Post on 09-Jan-2017
transcript
The first marketplace to buy and sell Las Vegas sportsbook tickets
PROBLEM
Your bet wins, and you win 100% of it1
2 Your bet loses, and you get nothing
Without a third option, bettors are leaving
billions of dollars on the table every year
Sports bettors only have 2 options:
Bet Lose
sBet
Wins
EXAMPLEYou bet $100 on the NY Giants to Win the Super Bowl a few weeks
ago at125:
1
After a 3 game winning streak, the Giants are now at
What if you could sell your 125:1 bet to a willing buyer? If someone likes the Giants at 20:1, then they would love
So, you list your bet for $400 (30/1) and enter…
20:1
30:1
SOLUTION
Bettor sells their bet on PropSwap
Buyer “beats the book” by getting better odds than in the casino
PropSwap takes 10% commission of the Sale Price
HOW DOES SELLING WORK?
Users drop their betting slips off by meeting us in-person
Non-Nevada residents mail their slips in
Automated kiosks located in major sportsbooks
TOMORROW (WITH YOUR INVESTMENT)
TODAY
Users deposit slips in kiosk during Las Vegas visit. Then use our iOS app to list for sale
HOW DOES BUYING WORK?
Buyers purchase slips in-person with cash/credit card
Non-Nevada residents mail in money order to PropSwap
1. Buyers use our iOS app to purchase betting slips
TODAY
TOMORROW (WITH YOUR INVESTMENT)
2. Buyers then have option to re-sell their slips, all within the app
MARKET SIZE
$500 billion is bet on sports every year in America
47 million people placed some type of sports bet in 2015
Sources: Nevada Gaming Control Board & American Gaming Association
$4.23 billion wagered legally on sports in Nevada in 2015 (record high)
TIMELINEApr MarSept Oct
o PropSwap receives “non-jurisdictional” classification from GCB
o PropSwap launches operations in Nevada
o Friends/Family round of financing closes. Paid-in capital of $50,000
o CG Technology agrees to allow PS operations within the Venetian Sportsbook
o Automated kiosks installed in CG Tech sportsbooks
20162015
Dec
o Buyers located inside Nevada able to purchase bets via app
Jan
o Buyers located outside of Nevada able to purchase bets via app
2017
PRESS “This is one of the coolest things I’ve seen in sports betting.”
“An intriguing secondary sports betting market has emerged in Las Vegas.”
“It’s like StubHub meets Wall Street, but with tickets bet at the sportsbook.”
“Service allows sports bettors to sell wagers, profit regardless of outcome.”
LEGAL
Thus, PropSwap does not require a gaming license to operate in Nevada
(unlike sportsbooks and daily fantasy operators)
Our next step is to undertake a national legal analysis, to determine what methods of payment our Buyers can use in each state
Nevada Gaming Control Board has classified PropSwap as “non-jurisdictional”
MARCH MADNESS RESULTS
Unique visitors to PropSwap.com 7,383
Registered Users• Increased our User base 3x • Conversion rate of 12.4%• Bounce Rate of 28% (industry avg 40-60%)We acquired users in (almost) every state1) Nevada – 107 users2) New York – 103 users3) California – 97 users
49/50
916
March 17 – April 4
EQUITYWhat we need
Total Valuation
Equity Available
$315,000
$6 Million
5.25%
USE OF FUNDS
Working Capital
$100K
App Development
Sales/Digital Marketing
$45K
$80K
Legal Support $90K
$450 Million
$450 Millio
n$562.
5 Millio
n
PROJECTIONS
$3 Billion
$112.5
Million
2015 Total wagered on
sports that was OTC (i.e., “paper bet”) at Nevada
casinos
We assume 15% of these
bets are Parlays,
Futures or Props - bets
most applicable to
our model
Let’s assume $225 Mn of those bets decrease in
value by half
We believe 5% of these bets will be sold,
twice each, on PropSwap
Let’s assume $225 Mn of those bets increase in value by 2x
$56 Million
Generating $5.6 Mn of Revenue in
FY2017
10 %
5% x $562.5= $28 Mn
$28 x 2 = $56 Mn
PRODUCT
Available Inventory Click to see details
Converting bets made on a sportsbook app into paper slips, and sold on PropSwap
Selling bets by sending PropSwap a photo of their ticket
Automatic validation of betting tickets via API connection with sportsbooks
ON THE HORIZON
Founder Founder Developer
TEAM
Ian Epstein
Employed by Cantor Gaming for 3 years;
Business Management degree from University
of Arizona
Luke Pergande
Employed by Bloomberg for 3 years; Finance degree from University of
Arizona
Marcos Polanco
20+ years of coding experience, Trained at Stanford University
THANKS FOR YOUR TIME
Luke Pergande
o luke@propswap.com
o (847) 226-1663
Ian Epstein
o ian@propswap.com
o (847) 302-2272