Casinos: The New Gold Rush For Developers? | Darion Lowenstein

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Lecture Title

Casinos: The New Gold Rush For Developers?Darion LowensteinChief Marketing OfficerGamblit Gaming

Why this dude?Currently Chief Marketing Officer at Gamblit Gaming, Publisher of casual and arcade style real money games for mobile & land basedSupernerd, graduated high school at 14 (#foreveralone)Over 21 years in the game industry (scars to prove it)Internal & External Producer/Director at Rockstar Games, Scopely, Electronic Arts, and Activision10 #1 mobile games, 14 top 5 console games including Tribes, Army Men, Red Dead Revolver, Midnight Club, Table Tennis, Transformers: War for Cybertron, and on mobile Simpsons Tapped Out, NBA Jam, & Mini Golf Match UpOnce played Mario Kart till 6am to get a gold on Rainbow Road 150CCNOM NOM NOM

THE GAMING INDUSTRY IS SUBSTANTIAL

N. America $93billionEurope$49billion

Rest of World$16billionAsia$70billionLatAm$6billionReal Money Gaming Industry (Land-based and Online)The Real Money Gaming Industry is a ~$235 billion market

N. America $28billionEurope$37billion

Rest of World$3billionAsia$43billionLatAm$4billionLottery Industry

N. America $1.5billionEurope$0.6billion

Rest of World$0.2billionAsia$0.6billionLatAm$0.1billion2013 Social Casino Industry

N. America $122.5billionEurope$86.6billion

Rest of World$19.2billionAsia$113.6billionLatAm$10.1billionReal Money, Lottery and Social Casino Gaming IndustryThe Lottery Industry is a ~$115 billion market (net win for lotteries)The Virtual Currency casino industry is a ~$3 billion marketThe combined industry is a ~$353 billion market

Source: H2 Global Gaming Summary (excludes sports betting and online poker)Source: H2 Global Gaming Summary Source: SuperData Social Casino Metrics

Note: Daily fantasy sports and online poker are not included

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THERE IS NO INNOVATION TODAY

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Slot machine innovation has been limited to cabinet and graphics only, but the fundamental game play is still the same bet and watch.

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THE DEMOGRAPHIC IS CHANGING

Traditional Mainstream Casino PlayerPrimary market is 50-65Skews femaleGrew up with typewritersLearned computer skills as an adultExperienced slots though physical reel gamesThe New Market of Casino Visitors

Grew up in the digital ageMobile device centricPlays some genre of computer/mobile/console gamesDemands high-fidelity multimedia experiencesHighly tech-literate

Casino Visitation (% of each age group)Source: 2013 State of the States AGA Survey of Casino Entertainment

Slot Machine Play by Age GroupU.S. Population Estimates

Source: U.S. Census Bureau as of July 2013Source: Segmenting slot machine players: a factor-cluster analysis

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Casino Visitors Age 21+ Who Play Slots (Classic Casino Population)

U.S. Casino Visitor Population Growth vs. Classic Casino Population Decline Casino visitors age 21-49 that do not play slots (Next Gen Gamers)

Millennial and Gen-X 40 Casino Visitors That Do Not Play Slots (Next Gen Gamers) Are Supplanting the Classic Casino PopulationNext Gen Gamers Must Be Engaged In Order To Sustain the Existing Market And They Represent a Tremendous OpportunityAnnual United States Revenue Forecast vs. Classic Casino DeclineAnnual United States Revenue (assuming full monetization of Next Gen Population)

THIS SHIFT PUTS THE CLASSIC CASINO MARKET AT RISK

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Of 21-35 year olds in the USA, 35% visit casinos. However, the wagering rate of that group is only 2%.Barcades with classic arcade games are popular with 21-45 year oldsArcade chains like Dave & Busters that combine games & booze are growing

MO MONEY MO PROBLEMS

In summary - Globally, land based casinos are a $159 billion business (VS Mobile Games: $22 billion)Nevada alone sees 42 million visitors to casinos per yearSlot machine revenue is down 12.5% from 2007-2015Casinos are desperate for new content and revenue streamsYour customer is already on the floor UA is already done!

CLEARLY, THERES A BIG A$$ MARKET

Unproven market what types of skill games will make it?What companies attempting skill games will make it?And will the slot companies come around?Licenses per territory can cost $100,000-$1mm+

BUT WHAT ABOUT... PITFALLS?

SLOW. 24 hour server side updates? Try 4 monthsRegulatory reviews = the suckRegulated hardware can be limitingIP thats too kiddie can be outright rejectedEVERY jurisdiction is different per country, per state, and each requires individual game reviewsWith Skill Gaming, cant a pro just sit and #MakeItRain?!?BUT WHAT ABOUT... CONTENT?

SO WHAT ARE YOU DOING ABOUT IT?Obligatory stock photo usage

G-Sports

An e-Sports experience on the casino floorNew, hit PC & console gamesTimed tournaments with cash entryBased on Gamblits TriStationTMTriStation

Up to 3 players seatedMultiple game possibilitiesSingle player or networked game capabilities for tournamentsAppeals to players desiring longer time-on-device and involved game playModel G

Up to 4 players in bar or lounge heightsMultiple game possibilitiesMultiplayer games available for either cooperative or competitive playAppeals to social millennial and Gen X casual gamersWHATS GONNA WORK? OUR SHOTGUN LINE-UP

Gamblit VRC

Immersive VR experienceSide betting for observersWill first launch with the Brookhaven Experiment and HTC Vive technology

Gamblit Poker Live!

Up to 6 players compete against each other on a felt tableHouse-banked side bets & live buzzer provide additional excitement & profitability

The Brookhaven Experiment is a trademark of Phosphor Games, LLC. HTC Vive is a trademark of HTC Corporation.

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PARTNER CONTENT > PURE LICENSED CONTENT?

35M+Downloads5M+Downloads

35M+DownloadsSince2012

350M+Downloads50M+ views on YouTube

2014-2016 Gamblit Gaming, LLC. All Rights Reserved. Gamblit and the G face are trademarks of Gamblit Gaming, LLC in the United States and/or other countries. Catapult King is a registered trademark of Wicked Witch Software Pty Ltd. Breakneck, Into the Dead, and PikPok are registered trademarks of Prodigy Design Limited. Jetpack Joyride and Halfbrick are registered trademarks of Halfbrick Studios Pty Ltd. The Brookhaven Experiment and Phosphor Games Studio are trademarks of Phosphor Games, LLC.60M+DownloadsKnown Games = Better way to reach gamersPrimarily UI overhaul, core gameplay largely unchangedSkill payouts on challenges, level goals, etc.

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WHATS ALL THIS I HEAR ABOUT ESPORTS NOW, SONNY?

G-SPORTS CASE EXAMPLE ROAD REDEMPTION

An e-Sports experience on the casino floorNew, hit PC & console gamesTimed tournaments with cash entryEasy ramp up process for publishers/developers with hit gamesTiming/Cost set by Casino

G-Sports is a trademark of Gamblit Gaming, LLC in the United States and/or other countries. Road Redemption is a trademark of Paul Fisch in the United States and/or other countries.

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IF IT WORKS IN AN ARCADEYES!NO!Arcade gameplay!Fast & Easy to learn!Long to master!CONTROLS-SO-SIMPLE!

Complicated!Saving progress!Difficult to learn!LONG tutorials needed!SO MANY BUTTONS

CATAPULT KING CASE EXAMPLEOriginal Mobile Version (Portrait mode)Gamblit Gamblified VersionGamblit, the G face, TriStation, and the GBIT Skill Reward Points Box are trademarks of Gamblit Gaming, LLC in the United States and/or other countries. Into the Dead, PikPok are registered trademarks of Prodigy Design Limited.

INTO THE DEAD CASE EXAMPLE

Original Mobile VersionGamblit Gamblified TriStation VersionGamblit, the G face, TriStation, and the GBIT Skill Reward Points Box are trademarks of Gamblit Gaming, LLC in the United States and/or other countries. Into the Dead, PikPok are registered trademarks of Prodigy Design Limited.

+IN A PERFECT WORLD

Q & A

Questions? darion.lowenstein@gamblitgaming.com