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Partnership <strong>Deck</strong><br />
2016<br />
Lars Lien<br />
Kristjan Farrugia<br />
Mike Stevens
Introduction<br />
01<br />
<strong>Luckbox</strong> is a<br />
gambling<br />
game<br />
developer<br />
that will develop and launch<br />
massively social<br />
gambling games<br />
for a competitive and hyper-social<br />
esports<br />
generation<br />
The contents of this document are confidential. Please do not distribute without written consent.
The Problem<br />
02<br />
What’s the problem?<br />
The online casino industry<br />
lacks innovation<br />
Big gambling operators are not<br />
effectively targeting<br />
the esports generation<br />
Viritual Currency casinos<br />
lack the safety<br />
of traditional iGaming companies<br />
The contents of this document are confidential. Please do not distribute without written consent.
The opportunity<br />
03<br />
The evolution of<br />
gaming has presented<br />
an opportunity<br />
1990s<br />
2000s<br />
Internet enables online<br />
communication through email,<br />
forums & instant messenger.<br />
Facebook launches and the social media<br />
age begins.<br />
Audience<br />
Gaming becomes<br />
connected. Multidevice<br />
multi-player<br />
era begins<br />
Professional<br />
tournaments<br />
becomes a thing<br />
Esports<br />
explodes<br />
2010 ><br />
New platforms like Twitch change the<br />
way we consume content. Mobile begins<br />
to dominate.<br />
1990s<br />
2000s<br />
2013 ><br />
Opportunity<br />
2005 ><br />
Online gambling explodes across<br />
multiple verticles.<br />
Games<br />
1990s<br />
Online casinos emerge, closely<br />
followed by the poker boom.<br />
Gambling<br />
1960s<br />
The first electronic slot<br />
machines are built.<br />
The contents of this document are confidential. Please do not distribute without written consent.
Size of opportunity 04<br />
How big is the opportunity?<br />
Global gambling market:<br />
£325bn<br />
Global online gambling market:<br />
£28.5bn<br />
The online casino market is HUGE and increasing year-on-year.<br />
Esports is currently volatile and fragmented, offering low<br />
acquisiton costs, solid margins and excellent opportunities for<br />
agressive marketing and rapid growth.<br />
Illegal item betting market:<br />
£278m<br />
All figures are gaming revenue. Sources are:<br />
£278m known and<br />
unregulated item<br />
market.<br />
-£90.3m Regulated/<br />
prohibited markets<br />
(25-40%)<br />
-£61m<br />
Underage players<br />
(22-45%)<br />
Servicable market<br />
Bear: £74m<br />
Base: £126m<br />
Bull: £173m<br />
10x? 25x? 100x?<br />
Growth of products by<br />
accepting real money,<br />
deposits, offering legitimate<br />
service, expansions into<br />
other markets and so forth.<br />
Global: Cardplayer/Technavio<br />
Online: Forbes/MorganStanley<br />
Items: Naurus/Eilers<br />
The contents of this document are confidential. Please do not distribute without written consent.
The Competition 05<br />
Traditional gambling & esports companies<br />
are not solving the problem<br />
Traditional gambling<br />
companies don’t<br />
understand eSports.<br />
Existing eSports<br />
companies lack<br />
gambling and<br />
business expertise.<br />
The contents of this document are confidential. Please do not distribute without written consent.
Meet the team 06<br />
Who can solve it?<br />
Lars Lien<br />
Co-founder & CEO<br />
10+ years experience in games, gambling,<br />
virtual currencies and esports.<br />
Kristjan Farrugia<br />
Co-founder & CTO<br />
Head of Amaya Gaming B2C Web<br />
Development.<br />
Mike Stevens<br />
Co-founder & COO<br />
Professional gambler and<br />
experienced operations manager.<br />
iGaming Ideas<br />
Advisory board member<br />
Multiple award winning startup<br />
incubator.<br />
James McMath<br />
Marketing, PR, Social<br />
15 years experience in<br />
mainstream media.<br />
Robert Camilleri<br />
Business Intelligence<br />
Head of business intelligence, specializing<br />
in gambling & risk management.
Roadmap 07<br />
How will we get<br />
there?<br />
Phase Three<br />
Finalize commercial and<br />
technical B2B preparations.<br />
Add real time esports-betting.<br />
Phase Four<br />
White Label sales to<br />
esports communities and<br />
game sales to traditional<br />
gambling operators.<br />
Phase One<br />
Build and deploy core<br />
gambling infrastructure.<br />
Obtain gaming license.<br />
Launch MVP<br />
Phase Two<br />
Add approx. 1 new casino game per month.<br />
Stablize and Improve Operations.<br />
Offer audience appropriate slots.<br />
The contents of this document are confidential. Please do not distribute without written consent.
Details 08<br />
We will be...<br />
Innovative<br />
18-34 focused<br />
Secure<br />
Real Time Games (RTGs)<br />
Quick loading<br />
Massively social<br />
Highly interactive<br />
Game Types<br />
Unique house-banked games<br />
Unique Player vs Player games<br />
Gamified VIP system (<strong>Luckbox</strong> “openings”)<br />
Business Methodology<br />
4-8 week turn-around for new games<br />
Actively utilize community in new game design<br />
Ability to rapidly scale game production<br />
Built for gamers<br />
Sleek reductive design<br />
Competitive<br />
Community<br />
Targeting gamers<br />
Fully esports-integrated brand<br />
Marketing through esports<br />
Fast-paced and exciting experience<br />
Rewards for gamers<br />
Levels, achievements, status symbols<br />
Jackpots, leaderboards and major wins<br />
<strong>Luckbox</strong>es to win jackpot, cash, bonus and game rewards<br />
For customers<br />
Integrity based approach (do it right & brag about it)<br />
Certified systems, player fund protections<br />
Trusted jurisdiction<br />
For shareholders<br />
0% corporate tax<br />
Monetization from Day 1<br />
Reputable government, legal system, licensing<br />
Scalable & secure infrastructure<br />
Tried & tested at scale (B2C & B2B)<br />
Gambling industry veteran co-founder/CTO<br />
Security overseen by industry leaders<br />
...and a couple of unexpected wins too cool to include here<br />
The contents of this document are confidential. Please do not distribute without written consent.
MVP<br />
09<br />
An example of one of our massively social games. Simple to develop, highly engaging and proven<br />
to be social.<br />
The contents of this document are confidential. Please do not distribute without written consent.
B2C Approach 10<br />
How will we achieve low acquisition<br />
costs?<br />
- Endemic esports marketing; Influencers, Tournaments, Players<br />
- Social & innovative games conducive to viral referrals<br />
- Hugely popular in-game rewards (e.g. Counter-Strike “skins”)<br />
- Attractive (and legal) affiliate partnerships, outcompeting illegal competition<br />
- Twists to “traditional” digital marketing (PPC, SEO, Ad Buys)<br />
- Social Media Marketing: Audience appropriate raffles, giveaways<br />
(game keys, virtual items/currency, etc)<br />
These and other marketing channels are not understood or used appropriately by<br />
the competition in the context of esports, creating gaps for us to exploit.<br />
The contents of this document are confidential. Please do not distribute without written consent.
B2C Projections 11<br />
Projections<br />
Our marketing research indicates the ability to acquire users at even less than £10 if<br />
done so correctly.<br />
Model parameters:<br />
Year 1 (LTV £160)<br />
Q1<br />
Q2<br />
Q3<br />
Q4<br />
Total<br />
New Users<br />
4000<br />
11,000<br />
16,667<br />
20,000<br />
51,667<br />
CPA year 1: £20 -> £35<br />
CPA year 2: £40 -> £55<br />
CPA year 3: £60 -> £85<br />
Revenue<br />
EBITDA<br />
£465k<br />
-£265<br />
£1,603k<br />
£477k<br />
£2,720k<br />
£1,012k<br />
£3,429k<br />
£1,284k<br />
£8,215k<br />
£2,508k<br />
User month 1 > 2 Retention: 20%<br />
User month 2+ Retention: 50%<br />
Affiliate acquisition: 0<br />
Organic growth: 0<br />
Year 2 (LTV £200)<br />
Q1<br />
Q2<br />
Q3<br />
Q4<br />
Total<br />
For comparison, a casino competitor is<br />
currently achieving the following LTV:<br />
Global Avg: €550<br />
SE €390<br />
NO €640<br />
FI €360<br />
DACH €350<br />
BR €640<br />
New Users<br />
Revenue<br />
EBITDA<br />
Year 3 (LTV £240)<br />
26,250<br />
£5,562<br />
£2,167k<br />
Q1<br />
33,333<br />
£7,044k<br />
£2,827k<br />
Q2<br />
42,000<br />
£8,887k<br />
£3,451k<br />
Q3<br />
49,091<br />
£10,561k<br />
£3,972k<br />
Q4<br />
150,674<br />
£32,055k<br />
£12,421k<br />
Total<br />
This is quite standard for the industry.<br />
New Users<br />
52,564<br />
62,088<br />
63, 922<br />
79,412<br />
257, 985<br />
Notes:<br />
Revenue<br />
£11,809k<br />
£15,839k<br />
£17, 107k<br />
£19,981k<br />
£67, 737k<br />
LTV = Life time value<br />
CPA = Cost Per Acquisition/New User<br />
EBITDA<br />
£4,045k<br />
£5,961k<br />
£5,998k<br />
£6,017k<br />
£22, 021k<br />
EBITDA is after gaming duties<br />
The contents of this document are confidential. Please do not distribute without written consent.
B2B approach 12<br />
Business to business<br />
opportunities<br />
Item betting<br />
sites who want a<br />
regulated product.<br />
Esports websites<br />
looking to monetize<br />
their web traffic.<br />
B2B Product<br />
Games<br />
Sub-licenses<br />
White-label<br />
Traditional iGaming<br />
sportbooks & casinos.<br />
iGaming turnkey<br />
operators<br />
The contents of this document are confidential. Please do not distribute without written consent.<br />
Other businesses<br />
looking to diversify<br />
their brand.
Financing 13<br />
Our goal<br />
In return<br />
To raise a £2 million seed round<br />
This will pay for:<br />
- Gambling infrastructure & licensing<br />
- Development, launch & marketing<br />
- Several massively social gambling games,<br />
including new type of esportsbook<br />
- Offices, equipment & admin expenses<br />
- Development, marketing & operations staff<br />
- Significant buffer for unexpected events<br />
You are investing in a team of industry<br />
veterans with many years of operational<br />
gambling experience.<br />
We are well equipped at navigating difficult<br />
legal & regulatory waters, and have a large<br />
network of high quality specialists (licensing,<br />
marketing, sportsbook, operations++) we know<br />
want to work with us.<br />
To conclude, our gambling and esports<br />
experience ensures we will achieve great early<br />
acquisition cost on a hugely scalable business<br />
model.<br />
The contents of this document are confidential. Please do not distribute without written consent.
Contact page<br />
14<br />
Thank you for your time!<br />
We are happy to answer<br />
any questions you may have.<br />
Lars Lien<br />
Chief Executive Officer<br />
Mike Stevens<br />
Chief Operating Officer<br />
Kristjan Farrguia<br />
Chief Technology Officer<br />
lars@luckbox.com<br />
https://mt.linkedin.com/in/larslien<br />
mike@luckbox.com<br />
https://mt.linkedin.com/in/mjstevens80<br />
kris@luckbox.com<br />
https://mt.linkedin.com/in/kristjanfarrugia<br />
The contents of this document are confidential. Please do not distribute without written consent.
Appendix - The audience 15<br />
Gaming Audience<br />
809 million gamers<br />
globally are aware of what<br />
eSports is.<br />
eSports Audience<br />
226 Million regularly<br />
watch or are involved in<br />
eSports events.<br />
Estimated total gamers (globally)<br />
1.908bn<br />
Source: Newzoo eSports global report Jan 2016<br />
The contents of this document are confidential. Please do not distribute without written consent.
Appendix - Market forecast 16<br />
Real Money<br />
players (2015)<br />
Source: Eilers Research, LLC.<br />
Fantasy eSports<br />
590k<br />
2020 Projections<br />
Base case<br />
19.4m players<br />
23.5bn annual bet<br />
volume<br />
1.81bn betting industry<br />
revenues.<br />
eSportsbooks<br />
(items)<br />
3.2m<br />
Bear case<br />
17.4m players<br />
12.7bn annual bet<br />
volume<br />
996m betting industry<br />
revenues.<br />
eSportsbooks (RM)<br />
1.72m<br />
Bull case<br />
32.5m players<br />
42.9bn annual bet<br />
volume<br />
3.3bn betting industry<br />
revenues.<br />
The contents of this document are confidential. Please do not distribute without written consent.
This is the end of the document. The contents of this<br />
document are confidential. Please do not distribute without<br />
written consent.
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