PowerPoint Presentation

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3 Vectors of Social Casino Evolution in Asia Pacific

John B. LinManaging DirectorPlayStudios Asiajohn@playstudios.asia

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PlayStudios is a Top 10 global revenue leader in Social Casino

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Through our proprietary Rewards platform, we offer real world rewards from best-in-class destinations in casino resorts, travel, and entertainment

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Asia Pacific is by far the largest and fastest growing mobile games arena worldwide, with 2 of the top 3 largest individual markets globally

CHINA$6.5bn+46.5%$10.0bnNORTH AMERICA$6.5bn +15.1%Source: NewZoo, Japan MGF, Talking Data 2015 figuresWESTERN EUROPE$3.7bn+12.0%4

JAPAN$6.2bn+5.8%$9.5bnKOREA$1.9bn+8.7%REST OF APAC$1.8bn+69.1%ANZ$0.6bn+12.0%APAC$17.0bn+24.5%$23.8bn

5Source: Superdata Research...but Social Casino revenues in Asia Pacific are still only ~1/2 of North America

2016EASIASOCIAL CASINO REVENUE$926mm2016ENORTH AMERICASOCIAL CASINO REVENUE$1.7bn

The Asia Pacific social casino environment is highly fragmentedCHINAJAPANKOREAANZTAIWANHKSGPSEAdiscoveryIndependent Android app storesiOS, GPSiOS, GPSiOS, GPSiOS, GPS, myCardiOS, GPSiOS, GPSiOS, GPS, independentspaymentsWeChat, Alipay, CarrierCredit CardCredit CardCredit CardCredit Card, Pre-paid Card, CarrierCredit Card, Pre-paid CardCredit Card, Pre-paid Card, CarrierPre-paid Card, Carrier, Bank TransfersocialWeChatLINEKakaoFacebookFacebook, LINEFacebookFacebook, LINELINE / Viber / Tango / FacebooklanguageSimplified ChineseJapaneseKoreanEnglishTraditional ChineseTraditional ChineseEnglish, Trad ChineseThai, Bahasa, VNRegulatory Unwritten sensitivity to Baccarat and Slots, licenses required MOF, SARFFTNo regulations or restrictions on Social CasinoLicensed and Highly regulated Bet, loss, purchase limitsNo IAP on house-banked gamesFew regulations or restrictions on Social CasinoFew regulations or restrictions on Social CasinoFew regulations or restrictions on Social CasinoFew regulations or restrictions on Social CasinoFew regulations or restrictions on Social Casino

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7The largest markets in Asia Pacific are led by native operators; SEA has been more open and competitiveChinaJapanSouth KoreaAustraliaTaiwanSingaporeMalaysiaHong KongIndonesiaThailandPhilippinesVietnamMade inDeveloperGame Type120n/a202116161020192122CNTencentLandlord227n/a222726251725262230CNTencentMahjong3n/an/an/a1928n/a13n/an/an/an/aCNTencentCardsMobage Slotsn/a1n/an/an/an/an/an/an/an/an/an/aJPButterfly CorpSlotsCommSeed Slots302n/an/a32n/an/an/an/an/an/an/aJPCommseed & GREESlotsTokyo Casino Colopln/a3n/an/an/an/an/an/an/an/an/an/aJPColoplCasinoNETn/a4n/an/an/an/an/an/an/an/an/an/aJPSEGAMahjongSLOTn/a5n/an/an/an/an/an/an/an/an/an/aJPUniversal EntSlotsNeowiz Pokern/a351303131293127252621KRNeowiz GamesPokerNHN Pokern/an/a2n/an/an/an/an/an/an/an/an/aKRNHNPokerNetmarble Pokern/an/a3n/an/an/an/an/an/an/an/an/aKRNetmarblePokerLet's Vegas Slots2534n/a211246817222410TWUserJoySlotsn/an/an/a3123330n/a31282828TWGalaxy OnlineSlots161330n/a2631924923202316TWGameSofaMahjongHeart of Vegas1218n/a1145106871111USProduct MadnessSlotsSlotomania108n/a2111132331Israel + USPlaytika / CaesarsSlotsHouse of Fun611n/a3133757256Israel + USPlaytika / CaesarsSlotsFaFaFa Slots822n/a772423127TaiwanIGSSlotsZynga Poker1810n/a8104271412USZyngaPokerFull House Casino2931n/a23863114132024KR HKME2ONSlotsDoubleDown Casino1521n/a924132026111268NE USIGTCasinoPokerist: Texas Poker912n/a192299121011193UKKamaGamesPoker

Source: App Annie, Jan 15 June 16

The big 3 markets are dominated by native operators, that are offering their games in native languages only. TW and Australia are as well. In the remainder of the markets, SEA, you see that the Western operators, Sloto, House of Fun, Fa Fa Fa, Zynga, have made early in roads and have leadership positions with essentially unlocalized markets.China, Japan, Korea led by local operators who havent crossed over to other markets / Tencent with top 3 CN games in ChinaGREE, SEGA, Colopl in JapanSEA, ANZ markets have been a free-for-all and Western games have pushed to seize early market shareSlotomania, House of Fun, FaFaFa, Zynga Poker, Heart of VegasCulturalization is rare: only 4 games offer in more than 1 language

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Vectors of Evolution for Social Casino in AsiaChannel

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9Discovery and Payment Channels in key markets are disaggregated and led by native channelsSource: umengChina - Android App Store Market ShareTaiwan - Payment Channel Composition of #1 Grossing Casino game

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10Grossing Rankings of Western Social Casino games / SEA / 2015-2016SingaporeMalaysiaHong KongIndonesiaThailandPhilippinesVietnamHeart of Vegas5106871111Slotomania1132331House of Fun3757256FaFaFa Slots2423127Zynga Poker4271412

Source: App Annie, Jan 15 June 16

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Vectors of Evolution for Social Casino in AsiaChannelCulturalization

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12Zynga Poker

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13Fa Fa Fa

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myVEGAS Slots

myVEGAS Lucky Life

We established a fully-resourced, autonomous team in Hong Kong for our Asia effort, including product, engineering, marketing, and rewards verticals in mid 2015.We soft-launched our first app, myVEGAS Lucky Life, to selected Asia markets this summer.As you can see here, our approach has been to preserve many of the conventions and balance of the original myVEGAS Slots UI but to culturalize the app via palette, language, re-theming, and other visual, dialog, and sound adjustments14

15We have culturalized our Rewards offering with Asia destinations and experiences

Many of you are familiar with our signature Rewards platform that is consistent across our apps, through which we offer Real World Rewards through our own loyalty program. Players may redeem their loyalty points for exciting experiences such as tasting dinners at Wolfgang Puck, Suite hotel stays at the MGM Grand Las Vegas, and even unique experiences like designing and operating the fountain show at the Bellagio Las Vegas.We have invested a substantial effort to attract, recruit, on-board, and offer Rewards that are relevant and within geographic reach of our target Asia audiences. Partners such as Genting Highlands in Malaysia, MGM Macau, Resorts World Manila, Prive Group of high end restaurants in Hong Kong, Shinyeh dining experiences in Taiwan, and others allow us to present aspirational rewards to our player base.15

16Excalibur

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17Betrock

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Fortune Charms

With Fortune Charms, we followed a different approach 100% ground up game design, including bonus, math, theme, sound design and language18

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myVEGAS Lucky Life Coin In

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Vectors of Evolution for Social Casino in AsiaChannelCulturalizationGenre

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21Mobage Slots

Mobages Super Sea Story slot app, the #1 social casino game in Japan, is typically rich and dense and takes some cues from the real-world pachinko world, like choosing your seat, and slam stopping the reels like a pachislot game.21

22In the real money casino market of Macau, baccarat dominates as the preferred game, developing ~20x revenue of slots Source: Direccao de Inspeccao e Coordinacao de Jogos, Macau SARMillions of Macau Patacas

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23Tencent Mahjong

Mahjong is a near universal game among ethnic Chinese throughout the world; Tencents version shown here is dominant in China. You can see that they offer a couple regional styles. Boyaa and Ourgame also operate notable versions of these. The question that we and other developers have to ask ourselves is:- In markets like China, we are battling the complexity of the distribution and payment ecosystem, as well as the dominance of Tencent. Is there an angle or feature or gameplay that we can add to differentiate our Mahjong or DDZ app versus these early and entrenched players?23

24Original Chance-based Game Genres

Game of Dice combines the unversally understood mechanic, Dice / Monopoly with RPG progression, collection, and character building featuresFishing Joy introduces the proposition economics of a slot game via a shooting mechanic; this game, of course, is widely known via its presence in entertainment centres throughout China.24

Vectors of Evolution for Social Casino in AsiaChannelCulturalizationGenrePlayerAppetite for Content and DepthWillingness to monetizeChoicesContinuous improvement in Device Quality / Wifi / 3-4-5G coverage

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