1. hobbies and interests
2. games
3. gambling

April 16, 2015
© GameAccount Network
Disclaimer
Certain statements included in this Presentation contain forward-looking information concerning GameAccount Network's strategy,
operations, financial performance or condition, outlook, growth opportunities or circumstances in the sectors or markets in which
GameAccount Network operates. By their nature, forward-looking statements involve uncertainty because they depend on future
circumstances, and relate to events, not all of which are within the Company's control or can be predicted by the Company. Although
the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given
that such expectations will prove to have been correct. Actual results could differ materially from those set out in the forward-looking
statements. The forward-looking statements made in this Presentation relate only to events as of the date on which the statements
are made. Nothing in this Presentation should be construed as a profit forecast and no part of these results constitutes, or shall be
taken to constitute, an invitation or inducement to invest in GameAccount Network, and must not be relied upon in any way in
connection with any investment decision. Except as required by law, the Company undertakes no obligation to update any forwardlooking statement.
© GameAccount Network
Page 2
Agenda

Highlights 2014

Simulated Gaming™

Financial Summary

Operational Overview

Outlook

Q&A
© GameAccount Network
Page 3
2014 Highlights
Year of investment and launch of Simulated Gaming™
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US Simulated Gaming™ outperforming expectations
Delivered Betfair’s Internet gaming business in New Jersey. Online casino market share of 9%
Betfair marketing investment delayed by bankruptcy of Trump Resorts and technical migration to Golden
Nugget Atlantic City. H2 2014 revenue materially underperformed expectations
Game Development in line with expectations
System Sale delayed into 2015 by slower progress in US regulatory cycle and Industry consolidation
Number of new agreements


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Simulated Gaming™ partnerships with 3 significant new US casino clients
Number of new game content agreements reflecting increased value in distribution network
Strong pipeline
Investment across technical, licensing and people infrastructure


Significant investment in headcount in order to deliver on the US market opportunity
Significant investment in technical & licensing infrastructure
Simulated Gaming displaced the focus on Regulated Gaming
© GameAccount Network
Page 4
Simulated Gaming™
© GameAccount Network
Simulated Gaming™ | Key Opportunity in 2015
Other
Other
Tax
Bonuses
Simulated Gaming™
Regulated Gaming
Purchasing players spent on average $64
per day buying virtual credits in Q1 2015
Depositing players lost on average $67 per
day real money gaming in Q1 2015
Superior
Margins
© GameAccount Network
Superior Margin compared to Regulated Gaming
No gaming tax, no certification requirements, no cost in bonusing players
Simulated Gaming is a compelling model for casino operators in the US
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Simulated Gaming™ | In Detail
US-legal
Nationwide
900+ Casinos Not
Yet Online
Addressable market of 320m citizens in the entire United States
Buying virtual credits: No ability to win money – legal nationwide
Only 12m Americans can play online for real money in Nevada, Delaware & New Jersey
Strong demand among major casino operators
Leading management teams understand the merits of an integrated online experience
Seeking an independent, genuine B2B solution provider who does not compete online
Strong Patron
Engagement
Complements land-based gaming activity
Establishing a
track record
Already serving major casino operators in the US
New, Growing
Business
$2m Gross Income in FY 2014 & $1.4m in Q1 2015
Attractive
Margins
© GameAccount Network
Active patrons who also engage online increase visitation to the land-based gaming venue
Significant uplift in land-based gaming from patrons also engaging online
Delivered Foxwoods and Empire City Casino throughout 2014
Selected by Parx Casino PA, Maryland Live MD and major operators in CA and MI
Strong organic growth despite minimal marketing investment by operators to date
Regulated US gaming since Q4 2013 & US Simulated Gaming since Q1 2014
Superior Margin compared to Social Casinos
Gross margin in excess of 80% on spend, compared to 70% on Facebook
GameAccount Network participates in net income with the casino operator
Page 7
Simulated Gaming™ | Organic Growth
$2.52
$2.88
$3.20
ARPDAU
ARPDAU
H2
ARPDAU
Q1
H1
260,184
Active Player Days
458,721
+76%
Active Player Days
443,493
Active Player Days
2015
2014
LAUNCH
LAUNCH
LAUNCH
Foxwoods.com
January 2014
EmpireCityCasino.com
September 2014
ParxOnline.com
Australian Consortium
April 2015
© GameAccount Network
Page 8
H1
PRE-LAUNCH
Maryland Live!
Californian Casino
Multi-State Operator
Activity Nationwide | Simulated Gaming
© GameAccount Network
Page 9
Complementary | Mobile Casual Gaming
© GameAccount Network
Page 10
Financial Summary
© GameAccount Network
2014 Financial Highlights
Year Ended
31 December 2014
£'000
Year Ended
31 December 2013
£'000
Year Ended
31 December 2012
£'000
YOY
Variance
£'000
Y0Y
Change
%
Audited
Audited
Audited
Gross Income 1
26,123
29,657
17,690
-3,534
-12%
Net Revenues
7,528
12,264
5,499
-4,736
-39%
Net Rev as % of GI
28.8%
41.4%
31.1%
Clean EBITDA 2
-1,425
4,109
305
-5,534
-135%
Clean EBITDA %
-18.9%
33.5%
5.5%
At 31 December 2014
At 31 December 2013
At 31 December 2012
Net Assets
15,176
17,690
1,990
-2,514
-14%
Cash and Cash Equivalents
10,776
16,895
1,668
-6,119
-36%

Underlying Net Revenues adjusted for the impact of timing of System Sales 3 have grown by 20%
YoY to £6.5m (2013: £5.4m)
 Growth generated primarily through increased game development fees and from both regulated
real money gaming and Simulated Gaming™ revenues in the US market

Clean EBITDA decreased by £5.5m to a loss of £1.4m (2013: Profit £4.1m).
 Reduction in EBITDA primarily due to the delay in securing a System Sale in 2014
 Cost base increased by 10% from £8.2m to £9.0m as the Group continued to invest in the
underlying Internet Gaming System and enhanced games team capability in the UK and expanded
sales presence in the US
1 Gaming revenue plus other net revenue
2 Clean EBITDA is a non GAAP company specific measure and excludes interest, tax, depreciation, amortisation, share based payment expense and other
items which the directors consider to be non-recurring and one time in nature.
3 Excluding system sales. System sale in 2013 increased net revenues by £6.9m and by £1.0m in 2014
© GameAccount Network
Page 12
Analysis of Net Revenue (Excluding System Sales)
YoY Growth
2014 Net Revenue
3,500
2,904
3,000
10%
2,913
2,500
B2C
2,000
1,500
45%
B2B Gaming and Other
Revenue
45%
1,000
Platform and Game
Development
678
500
B2C
B2B Gaming and Other
Revenue
FY 2013
Platform and Game
Development
FY 2014
Net Revenue (excluding System Sales) increased by £1.1m from £5.4m in 2013 to £6.5m for
2014
Strong growth in higher margin Platform and Game Development revenue streams – accounted for 45% of total net
revenue compared to 33% in 2013
B2B Revenue Share and other revenue has increased from £2.6m in 2013 to £2.9m in 2014 and included revenues
from both regulated real money gaming and Simulated Gaming™ businesses in the US offsetting lower net revenue
generated in Europe (excluding Italy)
B2C Net Revenue declined from £1.0m to £0.7m as a result of reduced marketing spend
© GameAccount Network
Page 13
B2B Net Revenue
 B2B Net Revenues have decreased from £11.3m to £6.8m. Excluding the impact of
System Sales in 2013 of £6.9m and 2014 of £1.0m underlying B2B Net Revenues
increased by 32% from £4.4m to £5.8m
 B2B Revenue and other revenue has increased by 13% from £2.6m in 2013 to £2.9m
in 2014


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Revenues include related revenue shares from both Real money and simulated gaming businesses in the US
and have offset declines in net revenue in other markets
Simulated Gaming™ metrics have outperformed initial expectations and are poised for further growth in 2015
Although Gaming Gross Income in Europe has increased by 1.6% from £19.4m to £19.7m associated net
revenues have declined as a result of a shift away from higher margin skill and casino table games towards
increased play of lower margin slots content
 B2B Platform and Game Development revenues (excluding System Sales) have
grown from £1.8m to £2.9m an increase of 61%


Game development revenues increased by £1.1m as a result of significant multi-game orders from Konami,
MultiMedia Games and Gamomat
New slot games launched include China Shores for Konami, Total Meltdown for MultiMedia Games, and
additional titles for Gamomat, Incredible Technologies, High Flyer, Reel Time Gaming, Aristocrat and
Ainsworth
© GameAccount Network
Page 14
Distribution and Administrative Expense
 Overall cost base (excluding depreciation, amortisation and exceptional
items) has increased by 10% from £8.2m in 2013 to £9.0m in 2014

Primarily reflecting increased technology headcount investment in the UK and the expansion
of the US Sales office
 Distribution Expenses have increased from £2.2m to £2.6m (excluding
depreciation and amortisation of £1.1m versus £0.8m in 2013)
 Royalty expense related to distribution of third party content increased by 40% primarily due
to increased activity in USA and Italy (slot games)
 Administrative Expenses increased by 9% from £5.9m to £6.4m (excluding
exceptional items)
 Increased remuneration expense driven by additional headcount in both the UK and US
offices
 Additional professional fees associated with public company status
© GameAccount Network
Page 15
Operational Overview
© GameAccount Network
Simulated Gaming™
Simulated Gaming TM player economics
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Enhanced player economics in excess of internal projections set in November 2013
10% of registered players purchased virtual currency in 2014
ARPDAU $2.75 in 2014 significantly higher than expected
Addressable market in the US estimated at $250m+ in 2015
Second US casino added to Simulated Gaming™ platform (Empire City, NY)
Launch of new casino games including first Konami slot game
Leaderboard tournaments, Poker & Blackjack tournaments, multiplayer Bingo
Enhanced mobile capability and content offering
Player acquisition marketing for first casino commenced in Q4 2014
2015 H1 Trend - Acquisition marketing commenced, to achieve scale
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ARPDAU $3.20 in Q1 2015
Third US casino added to Simulated Gaming™ platform (Parx Casino, PA)
New market opened – Consortium of 6 Australian clubs launched in March 2015
Player acquisition marketing for second casino commenced in Q1 2015
© GameAccount Network
Page 17
Real Money Gaming
BetfairCasino.com in New Jersey
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New Jersey Casino gaming market share of 9% in 2014
Enhanced player economics compared with typical UK online casino players
Delivered 100+ games online in 2014
Multi-stage KYC solution increased player verification rates
Complex regulatory technical operating environment
New iSight Back Office™ operationally deployed
Key acquisition marketing channels remain closed (e.g. Google)
Innovative payments solution delivering major uplift on VISA deposit attempts
Marketing investment delayed in H2 by migration to Golden Nugget Atlantic City
2015 H1 Trends
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Over 120 games now available on BetfairCasino.com
Conversion & yields improving as gaming content portfolio matures
Recurring revenue share now increasing with Betfair’s phasing in marketing investment
Complex skill-based games portfolio in submission with the NJDGE
© GameAccount Network
Page 18
Game Development and European Business
Game Development On Track
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GCA (MGAM) delivered for Simulated Gaming™ in the United States
GCA (MGAM) delivered for Regulated Internet gaming in UK, Italy & New Jersey
Konami Gaming delivered for Simulated Gaming™ in the United States
GamoMat and High Flyer Games delivered for Simulated Gaming™ in the United States
Titles launched for IGT, Ainsworth and Incredible Technologies in New Jersey
B2B Gaming Content Distribution Revenues In Line
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Aristocrat & GCA (MGAM) titles delivered online in New Jersey
GCA (MGAM) titles delivered into Italy
NET Entertainment for the Italian market
Content distribution agreement with Scientific Games (WMS) for New Jersey
Spanish regulated market under review in 2015
© GameAccount Network
Page 19
Outlook 2015
 Strong pipeline of partnership / licencing opportunities with US land casino operators
 On-going discussions in relation to system sales with casino equipment manufacturers
 Increased Simulated Gaming™ revenues from three existing operators in CT, NY, PA in
the US and the consortium in Australia
 Incremental opportunity to scale Simulated Gaming™ through acquisition marketing
activity
 H2 launches of Simulated Gaming in CA, MI & multi-State. Other international markets
under consideration
 Positioned for additional real money gaming opportunity with leading PA casino operator
Parx Casino (legislation in Pennsylvania possible in 2015)
 New casual skill games product for US casinos, complementing Simulated Gaming™
 CEO relocated to the US signaling US market commitment
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Page 20
Simulated Gaming TM | In play
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Page 21
Q&A
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