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GMBL Investor Presentation

  1. Nasdaq: GMBL Building The Future of Esports Betting & Entertainment
  2. Esports Entertainment Group (GMBL) is a Nasdaq-listed company Building the Future of Esports Betting and Entertainment. 3
  3. What is esports? • Esports is organized competitive video gaming that is watched as a spectator event. Esports were already the fastest growing subsector of digital entertainment, and Covid-19 has only accelerated this trend. • The Esports audience is very valuable for advertisers because it is young, digital native and affluent. Research has found that esports fans are more likely to be influenced by their favorite team being sponsored by a brand than traditional sports fans are. • Despite the vast amount of eyeballs, Esports remain dramatically under-monetized relative to traditional sports. We believe wagering will play a major role in helping monetization in the space catch up.
  4. GAMING ASCENDANCY: MORE PEOPLE ARE PLAYING MORE  There are 2.5B gamers globally (with some estimates as high as 3.5B).  2 out of 3 Americans are gamers.  Video gaming is now more engaging than any other social media outlet (FB, Snapchat, IG) with gamers spending 51 minutes on average playing every day.  Gaming industry is now bigger than movies or music 5 Sources: Newzoo - 2019 Global Esports Market Report
  5. ESPORTS DOMINANCE  Esports tournaments have now outstripped all traditional sports events both in terms of viewership and prize pool.  In 2019 the League of Legends championship drew a larger audience than the Super Bowl. And the winner of the Fortnite World Cup won more money than Tiger Woods at the Masters. 6 Sources: Business Insider
  6. THE AUDIENCE IS LARGE & LUCRATIVE  There are 518M esports viewers worldwide, growing to 645M by 2022.  75% of fans are between the age of 18-34, with 38% being women.  43% of esports enthusiasts have an annual household income of $75k per year or higher  Average spending per gamer is growing 60% YoY Esports Worldwide Audience Size (millions) Esports Viewers by Age Brands Active in Esports Sources: Newzoo - 2019 Global Esports Market Report, Google Images 7
  7. 8 Esports Wagering • Real-money wagering • Player vs Player • Fantasy Esports Esports Entertainment & Infrastructure • Broad exposure to the entire esports ecosystem • Esports-specific infrastructure • Data Collection and Analytics • Technology infrastructure • Profitable growth • Access to strategic licenses • Base pool of customers iGaming & Traditional Sports Betting ➢ Build/Acquire complementary and synergistic assets in three main pillars ➢ Operate own wagering platforms and event venues ➢ Become the underlying technology infrastructure provider to the esports industry ➢ Develop best in class esports data Collection and analytics Esports Entertainment Group: Three Pillars Strategy
  8. 9 Esports Wagering • Esports Real-Money Betting: VIE.GG is the only esports-focused wagering platform that has Tier 1 gaming licenses (Malta, UK, Ireland, NJ pending). • Player vs Player: LANduel is a proprietary player- vs-player platform, built in Unity, that allows for skill-based wagering on third-party video games both in gaming centers and eventually remotely. Esports Entertainment & Infrastructure • White-label tournament platform • Esports Entertainment Centers • B2B gaming center and at-home software operating system • Data Collection, Analytics and scouting platform • Argyll Entertainment is a licensed online gambling company in the UK and Ireland. Argyll operates under the brands SportNation and Redzone.bet. • GMBL has engaged Akur Capital, a leading capital markets advisor specializing in online gambling to further our aggressive M&A strategy. iGaming & Traditional Sports Betting Esports Entertainment Group: Dominating the esports market with key acquisitions
  9. Pillar 1: Esports Entertainment & Infrastructure Stadium Seating for 500+ STEM Programs & School Leagues 10 Esports Gaming League: Tournament Platform ➢ EGL operates both online and live leagues and tournaments. ➢ Events monetized through 1) sponsorships, 2) streaming broadcast rights, 3) advertising, 4) tickets, 5) other revenue such as merchandise and food and beverage. ➢ Working with traditional sports teams as their official esports tournament platform provider. Helping teams engage their fans through their passion, gaming. ➢ Building a database of esports fans that we can cross-sell our other offerings into. EGL Strategic Partners & Sponsors ➢ Helix eSports owns 5 esports centers including 2 of the 5 largest centers in the USA. ➢ Social and community hubs for gamers. ➢ 20+ monthly tournaments per location and unique experiences. ➢ Strong store-level economics. ~$500K to build a Helix Center, < 1 year payback period. 20%+ EBITDA margins at scale. ➢ Have had interest from strategic partners to build centers inside sports arenas & casinos. Helix eSports: State-of-the-Art Entertainment Centers
  10. Pillar 1: Esports Entertainment & Infrastructure ➢ ggCircuit is a B2B software solution that provides cloud-based management solutions for gaming centers. ➢ Serves over 1,000 connected locations globally with 1.9 mil unique users & 60 mil hours of usage. ➢ 50+ universities on the platform. ➢ Primary revenue model is per seat subscription fee. On screen advertising represents major expansion opportunity. ➢ Will serve as the back-end for our player-vs-player wagering platform. Stadium Seating for 500+ STEM Programs & School Leagues 11 ggCircuit: Cloud-based Software for Gaming Centers Genji: Esports Analytics ➢ Genji is an esports analytics provider for competitive gaming, facilitating talent identification, broadcast analytics, and more. ➢ Has worked with FIFA and the NBA 2K League to power activities like combines, drafts and data-driven business decisions. ➢ B2C opportunities include creating combine-style scouting reports for players who come to ggCircuit connected centers. ➢ In the future, Genii's analytics will enable VIE.GG to offer tighter lines on more esports events than any other wagering platform Enterprise & University Customers
  11. Pillar 2: Esports Wagering ➢ Only esports focused wagering platform with a Nasdaq-listing / Tier 1 licenses (Malta, UK and Ireland). ➢ New Jersey license pending. Secured market access through Twin Rivers, awaiting approval from NJ Department of Gaming Enforcement. Anticipate NJ launch late 1Q21. ➢ Acquired naming rights and jersey logo placement for Dignitas’ CS:GO team. ➢ Total addressable market of > $3.5 bil as the market matures. Stadium Seating for 500+ STEM Programs & School Leagues 12 Vie.gg: Esports wagering platform LANduel: Player-vs-Player Video Game Wagering ➢ LANduel is a proprietary player-vs-player platform, built in Unity, that allows for skill-based wagering on third-party video games both in gaming centers and eventually remotely. ➢ Strict 4 factor authentication ensures fair play and ID verification ➢ Close relationships with several major game publishers to ensure events/wagering follows community guidelines. ➢ LANduel is working alongside the New Jersey Department of Gaming Enforcement on a pilot program that is expected to be launched early in 2021. Combining LANduel with Helix, Vie.gg, and ggCircuit—we offer a turnkey solution for casinos looking to attract millennials into their locations
  12. Pillar 3: iGaming & Traditional Sports Betting ➢ Argyll operates under the brands SportNation and Redzone.bet. ➢ Tier 1 licenses in the UK and Ireland ➢ Covid-19 has proven that traditional sports bettors will bet on Esports. ➢ Provides gambling operations and regulatory expertise that helps differentiate our esports offerings from the competition ➢ Expanding to Malta license, will allow SportNation to expand to 150 additional jurisdictions including Canada, New Zealand, Finland and Japan. Stadium Seating for 500+ STEM Programs & School Leagues 13 Argyll Entertainment: Traditional sports book & iGaming Further M&A Opportunities ➢ We have engaged Akur Capital to help with our aggressive M&A strategy, targeting mature iGaming operators. ➢ Deals provide access to licenses in strategic jurisdictions as well as a pool of players to cross-sell our esports offerings into ➢ Create operational synergies with both Vie.gg and Argyll Entertainment
  13. 14 Financial Information Comparable Company Benchmarking Esports Entertainment Group (GMBL) trades at a significant discount to pure-play online gambling and Esports competitors despite strong early-mover advantage in the rapidly growing Esports vertical. Sources: FactSet Investment Research, Skillz, GNOG, RSI based on proposed SPAC valuations *GMBL based on management’s updated Proforma F21 revenue guidance Esports Comp Group = EGLX.TO, SLGG, AESE, G-Loot Nasdaq: GMBL Recent Price $4.43 Market Cap $57.1M Shares Outstanding 12.9M Cash $8.9M As of November 13, 2020 Key Company Info Revenue Guidance Fiscal 21: $13 mil We intend to provide an update to this once the transaction has closed. Fiscal 22: $25 mil Fiscal 22 Proforma ggCircuit/Helix: $42 mil **We expect to be EBITDA positive in F22**
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