VISIT WWW.ELADKUSHNIR.WORDPRESS.COM TO SEE AN UP TO DATE VERSION OF THIS LECTURE (Q2/Q3 2016) Slides from my lecture at Casual Connect San Francisco on July 22nd 2014.

1. State of the Social Casino
Industry Q3 2014
Elad Kushnir, VP of Business Development
Email: eladk(at)Playtika.com
Twitter: @eladkushnir

2. 2
Social Casino
About Playtika

3. 3
Playtika: Overview
 Founded in 2010
 Multiplatform social games developer
 9 games
 12 platforms
 Headquarters in Tel Aviv, Israel
 Offices in USA, Canada, Ukraine, Belarus,
Romania, and Argentina.
 750+ Employees

4. 4
Playtika: Evolution of our Studios

5. 5
Playtika: in Numbers

6. 6
Social Casino
Market and Industry Overview

7. A very brief history
 Games of chance have been played
since the times of the ancient
Greeks.
 The first slot machine was invented
in the 1890’s.
 In their modern format, casinos in
the USA have existed since 1931.
Social Casino in Context
 Social Casino is a spinoff of a very
mature industry.
 The innovation of Social Casino is in
the adaptation of casino games into
a non-gambling environment.
7
Social Casino in the Casino Industry Context

8. 8
Social Casino in the Gaming Industry context
Social Casino ($) / Other Categories ($)
Social Casino is one of the
most lucrative mobile gaming
categories
Social Casino Market ($Billions)
The Social Casino category will
generate ~11% of Social and
Mobile gaming revenue in
2014
0.80
1.25
2.00
2.60
3.30
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
2011 2012 2013 2014
E
2015
E
Source: Distimo Source: Eilers Research / New Zoo / Distimo
7% 14% 10%0%
50%
100%
iPhone iPad Android
Social Casino % Other Game Categories %

9. 9
Social Casino: Market Makers (continued)
Offline Slots Manufacturers
Competitive Advantage:
Proven Content
Offline Casino Operators
Competitive Advantage:
Brand Recognition / Cross Promo
Online Real Money Gaming
Competitive Advantage:
Digital Casino Experience
Purely Social
Competitive Advantage:
Agility / Social Mobile Experience / Regional Focus

10. 10
Social Casino: Market Makers
~50% $ Market Share
~20%
$ Market
Share
+ hundreds more

11. 11
Social Casino
Growth Drivers
– Mobile
– Regional
– In-game optimization

12. Global Smartphone Shipments
Global Smartphone penetration
will continue to drive growth in
the gaming market. Every
smartphone owner is a
(potential) gamer.
Social Casino Revenues Q1-2 2014
Mobile has formally trumped
Facebook/Web platforms. This
means Social Casino is now a
mobile first industry.
12
Social Casino: Growth via Mobile
Source: Playtika ResearchSource: BI Intelligence

13. Smartphone Growth 2013-2019 (m)
Social Casino will grow in
emerging markets. Asia
trumps all other regions
Offline Casino Revenues 2013 ($B)
Casino Revenues from Asia are
mind blowing. And its only the
start.
13
Social Casino: Regional Growth
Source: Statista
110 150
393
986
2077
0
500
1000
1500
2000
2500 44
6.4 6.3 4.2 2 1.6 0.37
0
10
20
30
40
50
Source: Citibank Research

14. Local Games for Local Markets
Social Casino will grow in
emerging markets.
The key to success will be
culturalization not just
localization
Asia is the biggest gaming region (B$)
Asia is already the largest
gaming market on the globe.
Japan already generates more
mobile gaming revenue than
the US. China will generate
17B this year
14
Social Casino: Regional Growth (Continued)
Source: New Zoo

15. 15
Social Casino: Growth via Optimization
The lowest hanging fruit
is right inside your game
Segmentation
Personalization
AI / Big Data

16. 16
Social Casino
Emergence of a B2B Trend

17. Emergence of a B2B trend
Social casino has caught the
attention of offline casino
operators. Suppliers have
emerged to help these “late
bloomers go to market”.
Strategy: Create value via Loyalty
Forecast: B2B will not become
a large direct revenue source
for the offline casino operators
but may allow for increased
retention and loyalty of their
offline customer base
17
Social Casino: An emerging B2B trend

18. 18
Social Casino
M&A Update

19. Gaming Consolidation continues
12.5B in M&A transactions in
the last 12 months = 2X 2013
pace
Social Casino M&A / Strategic Rationale
19
Social Casino: M&A Update
Source: Digi Capital

20. 20
Social Casino: Summary
1. Social Casino is an evergreen gaming category which adapted casino
games into a non-gambling environment
2. The social casino market has shown consistent growth since inception and
commands a non-trivial share of the social & mobile gaming market
3. The social casino market is dominated by four types of interested parties.
slot manufacturers, offline casinos, online RMG operators, and social
gaming companies
4. Growth will come from mobile, regional opportunities, and in-game
optimization
5. The Asian opportunity is mind-blowing!
6. A social casino B2B trend is emerging. It will not be significant in terms of
revenues but rather will be a retention tool for the offline casinos.
7. Consolidation continues as social casino revenues grow and both the social
gaming and casino giants want a piece of the pie

21. 21
Thanks for Listening!
Playtika is constantly looking for
opportunities
Please contact me at
eladk(at)Playtika.com if you have
any ideas for us.
Follow me on Twitter @eladkushnir