CORPORATE PRESENTATION - CONTAGIOUSGAMING.COM MARCH 2015 - Contagious Gaming
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CORPORATE PRESENTATION
MARCH 2015
CONTAGIOUSGAMING.COM
CONTAGIOUS GAMING INC.
DISCLAIMER
This corporate presentation does not constitute an offer to sell or a solicitation of an offer to buy any of the
securities described in this news release in the United States. Such securities have not been, and will not be,
registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state
securities laws, and, accordingly, may not be offered or sold within the United States, or to or for the account or
DISCLAIMER
benefit of persons in the United States or “U.S. Persons”, as such term is defined in Regulation S promulgated under
the U.S. Securities Act, unless registered under the U.S. Securities Act and applicable state securities laws or
pursuant to an exemption from such registration requirements.
Information in Corporate Presentation that is not current or historical factual information may constitute forward-
looking assumptions concerning the business, operations and financial performance of the Company (collectively,
the "Assumptions"). Many of these Assumptions are based on factors and events that are not within the control the
Company. Forward-looking information is subject to a number of risks, uncertainties and other factors that could
cause actual results to differ materially from what the Company currently expects. These risks, uncertainties and
other factors include, but are not limited to: the timing and market acceptance of future products, competition in
the Company's markets, the Company's reliance on customers, fluctuations in currency and exchange rates,
commodity prices or interest rates, the Company's ability to maintain good relations with its employees, changes in
the law or regulations regarding the environment or other environmental liabilities, the Company's ability to
integrate acquisitions and the Company's ability to protect its intellectual property. While the Company considers
these Assumptions to be reasonable based on information currently available, they may prove to be incorrect. There
can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. Unless otherwise required by applicable laws, the
Company does not intend, nor does it undertake any obligation, to update or revise any forward-looking information
to reflect subsequent information, events, results, circumstances or otherwise. Accordingly, the reader is cautioned
not to place undue reliance on forward-looking information.
CONTAGIOUS GAMING INC. – TSXV:CNS 2
CONTAGIOUS GAMING INC
WHO WE ARE
We are a software developer focused on providing
unique and engaging gaming solutions for lotteries and
regulated markets around the world
CONTAGIOUS GAMING INC. – TSXV:CNS 3
CONTAGIOUS GAMING INC
DYNAMIC SOFTWARE-BASED GAMING COMPANY
CORPORATE OVERVIEW
Contagious Gaming completed its go-public transaction in September 2014
– Raised $6 million in a concurrent equity financing
Operations in:
– London, UK
– Charlottetown, P.E.I.
20 employees including a talented team of developers, programmers, artists and integration specialists
1 2 3
PARI-MUTUEL BETTING DIGITAL INSTANT LOTTERY BINGO
The world’s first remote in- Portfolio of 23 completed Entered into an agreement to
play, lottery-style sports digital instant lottery titles acquire established online UK
betting platform First-mover in US bingo provider
Launched GOAL TIME Georgia went live in Q4 2014 3 bingo brands
(soccer) in the UK with Trinity Leading industry 17 gaming websites
Mirror on Dec 21, 2014 partnerships with GTECH and Wagers of over $3.4 billion
Scientific Games since inception
CONTAGIOUS GAMING INC. – TSXV:CNS 4
CONTAGIOUS GAMING INC
CURRENT VERTICALS AND KEY PARTNERS
PARI-MUTUEL BETTING DIGITAL INSTANT LOTTERY THIRD PARTY
VALIDATED BY A PORTFOLIO OF BLUE-CHIP PARTNERSHIPS ACROSS ALL VERTICALS
CONTAGIOUS GAMING INC. – TSXV:CNS 5
CONTAGIOUS GAMING INC
LARGE MARKET OPPORTUNITY
GLOBAL INTERACTIVE GAMBLING MARKET BY GROSS WIN
80
Market Size in billions ($)
61.0
56.0
60 50.7
43.1 46.5
35.6 38.5
40 28.1 31.4 32.5
20.7 21.7 25.2
12.5 16.4
20 9.2
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012P 2013E 2014E 2015E 2016E 2017E 2018E
Source: H2 Gambling Capital
Converted from € to CAD$ at 1.4
GLOBAL ONLINE PENETRATION ONLINE GAMBLING MARKET SHARE
12% 10.9%
Interactive as a % of Total
10% 6%3%
8% 13%
Gambling
6% 48%
4% 3.4%
2% 30%
0%
2003 2005 2007 2009 2011 2013E 2015E 2017E Betting Casino Lotteries Bingo Other
Source: H2 Gambling Capital Source: Global Betting and Gaming Consultants
COMBINED ONLINE BETTING AND LOTTERY MARKET COULD REACH
$37 BILLION BY 2018 Source: Management analysis
CONTAGIOUS GAMING INC. – TSXV:CNS 6
CONTAGIOUS GAMING INC
EXPOSURE TO HIGH GROWTH SEGMENTS
LIVE IN-PLAY BETTING - EUROPE US LOTTERY SALES - 2014
34%
$36 bln
66%
$64 bln
$28 bln
Live Pre-Game
Live In-Play is has grown rapidly Total Draw Instant
Now accounts for approx. 65-70% of betting in Europe Instant Lottery is Estimated at 60% of US Sales
Source: Sportsradar and management analysis Source: La Fleur’s and management analysis
GLOBAL SOCCER BETTING UK DIGITAL LOTTERY - CASE STUDY
$332
$268
$247
US$700 billion est.market $224
$172
Soccer remains the most $101
$126
popular betting event $9
$33
Accounts for over 60% of bets 2004 2006 2008 2010 2012
placed
Mature online market
Largest interactive lottery market to-date - $1.7 bln
16% online penetration in 2012
Source: Sportsradar and management analysis Source: Camelot Global Services and La Fluer’s
CONTAGIOUS GAMING INC. – TSXV:CNS 7
CONTAGIOUS GAMING INC
IN-HOUSE TECHNOLOGY PLATFORM
Proprietary Back
Office Management
Application for
online gambling
(“BOMA”)
Core functionality Includes:
Game Engine: Transaction
and ticketing engines, B2B
transaction management
and event processing
Player Management
Tools: Responsible
gaming compliance,
transaction reporting,
game lobby and secure
communications engine
Game Application
Programming Interface
Payment System
Application Interface
Data Feed Handler
Affiliate Management
eWALLET FULLY DEVELOPED IN HOUSE
CONTAGIOUS GAMING INC. – TSXV:CNS 8
CONTAGIOUS GAMING INC
GOAL TIME: FIRST OF ITS KIND BETTING SYSTEM
UK GAMBLING LICENSE CURRENT PARTNERS
CONTAGIOUS CURRENT REVENUE MODEL – 10.4% OF BETS PLACED
CONTAGIOUS GAMING INC. – TSXV:CNS 9
CONTAGIOUS GAMING INC
DIGITAL INSTANT LOTTERY – US FIRST MOVER
BINGO CROSSWORD MATCH-3
FIRST-MOVER LIBRARY EXCLUSIVE US SUPPLIER NETWORK
Positioned to become a leader in online lottery TELOS (Can)
development in the US Inchinn (UK)
Ingenio (Can)
Lottery content supplier partnerships in the US: J&S Gaming, Inc (US)
Revenues - €3.1 billion
1 of 6 - GTECH (MIL: GTK) Karma Gaming (Can)
Tournament 1 (US)
1 of 4 - Scientific Games (Nasdaq: SGMS)
TELOS (Can)
Completed development of 23 titles NEKTAN (Gibraltar)
Plans to enter additional global market with Karma Gaming (Can)
existing partners Revenues - ~US$3.0 billion IWG (n/a)
CONTAGIOUS CURRENT REVENUE MODEL – 1% OF TICKET SALES
CONTAGIOUS GAMING INC. – TSXV:CNS 10CONTAGIOUS GAMING INC
DIGITAL LOTTERY – CURRENT US LANDSCAPE
GEORGIA IS LIVE!
TOTAL LOTTERY SALES INSTANT TICKET SALES
ND
MN
US$3.9 bln US$2.6 bln
NY
MI
IA NJ
NV DE
IL
KS MO KY
NC
GA
TX
Legend:
Digital Lottery approved or not
prohibited
Online lottery or interactive gaming
not yet approved
KENTUCKY EXPECTED TO ROLL-OUT IN THE FIRST HALF OF 2015
CONTAGIOUS GAMING INC. – TSXV:CNS 11BINGO ACQUISITION
ACQUISITION OVERVIEW
CORPORATE OVERVIEW BINGO BRANDS
Founded in 2007
Since Inception:
• Entertained more than 3 million players
• Handled wagers of over $3.4 billion (£1.9 billion)
99% of its revenues generated from the United
Kingdom
Utilizes Cozy Games’ gaming software platform BINGO NETWORKS
• 71 online games
• 46 mobile games 3,826 Depositors
• Cozy Games receives 10% net gaming revenue
Focus on attracting and retaining High Roller players
2,312 Depositors
2,414 Depositors
CONTAGIOUS GAMING INC. – TSXV:CNS 12BINGO ACQUISITION
FINANCIAL SUMMARY
CHELBIS COMPANY LTD. P&L
Notes:
(a) Normalized for go-forward agreement of management services and inclusion of affiliate and direct marketing expense
(b) Normalized for Malta corporate tax refund
GBP converted to CAD$ at 1: 1.80
CONTAGIOUS GAMING INC. – TSXV:CNS 13BINGO ACQUISITION
ACQUISITION HIGHLIGHTS
Delivers ability to leverage CG’s existing platform and content on Chelbis’
established networks
Provides turnkey player liquidity of over $282 million (FY 2013) within regulated
SIGNIFICANT SYNERGIES AS
markets
A COMBINED ENTITY Acquiring CRM infrastructure required to scale Goal Time
Acquiring access to approx. 90 dedicated employees (CRM, Marketing, IT,
Accounting, fraud prevention) with excess bandwidth
Purchase price: $4.05 million plus Earn Out– 4x FY adjusted FY 2013 Earnings
Shares on close: $2.79 million
Cash over 18 months: $1.26 million
ATTRACTIVE PURCHASE
Earn-Out of:
PRICE • 1x FY 2015 net income payable in shares or cash
• 1x FY 2016 net income payable in shares or cash
Chelbis to be delivered with excess cash equal or exceeding $540,000
Re-Skin new bingo sites to add additional brands and networks
GROWTH OPPORTUNITIES Add additional gaming content and technology
Unlock value in existing player database
CONTAGIOUS GAMING INC. – TSXV:CNS 14CONTAGIOUS GAMING INC
SHARES OUTSTANDING & CAPITALIZATION
SHARES OUTSTANDING CAPITALIZATION
As at January 9, 2015 As at January 9, 2015
Basic Shares Outstanding 73,849,479 Market Capitalization $38,401,729
Options 4,100,000 Plus:
Warrants 5,155,907 Convertible Debenture $300,000
Convertible note ($300k / $1.00) 300,000
Less:
Fully diluted 83,405,386 Cash (as at Sept 30, 2014) $4,337,044
Enterprise Value $34,364,685
Share Price $0.52
Market Capitalization $38,401,729
Share Price Hi/ Lo $0.38 - $0.64
CNS.V – PRICE AND VOLUME
Source:
Company Management
Yahoo Finance
CONTAGIOUS GAMING INC. – TSXV:CNS 15CONTAGIOUS GAMING INC
LEADERSHIP TEAM
MANAGEMENT
Over 20 years of experience in the gaming and sports media industries
PETER GLANCY Founder of Contagious Sports Ltd.
CEO & DIRECTOR Founder and Managing Director from 2005 – 2010 of Gextech Holdings PLC, technology
developer for the gaming industry.
Over 18 years of experience in gaming, new media, and animation projects
SEAN YEOMANS Among the first to pursue the emerging US digital lottery development space
PRESIDENT & DIRECTOR Recipient of several awards: Gemini Award, Premier’s Entrepreneurship of the Year Award and
the NRC‘s Canadian Innovation leader Award
Creator of Slot, Bingo, Scratch-card and other Instant Win Gaming platforms
MARK WADSWORTH Responsible for securing licenses to operate in Malta and the UK.
TECHNOLOGY Developed online trading strategies for the world’s leading International banks with Thomson
Reuters for over 10 years.
Canadian Chartered Accountant and a US Certified Public Accountant
ADAM KNIEC Over 16 years of accounting, auditing, financial reporting and CFO experience with Canadian and
CFO US publicly companies
DIRECTORS
Founder and Managing Partner of Gulfstream Capital Corp., a merchant bank focused on
investing in and advising growth companies
CHARLES SHIN 14 years as an investment banker, most recently with Canaccord Genuity as a Managing Director
CHAIRMAN in the Canadian Investment Banking group
Raised over $5 billion in capital and advised on $4 billion of M&A transactions for his clients
Corporate securities lawyer and a Partner at McMillan LLP since February 2002
DESMOND BALAKRISHNAN Practice focuses on mergers, acquisitions, listed company maintenance, international public
INDEPENDENT DIRECTOR listings, gaming and entertainment law
FCPA, FCA, with over 22 years of experience with public companies in corporate finance
VICTOR WELLS Director Student Transportation Inc. (TSX: STB) & Unique Broadband Systems Inc. (TSX-V: UBS)
INDEPENDENT DIRECTOR Former CFO for Chemtrade Logistics (TSX: CHE.UN)
Former director of MagIndustries Corp (TSX: MAA), Northstar Healthcare Inc. (TSX: NHC)
CONTAGIOUS GAMING INC. – TSXV:CNS 16TSXV: CNS
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