Nevada GPC Grove Final

8/17/2019 Nevada GPC Grove Final

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Prepared by Chris Grove for the Nevada Gaming Policy Committee

Skin BettingThe dominant product in the market for eSports wagering


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What are skins?

Skins are virtual items that players can acquire and use in a variety of way

Acquire• Purchase• Win• Earn• Gift


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How do people bet skins?

Skin betting is broadly similar to traditional online betting

• Roulette• Lottery• Sports betting• Rock paper scissors

Deposit Play Cash O

(Internal currency) (Internal cu


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What is the size of the skin betting market?

$6bn+Skin betting handle E2016$4.2bn

NV sports betting handle 2015

$2D

Sources: Narus Advisors, Nevada Gaming Control, Eilers & Krejcik Gaming


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Organic search interest in skin betting

Source: Google Trends

PokerStars(leading online poker site)

FanDuel(leading DFS site)

CSGO Lounge(leading skin betting site)


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Landscape for skin betting

No formal oversight

Limited visibility into companies and products

Game design emphasis on simplicity and speed


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Regulated online gambling in the U.S.Status quo


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States with regulated online gambling in 2016

Sources: Narus Advisors, GamblingCompliance


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Financial performance to date: U.S. Online Poker

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

In $000s. New Jersey + estimate for Nevada. Sources: Nevada Gaming, New Jersey DGE, PlayNJ.com

2014 2015


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Financial performance to date: U.S. Online Casino

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

In $000s. New Jersey. Sources: New Jersey DGE, PlayNJ.com

2014 2015


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Factors inhibiting revenue

Payment processing

Persistent lack of consumer awareness

Relatively underdeveloped product set


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Regulatory outcomes

No known AML issues

Geolocation technology proven effective

Age and identity controls proven effective


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Regulated online gambling in the U.S.Looking ahead


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States considering regulated online gambling in 2016

Sources: Narus Advisors, GamblingCompliance


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Factors inhibiting legislative progress

Stakeholder fragmentation

Political apathy

Online gambling leapfrogged by other products


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Legislative landscape for DFS in 2016


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Expanding beyond pokerA brief cost benefit analysis


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Costs of expanding beyond poker

Material degree of uncertainty

Industry divisions


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Benefits of expanding beyond poker

Technological and regulatory framework already in place

Revenue potential

Expansion of mobile footprint


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Casino play one of the few things you can’t do on mobile in Vega

• Board plane with mobile pass• Play games on plane to earn

comps• Text friends in town on landing• Hail an Uber to hotel• Mobile check-in• Research entertainment options• Explore property options via app• Make restaurant reservations• Buy show tickets• Reserve cabana or table at club

• Check rewards / comp status• Play poker• Bet on sports events• Check rewards status and

available comps• Navigate within and between

properties• Enter events with mobile ticket• Take photos and videos• Share experience via social

media accounts

• Download • Schedule m• Take notes

meetings• Arrange so

conference• Set alarm f• Check flig• Review ho• Buy coffee• Uber to air

Arrival Leisure Work


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Nevada GPC Grove Final

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