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Sept 2017
Ticker Symbols (OTCQB: LTTGF) (CSE: LOTO) (Frankfurt: 2LG)
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This presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect“, "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this presentation contains forward-looking statements and information concerning LottoGopher’s future financial performance. The forward-looking statements and information are based on certain key expectations and assumptions made by LottoGopher, including expectations and assumptions concerning the success of new product development, LottoGopher’s ability to integrate acquired businesses and complete strategic acquisitions of additional business and other factors that affect demand for LottoGopher’s products. Although LottoGopher believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because LottoGopher can give no assurance that they will prove to be correct.
By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause LottoGopher's actual results and experience to differ materially from the anticipated results or expectations expressed. These risks and uncertainties, include, but are not limited to expenditures and other factors that affect demand for LottoGopher’s products, industry competition, the need to effectively integrate acquired businesses, uncertainties as to LottoGopher’s ability to implement its business strategy effectively in Canada and the United States, labor, equipment and material costs, access to capital markets, interest and currency exchange rates, technological developments, political and economic conditions and LottoGopher’s ability to attract and retain key personnel. Additional information on these and other factors is available in the continuous disclosure materials filed by LottoGopher with Canadian securities regulators.
Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this presentation or otherwise, and not to use future-oriented information or financial outlooks for anything other than their intended purpose. LottoGopher undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
Forward-Looking Statement
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Investment Case
• Finally, a way to order your lottery tickets online in the USA
• LottoGopher is a messenger service with a subscription revenue model- the website enables you to order Powerball, Mega Millions and SuperLotto Plus tickets online in California-expansion plan includes 22 other states
• Strategic Partner/Investor, Lottoland, views LottoGopher as their entry into the $80 billionUS market- Lottoland is a huge success in Europe and Australia
• CEO, founder and serial entrepreneur, James Morel, has had multiple successful exits from companies he has founded
• Board of Directors includes Lloyd Lemon, former Head of Legal for TD Waterhouse, and General Legal for Lottoland and Kevin Harrington, one of the original Sharks on Shark Tank
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Meet our New Spokesperson!
Only one of the most
recognizable celebrities in
the world, William Shatner
joined the LottoGopher
team in September 2017
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The Current U.S. Lottery Market
Is spent annually on lottery tickets in the U.S.
(more than spent on movies, music, and books combined)
Of American adults purchased lottery
tickets in the last year.
Under 25k income are least likely to buy. Those
over 75k buy 3x as much.
U.S. consumers who already buy lotterytickets AND make purchases online.(They are already buying the product wesell and using the platform we sell it on)
OUR TARGET MARKET
$80 Billion
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California’s Lottery Market
California residents spent
$6.3 billion on lottery last
year, with one Powerball
jackpot reaching $1.6
billion
Powerball was the most Googled word in 2016
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Outdated & Inconvenient
Consumers forced to travel to a gas station orstore four times a week to buy and redeem tickets.
Must always have cash. No credit cardsaccepted for lottery ticket purchases at stores.
People often forget to buy tickets, never check them orlose them. Going digital can prevent these problems.
Playing in pools must be done in person at the office.
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Unclaimed Prize Money
$2 Billion in Prizes Goes Unclaimed in the United States Every Year
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1 2 3 4
Join for$3/day
$12/month$99/year
Pay the same price per ticket
as the you would at a store
Our system secures tickets from the lottery
retailer
We update user account
balances after a drawing
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The LottoGopher Solution Online purchase convenience
Immediate access to drawings
Use a credit card
Legally compliant
Create or join lottery pools
Import Facebook groups
Automated prize tracking
Automatic ticket subscriptions
Pickers & analyzers
Big jackpot alerts
Invite your friend tools
Share on social media
Send Gift Tickets
Fun lottery community
Simple Dashboard
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ADS OPTIMIZED:
A/B Ad Testing
Overflow Iterations
Behavioral Heatmaps
Pricing Elasticity
Traffic Analytics
Variable Designs
Improved Feature Sets
Currently in California
Plan to Expand to Additional 22 of 42 lottery states
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Unlawful Internet Gaming ActCompliant as determined by underwriters
at processing bank since August 2010
Wire ActCompliant as interpreted by Dept. of
Justice opinion December 2011
18 USC 1301Compliant by not offering services outside
lottery game state of origin
State Lottery Laws & RegulationsMet with CA Lottery
Security Division in 2010
LottoGopher platformcould be white-boxed for
State Lotteries
States could alienatecurrent retail network by
competing online
Extensive legal hurdlesexist for online sales
directly by State
States can increase saleswith new market of
internet-savvy customers
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Sheryl Dhillon, Corporate Secretary
Kevin Harrington, Director
Lloyd John Lemmon, Director
Norman Wareham, Director
Founder of Dr. TATTOFF a chain of laser tattoo removal clinics
Founder of 1-800 POSTCARDS a promotional printing company named fastest growing by Inc. 5000
James Morel, Founder & CEO Lloyd Lemmon, DirectorGeneral Legal Counsel and Group Company Secretary for Lottoland
Former Head of Legal For TD Waterhouse (part of the Toronto Dominion Bank Group)
Graduate of the University of NorthumbriaNewcastle School of Law & Graduate of Brunel University in London
Leadership Team
James Morel, President, CEO & Director
Alnesh Mohan, CFO & Director
Karm Khanna, VP of Product
Jane Tattersall, VP of Marketing
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Strategic Partner
Since launching in 2013, Lottoland has
rapidly become a world leader in
online lottery
Over €300 million in annual sales
6 million customers worldwide
820% Revenue growth between 2012-2015
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Ranked as one of Britain’s Top 30 fastest growing companies and the second ranked gaming company in Europe in Financial Times’ FT1000 report
Providing all parts of the lottery value chain: Product development, technology, online channel management & in-house developed IT
Licensed by the government of Gibraltar, audited by KPMG, product TÜV & NMicertified, insured by Lloyd’s of London
Innovative leader with globally scalable proprietary back-end and front-end solutions
Team of 270 industry professionals in Gibraltar and Hamburg
Strategic Partner
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Optimize Order Flow:A/B Testing, iterationsHeatmaps, designs
Ticket Subscriptions:Number pickers
Subscriptions
Group Pool Playing:Search & join pools
Create custom pools
Social Gaming:Invite others to playShare tips and prizes
User Dashboard:See tickets, groups
Manage billing, prizes
Compliance:100% Federal
100% CA State
Processing System:Digital & cashless
Same as state lottery
Display Advertising:engage:BDR
Automated platform
Performance Data:Tracking & reportingBehavior and metrics
Management Team:CEO, Ad Partner
Technology Partner
Web & Search Ads:SEO, PPC
Banner & Video ads
Public Relations:Online, print, TV
Radio, consumer, tech
Sister Sites:Facebook Page & App
Traffic driver blog
Site Optimization:Best practices, CRMRetention Marketing
Site Referral Tools:Sharing, rewardsUser dashboards
Engineering Team:Site, features, apps
Feed sites, Facebook
Cust. Service Team:Customer service
Data reporting
Marketing Team:Corporate, Street
Community, Social
Feeder Pages & Apps:Lottery pool managersLucky number pickers
Street Promotions:Demonstration VanEvent swag items
Offline Advertising:Radio, Newspaper, TVOutdoor, Sponsorship
Mobile Solution:Tablet/phone version
Paid mobile ads
Blogs & Mavens:Paid Placement
Paid Endorsements
Affiliate Partnerships:Reseller programsPaid per referral
Social Media Ads:Facebook Sponsored
Twitter, LinkedIn
Camera Ticket Scans:Check winning ticketsPhone and webcams
Developer API’s:Outside integration
Group importing
Video Tutorials:Onsite retention
Offsite traffic gen
Technology Refined:Betslip Processing
Retail partner tracking
National Expansion:State retail partners
Lobby & Legal Teams
Our Comprehensive Strategy
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Mobile Responsive Optimized: all web pages & sign up process now mobile friendly
Silverpop: automated email follow up system to capture, score and re-market to email address leads we collect
HotJar: social media listening & influencer outreach
OfferPop: multi-platform one-time promotion system
Google Analytics: Goal tracking pixels & segmenting
Desk.com & Talkdesk: Customer Service
LimeLight: with main & backup credit card processing accounts
Currently Integrated Support Systems
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Success Metrics in Testing Period
new visitors register with email address
registered become Members
of freemiumsconverting to paid
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Capital Structure
Issued and Outstanding 63,589,861
Warrants Price$0.25 70,000$0.59 1,101,000$0.40 6,547,700$0.63 1,400,000$0.47 400,000
TOTAL WARRANTS 9,518,700Options
$0.25 4,001,799 $0.47 400,000$0.63 621,469
TOTAL OPTIONS 5,023,268 Milestone Shares* 10,000,000
FULLY DILUTED 88,131,829
* 5 million shares at
USD$500,000 revenue
target, 2.5 million shares at
USD$17,000,000 revenue
target, and 2.5 million
shares at USD$34,000,000
revenue target
Ticker Symbols
OTCQB: LTTGF
CSE: LOTO
Frankfurt: 2LG
As at Sept 7, 2017