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GMBL Investor Deck October


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Esports Entertainment Group (GMBL) is a licensed online gambling company with
a specific focus on esports wagering and 18+ gaming. The Company holds a license
to conduct online gambling and 18+ gaming on a global basis in Malta and Curacao,
Kingdom of the Netherlands and can accept wagers from over 149 jurisdictions
including Canada, Japan, Germany, and South Africa. Esports Entertainment offers
fantasy, pools, fixed odds, and exchange style wagering on esports events in a
licensed, regulated, and secure platform to the global esports audience at In
addition, Esports Entertainment intends to offer users from around the world the
ability to participate in multi-player mobile and PC video game tournaments for cash
prizes. Esports Entertainment is led by a team of industry professionals and
technical experts from the online gambling and the video game industries, and

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GMBL Investor Deck October

  1. 1. Helix / ggCircuit Acquisition Update Esports Gaming & Wagering Company
  2. 2. 3 Understanding the Esports Opportunity The Esports audience skews younger and is global in nature…making it an attractive demographic for advertisers to reach Esports Viewers by Age Esports Enthusiasts by Region Sources: NewZoo, Nielsen, Company Websites 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. Brands Active in Esports Esports Worldwide Audience Size (millions)
  3. 3. (1) Esports Entertainment & Infrastructure (2) Esports Wagering • Esports Entertainment Group (GMBL) is a Nasdaq-listed company operating in three key verticals; (1) esports entertainment & infrastructure, (2) esports wagering, (3) iGaming & traditional sports betting. With the acquisition of Helix / GG.Circuit, GMBL has created the most diversified U.S. listed, Esports entertainment asset in the ecosystem. • By owning these diversified assets, EEG is well-positioned to take advantage of the rise in popularity of competitive gaming and the widespread legalization of online gambling in the United States through: (1) proprietary data sources (2) owned-and-operated event venues and (3) enhanced wagering integrations and platform opportunities. The goal of the iGaming and traditional sports betting segment is to provide profitable growth and access to strategic licenses: • 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. The goal of the Esports entertainment segment is to provide investors broad exposure to the entire esports ecosystem including: • White-label tournament platform • LAN Centers • B2B LAN Center and at-home software operating system • Analytics and scouting platform 4 Esports Entertainment Group: Approaching the Market with a Three Pillar Strategy (3) iGaming & Traditional Sports Betting GMBL intends to be the leader in the growing sector of Esports real-money wagering: • VIE.GG is the only esports-focused wagering platform that has Tier 1 gaming licenses (Malta, UK, Ireland, NJ pending). • LANduel is a proprietary player-vs-player platform, built in Unity, that allows for skill-based wagering on third-party video games both in LAN centers and eventually remotely.
  4. 4. 5 Helix eSports: State-of-the-Art Esports Entertainment Centers Esports Wagering Handle ($, bil) • Not Your Average LAN Center – Helix eSports owns 5 esports centers including 2 of the 5 largest centers in the USA. By providing world class customer service, esports programming and gaming infrastructure, Helix levels the playing field in esports • An Esports Experience for Everyone – Helix offers a variety of experiences including casual play, competitive tournaments, STEM programming, high school leagues, large groups and esports bootcamps • Social and Community Hubs for Gamers – Entertainment concepts are at the center of millennial and GenZ social scenes. Helix centers have become the destination for social and competitive gamers alike with our 20+ monthly tournaments and unique experiences • Equitable Access to Technology and Opportunity – Helix centers provide access to mission critical technology enabling STEM Programming, school leagues and regulated wagering What makes a Helix Esports Center? Helix Key Statistics 18.1 Average Age of a Helix Player 6,000+ Unique Monthly Gamers 50+ Tournaments and large events hosted Future opportunities Include: • Hockey rink of the future – youth, high school and academy programs • Player-vs-player wagering in the centers / build centers in casinos • Fight-night style streamer battle events, creating proprietary content that can only be bet via the VIE.GG platform • Event spaces to capture regional publisher & professional events • Subscription and advertising revenue expansion 10,000+ SQFT 100+ High End Gaming Stations Stadium Seating for 500+Stadium Seating for 500+ STEM Programs & School Leagues
  5. 5. 6 ggCircuit: A Vertical Enterprise Software Business Esports Wagering Handle ($, 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. • 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. 50+ Universities on the Platform Strategic Enterprise Partnerships Emerging Areas of Opportunity Global Scale ggCircuit is a B2B software solution that provides cloud-based management for LAN Centers, a tournament platform and integrated wallet / point of sale solutions for enterprise customers.
  6. 6. 7 A One-Stop-Shop for Creating the Future of the Casino Floor Esports Wagering Handle ($, bil)Turning This… …Into This • Casinos have a demographics problem. The average slots player is in their 60s and the millennial generation has shown very little interest in traditional games. • Esports can be part of the solution. The average esports fan is 31 years old and has above average income. • Competition is at the heart of esports. Our LANduel platform makes it possible for casinos to add skill-based player-vs-player wagering into their casinos, attracting a sought-after demographic and creating a new revenue stream. We have already had discussions with multiple operators who are interested in this offering and are working alongside the New Jersey Department of Gaming Enforcement to ensure that it is done in a manor that is compliant and consumer-friendly. With Helix, the ggCircuit operating system and EEG’s gambling regulatory expertise—we are truly the only turnkey solution for casinos looking to enter into esports.
  7. 7. 8 GENJI: Best-in-Class Esports Analytics Platform Esports Wagering Handle ($, 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: • 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 Emerging Areas of Opportunity Sophisticated Talent Scouting & Ranking Systems OCR & Computer Vision Technologies Capable of Real- Time Analysis Unique Data Collection Tools, Deployable Across Helix & ggCircuit Networks
  8. 8. 9 LANduel – Player-vs-player skill-based wagering platform 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 LAN centers and eventually remotely. Current State of Player-vs-Player Wagering The Future with EEG & LANduel
  9. 9. 10 Financials • $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 $42 mil.
  10. 10. 11 ggCircuit / Helix Transaction Multiples vs Peers Esports Wagering Handle ($, 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