Social Gaming & Online Gambling

SOCIAL GAMING & ONLINE GAMBLING: TWO HOT-GROWTH MARKETS CONVERGING facebook 845M MONTHLY ACTIVE USERS 483M DAILY ACTIVE USERS 425M DAILY ACTIVE USERS MOBILE 70 LANGUAGES 80% USERS OUTSIDE US & CANADA BY THE NUMBERS THE FACEBOOK ECOSYSTEM CREATES MASSIVE MARKET OPPORTUNITY $1-$5 AVERAGE SPENDING PER PAYING USER $25+ AVERAGE SPENDING OF A HEAVY USER ("WHALE") 15% OF PAYING UŠERS ARE WHALES SOURCE: FACEBOOK, CASUAL GAMES ASSOCIATION 35.8 33.6 30.3 SOCIAL GAMING VERSUS ONLINE GAMBLING IN BILLION DOLLARS 25.8 22.9 18.3 6.2 4.94 3.65 1.84 0.2 0.7 2007 2008 2009 2010 2011e 2012e SOURCE: INSIDESOCIALGAMES, H2 GAMBLING, CASUAL GAMES ASSOCIATION ONLINE GAMBLING SEGMENTATION 10% 23% • 18% CASINO POKER 18% BINGO 22% SPORTS BETTING HORSE RACING 9% STATE LOTTERY SOURCE: H2 GAMBLING CAPITAL MARKET METRICS IN US$ USER BASE ARPU CLV CASUAL ONLINE POKER REAL MONEY ONLINE POKER CASUAL SOCIAL GAMES REAL MONEY ONLINE CASINO 36.9M 14.5M 923.2M 0.75 160.00 0.20 53.9M 334.50 1860.00 1.85 379.00 0.85 ARPU: AVERAGE REVENUE PER USER CLV: CUSTOMER LIFETIME VALUE SOURCE: BETABLE HISTORY OF THE SOCIAL GAMING, SOCIAL CASINO & ONLINE GAMBLING MARKETS *** TIMELINE ★** YEAR MARKET 1994 FIRST CASINO SOFTWARE PROVIDER MICROGAMING FOUNDED 2000 BETFAIR BETTING EXCHANGE FOUNDED 02/2004 FACEBOOK FOUNDED 07/2007 ZYNGA POKER LAUNCHED 10/2009 KABAM SECURES US$ 5.5M FUNDING FROM BETFAIR 04/2010 DOUBLE DOWN INTERACTIVE FOUNDED LATE 2010 PLAYTIKA FOUNDED 01/2011 CROWDPARK LAUNCHES FIRST SOCIAL BETTING GAME ON FACEBOOK 05/2011 CAESARS ENTERTAINMENT ACQUIRES 51% STAKE IN PLAYTIKA 07/2011 FACEBOOK OFFICIALLY LAUNCHES FACEBOOK CREDITS FACEBOOK ALLOWS GAMBLING COMPANIES TO LAUNCH NON-GAMBLING FUN MONEY APPS WITH THEIR ORIGINAL BRANDS IN THE UK 08/2011 FACEBOOK ALLOWS GAMBLING COMPANIES TO ADVERTISE 11/2011 ZYNGA HAS MORE THAN 200M MONTHLY ACTIVE USERS 12/2011 PLAYTIKA NOW 100% OWNED BY CAESARS ENTERTAINMENT FOR US$ 80M-90M FACEBOOK IN TALKS WITH GAMBLING OPERATORS TO OPEN UP IN THE UK AND OTHER COUNTRIES 01/2012 IGT ACQUIRES DOUBLE DOWN INTERACTIVE FOR US$ 500M SOURCE: EGR MAGAZINE O CROWDPARK WWW.CROWDPARK.COM