©2010 SportBets.com.au, Inc. All Rights Reserved. Proprietary and Confidential

By Marc Phillips

The State of the Industry:

Sports Affiliate Marketing in Australia

©2010 SportBets.com.au, Inc. All Rights Reserved. Proprietary and Confidential

About MeRegistered 200+ domain names whilst at Melbourne University (1988-1993).

Founded APT Strategies in 1993 and sold to Jupiter Research (now Forrester) in 1999.

2003: Co-Founder of Australia's leading affiliate company - Commission Monster acquired in 2007.

Founding shareholder of Silicon Valley based GlanceGuide, an online video metric solutions provider acquired by Nielsen in 2010.

Founder/CEO SearchForecast which provides web-publishing software/services for search engine techniques. Clients include News Corp, BBC, St.George Bank, Golden Casket, Sportingbet, 888 Holdings, EuroPartners.

Shareholder of Silicon Valley start ups (Geodelic, Localyte, Playhaven, Sonim, AdSemble, Flaii Networks, MyLawsuit).

Advisory board for Parallel Capital Early Stage Venture Capital Limited Partnership and ATPI, largest incubator in Australia.

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International Expansion -

UK is epicenter

USA bans online betting

The Online Betting RoadMap

1996 2001 2003 2007 2010

World Wide Web Global Mobile Web

Betfair Launches

in Australia

888 & Playtech seek IPO

Focus on International

Markets

Bingo, Poker, Bacarat, Mahjong

- More international

games

Casino on Net Launch targeting

USA

Lobbying for InPlay & Running

Betting

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Limited Supply Keeps Payouts High

* Need to revise this yet again

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State of Play.......•Australia is profitable for everyone

•$150 CPL and up to 40% revenue share for affiliates

•Freebets don’t yield higher profits

•Limited white-labels, entry via acquisition

•Are Exchanges too difficult?

•Explosive growth in sports, poker, bingo, entertainment betting online

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Affliate Revenue by Sports

60%20%

10%

10%

Sports Affiliate Revenue By Sports Category

Horseracing AFL/NRL Majors Special Events

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What’s the word?

• Australia/Asia is a focus, IPL & YouTube

• Live Football is 50% of EU market

• Rise of Entertainment/Novelty Betting

• Video Lead Generation and TV Advertising

• Poker Tournament numbers increasing

• eBay moving from CPL to CPC based on quality of traffic and conversions

Global Online Betting and Affiliate Marketing Trends

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International Market

Interactive Betting via

Average Lead is 20-25 GB Pounds and 20% revenue shareSource: CJ.com

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Live Betting

• Exciting innovation - works in footy, cricket, soccer

• 50% of Football Betting in EU is Live!

• Your team can’t win every week

• Cricket - scoring 100 once a batsman reaches 50

• Lesser time for bookies to adjust odds creates betting opportunities.

* Need to revise this yet again

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Owning Traffic Keywords

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European Promotions

Personality Celebrity Betting

Trends: Entertainment BettingIdol Betting

Interactive Betting via

Local TV Celebrities

Global Song Contests

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Will my iPhone App make money?

With the Melbourne Cup iPhone app is $3.99.

Average app in USA is downloaded 120,000 times

Average cost is $30,000 to $50,000

Apple takes 30% of the gross revenues

Return on Investment low

4% use from mobiles in banking, payments

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What’s next? Video Lead Generation• Impact of Language and Accent

French with English speaker

French with French speaker

+13% conversion

A B

http://888-livecasino.com/specialoffer/?evScenarioId=494 .

* Need to revise this yet again

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The Velocity of Global Online Betting

Source: 888 Holdings PLC

0

3,750.0

7,500.0

11,250.0

15,000.0

2003 2004 2005 2006 2007 2008 2009E 2010E 2011E 2012E

Worldwide Active Accounts in Poker and Bingo

PokerBingo

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The Velocity of Australian Online Betting

0

125

250

375

500

2003 2004 2005 2006 2007 2008E 2009E 2010E 2011E 2012E

Australian Active Accounts in Poker and Bingo

Act

ive

Acc

oint

s (0

00')

Poker Bingo

Source: 888 Holdings PLC

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Online Poker

Customer Acquisition:Quick Play - No Download$500 First time Depositors FreerollsWelcome 100% Bonus - Up to $400 paid to first time depositors

Very Popular online game across all ages

Highest Paying Online Games @ $600 to $800 per user value

“Poker Ashes”World Poker Tournament Promotions

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Online Bingo

Player Profiles:Friends & Family gameOlder ladiesInternationally popular

Tell a Friend Promotions - Viral promotion

Highest Paying Online Games @ $60 to $80 per user value

High Loyalty - chat room ensures high retention rate

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• Lots of opportunity for niche domains in sports other than horseracing and football

• More compelling banner ads and real time odds in advertisements

• Back to Back CPA deals with low cost inventory (remnant publishers)

• Innovation required by Affiliates for Corporate Bookmakers

• IPL reminds me of Planet Hollywood!

• Too expensive?

• Do Indians Bet online?

The Future

* Need to revise this yet again

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Marc PhillipsEmail: marc@sportbets.com.au

Assaf IgellBusiness Development/MediaEmail: assaf@sportbets.com.au

Thank You!