Sports Entertainment Gaming Global Corporation · NASDAQ:SEGG
Sports Entertainment Gaming Global — Lottery.com — SPAC Merger (March 2021)
31 slides from Sports Entertainment Gaming Global's SPAC merger presentation, March 2021
Slide 1: Investor Presentation March 2021
INVESTOR PRESENTATION March 2021
Slide 2: Disclaimer Rider
DISCLAIMER RIDER This investor presentation (the “presentation”) is for informational purposes only and does not constitute an o er to sell, a solicitation of an o er to buy, or a recommendation to purchase any equity, debtor other nancial instruments of Trident Acquisitions Corp. (“Trident”) or Aut
Slide 3: Disclaimer Rider (Continued)
DISCLAIMER RIDER (CONTINUED) No O er or Solicitation This presentation shall not constitute a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the Business Combination. This presentation shall also not constitute an o er to sell or the solicitation of
Slide 4: Lottery.com & Trident Acquisitions Executive Level Management
LOTTERY.COM & TRIDENT ACQUISITIONS TONY DIMATTEO MATT CLEMENSON RYAN DICKINSON LUC VANHAL VADIM KOMISSAROV CHIEF EXECUTIVE OFFICER CHIEF COMMERCIAL OFFICER PRESIDENT & CHIEF FINANCIAL OFFICER CHIEF EXECUTIVE OFFICER OF & CO-FOUNDER & CO-FOUNDER CHIEF OPERATING OFFICER TRIDENT ACQUISITIONS CORP. EXEC
Slide 5: Select Lottery.com Advisors & Investors
SELECT LOTTERY.COM ADVISORS & INVESTORS JASON ROBINS PARAAG MARATHE SENATOR MARK LIPPARELLI CEO, DRAFTKINGS PRESIDENT, 49ERS ENTERPRISE FMR. CHAIRMAN NV GAMING CONTROL BOARD & CURRENT CHAIRMAN, GALAXY GAMING PETER DIAMANDIS BEN NARASIN MATTHEW LE MERLE CHAIRMAN, X PRIZE FOUNDATION VENTURE PARTNER, N
Slide 6: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS 1 Foremost Brand Name and Premier 7.7 MILLION Provider of Global Lottery Data UNIQUE VISITORS IN 2020 2 Enormous Global Market Opportunity $398 BILLION 2020 GLOBAL TAM(1) 3 Massive Opportunities for Geographic $571 MILLION and Product Expansion 2023 REVENUE(2) 4 Diverse Pro
Slide 7: Our Vision and Mission Statement
OUR VISION “To be the premier global marketplace for all types of games of chance” MISSION STATEMENT “To deliver responsible, trusted, and transparent gaming to the world” 7
Slide 8: Consumer Shift to Convenience Is Inevitable
CONSUMER SHIFT TO CONVENIENCE IS INEVITABLE OLD MODEL NEW MODEL It has been proven time-and-time again that consumers choose convenience no matter the industry. 8
Slide 9: Enormous Global Market Opportunity
ENORMOUS GLOBAL MARKET OPPORTUNITY
Slide 10: Comparing Market Opportunity
COMPARING MARKET OPPORTUNITY GLOBAL ADDRESSABLE MARKET $700B $600B $583B $467B $398B $350B $233B $138B $157B $117B $85B $101B $71B $22B $25B Sports Events Digital Music Streaming Video Global Sports Betting Global Film Industry Global Video Games Cloud Software (SaaS) Global Lottery Market Global Ho
Slide 11: Digital Transformation Is Coming
DIGITAL TRANSFORMATION IS COMING (4) 6.7% 18% (2) 47% U.S. SPORTS BETTING U.S. LODGING BOOKINGS U.S. LOTTERY 53% 82% (1) 93.3% Online Online Online In Person / Other In Person / Other In Person / Other With only 6.7% of the U.S. lottery market Online Ticket Agents comprise currently online, Lottery.
Slide 12: Lottery.com's United States Expansion
LOTTERY.COM'S UNITED STATES EXPANSION WA ND OR MN CURRENT STATES NH NY 2016 - 2019 MI • NH, TX, MN, OR PA OH NJ 2020 IL DC CA CO • CA, CO, DC, GA, MI, PA, WA KS 2021 • OH AR GA 2021 LAUNCH PLAN TX 2021 • AR, IL, KS, ND, NJ, NY CURRENTLY DOES NOT CURRENT STATES(1) 2021 EXPANSION FUTURE EXPANSION HAVE
Slide 13: Lottery.com Announces International Expansion
LOTTERY.COM ANNOUNCES INTERNATIONAL EXPANSION
Slide 14: Lottery.com International Expansion
LOTTERY.COM INTERNATIONAL EXPANSION AGANAR AND JUEGA LOTTO The acquisitions of Aganar and Juega Lotto are among the rst of many strategic acquisitions to expand Lottery.com's distribution, games, and user base. This acquisition expands Lottery.com's o ering into the world’s most populous • Licensed
Slide 15: Diverse Product Offering with Potential to Generate Strong Cash Flows
DIVERSE PRODUCT OFFERING WITH POTENTIAL TO GENERATE STRONG CASH FLOWS
Slide 16: Low Acquisition with High Retention and Return
LOW ACQUISITION WITH HIGH RETENTION AND RETURN U.S. LOTTERY.COM PLAYERS $55.30 ($4.01) Customer Acquisition Cost(1) } $17.20 Avg. Annual New User Pro t(2) } 31% Churn Rate(3) } Costumer Lifetime Value ACQUIRED LOTTERY.COM PLAYERS ARE THEN INTRODUCED TO HIGHER MARGIN PRODUCTS INTERNATIONAL LOTTERY.CO
Slide 17: Diverse Suite of High Margin Products
DIVERSE SUITE OF HIGH MARGIN PRODUCTS B2C B2C B2C DOMESTIC LOTTERY INTERNATIONAL LOTTERY INTERNATIONAL GAMES • Selling o cial U.S. lottery games (draw games and • Selling o cial U.S. lottery games (draw games and • Lottery.com's own designed and managed lottery scratchers) with a service fee scratch
Slide 18: Business Model Overview
BUSINESS MODEL OVERVIEW REVENUE PROJECTIONS B2C - Global Marketplace B2G & Data Revenue $600M • Lottery.com comprises less than one • Premier provider of global lottery data percent market share in existing markets for clients such as Amazon and Google • Projected to be 1% of total market in • Data
Slide 19: Partners and Innovation
PARTNERS AND INNOVATION
Slide 20: Strong Distribution Ecosystem
STRONG DISTRIBUTION ECOSYSTEM AFFILIATE PROGRAM • An open a liate program allows tra c to Lottery.com's properties for a split on any proceeds those users generate for a limited time • Lottery.com has access to over 250+ Million users a month with its current a liate partners API PROGRAM • Through a
Slide 21: Innovators in Blockchain
INNOVATORS IN BLOCKCHAIN • Building a patented(2) next-gen blockchain platform speci cally to address the challenges with online games of chance • Critical game mechanics such as player identity, digital tickets, and administrating draws are completely run on chain • Technology can be leveraged for
Slide 22: Significant Projected Revenue and EBITDA Growth
SIGNIFICANT PROJECTED REVENUE AND EBITDA GROWTH
Slide 23: Strong Projected Revenue and EBITDA Growth
STRONG PROJECTED REVENUE AND EBITDA GROWTH PROJECTED REVENUE PROJECTED EBITDA $1,200M $200M $1,129M $1,080M $179M $176M $960M CAGR $157M CAGR 2020 - 2025E 2021 - 2025E $845M $840M 161% $136M 170% $116M $720M $115M $600M $571M $94M $480M $72M $59M $360M $51M $279M $240M $30M $14M $120M $71M $8M $3M $
Slide 24: Rapidly Growing Total Addressable Market
RAPIDLY GROWING TOTAL ADDRESSABLE MARKET (“TAM”) 2020 - 2025E GLOBAL LOTTERY MARKET $700B 0.17% $652B (2) $630B 2020 - 2025E ONLINE LOTTERY GROWTH $560B 104% $490B LOTTERY.COM PERCENTAGE OF TAM $420B $398B (1) Global lottery market $350B projected to increase by $254B during the next 5 $280B years.
Slide 25: Higher Forecasted Growth Than Peers
HIGHER FORECASTED GROWTH THAN PEERS 2020E - 2023E REVENUE CAGR 2021E - 2023E EBITDA CAGR 350% 350% 322% 315% 315% 294% 280% 280% 245% 245% 210% 210% 175% 175% 140% 140% 105% 105% 70% 70% 48% 34% 28% 35% 26% 35% 12% 16% 8% NM NM NM (1) Note: NM if negative EBITDA in 2021 or 2023 or negative CAGR (1)
Slide 26: Attractive Entry Valuation
ATTRACTIVE ENTRY VALUATION EV / 2023E REVENUE 13.6x EV / ‘23E Gross Pro t 2.6x 8.2x 5.6x 6.6x 6.6x 0.9x (1) EV / 2023E EBITDA 20.0x 12.8x 8.9x NM 0.0x NM 0.0x NM 0.0x $1.1B ENTERPRISE VALUE $3.7B ENTERPRISE VALUE $26.8B ENTERPRISE VALUE $978M ENTERPRISE VALUE $591M ENTERPRISE VALUE $526M ENTERPRISE
Slide 27: Transaction Overview
TRANSACTION OVERVIEW ($mm) SOURCES USES Cash Held in SPAC Trust (1) $63 Stock Consideration $438 Issuance of Shares to Lottery.com Stockholders 438 Sponsor Equity Rollover 62 Sponsor Equity (2) 62 Transaction Fees 18 Cash to Balance Sheet (1) 45 Total Sources $563 Total Uses $563 PRO FORMA ENTERPRIS
Slide 28: Appendix
APPENDIX
Slide 29: Comparing Market Opportunity Source Data
COMPARING MARKET OPPORTUNITY SOURCE DATA • All Market Cap data as of March 16, 2020 • Total Addressable Market Data: • Sports Events: Change market cap from $29B to $4B and footnote representative of sale price in November 2019 | https://techcrunch.com/2019/11/25/ebay-to-sell-ticket-marketplace-stub
Slide 30: Real Money Gaming Participation Percentages
REAL MONEY GAMING PARTICIPATION PERCENTAGES Forms of Real Money Gaming Americans Participated in During the Last 12 Months 60% 54% 53% 48% 42% 36% 32% 30% 26% 24% 18% 12% 12% 6% 6% 3% Online Wagering on a Race Playing Poker Casual Betting w/ Friends * Casino Lottery (1) American Gaming Association (
Slide 31: Real Money Gaming Participation Frequency
REAL MONEY GAMING PARTICIPATION FREQUENCY Frequency of Participation in Selected Real Money Gaming Activities Over the Past 12 Months in the United States as of May 2014 50% 45% 16% 40% 35% 7% 30% 6% 25% 4% 6% 10% 20% 11% 3% 15% 7% 4% 13% 10% 2% 11% 1% 4% 9% 1% 5% 2% 1% 5% 1% 4% 1% 1% 0% Online Hors