Digging Down into Social Casino 2016

About me• Social and real-money gaming background:

• Unibet – head of marketing, 2005-2008• EA – Pogo.com – EMEA marketing director, 2008-2009• EA – Playfish – Global marketing director, 2009-2010• Independent Consultant for Social Point, Kobojo, MegaZebra… ,2010-2011• Plumbee – co-founder and CEO, 2011 – present

• Plumbee• London-based social casino studio, team of 50 • Mirrorball Slots• Founding member of ISGA (International Social Games Association)

Social Casino M&A 2010-2016

• 2010: 888.com buys Mytopia for $48M• 2010: Fremantle buys Ludia (undisc)• 2011: Caesars buys Playtika (Slotomania) for $100M+• 2012: IGT buys Double Down Interactive for $500M• 2012: RockYou buys Ryzing (bingo, undisc)• 2012: Aristocrat buys Product Madness (undisc)• 2012: Novomatics buys Cervo Media (undisc)• 2012: WMS buys Phantom EFX for $20M• 2013: Caesars buys Buffalo Studios for $90M• 2013: Caesars buys EA Montréal studio (WSOP, undisc)• 2014: Caesars buys Pacific Interactive (House of Fun) for $96M• 2014: GSN buys Bash Gaming (Bingo Bash) for $160M• 2014: Bally buys DragonPlay for $100M• 2014: Imperus Technologies buys Diwip (Best Casino) for $100M• 2014: Churchill Downs buys Big Fish for $885M• 2015: GSN buys Idle Games (Fresh Deck Poker, undisc)• 2015: Intertain buys Gamesys (social + real-money) for $800M+• 2015: AGS buys RocketPlay (undisc)• 2015: Imperus buys Akamon for $25M• 2015: Zynga buys Rising Tide Games (undisc)• 2015: Stride Gaming buys infiApps (Slots Bonanza) for $40M• 2015: Gaming Realms acquires Slingo social gaming for $18M

Almost $3B in the last 6 years

Licensed IP – the new normal in top-100 grossing?

• Social Casino• Zynga: Wizard of Oz, Princess Bride• GSN Games: Wheel of Fortune, Deal or

no Deal• Playstudios: MGM brands• Storm8: MONOPOLY Bingo, CLUE Bingo• Ludia: The Price is Right Slots/Bingo• Kama Games: Manchester Utd Poker

• Non-Casino• Glu Mobile: Kim Kardashian, RoboCop,

Katy Perry, Taylor Swift…• Kabam: MARVEL, The Hobbit,

Fast&Furious, LOTR, Hunger Games• EA: Star Wars, The Simpsons• Wooga: Futurama• Scopely: Yahtzee!• TinyCo: Family Guy• Backflip: Transformers• Ludia: Jurassic World, Family Feud, Kung

Fu Pando

CPI

$10 CPI – what it really means• With 30% platform fees, 3-7% technical costs, 1% chargeback -> Gross

LTV per use of $14 needed to break even

• Assuming 5% conversion to spenders -> avg LTV of $280 per spender (with 2% conversion -> $700 per spender). To break even.

• A game with very strong metrics, e.g. 40+% D1 retention, 15+% D30 retention, $0.30 ARPDAU… will struggle to pay back $10 in 12 months.

Live Casino

Questions?@raf_keustermans