Creata Block Clever Games - V2.0 Whitepaper
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Table of Content Executive summary 2 About us 3 What we do 4 Our clients 6 Our gaming products 7 Market 8 Market Drivers 18 Market Challenges & Solutions 25 Market Competitors 30 Monetization 35 Creata BCG Assets & Technologies 42 Our Team 46 Investment Opportunities 50 53 Contact Us 2
Executive Summary Creata Business Ventures Limited, recently acquired GFM Clever Games, Europe #1 provider of Daily Fantasy Sports, Predictor and Betting Games, with the goal of becoming the global leader. Clever Games, has a 20 year history of success in the industry, with 4m players, market leading technology, proven management and development team, which when combined with Creata sport industry expertise in mass media marketing, digital promotions, licensing, provides all the necessary expertise and skills to achieve our goal of becoming the leading global creator and vendor of a full suite of fantasy sports, betting and large scale audience gaming. Like most industries Fantasy Sports also has its challenges and problems, one of those being the market domination by monopolies. However the industry is now ripe for disruption through solving these issues with revolutionary mass media business model, new secure blockchain technology, cross border money transfer solutions, existing profitable business, proven executive, tech and marketing teams, mass distribution, best product and addition of a transparent, immutable, verifiable, fraud free Tokenised Blockchain Platform and Exchange. Our full whitepaper will detail a superior business plan and financial model that provides solutions to existing market and industry problems including; cross border currency transactions, legal regulatory framework, KYC, anti money laundering and regulatory issues, whilst disrupting the monopoly players with a better sustainable tokenised in-game currency business model, advanced technology, mass market growth through long term global media partnerships. Providing a fairer ecosystem with better returns and opportunity for players, developers, rights holders and investors alike. Join us to Creata a Billion Dollar Game Changer 3
About Us Europe's #1 Fantasy and Digital Games specialist #1 4 millions 20 Years Europe Global Users Success Creators of dynamic, market leading Fantasy and Digital Sports Games Offices in London and Vietnam, with a large development team in Eastern Europe which gives us a range of resource options and scalability International clients and users all over the world, currently delivering in the Middle East, the USA, and all across Europe International network and track record of success – gives us board level access to industry development and mass audience deal flows in UK, Europe, India, China and the US. Unrivalled experience and expertise, creativity, infrastructure Our Platform, which benefits from 20 years of developed IP, deploys from a library of games and formats. Creating dynamic games across multiple platforms for the leading broadcasters, media companies and rights owners in Europe and worldwide. We are experts in mass audience, user acquisition, refining the journey from free to pay to play gaming to betting. This makes us perfectly positioned to take advantage of global vendor opportunities in the USA and other markets approaching regulation. Join us to Creata a Billion Dollar Game Changer 4
What We Do Fantasy & Sports Gaming Any Sport Any Device Anytime Join us to Creata a Billion Dollar Game Changer 5
What We Do Sports Mass Media Audience Gaming Mass Media companies partner, vendor, creator and provider of market leading Fantasy Games, Predictor and Betting Products. Creator and developers of next generation blockchain gaming platform and mass media partner innovation for Play2Win Daily Fantasy Sports Prediction Gaming Betting Esports Fully integrated in-game currency Tokens Blockchain technology, providing immutable, authentic, fraud free fantasy sports, gaming, playing, and winning. Affordable, market leader rewards and ROI. Join us to Creata a Billion Dollar Game Changer 6
Our Clients Sports License Holder Media Owners Sportsbooks Post funding, we can secure two further global mass media partnerships, with audiences of more than 360m viewers / 2m unique digital users per day / 3b impressions per annum Join us to Creata a Billion Dollar Game Changer 7
Our Gaming Products Any Sport Any Device Anytime Join us to Creata a Billion Dollar Game Changer 8
Market The Daily Fantasy Sports is a part of the large ever growing electronic sports and entertainment market. With 500% increase in the last decade. from only 12.6 million players in 2005, to now over 60 million in US and Canada alone! This 100m worldwide player market is currently dominated by monopolies and ripe for disruption through revolutionary blockchain technology, global media partnerships and mass audience distribution. $11+ 100 billion million 500% Global Market 2017 Worldwide Last Decade Growth Existing Users $565 90% $1.2 90% billion Monopoly owned Market Leader USD per User spend Valuation market share Blockchain technology allowing unique product innovation, secure fraud free, legitimate market with authentic results and in-game utility token Major Growth will be fuelled by Brazil, China, India due to smartphone and tablet uptake No MAJOR Competitors combined with their love of sports and Utilizing Blockchain gaming Technology Join us to Creata a Billion Dollar Game Changer 9
Market Size & Forecast The global fantasy sports market is experiencing rapid growth and is expected to realize revenue at a high rate during the forecast period. Geographically, North America, led by the US, was the largest segment of the market in 2015, accounting for a market share of 46.46%. In 2016, the number of fantasy players in the US was about 57.4 million, which makes it the largest market globally. The popularity of fantasy sports in the US increased significantly after 2011, especially after the ban of all online POKER sites by the US government. Vendors have started to invest in fantasy sports websites increasingly, and the promotion of fantasy sports has gained more momentum. In the US, fantasy sports are protected under the Unlawful Internet Gambling Enforcement Act of 2006. The law exempts fantasy sports from the category of illegal gambling and considers it as a game of skills rather than a game of chance. The popularity of fantasy sports in Europe has also grown over the years. The growth of the market in the region stems from the encouragement for more end- users to participate in such events due to the advent of new players into the market. Growing consumer spending has triggered a significant increase in end-user participation in fantasy sports events. This trend is expected to gain more traction, which will propel the market growth in Europe during the forecast period. End-user participation in APAC and ROW has also increased, especially in countries such as China, India, South Korea, Mexico, Brazil, and Japan. Increased per capita disposable income, coupled with a rise in internet penetration, is expected to propel the market growth in these countries. The increased popularity of IPL (Indian Premier League) has also contributed to the growth of the fantasy cricket sports market in India. The global fantasy sports market is expected to grow at 11.41% during the forecast period. Global Market 2016- 2020 size and forecast - USD $ Billions Join us to Creata a Billion Dollar Game Changer 10
Market Segment Geography Fantasy sports are gaining momentum in developing regions like APAC, South America, and Africa. However, despite fantasy sports gaining high popularity globally, the game still remains highly concentrated in a f ew well-developed countries. With all most 80% of the market located in North America and Europe. However, changes are happening with APAC and ROW gaining market share, and having the fastest growth rates. North APAC Europe ROW America Canada Australia Austria Argentina US China Belgium Bahrain Hong Kong Croatia Brazil India Denmark Chile Indonesia Finland Colombia Japan France Egypt Malaysia Germany Kuwait New Zealand Greece Mexico Pakistan Ireland Peru Singapore Italy Puerto Rico South Korea • The Netherland Qatar Taiwan Turkey Saudi Arabia Thailand UK South Africa Venezuela Segmentation by geography Asia-Pacific (APAC), Europe, North America, and the rest of the world (ROW) are the key regional markets. Inner Circle: 2015 Outer Circle: 2020 Join us to Creata a Billion Dollar Game Changer 11
Market Size & Segments 22%+ 20% Other Growth Sports 2016-2020 Forecast The most popular Fantasy sports are Soccer / World Football, Baseball, Basketball, with other sports consisting of Fantasy sports market formats include Horse Racing, Motor Sports, Field Hockey, Ice Hockey, Golf, Rugby, Pro-Wrestling, Surfing, Boxing, Cricket, Tennis, Golf, and MMA (mixed martial arts). These other sports are played by relatively fewer people globally, which is reflected in the popularity of their respective fantasy sports but still represents over 22% of the market with far less competition from established vendors. These fantasy games are either played by fans who actively follow these sports or professionals who want to try new fantasy games. Thus, with an increase in the participation in various games, along with an increase in the geographical presence of fantasy game vendors and consumers, the demand and interest in fantasy sports will drive the increase during the forecast period. Other Sports represents over 22% of the market with minimal competition from established vendors Inner Circle: 2016 Outer Circle: 2020 Join us to Creata a Billion Dollar Game Changer 12
Market Leading Vendors Top-vendors and their major products offerings in the global fantasy sports market are listed below. Media Product Segments Fantasy Fantasy Fantasy Fantasy Fantasy Fantasy Football Basketball Baseball Hockey Golf Auto-Racing Product Segments Fantasy Fantasy Fantasy Fantasy Football Basketball Baseball Hockey Note: Clever Games is the partner provider to ESPN Product Vendors Segments Fantasy Fantasy Fantasy Fantasy Fantasy Fantasy Football Basketball Baseball Hockey Golf Auto-Racing Product Segments Fantasy Fantasy Fantasy Fantasy Football Basketball Baseball Hockey Product Segments Fantasy Fantasy Fantasy Fantasy Fantasy Other 16 Football Basketball Baseball Hockey Golf Fantasy Sports 13
Market Segment North America $4.5+ 57+ Billion Million Revenues Users The fantasy sports market in North America is growing rapidly and is expected to gain more revenue during the growth forecast period. The US is the largest market in North America, with number of players increased from 29.9 million in 2008 to more than 57.4 million in 2016. Fantasy sports in the US are protected under the Unlawful Internet Gambling Enforcement Act of 2006. The law exempts fantasy sports from the category of illegal gambling and considers these sports as a game of skill rather than a game of chance, which was recently approved by the high court. Fantasy sports players spend an average of $550-$600 on league-related costs, single-player challenge games, prediction games and league-gaming related content in a year. Fantasy football segment held a market share of 36% in terms of total end-user participation in 2014. It was followed by fantasy baseball (19%), auto- racing (12%), and basketball (10%). More than 60% of North Americans watch more live sports because of fantasy games. Similarly, about 65% people said that they read more about sports because of fantasy sports. Therefore, the market for fantasy sports in North America is perfectly placed for a mass media business model, with substantial viewership, forecast growth over 7% p.a, high player engagement and rate card advantages for media partners in additional to new gaming revenues. Join us to Creata a Billion Dollar Game Changer 14
Market Segment North America The total number of fantasy sports players in North America has been increasing since 2014 due to the rapid growth of the DFS format of fantasy sports. This growth saw the number of fantasy sports players in the region grow by almost 15%. A major part of this growth in the number of players in the region is attributed to the many new adopters of the game who have become regular DFS players. Fantasy sports are considered one of the most popular social activities, which is more enjoyable when played with others. An increasing number of fantasy game players in the region are in support of a law which make the cash prizes won by fantasy sports legal. Over half of these players are playing more fantasy sports due to the various technological innovations in play, like the ability to play on a mobile device. There is not only an increase in the number of fantasy game players, but also an increase in the number of leagues managed by every player. Currently, the number of teams managed by each player is about 7. The number of players who admit in indulging in some form of fantasy sports has increased from 31% in 2012 to 64% in 2015. All these factors shall enable the further growth of the fantasy sports market in North America, with football, baseball, and auto-racing being the most popularly played fantasy sports in the region. Materials include online premium website costs, fantasy sports magazines, draft boards with labels, cheat sheets/draft kits, draft software, and tablet/smartphone apps. Join us to Creata a Billion Dollar Game Changer 15
Market Segment Europe $2.2 30+ Billion Million Revenues Users There are approx, 30 million Fantasy players across Europe, half of which are in the U.K. The fantasy sports market in Europe is witnessing growth in its revenue and is expected to post a minimum 7.47% during the forecast period. Developed countries such as UK, Germany, France, Italy, and the Netherlands are the key leaders of the market in Europe. In 2015, the market in the region was dominated by the fantasy soccer segment with a 90% market share. However, it has lost some of its market share to other fantasy sports such as rugby, cricket, golf, and auto-racing in last few years. In 2014, the fantasy soccer market in the region accounted for a 77% market share. Clever Games are the biggest provider in this market place, with The Sun, The Telegraph, The Bild newspapers, Sky Sports, ESPN as major clients. The European market for fantasy games is a buzzing one, with The UEFA Euro 2016 and World Cup 2018 soccer tournaments provided a huge boost in interest, engagement and players to the already highly established fantasy soccer market in the region. This is has started to flow onto other sports providing massive upside potential for UK/Europe to be the next big thing and outperform the forecasts. Fantasy sports market in Europe 2015-2020 ($ billions) Join us to Creata a Billion Dollar Game Changer 16
Market Segment APAC $2.2+ 18.6% Billion Growth 2016 – 2020 Revenues Forecast China was the largest revenue contributor in the region. Other countries such as Japan, South Korea, and India are witnessing rapid growth in the end-user base of fantasy sports. Increased per capita income, growing internet penetration, and rising interest in sports are some of the key factors that are expected to propel the market growth in the region during the forecast period. The market for fantasy sports in APAC is expected to post a CAGR of 18.63% during the forecast period. The fantasy sports market in China, India, and South Korea is expected to witness a significant increase in its popularity because of factors such as the growing awareness about sports and increased internet penetration in these countries. There is no specific fantasy sport or company dominating APAC because different sports are popular in different countries. For instance, fantasy basketball is the most popular fantasy sport in China, while fantasy sumo wrestling is a popular choice in Japan. The fantasy cricket segment continues to dominate the Indian fantasy sports market The region, however, acts as a fresh breeding ground for many new fantasy league vendors entering the market. With investor interest very high, a growing market, new and established players looking to enter. These ventures are expected to boost the market for fantasy sports growth significantly higher in APAC region. Fantasy sports market in APAC 2015-2020 ($ billions) Join us to Creata a Billion Dollar Game Changer 17
Market Segment ROW $1.7 20% Billion Growth 2016 – 2020 Revenues Forecast ROW comprises of South America and MEA (the Middle East and Africa). South America is home to some of the fastest growing economies in the world such as Brazil and Mexico. Brazil hosted the FIFA World Cup in 2014 and Olympic Games 2016, following which the popularity of fantasy soccer soared and this fueled the fantasy sports market in the country. This is expected to significantly boost market revenues in South America during the forecast period. The fantasy sports market is growing rapidly with increased interest and participation in various games, some of the most popular sports are football, soccer, baseball, and basketball. The fantasy sports market in South America is also influenced by the growing popularity of fantasy sports in the US. Moreover, many South American players are signing up to play for teams in the US. This has contributed to the growing interest of the younger population in the region to watch and participate in various sports. All these factors will help in increasing participation in fantasy sports in South America. The Middle East has also witnessed an increase in the popularity of fantasy sports. Fantasy soccer is the most popular fantasy sport in the region. The growth of the market and increased penetration of high-speed internet connectivity in the region is expected to fuel the growth of the market in the coming years. Africa has become an investment hub for global vendors because of its growing population and the presence of untapped markets in the region. Global vendors are increasingly making their presence felt in this region. Fantasy sports vendors may find Africa a very lucrative investment destination, due to a growing affinity toward the fantasy format of sports, which augurs well for the overall market growth in the region during the forecast period. ROW is currently estimated to grow at the fastest pace during the forecast period among all other geographic regions, posting a CAGR of 19.93% during the forecast period. Join us to Creata a Billion Dollar Game Changer 18
Market Drivers Drivers Impact on key customer category Direct control over operations and increased social media optimizations Increasing participation in fantasy sports Widespread reach of the internet Join us to Creata a Billion Dollar Game Changer 19
Market Drivers Increasing strategic advertising expenditure 74.5 and media partnerships 131.4 Million Million DraftKing FanFuel Mass Media Partnerships Drives Market Growth Ad Spend FanDuel and DraftKings are the two biggest vendors in the fantasy sports market. These vendors fuel their growth through advertising and media partnerships. Combined investing $206 million in TV advertisements airing in 2015. Between January 1, 2015 and October 5, 2015, DraftKings spent $131.4 million, and FanDuel spent $74.5 million on the same. One of the main reasons for the heavy expenditure on TV advertisements is that, despite the increasing penetration of internet, more consumers rely on TVs for entertainment. Additionally, the viewer data from cable and satellite boxes can be analyzed, making it easy for advertisers to understand the TV watching habits of target customers. FanDuel and DraftKings have raised hundreds of millions through venture and strategic investors and are spending heavily in order to increase their market presence and brand visibility. In 2015, there were more than 60,000 commercials for DraftKings and FanDuel in the USA. CBS Sports also boasts of a advertising partnership with FanDuel. The partnership stands complete with a daily live video show featuring DFS content on the channel. These strategic investments by vendors on advertising and media partnerships, were mass market media, live sports, with engaging cross over digital content have provided and will continue to provide vendors for fantasy sports gain large traction and visibility, thereby ensuring market growth. Join us to Creata a Billion Dollar Game Changer 20
Market Drivers Partnerships Leagues and Vendors DFS, which forms a part of the larger fantasy sports market, has been able to gain traction in the recent past. The huge capital backing the establishment of these DFS leagues has further helped this sector gain prominence. The investment of $70 million into FanDuel by Shamrock Capital Advisors, NBC Sports Ventures, and Bullpen Capital, and the funding of $41 million for DraftKings by Raine Group, Redpoint Ventures, Atlas Venture, and GGV Capital has provided daily fantasy vendors with a strong financial infrastructure to build upon. Initially, the professional league industry was highly conservative regarding DFS activities. However, the industry has a much more liberal and accepting view today. Earlier, league authorities dismissed the advent of daily fantasy leagues, pointing out that such activities would lead to players being exploited as assets, rather than being looked upon for their skills on the field. However, with the larger acceptance of the medium among the populace, we see that professional leagues have now made way for several pro league and daily fantasy partnerships. In November 2014, NBA announced that it had become an equity investor in FanDuel, a DFS website which hands out $10 million in weekly cash prizes. However, the NBA strictly prohibits its players and personnel to have a stake in these fantasy leagues. Professional league opinions have also witnessed a clash with those of colleges and universities. The NCAA member colleges and universities consider daily fantasy leagues as gambling, and prohibits any player, coach, or administrator from playing in such daily fantasy leagues using cash. Despite such opposing views, many professional leagues partner with daily fantasy companies. In 2014, National Hockey League (NHL) and NFL teams announced partnerships with DraftKings. MLB also has a tie-up with the same company. Such partnerships have further strengthened viewership for these pro leagues. Daily fantasy league followers consume 40% more sports content across all media as compared to people who follow traditional fantasy leagues. Daily fantasy league enthusiasts, who are looking for results every day, watch more live games till the end, which further boosts advertising and television viewership. Additionally, it also ensures an increased consumption of digital content, while propelling an in-depth interest in the sport. Therefore, with the growing partnerships between pro leagues and DFS vendors, we expect the global fantasy sports market to gain traction during the forecast period further. Join us to Creata a Billion Dollar Game Changer 21
Market Drivers Social Media and Mass Media Fantasy sports is a type of online game where participants assemble virtual teams of professional players of a particular sport. Such teams then compete based on their actual statistical performances in the actual games being played by them. Based on this performance of the chosen players of the fantasy team, the points for the team are compiled and totaled. The point system for fantasy leagues are calculated by a league commissioner, or may also be calculated by tracking actual results of the professional sport. Thus, fantasy sports allow its players to involve themselves much more directly during the entire duration of the league. The medium allows individuals to exercise direct control over the operations of their fantasy sports team. They also provide the individual with the chance to live vicariously as general managers, franchise owners, or coaches of their own team or teams by structuring and drafting the team. They also have the liberty to structure the team in a manner where they can start and organize rosters of athletes playing for them. In addition, playing fantasy sports creates a competitive experience among friends and fellow fantasy sports enthusiasts. The medium also enables sharing of knowledge and expertise. These games also provide a platform for end-users to interact with their friends and colleagues while engaging in their favorite leisure activity. Fantasy sports vendors are increasingly using social media platforms to increase their interaction with consumers. For example, DRAFT, a fantasy sports app created in 2015, and Consumer Acquisition worked together to develop a strategy which would help DRAFT create a more personalized and interactive experience for its users. Consumer Acquisition used their social media tools to help DRAFT create highly- targeted mobile app install ads on Facebook and Instagram. Consumer Acquisition leveraged their AdRules tool to create custom algorithms linked to the various interests of fantasy football fans. The company created more than 250 image tests, test audiences, and optimization tests to identify various custom sports audiences who use official NFL and MLB statistics, brands, fantasy rankings, weather patterns, and all-star voting. This approach by Consumer Acquisition helped DRAFT see a 100% user growth and 70% cost reduction in their clicks per impression. These factors are expected to drive the demand for fantasy sports among end-users worldwide and shall boost the overall market growth significantly during the forecast period. Join us to Creata a Billion Dollar Game Changer 22
Market Drivers Increased Participation There has been an increase in participation among the players of fantasy sports, which has led to a massive growth in the global fantasy sports market. The number of North Americans playing fantasy sports has doubled from the 28.5 million players in 2015 With 56.9 million spending about $565 a year on fantasy sports, making the market a multi-billion one. The fact that the game was not banned in 2006 under the Unlawful Internet Gambling Enforcement Act has also helped boost the market's prospects to a huge extent. Fantasy sports is now considered to be a game which required skills and knowledge and was not just a game of chance. Vendors are also offering several schemes to encourage more people to engage in fantasy sports. For instance, some websites provide free entry or charge minimal registration fees for fantasy games. Some websites also charge a nominal fee for each game, which requires players to pay an amount as small as $2 for every game they participate in. Apart from that, players can often win prizes worth $500,000 or more. Join us to Creata a Billion Dollar Game Changer 23
Market Drivers Internet Widespread Mass Adoption & Global Reach The advent of high-speed internet has enabled gamers to track statistics and information about players irrespective of location and time. The population in North America was estimated to be 353 million in 2014, while the number of internet users as of June 2014 was 310 million and number of fantasy players 30 million. Increased internet penetration in the region has created a congenial environment for gamers to engage in a variety of fantasy sports. Mobile phone internet penetration in Brazil is likely to reach 74.5% by 2016. These factors are collectively increasing the popularity of fantasy sports among the population in the Americas. Between September 2013 and September 2014, the number of unique users participating in DFS increased by over 800% on mobile devices alone. Globally, high-speed internet connections have become widespread, which has been extremely helpful for gamers who are likely to track statistics and gather information about players on a frequent basis. Easy access to the internet through smartphones also enables participants to play online games from any place and at any time. Fantasy sports is also playing a pivotal role in promoting social interaction Telecom operators with access to NG (Next Generation) telecom service technologies, such as 3G, 4G and LTE, are expanding their network in the geographical locations at a rapid pace as are LTE license holders have also started rolling out their networks to end- users. Increased high speed internet broadband, mobile devices and telecom services = increased fantasy sport participation The internet is very important to establish and expand fantasy sports networks among participants successfully. More than 56% of fantasy sports participants go online daily to check fantasy league statistics, rankings, and scores. With 16.5% (16.5m) participants checking this data more than 10 times a day. Join us to Creata a Billion Dollar Game Changer 24
Market Drivers Internet Widespread Mass Adoption & Global Reach Almost 37% of fantasy sports participants refer to online content sites as their primary source for fantasy sports league news and information. Mobile and video are the highest emerging key resources for digital content. More than 50% (50m) of fantasy sports participants watch some form of online fantasy sports video content online. 58% of such users are men, while 32% of these users are women. 82% of the viewers watching fantasy sports video content online are men aged between 18-34. Almost 50% of all viewers watch a live- streaming of this fantasy sports content. Laptops are the most used channel, with 71% of fantasy sports participants using only them. This is followed by the 63% who use only smartphones to access sites, online videos, apps and other digital media associated with fantasy sports. Therefore, the widespread reach of high-speed internet stands as one of the most important driving factors for the market, and its availability has the potential to provide a major boost to the market growth. Over 16.5m DFS players listen / watch radio, tv show or podcast content Join us to Creata a Billion Dollar Game Changer 25
Market Challenges & Solutions To Creata global leader in sports gaming vendor solutions Challenges BCG Solutions Centralised Decentralise & Disrupt through next generation technology, monopolies innovative gaming, peer to peer products and solutions Market fraud Fraud free, ttransparent publicly accessible data blockchain Lack of market trust Smart contract safety, authenticity with immutable results No proof of authentic New unique Blockchain results draw technology Cross border Tokenisation, for in game regulatory Banking utility token to assist many and currency issues cross border currency issues Anti Money laundering Pokemon Go For sport - interactive with liver coverage and events Hard to cash out, with up In game currenct tokens, to 2 weeks to receive pay exchangeable on our outs, and risk of banks platform to fiat freezing money Smaller prize pools & Better odds, value, ROI, reward inequality saving up to 33%,, more equitable ecosystem Join us to Creata a Billion Dollar Game Changer 26
Market Challenges & Solutions Increased Traction 10 877K Millions 2013 2018 DFS Propels Vendor Market Growth Daily Fantasy Sports (DFS) is a niche segment of the fantasy sports market. In traditional fantasy sports, the team owners need to play with the same set of players throughout the season. However, in DFS games, participants can change their players and play multiple games on a daily basis. The two most prominent DFS websites for fantasy football are DraftKings and FanDuel. Over the past few years, daily fantasy football has become a global phenomenon. Since DFS allows users to change players on a daily basis, it helps in filtering out injured players, which was not initially possible in traditional fantasy sports. This is one of the major reasons for the popularity of DFS. However, similar to traditional fantasy sports, participants need to pay to enter the game, which can be interpreted as gambling by consumers in some countries. Although DFS leagues call these fees as payment or entry fees, gamers joining these leagues often see it as a bet or a wager. FanDuel, DraftKings, Victiv, and Draft Day are some of the websites that offer DFS. The emergence of advanced versions of fantasy sports like DFS is expected to propel the market growth in the future. It was observed that as of September 2014, FanDuel's audience went up to 2.4 million unique users. On the other hand, DraftKings' unique users experienced a rise from 877,000 users in 2013 to 5,129,000 users in 2014 and over 10m currently As gambling is not legal everywhere, this has led some state and national governments to ban certain DFS sites. Join us to Creata a Billion Dollar Game Changer 27
Market Challenges & Solutions Increased Traction 10 877K Millions 2013 2018 DFS Propels Vendor Market Growth Daily Fantasy Sports (DFS) is a niche segment of the fantasy sports market. In traditional fantasy sports, the team owners need to play with the same set of players throughout the season. However, in DFS games, participants can change their players and play multiple games on a daily basis. The two most prominent DFS websites for fantasy football are DraftKings and FanDuel. Over the past few years, daily fantasy football has become a global phenomenon. Since DFS allows users to change players on a daily basis, it helps in filtering out injured players, which was not initially possible in traditional fantasy sports. This is one of the major reasons for the popularity of DFS. However, similar to traditional fantasy sports, participants need to pay to enter the game, which can be interpreted as gambling by consumers in some countries. Although DFS leagues call these fees as payment or entry fees, gamers joining these leagues often see it as a bet or a wager. FanDuel, DraftKings, Victiv, and Draft Day are some of the websites that offer DFS. The emergence of advanced versions of fantasy sports like DFS is expected to propel the market growth in the future. It was observed that as of September 2014, FanDuel's audience went up to 2.4 million unique users. On the other hand, DraftKings' unique users experienced a rise from 877,000 users in 2013 to 5,129,000 users in 2014 and over 10m currently As gambling is not legal everywhere, this has led some state and national governments to ban certain DFS sites. Join us to Creata a Billion Dollar Game Changer 28
Market Challenges & Solutions Our Blockchain Solutions & Benefits Safe & Buy, Sell, Fraud Free Secure Trade Global Cross Border Immutable, Verifiable Exclusive Exchange Payments Decentralized Transparent, Fraud Free Gaming Process We store, verify and can guarantee authentic, fraud free statistics results and winners! This is due to every piece of data of every game and every player being registered on our blockchain platform. It’s designed for authenticity where all players involved can check and validate the game and its results. Players, officials, leagues and regulatory bodies can also audit results, fees and taxes via checking the smart contract that calculates the game, points, rewards and results. Fast, Cheap, Cross Border, Financial Transactions Global payments is fast, easy with transaction integrity guaranteed by the use of blockchain. Every player has access to a full, immutable, detailed transaction history, for ease to monitor their historical and real time records. Tokens and Exchange, Safe and Secure Our exclusive in-house exchange, will accept and change Fiat money and leading approved Cryptocurrency coins. By excluding fiat, the gaming process and regulatory environment is improved, providing a safer, easier and more profitable way to play fantasy sports. Players and Investors can Buy, Sell, Trade and speculate BCG Tokens and in future other Sports Digital Assets and Products on our exclusive exchange, guaranteeing liquidity, increased ROI and fast, secure sales, buy in and redemptions. Tokens provide real in-game currency value, increased returns, prize options and liquidity for token holders and investors to cash in and out of the ecosystem fast, whilst eliminating payment / banking / cross border issues that some Vendors and players face. Smart contract records all terms and conditions providing a transparent, immutable legal record that is fully visible and accessible to all parties. Join us to Creata a Billion Dollar Game Changer 29
Market Challenges Perception about Fantasy Sports Fantasy sports are played online and allow end-users to wager money on the performance of professional athletes every day. Online websites are protected under federal laws in the US and do not face the restrictions imposed on online gambling. However, ethical concerns were rising because of the burgeoning popularity of fantasy sports worldwide with the illegal status of fantasy sports being challenged in the Federal Court of California, Florida, Michigan, Minnesota, Illinois, and New J ersey, among many other states in the US, with Draft Kings and FanDuel preventing the residents of Arizona, Iowa, Louisiana, Montana, and Washington from playing fantasy sports with real money. The recent favourable ruling by the supreme court stating that fantasy sports is not gambling but a game of skill is a big win for vendors, providing legal certainty and likely to propel the US market considerably. However, there is a very blurred line of distinction between fantasy sports and gambling in other parts of the world. No standard laws and regulations have been formulated in other parts of the world and, therefore, the legality of the game remains ambiguous. This lack of industry codes will further increase the ethical dilemma among, governments, end-users and social workgroups. In many countries, including Brazil, fantasy sports are considered to be a new form of gambling. The success of any fantasy sports team depends both on performance and luck. Vendors maintain that fantasy sports are games of skill and do not involve gambling. Therefore, these games do not face the same kind of restrictions faced by online gambling. Fantasy sports are considered illegal in some countries, with government associations and NGOs concerned by the rising popularity of these sports among college and university students. Therefore, the rise in internet wagering and the increased accessibility to fantasy sports are becoming issues of morality. Despite the recent US legal victory, there are still some negative perceptions associated with fantasy sports could hamper the future growth of the market. Join us to Creata a Billion Dollar Game Changer 30
Market Competitor Analysis Vendor Landscape The global fantasy sports market is characterized by the presence of well diversified vendors. The market competition will intensify further through an increase in product and service extensions, technological innovations, and M&A. International players have increased their presence in the market and will grow by acquiring regional or local players. In addition, improving economic conditions are boosting market growth, making it a conducive environment for launching new products. The adoption rate of fantasy sports among end-users is high. Many new vendors that provide DFS games have entered the market because of the expansion of the end-user base. DraftKings, Yahoo, CBS, ESPN, and FanDuel are the five major vendors in the global fantasy sports market. The market is highly competitive, with all players competing to gain market share. Intense competition, rapid advances in technology, and frequent changes in consumer preferences constitute significant risks to market vendors. The increased competition will lead to more consolidation and introduction of many innovative and advanced offerings in the market. To survive and succeed in this intensely competitive environment, market vendors need to distinguish their service and products offerings through a clear and unique proposition. The global fantasy sports market also includes companies that develop software and online platforms for multiplayer fantasy sports. The number of such companies is increasing because of the rising popularity of fantasy sports, growing number of broadband services, and increased use of mobile devices. These companies need to have strong web software development expertise and other IT skills to develop new offerings and remain competitive. *Note: Clever Games is the official provider to ESPN Join us to Creata a Billion Dollar Game Changer 31
Market Competitor Comparison Daily Fantasy Sports platforms - DraftKings and FanDuel, are the major Vendor competitors 1. Draft Kings 2. FanDuels 3. Creata Clever Games Join us to Creata a Billion Dollar Game Changer 32
Market Blockchain Comparison Alongside DraftKings and FanDuel, there are other competitors that implement cryptocurrency token and blockchain technology Our blockchain-enabled competitors include: 1. No Limit Fantasy Sports (nolimitcoin.org) 2. DraftDaily (draftdaily.com) 3. Protoblock (protoblock.com) 4. Digital Fantasy Sports (digitalfantasysports.com) 5. Creata Clever Games No Limit Fantasy Draft Proto DFS Sports Daily Block Join us to Creata a Billion Dollar Game Changer 33
Market Competitor Analysis Competition Comparison #1 7 #1 20 North America Years Established Europe Years Established 10 4 million 9 million 16 Users Sports Game Library Users Sports Game Library $565 $1.2b $1.25 $25m Vendor Ave Market Valuation Provider Actual Market Valuation Rate Per User Rate Per User Creata Clever Games, will continue to be the leading provider to global media companies. However, we will also expand to become a Gaming Vendor, that utilises our catalogue of games to sell directly to customers. We will use our mass marketing media partner opportunities and the increased vendor margins to maximise our company skills, talents, credibility and large library of games. The first aim will be to convert a minimum of 25% of current Clever games Free and Freemium users into paying registered users of our Apps and Blockchain platform. Converting just 25% of our customers to vendor customers, without any of the planned media partnership activations, will mean over 1m paying players / creating $500m revenues within 2 years and becoming one of the top 5 global players. This should achieve a valuation over $120m, based on Draft Kings valuation of $1.2b (funds raised to date is $700m) Join us to Creata a Billion Dollar Game Changer 34
Monetization Multiple Revenue Streams - Unique, B2B Content Provider proven, successful and profitable. B2C Gaming Vendor P2P Creata Your Own Game B2B Creator, Content & Tech Provider and Publisher: Gaming solutions for global media partners in TV, Cable, Digital Streaming, Newspapers, Online, Sport Apps and Social Communities. B2B Betting Creator, Content & Tech Provider: Online and App Gaming for leading international betting companies B2C Gaming Vendor: DFS, Fantasy Sports, Prediction and Betting Games via our exclusive partnerships with leading international media organisations sports audiences exceeding 300m daily viewers, 2m unique daily digital users P2P Creata Your Own Fantasy Game: World Exclusive decentralised, revenue sharing model, blockchain technology to further disrupt monopolies, whilst providing a fairer, safer, fraud free ecosystem for rights holders, brands, media companies, developers, players, event organisers and budding entrepeneur’s. Monetisation B2B Content Provider B2C Vendor P2P Creata Your Own Game Game Entry Fees Subscriptions Premium In-Game Services In-Game Purchases Sponsor Activations Advertising Exchange Join us to Creata a Billion Dollar Game Changer 35
In-Game Currency Tokens Smart Contract How it works Sign Up Sign In Wallet Buy Exchange Enter A Tokens Tokens Game Stats My BCG Smart Contracts Exchange Contract Tokens ITO Game Contract Contract Contract Sport Data Feeds Join us to Creata a Billion Dollar Game Changer 36
Monetization Tokenise and Monetise Game Entry Fees / Pay2Play: Revenue comes from player sign ups on BCG platforms. In return players receive tokens, that enable them to play any of our products on the BCG Platform. BCG makes money from a percentage of the pool. with more players, driving more revenues, more demand and circulation for tokens, driving a more valuable future token Subscriptions: Our media model allows for monthly subscription, to encourage additional loyalty, engagement and providing increased user rewards who commit to a package. Subscriptions have been hugely successful and growing in recent times with millennial growing up with this payment channel thanks to mobile, netflix, cable, news, games and other subscription service plans Premium In-Game and VIP App Services: Premium upsell options, broader team selections, additional trades and transfers, increased odds and prize pools, insurance, wild card, data stat feeds, AI analysis, expert analysis and best picks, VIP invite only contests, and many other unique features designed to increase user engagement, enjoyment, interaction, playing time, and resulting in increased user spend per annum In-Game App Purchases: True in-game currency value, allowing token holding players to sign up, buy and trade during real game time, make live substitutions, team or game changes, increase your odds, rewards, gain exclusive benefits and much much more… watch out for our Pokemon Go for Sports… live and interactive. Sponsor Activations: Leveraging our CEO’s 25 years expertise and experience in global sports, media, promotions and brand loyalty activation campaigns to creata new revenue stream from our existing B2B clientele, new partners and global brands who want to activate sports advertising and promotional campaigns. Advertising: Free2Play and Freemium Play, incomes derived from Ad Revenue share model with mass media organisations, sponsor integration and advertisers. Exchange: Additional revenues from % on all Buy, Sell, Trade of BCG Tokens, other approved Crypto Tokens, Fiat money, and partner approved Tokens or Assets. In future this exchange will be able to trade digital assets, such as digital Collector Cards, fan merchandise, event tickets, membership services, gift certificates, loyalty rewards. Join us to Creata a Billion Dollar Game Changer 37
Monetization Mass Audience User Acquisition With existing Global Media Partnerships, more than 4m existing players, existing business, team, library of 16 different sports games, extensive market data, user acquisition expertise and being profitable! We are in a unique position to acquire a large number of users at very low cost per player, in a very short time period. Multiple user acquisition channels, mass media partnerships and strategies will be used to achieve this. With an existing year round library of sports and games, we are the only provider who can fulfill a year round calendar of Fantasy Sports, FDS, Predictor Games and Betting Games to meet the B2B, B2C and P2P market demands and opportunities. Our User acquisition strategies include: Existing 4m users - convert a minimum of 25% of our free and freemium players to becoming paying customers = 1m worldwide players Mass Media Partnerships - converting fans and viewers into customers via delivering content to over 300m sport loving TV/cable viewers and 400m unique online digital users Database Growth Marketing - With over 4m unique users having played our games, we are in a unique position to know what players want, how to engage them, create look a like audiences globally and by sport and how to convert them to users SEO / Digital / Social Marketing / Re -Targeting - Facebook, Google, Instagram, Telegram, other Social Platforms TV / Print / Digital Advertising Trade Shows - Both targeted Sports and Crypto events TV Shows - exclusive TV show distribution to drive users and engagement Print / Digital - Advertising, PR, marketing and promotions Growth Token Incentive Program Join us to Creata a Billion Dollar Game Changer 38
Monetization Token Liquidity The strength of the business, industry success. the largest game catalogue library of any industry player, large existing user base, player acquisition plans combined with the strength of our mass media global partnerships and knowledge of how to drive these to convert fans into players, ensures strong demand for our BCG in-game currency token. BCG Token provides a sustainable value, underwritten by a profitable business, superior business plan to market competitors, providing a healthy ecosystem, with excellent ROI and growth potential in the short, mid, and long terms. Snapshot of BCG Token demand drivers: BCG Token In-Game Value will be significantly higher than the ITO price 100m Growth tokens, have been allocated to ensure mass adoption Conversion of only 25% of our existing 4m users, to Creata 1m BCG Token holder user base By converting just 0.025% of our global media partners, sports loving distribution network to BCG users and token holders, creates opportunity to acquire more than 1m additional users by 2020. Special Note: our current ESPN World Cup game has more than 1.4m players / 40m predictions by qt finals stage. Market growth in the last decade has been 500% and our main targeted sports and territory markets have projected growth estimates of 20% per annum, providing strong current and future token demand Token Supply, Vesting & Lock Up Post ICO - the tokens sold will be locked for a period of 14 days, After this period the BCG tokens will be tradable, useable on our platform and we anticipate at least 4-6 well know exchanges ensuring liquidity for BCG Games, Platform, Ecosystem and investors. Vesting Periods - up to 3 year vesting periods apply to Founders, Seed Investors, Core Team, Advisors and Partners. Tokens will be unlocked periodically to ensure there is no over supply and everybody has the same goal to Creata long term successful and sustainable token. Join us to Creata a Billion Dollar Game Changer 39
Monetization Token Allocation Total BCG Token Supply 1,000,000 Total 425m BCG Tokens available through Private Sale, Pre-ITO and ITO crowd sales Total 100m Growth tokens Total 40m Advisors, Legal, Accounting Total 40m Marketing, Licensing, PR, Promotions, Partnerships Total 300m Company Founders / Team Total 25m Early Contributor / Seed Investors Total 50m Prize Pool Bank Total 20m Reserve 100m allocation of growth tokens will be made available for current and / or future key strategic partners, star ambassadors, influencers, team, advisors, promotion / prizes, air drops and early contributors to ensure the success of the project. Maximise customer retention, reward partners and implement our new mass media global partnerships STRATEGIC INVESTMENT PARTNER OPPORTUNITIES - APPLY HERE! If you are a venture capitalist, early contributor, angel investor or potential sports / media / community industry partner please contact corey.jackson@creata.io Join us to Creata a Billion Dollar Game Changer 40
Monetization Revenue Projections & Key Assumptions 4m Unique Users x 25% conversion in 2019 = 1m players base Convert Media Partner 2019 Audience x 0.05% = 300,000 in year 1, with projected 15% growth p.a User Acquisition = 240,000 users p.a being 20,000 per month in 2019 and 2020 Projected Post 2020, average growth of 20% being slightly above market average Pay2Play B2C Vendor Market Average = USD $565 per user Publisher B2B Free and Freemium 2018 Revenues = USD $2.1m actual (including second half projected), forecast 50% growth Projected 2019 - Total USD Revenues Player Base 1m x $282.50 = $282.5m Major Event Mass Mass Media Audiences 300k x $282.50 = $84.75m Audience Opportunity User Acquisition 240,000 x $282.50 = $67.8m highlights: Publisher B2B = $3.15m TOTALS = $438.2m Japan 2019 Rugby World Cup, China FIBA Basketball World Cup, Japan 2020 Olympic Projected 2020 - Total USD Revenues Games, Australia T20 Player Base 1.2m x $372.9 = $447.48m World Cup, Football Euro Mass Media Audiences 345k x $372.9 = $128.65m Championship and other User Acquisition 240,000 x $282.50 = $67.8m major events can Publisher B2B = $4.55m significantly increase the figures projected. TOTALS = $648.48m Note - above projections use only $282.50 being 50% of the market ave user spend p.a. to allow for incentives and loyalty discounts in 2019 to encourage sign ups and 66% of this average in 2020 to aid retention and further encourage new sign ups. Join us to Creata a Billion Dollar Game Changer 41
Creata BCG Assets & Technology Formats & Game Library DFS Season Long Season Long Season Long Tournament DFS Single Team Fantasy Squad Fantasy Draft Fantasy Fantasy Single Fixture Gameweek Match Streak Predictor Predictor Interactive Match Fixtures Golden Wheel Centre Wheel Goal Line Up Group Predictor Predictor Social Goal Galore Swap Shop Trading Star Player Bracket Bet Prompt Exchange Predictor Predictor Join us to Creata a Billion Dollar Game Changer 42
Creata BCG Assets & Technology Platforms Largest Multi-Sport Gaming Library: Soccer, Cricket, Rugby, AFL, ICC Cricket, Hockey, Horse Racing, Formula1, eSports, Basketball, Handball, Cycling, Ice Hockey, Golf, Greyhounds, Tennis, GAA, V8 Supercars, Billiards, Snooker, Darts Multi language capability with experience in 25+ Languages Skins and territories created as instances of same competition, delivered across more than 50 countries Fully responsive & multi-channel enabled - Mobile, Web, Console – ability to deliver Native as required User Account & Wallet Single sign-on: OAUTH, Gigya +++ and numerous bespoke client integrations Affiliate tracking Odds Integration, BetSlip, Contextual BetPrompts Game modes: Play For Fun / Play for Real Money / Freemium / Betting Cloud-based architecture Speed of turnaround – turnkey delivered within 3 weeks Any Sports Any Events Any Territory Any Language Media Right Gaming Mobile Desktop Broadcast Holders Operators Partner Gaming Platform Retention, ReActivation, Aquisition Match Goal Golden Instant Predictor Fantasy Streak DFS Centre Galore Grid Play Admin Layer Reporting & Site Customer User Create CRM Analytics Performance Service Profiling Tournaments Database & Machine Learning & AI (Avora) Join us to Creata a Billion Dollar Game Changer 43
Creata BCG Assets & Technology In-House Technologies We create, build and host all our games in-house. We call it concept to completion. We even host customer services for our games in our 300 seat contact centre. Our team creates, designs and builds games seamlessly for desktop, tablet, mobile and app to deliver the same optimised performance however players choose to interact. Live scoring, betting integration and fast score updates are a feature of our games. Our platforms are robust and capable of receiving massive traffic spikes without performance wavering. Dual replication of our data centres in Colchester and London, which are both served by 1Gb private pipes and linked via a 1Gb private pipe, gives us immense flexibility and capability to manage load across our banks of virtual servers. Dealing with over 4 million players of multiple games demands a robust technology platform. We take no chances and build in massive redundancy across our platforms so that players can interact with our games whenever they choose and right up to critical game start times. Back-end tech stack Front-end tech stack Java 8Struts 2 Web FrameworkSpring HTML, CSS, JSP (Dependency injection Framework) (Java server pages) Hibernate Javascript, Ajax (Object Relational mapping framework) Mysql 5.x.x Front-end tools (Database server) npm, grunt Maven (building and managing the project) Tomcat 8, JSON, XML Join us to Creata a Billion Dollar Game Changer 44
Creata BCG Assets & Technology Portfolio TESTIMONIALS http://clevergames.com/testimonials.html Join us to Creata a Billion Dollar Game Changer 45
Our Team RICKY JACKSON CO-FOUNDER Founder Former Professional Co-Owner / Marketing Director AFL Footballer of Elite Sports Properties Leading global Sports, Media, Licensing, Merchandise Talent Management Brand Management Licensing Collectible Merchandise directly responsible for creating and growing the highly successful ESP Global collectible licensed merchandise business, partnering with the world’s leading brands, media partners and licensors. Selling well over 200 million units worldwide and winning many international media and licensing awards. Creata Blockchain Clever Games Europe’s leading fantasy and digital games company Fantasy Games Digital Games Clever Games, has 18 years experience designing, developing fantasy, daily fantasy and prediction games for rights holders, brands, media partners and sportsbook operators globally Clients include UEFA, News Ltd, ESPN, Axel Springer, ITV, Betfair, Ladbrokes, Microsoft. Join us to Creata a Billion Dollar Game Changer 46
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