Overview  Launched officially on June 10 th 2014  Licensed and operated from Curacao  BTC in and BTC out  Casino launched in November 2014, Poker launched in March 2015  Currently building a peer-to-peer betting exchange on the blockchain using multi-sig addresses  Approx. 40% of all BTC transactions are gambling-related  Bitcoin iGaming is a massive growth industry

Advantages of BTC & BTC acceptance  Instant deposits and withdrawals – 24/7  No credit card fees and much lower overheads when operating a BTC sportsbook/casino in comparison to the legacy payments system  BTC sportsbooks can thus offer better odds – or generate more profit  No FICA/KYC/licensing or equivalent requirements  Extend acceptance to countries not reached by Visa or Mastercard  Payment method for the unbanked  No fraud or fraudulent chargebacks!  Not subject to payment embargos  Processing fees essentially zero

Global legal attitudes towards Bitcoin

Current landscape of Bitcoin in iGaming  Regulation of Bitcoin  Decentralized nature inhibits third party shutdown  Exchanges will be a focal point of government scrutiny  Pressure on larger merchants  Not currently regulated as legal tender (think of ‘play money’ poker chips)  United States – Virtual currency exchanges defined by FinCEN  Subject to AML/KYC guidelines  Licensed as money services business (federal)  Licensed as money transmitters (states)  A license is not required to operate Bitcoin gaming services

Current landscape of Bitcoin in iGaming  Various risk management strategies:  BTC-only games  BTC converts to national currencies  SatoshiDice pioneering BTC-only gambling site – April 2012 launch - Sold for 126,315 BTC in July 2013 – $12.4M USD at the time  Several major BTC-only operators – owners are anonymous to the public  BetVIP.com is the first and only licensed Bitcoin-only sportsbook  Preparing for future regulation  Transparent and thus builds trust with the consumer

Key drivers of growth  Product – Being able to move money instantly without KYC reduces barriers to client movement.  SEO – From nowhere to top 2 results for ‘bitcoin sportsbook’ and many related terms.  PR – Featured in major international publications and websites such as the Wall Street Journal, Coindesk, The Telegraph, Gambling Insider, eGaming Review etc.  Forum presence & affiliate marketing – Bitcoin is highly community driven.

Challenges  Security!  Payment processors  Understanding gambling marketing restrictions  Targeting Bitcoin owners/users – where?  Converting traditional cash sportsbook users to using BTC  CRM with a relatively anonymous userbase  Legislation/place of effective management  Support and withdrawals need to be instant 24/7  Risk management with shrewd punters

Looking to the future  Bitcoin is a democratization of the iGaming market similar to what was seen 15 years ago with the removal of upfront capital requirements and brick and mortar investments.  Bitcoin is a hyper-efficient affiliate system – payout to anyone, anywhere instantly without the need for currency exchange fees etc.  Emergence of Bitcoin regulation is a work in progress, will take many years even in leading markets like the United States  Casinos can be made ‘provably fair’  Clients do not necessarily want to be anonymous – it is quite likely that a much more efficient method of KYC will develop

Looking to the future  Gaming cannot afford to shy away from these emerging technologies as Bitcoin becomes more and more mainstream  Bitcoin ATMs will become commonplace – there is already one right here in JHB in Kyalami and they are gaining popularity around the world  Payment processors such as BitPay/Coinbase/PayPal are allowing merchants easy avenues to Bitcoin acceptance and will keep growing  Massive venture capital investments in start-ups internationally  Digital currencies are the future of online payments – but still a few hurdles to overcome

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