PropSwap Investor Deck

18
The first marketplace to buy and sell Las Vegas sportsbook tickets

Transcript of PropSwap Investor Deck

Page 1: PropSwap Investor Deck

The first marketplace to buy and sell Las Vegas sportsbook tickets

Page 2: PropSwap Investor Deck

PROBLEM

Your bet wins, and you win 100% of it1

2 Your bet loses, and you get nothing

Without a third option, bettors are leaving

billions of dollars on the table every year

Sports bettors only have 2 options:

Bet Lose

sBet

Wins

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EXAMPLEYou bet $100 on the NY Giants to Win the Super Bowl a few weeks

ago at125:

1

After a 3 game winning streak, the Giants are now at

What if you could sell your 125:1 bet to a willing buyer? If someone likes the Giants at 20:1, then they would love

So, you list your bet for $400 (30/1) and enter…

20:1

30:1

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SOLUTION

Bettor sells their bet on PropSwap

Buyer “beats the book” by getting better odds than in the casino

PropSwap takes 10% commission of the Sale Price

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HOW DOES SELLING WORK?

Users drop their betting slips off by meeting us in-person

Non-Nevada residents mail their slips in

Automated kiosks located in major sportsbooks

TOMORROW (WITH YOUR INVESTMENT)

TODAY

Users deposit slips in kiosk during Las Vegas visit. Then use our iOS app to list for sale

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HOW DOES BUYING WORK?

Buyers purchase slips in-person with cash/credit card

Non-Nevada residents mail in money order to PropSwap

1. Buyers use our iOS app to purchase betting slips

TODAY

TOMORROW (WITH YOUR INVESTMENT)

2. Buyers then have option to re-sell their slips, all within the app

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MARKET SIZE

$500 billion is bet on sports every year in America

47 million people placed some type of sports bet in 2015

Sources: Nevada Gaming Control Board & American Gaming Association

$4.23 billion wagered legally on sports in Nevada in 2015 (record high)

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TIMELINEApr MarSept Oct

o PropSwap receives “non-jurisdictional” classification from GCB

o PropSwap launches operations in Nevada

o Friends/Family round of financing closes. Paid-in capital of $50,000

o CG Technology agrees to allow PS operations within the Venetian Sportsbook

o Automated kiosks installed in CG Tech sportsbooks

20162015

Dec

o Buyers located inside Nevada able to purchase bets via app

Jan

o Buyers located outside of Nevada able to purchase bets via app

2017

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PRESS “This is one of the coolest things I’ve seen in sports betting.”

“An intriguing secondary sports betting market has emerged in Las Vegas.”

“It’s like StubHub meets Wall Street, but with tickets bet at the sportsbook.”

“Service allows sports bettors to sell wagers, profit regardless of outcome.”

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LEGAL

Thus, PropSwap does not require a gaming license to operate in Nevada

(unlike sportsbooks and daily fantasy operators)

Our next step is to undertake a national legal analysis, to determine what methods of payment our Buyers can use in each state

Nevada Gaming Control Board has classified PropSwap as “non-jurisdictional”

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MARCH MADNESS RESULTS

Unique visitors to PropSwap.com 7,383

Registered Users• Increased our User base 3x • Conversion rate of 12.4%• Bounce Rate of 28% (industry avg 40-60%)We acquired users in (almost) every state1) Nevada – 107 users2) New York – 103 users3) California – 97 users

49/50

916

March 17 – April 4

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EQUITYWhat we need

Total Valuation

Equity Available

$315,000

$6 Million

5.25%

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USE OF FUNDS

Working Capital

$100K

App Development

Sales/Digital Marketing

$45K

$80K

Legal Support $90K

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$450 Million

$450 Millio

n$562.

5 Millio

n

PROJECTIONS

$3 Billion

$112.5

Million

2015 Total wagered on

sports that was OTC (i.e., “paper bet”) at Nevada

casinos

We assume 15% of these

bets are Parlays,

Futures or Props - bets

most applicable to

our model

Let’s assume $225 Mn of those bets decrease in

value by half

We believe 5% of these bets will be sold,

twice each, on PropSwap

Let’s assume $225 Mn of those bets increase in value by 2x

$56 Million

Generating $5.6 Mn of Revenue in

FY2017

10 %

5% x $562.5= $28 Mn

$28 x 2 = $56 Mn

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PRODUCT

Available Inventory Click to see details

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Converting bets made on a sportsbook app into paper slips, and sold on PropSwap

Selling bets by sending PropSwap a photo of their ticket

Automatic validation of betting tickets via API connection with sportsbooks

ON THE HORIZON

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Founder Founder Developer

TEAM

Ian Epstein

Employed by Cantor Gaming for 3 years;

Business Management degree from University

of Arizona

Luke Pergande

Employed by Bloomberg for 3 years; Finance degree from University of

Arizona

Marcos Polanco

20+ years of coding experience, Trained at Stanford University

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THANKS FOR YOUR TIME

Luke Pergande

o [email protected]

o (847) 226-1663

Ian Epstein

o [email protected]

o (847) 302-2272