Platinum Pari-Mutuel GroupThe markets are off to the races!
The intersection of global financial markets, horse racing, fantasy sports, online gaming community
• Website: under construction and expect it to be up by November, 2013
Product Vision:A new way to interact with the Financial Markets
Race stocks, indices, commodities and currencies based on relative price movements
Scoring (payouts) is driven by individual race odds that are generated by a Pari-Mutuel wagering system Bet to Win, Place, Show or more exotic bets (Exacta , Trifecta, Quinella,
etc.) Large prizes may available, based on pool matrix
Games may consist of a single race or series of racesRace duration ranges from minutes to hours to days to months Age and residency verification; geo-location technology U.S. Players will be “for fun”, much like Zynga and poker clubs
Contests with prizes where allowed International Players will be for “real”, where legal
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How it WorksPotential players link to “sign up” formSystem verifies player information using verification service
tied to criteria for product (age, residence, etc.)Not verified = no accountVerified = account openedFor “real” or for “fun” – two separate categories within system
Can be done at the same time
Account funded using funding verification servicePlayers play their selected “races”Races are run and ranked and paid (made official)System debits/credits: deposits, withdrawals, wagers,
winnersSystem proven for high volume sales
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The “Financial Markets”Possible “contested” events and races
US MarketsNASDAQ, NYSE, S&P
Plus many global market exchangesJapan, Hong Kong, Australia, Singapore, India, Germany,
Italy, France, England, Toronto, Brazil and moreWithin markets
Individual Stocks, Bonds, CommoditiesETF’s, Exchange values (DOW, NASDAQ, etc.)
Stocks, bonds, commodities, currencies, futures, etc.Greatest “increase” (Long) or greatest “decrease”
(Short) during the race – two outcomes for the same race
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For Example; an “Auto Stocks” RaceCan have two winning results in one contest:
“Finish Long” is greatest % increase winner (Peugeot), and “Finish Short” is greatest % decrease winner (Toyota)
Company Symbol Current Price
Price Change
Percent Change
Finish Long
Finish Short
Odds Long
Odds Short
Ford F $14.53 $0.25 1.75% 2/1 10/1
General Motors
GM $31.60 $0.18 .54% 3/1 8/1
Toyota TM $80.35 -$2.08 -2.08% 1 20/1 3 /2
Honda HMC $38.35 -$0.51 -1.31% 2 20/1 5 /4
Volkswagen VOW.DE $29.29 $0.71 2.48% 3 4/1 8/1
Peugeot PEUGY $38.75 $1.83 4.96% 1 8/1 8/1
Nissan NSANY $18.10 -$0.21 -1.15% 3 15/1 3 /2
Daimler DAI.DE $65.69 $2.68 4.26% 2 3 /2 15/1
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One Example of Proof of Concept:700 sampled contests
9 Market segment ETF’s No consistent winner, (Consumer Discretionary – XLY; Consumer Staples –
XLP; Energy – XLE; Financial – XLF; Health Care – XLV; Industrial – XLI; Materials – XLB; Technology – XLK; Utilities - XLU)
Which is good for our product Horse racing – favorite wins ~ 30%
XLY XLP XLE XLF XLV XLI XLB XLK XLU0
100
200
300
400
500
600
700
800
Total Contested1st or Win2nd or Place3rd or Show
XLY XLP XLE XLF XLV XLI XLB XLK XLU0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
1st or Win2nd or Place3rd or Show
Many Other OptionsSector “race” with “participants” within that sector
Dow 30 IBM, 3M, GE, Dow, Cat, DuPont, etc.
Home Builders sector Toll Brothers, KB Home, DR Horton, Pulte Group, etc.
Financials Bank of America, Citi, Morgan Stanley, Amex, etc.
Consumer Coke, Pepsi, Colgate, Kraft, P&G, etc.
Insurance sector Aflac, Allstate, Chubb, Prudential, Progressive, etc.
Global Markets Dow, Nasdaq, London, Germany, Japan, Hong Kong, etc.
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2011 Estimated Global Internet Gaming Market by Product*:
Product Percentage Gross Gambling Yield**
Poker 14% $4.62 billion
Lotteries 9% $2.97 billion
Casino Games 26% $8.58 billion
Online sports 39% $12.87 billion
Bingo 8% $2.64 billion
Skill Games 4% $1.32 billion
Total 100% $33 billion***
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*Springer Internet Gambling Report**Gross Gambling Yield is amount retained by operator (revenue) ***Estimated this is only 5% of total global gaming yield
PlatinumPari-
Mutuel
~ 22 Million USHouseholds 1
Marketing OpportunitiesMass
Affluent Self
Directed Investors
FantasySports
OnlineGaming
SocialGaming
OnlineCommunit
y
> 1 billion Global
Facebook Users 4
34 Million
US &
Canada
Players -
20115
> $35.8
Billion
Global
Revenues
20122
>100
m
illion
US
/UK
S
oci
al
Gam
ers
3Source: 1. http://
www.bizjournals.com/atlanta/print-edition/2012/09/21/emerging-affluent-investor-class-ready.html?page=all
2. H2 Gaming Capital: http://www.statista.com/statistics/168622/market-volume-of-online-gaming-worldwide-since-2003/
3. Casual, Social & Gaming Monitor - http://www.gamesindustry.com/about-newzoo/socialgaminggraphs2010
4. Facebook - http://investor.fb.com/releasedetail.cfm?ReleaseID=715607 5. Fantasy Sports Trade Association - http://fsta.org/
industry_demographics9
Marketing StrategiesLeverage existing licensed operators
Large, active player baseSocial media exposure
Facebook, Twitter, LinkedIn, Stocktwits, Stockr, BlogsRSS feeds, IM’s, SMS, Email, Tumblr
Establish other gaming business applicationsFacebook, Zynga, others
Affiliate marketing programs/rewardsPlayer referral fees Player incentives/rebates – frequency/volume of play
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Strategic Vision Investing can be funResearch and content-only sites are important but not
typically differentiated or entertainingThe financial markets are not for everyone, our product can
beThe Street lacks a place where people can come to
socialize and have fun around Financial Markets (stocks, bonds, commodities) – think pub games
Our goal is to be the leading social financial services gaming destination
We are ideally positioned at the intersection of the global financial markets, horse racing, fantasy sports and online gaming community
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Product Vision, continuedMarket thrill without the time or financial prerequisites
Bring the real-time excitement of the markets to a wider audience
Races will be held in all major global markets to provide a 24-hour race calendar Can be company driven or customer driven (custom races)
There is always a race going on somewhere Play when you have the time
Content and game play will be both entertaining and engaging A whole new way to “play the market”
No “up front” sales charges
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ContentThe Wall St Journal meets Sports Illustrated,
Yahoo Finance meets the Racing Form
• Learn about markets and companies in engaging and informative ways– Personalized information that turns stock symbols into living
companies, indices and currencies into countries, commodities into products
– Back tested statistics showing historical performance– Technical and fundamental analysis– Social media content
• All delivered in real-time dashboards allowing users to tap into the “pulse” of the markets
• Post race chat and community
Technology Plan Exclusive services contract with leading tote provider –
Amtote Proven high capacity technology platform and solution
Development focused on: State of the art user experience and web site that is
interactive and fun to use Games to be easy to access but hard to master Race visualization and replays
Game mechanics Streamlined account opening process – make it easy Support for multiple funding and withdrawal options Insure full regulatory compliance
Proprietary technology that will: Run races in real time and provide users with an interactive
view of the results
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Development ProgressGaming platform support:
Identity verification and account creationAccount funding/withdrawalsResponsible gaming/regulatory complianceIntegration with AmtoteCurrent status – initial testing with Amtote has begunWebsite being refined – www.streetheats.net
Game developmentProof of concept testing proves viabilityUser interface/experience designRace visualizationRace contentCurrent status – page flows for the games have been designed
and work as begun on creating mockups
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Financial projectionsThe following projections represent our management’s
estimates of the results of our anticipated operations for future periods, and reflect our management’s beliefs, based on circumstances and events that have not yet occurred, that may not occur or that may occur with different results than those we currently anticipate. These projections necessarily involve numerous assumptions, the inaccuracy of any one of which could significantly affect projected revenues and earnings. We make no representation or warranty that any of the following projections will be achieved. Actual results will vary and may vary materially from the following projections. We assume no obligation to update any of the following projections.
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Total Financial Projections2014 2015 TOTALS
Revenue Base
International Revenue $3,300,000 $6,600,000 $9,900,000
For Fun Revenue $1,750,000 $4,950,000 $6,675,000
Total Financial Application Revenue $5,050,000 $11,525,000 $16,575,000
Horse/Dog Racing Base $2,050,000 $3,050,000 $5,100,000
PLATINUM PARI-MUTUEL GAMES REVENUE $7,100,000 $14,575,000 $21,675,000
For Fun Prizes – 50% $875,000 $2,462,500 $3,337,500
Other Royalties – 10% $505,000 $1,152,500 $1,657,500
Cost of horse/dog revenue – 50% of revenue $1,025,000 $1,525,000 $2,550,000
Marketing expenses – 25% $1,262,500 $2,881,250 $4,143,750
General and Administrative $1,273,000 $1,573,000 $2,846,000
EBITDA $2,159,500 $4,980,750 $7,140,250
Depreciation $69,000 $69,000 $138,000
Pretax Profits $2,090,500 $4,911,750 $7,002,250
Provision for Income Taxes – 35% $731,675 $1,719,112 $2,450,788
Net Profit $1,358,825 $3,192,638 $4,551,463
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Footnote: All profits earned from the International Operations and Horse/Dog Racing will accrue to Platinum Pari-Mutuel Games (“PPMGames”). PPMGames is a St. Kitts Corporation and is tax exempt. For purposes of these projections we have assume all profits have been repatriated to the U.S.
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Capital Structure:
Shares NumberCurrently Outstanding 277,062,763
Key Investment HighlightsFirst to marketMinimal up front marketing costsOpportunity to participate in new patent
pending application for online gamingExperienced management teamStrong, but conservative projectionsProven core technology processing partnerExpandable to many applications
Large resources for game content
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