Poker Management Group Presentation


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Poker Management Group Presentation

  3. 3. The BusinessPoker RoomsWe plan on acquiring multiple stand alone poker rooms throughout the world, while initially focusing on the US (inlicensed states) and Caribbean . This will be done on a Joint Venture basis with equity partners or directly brandingthe poker rooms inside Casinos.Poker is sometimes perceived as not as profitable in comparison with table games and slots by the gaming industry.It is our belief and experience that, when managed correctly, poker rooms produce very consistent revenue withmuch less capital expenses, staffing or supervision than casinos. It also requires much less maintenance cash as theplayers are playing against each other rather than the house.In casino table games and slots, your revenue is generated by the players losses. In poker rooms, our revenue isgenerated by either taking a piece of the pot (rake) or charging a seat fee per 30 min to each player.One poker room table would produce over $1 Million per year of revenue when regularly played.We would expect to invest $50 to $100,000 per room (based on 25 table room) to improve and market.All of our poker rooms will have the same branding and comp points for cash games and tournamentsThe Caribbean poker rooms will be smaller but have higher revenue per table. Marketing of these rooms will beassisted by the use of Junket Operators.
  4. 4. The BusinessPoker CruisesWill build upon the existing franchise of World Poker Showdown that has hosted poker tournaments and cash gameson Luxury Cruise Ships for the past decade.Poker tournaments and cash games will be held in the convention area of the cruise ship. We have 2 one weekcruises this November in the Caribbean and are planning to commit to 4 more in 2013 on the Royal Caribbean CruiseLines Oasis of the Seas, the largest cruise liner in the world.Up to 600 people can be booked for poker activities with the Oasis holding 4000 passengers and 2100 staff.The average net revenue per player is $600 per week.We feel that this can be large growth area with the growth of our Poker Tour and using our online site to bring playersvia prizes.
  5. 5. The BusinessPoker TourWe are building upon the existing franchise of World Poker Showdown to operate mid to high end poker tournamentsthroughout the US, Canada and the Caribbean.Our goal is to exclusively hold World Poker Showdown tournaments in our own poker rooms. Initially we will behosting some events at other casinos and poker rooms until we build up critical mass of poker rooms. We have haddiscussions with other casinos and poker rooms in Canada, US and Caribbean that are very eager to host ourtournaments.The normal fee for running poker tournaments is 10% of the buy-in, in a $1,000 tournament, the registrant would pay$1000 plus $100 for the entry fee. If we have 500 players entered, our total fee would be $50,000 minus dealer costs.The poker room or casino would normally run satellite tournaments into larger events (which they would keep theentry fees) and would expect a larger amount of cash games prior to, during and for a few days after the tournamentseries. In our own properties, this excess revenue would be ours.We would provide all of the tournaments a point system during the year with a grand final at the end of the year forour top of the standings.We will endeavour to have online live casts for the events and eventually some television coverage.
  6. 6. VERTICAL INTEGRATIONMarketing our different business linesAll of our businesses including the poker rooms, poker tour and cruises will work together to market the brand andeach other at every event.Poker rooms will have marketing material and advertisements promoting the cruises. They will also be hosting thepoker tour and run satellites for other rooms events and cruises.Cruises will host the poker tour and information on the other poker rooms.A semi annual magazine will be created soon after that promotes all the properties and will be distributed at all of ourlive poker rooms and on the cruises. The frequency of the magazine will be increased in future years.We will be looking to partner with a media and cable provider for television coverage for our events in future years tocompete directly with the World Poker Tour and World Series of Poker as our brand and company grows.
  7. 7. CompetitionMajor Casinos• Poker is not the priority at major casinos, favouring table games. Inefficient operations and very poor customer serviceLive Poker Rooms• Mostly smaller rooms, no economies of scale for costs or marketing• Larger rooms are California and Florida based with regional focusCash Based Online Poker• Poker Stars• Party Poker• Many other smaller sites for cash playersSubscription and Free Based Online Poker• Zynga (Only Free with facebook affiliation)• Pure Play (subscription based and free)• WPT Club (subscription based owned by Party Poker)• Face Up (subscription based )
  8. 8. CompetitionPoker Tours• World Poker Tour• World Series of Poker – Main 6 week series in Las Vegas – Europe 2 week event – Australia/Asia 2 week event – Circuit Events at all Harrah’s properties throughout year• Heartland Poker Tour• Poker Stars – European Tour – Asian Tour – South American Tour – North American Tour (on hold currently due to US and Canadian regulatory issues)
  9. 9. The TeamChief Executive OfficerJohn Simmonds• John Simmonds brings 40 years of experience to the helm of Vertility Corporation.• Specializing in acquiring companies with promising business models and management, but lacking the funding, strategy or bandwidth to grow to their true potential• Track record for building teams, finding synergies and creating value.• Over 100 companies re-engineered including Clublink and Glenayre among others.PresidentTony Porcheron• Investment Advisor for over 20 years managing the wealth for some of the country’s leading entrepreneurs, their businesses and their families. This included medical benefits, corporate cash management, investments and corporate finance.• Raised capital and sat on board of directors for many private companies.• Part time professional poker player for past 20 years including playing at World Series of Poker, World Poker Tour, European and Asian Poker Tours. Has also played in many poker rooms and casinos in North America, Europe and Asia.• Former Canadian Military Finance Officer
  10. 10. The TeamSenior Vice President OperationsHerb Van Dyke• 40 years experience in gambling, Lodging and Entertainment Industries• Founder and President of World Poker Showdown, a company that has operated Poker Cruises, Poker Tournament and Poker Rooms over the past decade• Managed numerous private Casino properties in Russia until government publicized all gambling properties.• Managed Fishing Lodges and Fly Fishing Tours in Russia, Canada and United StatesVice President Legal and Regulatory AffairsBrad Cates• Former Chief Judge of the US Department of Interior,• Former Assistant District Attorney in New Mexico, and Minority Counsel to the Judiciary Committee of the NM House of Representative• Mr. Cates has extensive experience in the stored value market, both as an executive and legal advisor, as well as the necessary Federal banking, MSB, and Patriot Act compliance laws. Additionally, he is an experienced white color prosecutor, and federal manger.• He has been involved in several stored value start up initiatives, including with AOL and Neteller.• He has been involved in numerous international ventures, primarily in Russia and Latin America. Many of these involved anti money laundering legal initiatives• Very experienced and knowledgeable in US Gaming and casino laws in various US States both online and live.
  11. 11. The TeamExperienced Board of DirectorsChandra PanchalFounded TSX listed biotech company and has sat on numerous public and private company corporate boards overthe past 30 years including being Chairman and leading audit and compensation committees.Has completed multi million dollar M&A transactions and joint venturesJohn Simmonds, CEOVinko DobrosevicOver 30 years of experience in gaming and software including senior management roles in Trump organization.President and founder of IGSOFT, our Contest Poker software provider and partnerG.R. Randy BarberRespected gaming executive with over 40 years of business, regulatory and governmental experienceFormer Chair of the Alcohol and Gaming Commission of Ontario (AGCO)He holds an International Masters of Gaming Law degreeAllen LeRoyDirector Infrastructure and productions systems of Air MilesOver 20 years experience in marketing, corporate branding, systems and infrastructure in growing firms.Former Senior Executive with Rogers Communications including periods of directly reporting to Ted Rogers.
  12. 12. Business TimelinesInitial Business will include:• Joint Ventures for management of Poker Rooms in Dominican Republic and Costa Rica• Two One Week Poker Cruises on Oasis Cruise Ship in November 2012• Two One Week Poker Cruises on Oasis Cruise Ship in February 2013• Two One Week Poker Cruises on Oasis Cruise Ship in November 2013• One 11 day Poker Cruise on Cruise Ship in December 2013 in South Caribbean• In negotiations over the next 3 months to open 2 to 3 additional poker rooms in the United States, which could include:• Washington, Colorado, Montana, Arizona, New Mexico, Oklahoma, Delaware, Florida• Plans over the next 24 months to add 5 to 10 Poker Rooms in the US and Caribbean• Will plan to open up Poker Rooms in Ontario when regulation allows.• We will be having active discussions with Casino and Gaming Companies to discuss joint ventures..
  13. 13. Poker BrandingLive Poker RoomsCreate ultimate poker brand (Starbucks for poker rooms)This will be based on the following items:1. Treat players with respect and appreciate them.2. Flexible game play3. Good mix of cash games (action)4. Great surroundings (doesn’t need to be excessive)5. Quality Food and Beverage6. Attractive waitresses (sex appeal)7. Proper Compensation for playing8. Great tournaments9. Ability to track results
  14. 14. . GATE TO WIRE FINANCIAL PROJECTIONS REVENUE (Net after internal expenses) 2013 2014 2015 2016 2017 Cruises $570,000 $900,000 $1,600,000 $3,200,000 $4,000,000 Poker Rooms $1,000,000 $4,000,000 $9,000,000 $18,000,000 $40,000,000 Poker Tour $200,000 $800,000 $2,000,000 $3,000,000 $4,500,000 Gross Revenue $1,770,000 $5,700,000 $12,600,000 $24,200,000 $48,500,000 Management Expenses Salaries & Bonuses $600,000 $804,000 $982,400 $1,365,640 $2,084,204 Office Expenses $76,000 $125,000 $170,000 $460,000 $860,000 Travel Expenses $80,000 $87,000 $93,000 $140,000 $230,000 Marketing $160,000 $270,000 $380,000 $600,000 $900,000 Building/Capital Purchases* $400,000 $500,000 $1,500,000 $3,000,000 $5,000,000 Poker Equipment** $100,000 $200,000 $400,000 $1,000,000 $2,000,000 Professional Fees $20,000 $50,000 $100,000 $150,000 $200,000 Corporate Expenses $50,000 $60,000 $80,000 $120,000 $200,000 Total Expenses $1,486,000 $2,096,000 $3,705,400 $6,835,640 $11,474,204 EBITDA $284,000 $3,604,000 $8,894,600 $17,364,360 $37,025,796 * Building or purchasing Poker Rooms ** Cards, Tables,Chips, other Poker Equipment
  15. 15. Investment• ISSUER: Gate to Wire Inc. (GWIR on NASDAQ Pink Sheets) to be changed to Poker Management Group• Offering: Up to10 Million common treasure shares @ $0.05• Currently outstanding: 25,102,430 shares
  16. 16. Use of Proceeds• Complete Audited Financials and Legal Fees $30,000• Marketing/Advertising $100,000• General Corporate Purposes $200,000• Cruise Deposits ($10,000 per cruise) $40,000• Poker Room Enhancements ($50k per room) $100,000• Contingency $30,000• Total $500,000