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Helix gg.circuit acquisition deck final

  1. Helix / ggCircuit Acquisition Update 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 5Sources: 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. 6Sources: 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. • Esports Infrastructure: • Helix: Esports Entertainment Centers • Genji: Analytics & Scouting Platform • ggCircuit: Gaming Center Operating System • Esports Betting • LANDuel: Player vs Player Skill-Based Betting Esports Entertainment Group: What Are We Buying? 9
  9. 10 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 • 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
  10. Helix eSports: State-of-the-Art Esports Entertainment Centers Esports Wagering Handle ($, bil) • Not Your Average LAN Center – Helix eSports owns 5 esports centers including 2 of the 5 largest centers in the USA. By providing world class customer service, esports programming and gaming infrastructure, Helix levels the playing field in esports • An Esports Experience for Everyone – Helix offers a variety of experiences including casual play, competitive tournaments, STEM programming, high school leagues, large groups and esports bootcamps • Social and Community Hubs for Gamers – Entertainment concepts are at the center of millennial and GenZ social scenes. Helix centers have become the destination for social and competitive gamers alike with our 20+ monthly tournaments and unique experiences • Equitable Access to Technology and Opportunity – Helix centers provide access to mission critical technology enabling STEM Programming, school leagues and regulated wagering What makes a Helix Esports Center? Helix Key Statistics 18.1 Average Age of a Helix Player 6,000+ Unique Monthly Gamers 50+ Tournaments and large events hosted 10,000+ SQFT 100+ High End Gaming Stations Stadium Seating for 500+Stadium Seating for 500+ STEM Programs & School Leagues 11
  11. Synergistic Value of Helix Within EEG • Hockey rink of the future – youth, high school and academy programs • Player-vs-player wagering in the centers / build centers in casinos • Fight-night style streamer battle events, creating proprietary content that can only be bet via the VIE.GG platform • Event spaces to capture regional publisher & professional events • Subscription and advertising revenue expansion 12 Helix eSports: State-of-the-Art Esports Entertainment Centers
  12. 13 Esports Wagering Handle ($, bil) Cloud based management software, web admin, PC client, and point of sale. PXE server technology for center efficiency and game updates. Assisting esports location startups through business planning and technology implementation. ggCircuit’s Offerings ggCircuit’s goal is to help gaming centers grow their business through easy-to-use esports software. This software provides player incentives with coin rewards, prize redemption, and events to keep them coming back. 50+ Universities on the Platform Strategic Enterprise Partnerships Global Scale ggCircuit is a B2B software solution that provides cloud-based management for gaming centers, a tournament platform and integrated wallet / point of sale solutions for enterprise customers. ggCircuit: A Vertical Enterprise Software Business
  13. Synergistic Value of ggCircuit Within EEG • Potential backend for in-center player-vs-player gambling ecosystem. • Leverage in-game meta-data for analysis and potential enterprise application. • Expansion of on-screen advertising revenue • Mobile application and reservation system. 14 ggCircuit: A Vertical Enterprise Software Business
  14. 15 Esports Wagering Handle ($, bil)GENJI ANALTYICS • Genji is the esports-proven, publisher-trusted analytics provider for competitive gaming, facilitating talent identification, broadcast analytics, and more. • Genji has already launched products into Helix eSports Centers that create customized tournament experiences, leveraging both idle computing capacity and uniquely proprietary data sources • Revenue streams include platform sales to publishers, leagues and eventually all competitive players looking to enhance their gameplay through analysis, fair competition and roster optimization Genji’s Technologies Include: Sophisticated Talent Scouting & Ranking Systems OCR & Computer Vision Technologies Capable of Real- Time Analysis Unique Data Collection Tools, Deployable Across Helix & ggCircuit Networks GENJI: Best-in-Class Esports Analytics Platform
  15. Synergistic Value of Genji Within EEG • Genii's analytics will potentially enable VIE.GG to offer tighter lines on more esports events than any other wagering platform, particularly when coupled with ggCircuit’s platform data • Genji’s analysis tools can be deployed across both the VIE.GG and ggCircuit platforms, enabling incremental revenues related to tournaments, handicapping, scouting and more • Genji can access new sources of proprietary data, potentially including LAN center-collected facial, hand & eye tracking, to enable unmatched assessment of skill in real-world environments GENJI: Best-in-Class Esports Analytics Platform 16
  16. 17 Esports Wagering Handle ($, bil) Player-vs-Player Wagering Market Needs Regulation – lack of sanctioned oversight, standardized rules/equipment and identity verification has created an esports wagering environment fraught with fraud, cheating and deception Proper Tech Does Not Currently Exist for Online Wagering – Current online platforms do not enforce minimum gear requirements or true ID check putting competitive integrity at risk. No state sanctioned approval as well. How LANduel Changes the Player-vs-Player Wagering Ecosystem Consumer Facing Application Center Based PvP Wagering EEG Created Esports Event Content Safe Player-vs-Player Wagering with LANduel– LANduel’s consumer facing application enforces strict 4 factor authentication to ensure fair play and ID verification. LANduel also holds close relationships with several major game publishers to ensure events/wagering follows community guidelines Center Based Wagering with LANduel Solves– Wagering at a Helix center with LANduel integrity management allows operators to ensure fair play and verify participant ID/eligibility. LANduel is working alongside the New Jersey Department of Gaming Enforcement on a pilot program. • What is LANduel? LANduel is a proprietary player-vs-player platform, built in Unity, that allows for skill-based wagering on third-party video games both in gaming centers and eventually remotely. Current State of Player-vs-Player Wagering The Future with EEG & LANduel LANduel – Player-vs-player skill-based wagering platform
  17. 18 Esports Wagering Handle ($, bil)Turning This… …Into This • Casinos have a demographics problem. The average slots player is in their 60s and the millennial generation has shown very little interest in traditional games. • Esports can be part of the solution. The average esports fan is 31 years old and has above average income. • Competition is at the heart of esports. Our LANduel platform makes it possible for casinos to add skill-based player-vs-player wagering into their casinos, attracting a sought-after demographic and creating a new revenue stream. We have already had discussions with multiple operators who are interested in this offering and are working alongside the New Jersey Department of Gaming Enforcement to ensure that it is done in a manor that is compliant and consumer-friendly. With Helix, the ggCircuit operating system and EEG’s gambling regulatory expertise—we are truly the only turnkey solution for casinos looking to enter into esports. Only EEG Can Bring Casinos Into The Future With Esports
  18. 19 • $43 mil purchase price • We expect the transaction to close prior to January 1, 2021. The transaction is subject to GMBL shareholder approval. Deal Terms Proforma Revenue Guidance • We are maintaining our F21 (year end June 30, 2021) revenue guidance of $13 mil. We intend to provide an update to this once the transaction has closed. • We are increasing our F22 (year end June 30, 2022) revenue guidance from $25 mil to $42 mil. Financials
  19. 20 Esports Wagering Handle ($, bil)Public Esports Comparables Private Esports Comparables -We view Skillz as the best comp for this transaction as it is the only asset above that combines esports with skill-based wagering (which is what our GGC/Helix acquisition opens the door for us to do). -G-Loot raised $56 mil in early-October at a $143 mil valuation. The company has a similar business model as LANduel (skill-based player-vs-player esports wagering). Deal Synergies • Creates a one-stop-shop for casinos & traditional sports franchises looking to enter the esports ecosystem. • Owning the underlying infrastructure with ggCircuit/Helix puts us in position to control this new player-vs-player wagering market. • Becoming a strategic partner to casinos / Tribes puts us in stronger negotiating position to lower market access costs. • Strong publisher relationships Sources: FactSet, Skillz S-4, Forbes, G-Loot Investor Relations ggCircuit / Helix Transaction Multiples vs Peers
  20. 21 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 Prices as of 9/8/20 21 Comparable Company Benchmarking