Sports Entertainment Gaming Global Corporation · NASDAQ:SEGG
Sports Entertainment Gaming Global — Lottery.com — SPAC Merger (August 2021)
32 slides from Sports Entertainment Gaming Global's SPAC merger presentation, August 2021
Slide 1: Investor Presentation August 2021
INVESTOR PRESENTATION August 2021
Slide 2: Disclaimer Rider
DISCLAIMER RIDER This investor presentation (the “presentation”) is for informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any equity, debtor other financial instruments of Trident Acquisitions Corp. (“Trident”) or
Slide 3: Disclaimer Rider (Continued)
DISCLAIMER RIDER (CONTINUED) Use of Projections This presentation contains financial forecasts. Neither Trident's nor the Company's independent auditors have studied, reviewed, compiled or performed any procedures with respect to the projections for the purpose of their inclusion in this presentatio
Slide 4: Lottery.com & Trident Acquisitions Executive Level Management
LOTTERY.COM & TRIDENT ACQUISITIONS TONY DIMATTEO MATT CLEMENSON RYAN DICKINSON LUC VANHAL KATIE LEVER VADIM KOMISSAROV CHIEF EXECUTIVE OFFICER CHIEF COMMERCIAL OFFICER PRESIDENT & CHIEF FINANCIAL OFFICER CHIEF LEGAL OFFICER CHIEF EXECUTIVE OFFICER OF & CO-FOUNDER & CO-FOUNDER CHIEF OPERATING OFFICER
Slide 5: Our Vision and Mission Statement
OUR VISION “To be a premier global marketplace for all forms of online gaming” MISSION STATEMENT “To deliver responsible and trusted online gaming in legalized jurisdictions throughout the world” 5
Slide 6: 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 7: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS 1 Foremost Brand Name and Premier 9.4 MILLION Provider of Global Lottery Data UNIQUE VISITORS LTM 6/30/21 2 Large Global Market Opportunity $398 BILLION 2020 GLOBAL TAM(1) 3 Diverse Product Offering with Existing and $59 MILLION Projected Strong Cash Flows 2023 EBITDA(2) 4
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: Large Global Market Opportunity
LARGE GLOBAL MARKET OPPORTUNITY
Slide 10: Comparing Market Opportunity
COMPARING MARKET OPPORTUNITY GLOBAL ADDRESSABLE MARKET $700B $600B $600B $500B $398B $400B $300B $200B $157B $138B $100B $71B $85B $22B $25B $B Sports Events Digital Music Streaming Video Global Sports Betting Global Video Games Cloud Software (SaaS) Global Lottery Market Global Hotel Industry 50% 3
Slide 11: Digital Transformation Is Coming
DIGITAL TRANSFORMATION IS COMING 7%(4) 18% U.S SPORTS BETTING 53% U.S LODGING BOOKINGS U.S LOTTERY 47%(2) (1) 82%(1) 93% Online Online Online In Person / Other In Person / Other In Person / Other Online Ticket Agents comprise 51% With only 7% of the U.S. lottery market currently of bookings (3) onli
Slide 12: Diverse Product Offering with Potential to Generate Strong Cash Flows
DIVERSE PRODUCT OFFERING WITH POTENTIAL TO GENERATE STRONG CASH FLOWS
Slide 13: Low Acquisition Cost with High Retention and Return
LOW ACQUISITION COST WITH HIGH RETENTION AND RETURN U.S. LOTTERY.COM PLAYERS $55.30 ($4.01) Customer Acquisition Cost(1) } $17.20 Avg. Annual New User Profit(2) } 31% Churn Rate(3) } Customer Lifetime Value ACQUIRED LOTTERY.COM PLAYERS ARE THEN INTRODUCED TO HIGHER MARGIN PRODUCTS INTERNATIONAL LOTT
Slide 14: Diverse Suite of High Margin Products
DIVERSE SUITE OF HIGH MARGIN PRODUCTS B2C B2C B2C DOMESTIC LOTTERY INTERNATIONAL LOTTERY INTERNATIONAL GAMES • Selling official U.S. lottery games (draw games and scratchers) • Selling official U.S. lottery games (draw games and instant win) • Lottery.com is developing its own designed and managed w
Slide 15: Business Model Overview
BUSINESS MODEL OVERVIEW REVENUE PROJECTIONS B2C - Global Marketplace Data Revenue $600M • Lottery.com comprises less than one percent • Premier provider of global lottery data for clients market share in existing markets such as Amazon and Google • Projected to be 1% of total market in current 11 •
Slide 16: Opportunities for Expansion
OPPORTUNITIES FOR EXPANSION
Slide 17: 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 IL DC 2020 CA CO KS • CA, CO, DC, GA, MI, PA, WA 2021 AR • OH GA 2021 LAUNCH PLAN TX 2021 • AR, IL, KS, ND, NJ, NY CURRENT STATES(1) 2021 EXPANSION FUTURE EXPANSION CURRENTLY DOES NOT (1)
Slide 18: Lottery.com Executes International Growth Strategy
LOTTERY.COM EXECUTES INTERNATIONAL GROWTH STRATEGY CENTRAL AND SOUTH AMERICA The acquisitions of Aganar and Juega Lotto (1) are among the first of many strategic acquisitions expected to expand Lottery.com's distribution, games, and user base. These acquisitions allow Lottery.com to expand in the fa
Slide 19: Innovation and Partners
INNOVATION AND PARTNERS
Slide 20: Advantages of Using Lottery.com
ADVANTAGES OF USING LOTTERY.COM EASE Intuitive user interface allows consumers to play the lottery 1 from the convenience of their mobile device or computer OF USE EASE OF No requirement for consumers to pre-fund digital wallets; 2 development initiatives around alternative payment PAYMENT methods u
Slide 21: Strong Distribution Ecosystem
STRONG DISTRIBUTION ECOSYSTEM AFFILIATE PROGRAM • An open affiliate program allows traffic 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 affiliate partners API PROGRAM • Thr
Slide 22: Innovators in Blockchain
INNOVATORS IN BLOCKCHAIN • Building a next-gen blockchain platform specifically to address the challenges with online gaming • Critical game mechanics such as player identity, digital tickets, and administrating draws are completely run on chain • Technology can be leveraged for lottery, sweepstakes
Slide 23: Significant Projected Revenue and EBITDA Growth
SIGNIFICANT PROJECTED REVENUE AND EBITDA GROWTH
Slide 24: Strong Projected Revenue and EBITDA Growth
STRONG PROJECTED REVENUE AND EBITDA GROWTH PROJECTED REVENUE PROJECTED EBITDA $1,200M $190M $176M $1,129M $1,000M CAGR $150M CAGR 2020 - 2025E 2021 - 2025E $845M $800M 161% $110M 170% $116M $600M $571M $70M $59M $400M $279M $30M $200M $14M $71M $3M $10M $M -$10M -$2M 2020(1) 2021E(1) 2022E 2023E 202
Slide 25: Rapidly Growing Total Addressable Market
RAPIDLY GROWING TOTAL ADDRESSABLE MARKET (“TAM”) 2020 - 2025E GLOBAL LOTTERY MARKET $700B $652B (2) $630B $607B 2020 - 2025E ONLINE LOTTERY GROWTH $560B $490B 104% (1) $420B $398B $377B Global lottery market $350B projected to increase by $280B $254B during the next 5 years. $210B As an early entran
Slide 26: Higher Forecasted Growth Than Peers
HIGHER FORECASTED GROWTH THAN PEERS 2020 - 2023E REVENUE CAGR 2021E - 2023E EBITDA CAGR 300% 294% 350% 322% 300% 250% 250% 200% 200% 150% 150% 100% 100% 52% 56% 56% 50% 37% 50% 14% 17% 11% NM NM NM 0% 0% (1) (1) Source for peers: CapitalIQ Note: NM if negative EBITDA in 2021 or 2023 or negative CAGR
Slide 27: Attractive Entry Valuation
ATTRACTIVE ENTRY VALUATION EV / 2023E REVENUE EV / ‘23E Gross Profit 8.9x 9.0x 2.6x 5.9x 4.9x (1) 0.9x 4.1x EV / 2023E EBITDA 15.8x 16.5x 8.9x 0.0x NM NM NM $765M ENTERPRISE VALUE $995M ENTERPRISE VALUE $3.0B ENTERPRISE VALUE $1.5B(1) ENTERPRISE VALUE $21.5B ENTERPRISE VALUE $525M Source for peers:
Slide 28: Transaction Overview
TRANSACTION OVERVIEW ($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 $562 Total Uses $562 PRO FORMA ENTERPRIS
Slide 29: Appendix
APPENDIX
Slide 30: Comparing Market Opportunity Source Data
COMPARING MARKET OPPORTUNITY SOURCE DATA • All Market Cap data as of August 24, 2021 • 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-stu
Slide 31: 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% 0% Online Wagering on a Race Playing Poker Casual Betting w/ Friends * Casino Lottery (1) American Gaming Associatio
Slide 32: 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% 4% 6% 25% 6% 10% 20% 11% 3% 15% 7% 4% 13% 10% 11% 2% 4% 9% 1% 1% 5% 2% 5% 1% 4% 1% 1% 0% 1% Online Hors