U.S. sports betting, and c.$4bn for total Canadian
market.
23. New market incremental long-term TAM estimated to be c.$40bn based on GGR forecasts of target markets where Entain is not currently active.
24. Forecast incremental 2025E TAM for interactive entertainment of c.$20bn equals forecast 2025E TAM of c.$12bn as addressable market for Esports betting and c.$8bn as
addressable market for social casino.
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