VISIT WWW.ELADKUSHNIR.WORDPRESS.COM TO SEE AN UP TO DATE VERSION OF THIS LECTURE (Q2/Q3 2016) An overview of the Social Casino gaming category. Lecture given at Casual Connect Amsterdam in February 2014. You can watch the full lecture on video at the end of the slide share presentation.

1. Social Casinos: What’s going
on and why you should care
Elad Kushnir: VP, Business Development, Playtika
Eladk(at)playtika.com

2. 2
Playtika: Overview
Founded in 2010
Multiplatform social games developer
8 games
12 platforms
Headquarters in Tel Aviv, Israel
Offices in US, Canada, Belarus, and Ukraine
550+ employees

3. 3
Playtika: Overview
200,000,000+ Installations
5,000,000+ Daily Active Users
17,000,000+ Monthly Active Users
24,000,000+ Facebook Fans
400,000,000+ Daily Slots Spins
14,000,000,000+ Virtual coins won each day
~$75,000,000 Revenue in Q3 2013
Playtika is the global leader
in the Social Casino category

4. 4
Playtika: Overview
 First and most popular social slots game – Slotomania
 Best known casino brand gone social on FB – Caesars Casino
 Best known casino brand gone social on mobile – Caesars Slots
 Most popular social bingo game – Bingo Blitz
 Most recognized poker franchise gone social – WSOP
 First single player bingo experience – Bingo Rush 2
 First social scratch card game – Scratch That
 First social dice game – Farkle Pro

5. 5
Playtika: Overview
Global Top Grossing 2013 Top Grossing Publishers USA 2013
Source: App Annie Jan 2014

6. 6
Playtika: Overview
Playtika is the #3 top grossing developer on
Facebook after Zynga and King

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Enough about Playtika.
What’s going on in the Social
Casino Market?

8. 8
How big is the market? So what?
Global Social Casino 2013 Social Casino Players (m)
Total $2.35b
Source: Super Data Research
60+ million social casino
players are up for grabs. What
games will they be playing and
who will they be paying?

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Who’s who and so what?
Offline Slots Manufacturers Offline Casino Operators
Online Real Money Gaming Purely Social
Competitive Advantage
Proven Content
Competitive Advantage
Brand Recognition,
Cross Promotion
Competitive Advantage
Digital Gaming Experience
Competitive Advantage
Agility, Innovation,
Regional Focus

10. 10
Who leads the social casino pack?
~40% $ Market Share
~25%
$ Market
Share
+ hundreds more

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Who’s buying who and so what?
Gaming M&A’s 2008-2013 Representative Social Casino Transactions
With the maturing of the mobile
and social platforms the gaming
industry is consolidating
0
10
20
30
40
50
60
70
80
90
2008 2009 2010 2011 2012 2013
CIE / Playtika
CIE / Buffalo Studios
Aristocrat / Product Madness
IGT / Double Down
Zynga / Spooky Cool
Novomatic / Cervos Media
Real Networks / Slingo
CIE / WSOP
Endemol / Plumbee
888 / Mytopia
MGM / MyVegas
GSN / Bingo Bash (almost)

12. 12
The Asian Opportunity. So What?
Casino Revenues in AsiaGaming Revenues by Region
Asia commands substantially
more casino revenues than
North America
Asia is already a larger gaming
market than North America
Source: The EconomistSource: New Zoo

13. 13
What’s going on in mobile? So what?
Global Internet Device Shipments Mobile Gaming Revenues 2013
Mobile is where the users are
and where the money is
Mobile gaming revenue totaled
$13b in 2013. Growth will
continue in the foreseeable
future
Source: New ZooSource: BI Intelligence

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Platforms. Oy how complex!
Distribution channels gone wild Screens and more screens
Distribution fragmentation will get
worse and the technology will need
to adapt
Mobile
TV / Console
Web / PC
Hand-Held

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Is there convergence going on?
NO!

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Content, Content, Content is King!
Proven Content. Yes Familiar Yet Diverse. Yes
Freshness. Yes Branded? Maybe
Slots are part art part science. Do your
machines have the magic sauce?
Slots Manufacturers have an upper hand.
Can you succeed without this?
Players expect your content to be fresh.
How fresh?
Playtika’s “Slots factory” launches 4-5
new slot machines per month
Is branded content important? Does it
move the needle?
ROI is questionable but it’s a good
positioning tool
Slot players (especially payers) expect to
get a “real” and “familiar” experience.
Not a mashup.
Feature diversity is critical

17. 17
2014, the year ahead
So….to summarize my 8 predictions of what’s ahead in 2014
1.The market will continue to grow
2.The current leaders will continue to lead the pack
3.The market will continue to consolidate
4.There will be a land grab in Asia and other regional markets
5.Mobile will continue to dominate the growth
6.Platform fragmentation will only get worse
7.Convergence will not happen
8.Content will remain the king

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Than you Slide
Thanks for taking your time to listen.
Playtika is constantly in the market for interesting
companies, individuals, and opportunities. Please
feel free to email me with any ideas!