BETMAKERS TECHNOLOGY GROUP LTD — Interim / Quarterly Report 2021

Aug 29, 2021

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INVESTOR UPDATE AUGUST 2021

BetMakers Technology Group | ASX: BET

Confidential and Proprietary.

DISCLAIMER

This shareholder update is dated 30 August 2021.

The material contained in this document is a presentation of general information about the activities of BetMakers Technology Group Limited (the Company or BET) as at the date of this update.

The document is not a prospectus, product disclosure statement or other offer document under Australian law or any other law. The information is provided in summary and does not purport to be complete. You should not rely upon it as advice for investment purposes, as it does not take into account your investment objectives, financial position or needs and does not include all information which an investor may require to assess the performance, risks, prospects or financial position of the Company. These factors should be considered, with or without professional advice, when deciding if an investment is appropriate. To the extent permitted by law, no responsibility for any loss arising in any way (including by way of negligence) from anyone acting or refraining from acting as a result of this material is accepted by the Company, including any of its related bodies corporate.

This update contains “forward-looking statements”. These can be identified by words such as “may”, “should”, ”anticipate”, “believe”, “intend”, “estimate” and “expect”. Statements which are not based on historic or current facts may be forward-looking statements. Forward-looking statements are based on assumptions regarding the Company’s financial position, business strategies, plans and objectives of management for future operations and development and the environment in which the Company will operate; and current views, expectations and beliefs as at the date they are expressed and which are subject to various risks and uncertainties. The forward-looking statements contained within the update are not guarantees or assurances of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company, which may cause the actual results, performance or achievements of the Company to differ materially from those expressed or implied by the forward-looking statements. For example, the factors that are likely to affect the results of the Company include: general economic conditions in Australia and globally; exchange rates; competition in the markets in which the Company does, and will, operate; conduct of contracted counter parties; whether and climate conditions; and the inherent regulatory risks in the businesses of the Company. The forward-looking statements contained in this announcement should not be taken as implying that the assumptions on which the projections have been prepared are correct or exhaustive.

The Company disclaims any responsibility for the accuracy or completeness of the information contained in this update, including any forward-looking statement. The Company disclaims any responsibility to update or revise any information in this update, including forward-looking statements to reflect any change in the Company’s financial condition, status or affairs or any change in the events, conditions or circumstances on which a statement is based, except as required by law. The data projections or forecasts included in this presentation have not been audited, examined or otherwise reviewed by the independent auditors of the Company. You must not place undue reliance on these forward-looking statements.

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ABOUT

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BetMakers operates in more than 30 countries globally with more than 200 customers and process more than $15 billion of wagering turnover annually.

We provide racing, wagering and integrity data, software and hardware products to bookmakers, racing authorities and rights holders globally. These include the supply of an international Tote and other betting product engines and services for bet types, including Fixed Odds, that monetise horse racing for stakeholders.

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Global Tote
Digital Product and
Platforms Hardware
and Widgets Development
Data and Form and
Analytics Informatics
Managed Race
Trading Vision and
Services Streaming
Race Day
Controls and
Integrity
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PRODUCT OFFERING

BetMakers supplies tools, services and solutions for every stage of the racing and betting lifecycle, including:

• development of betting platforms and products for B2C bookmakers,

• automated creation and trading of over 250,000 races annually,

• distribution of critical race day data including race fields, scratchings and results,

• global tote hosting and co-mingling services,

• distribution of racing form, informatics and ratings to B2C bookmakers,

• retail betting hardware solutions,

• data powered integrity platforms for regulators and racing authorities, and

• content aggregation and global distribution on behalf of rights holders (live streaming).

REGULATED

• BetMakers is a regulated company holding more than 45 wagering and gaming licences globally.

• BetMakers’ Board and key officers have passed probity processes in some of the world’s most heavily regulated jurisdictions.

• Our customers operate in regulated markets, include commercial B2C operators, regulators and casinos and racetracks across the United States, Europe, Asia and United Kingdom.

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THE BETMAKERS TEAM

BOARD OF DIRECTORS

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Nicholas Chan Todd Buckingham
Chairman Chief Executive Officer
Matt Davey Simon Dulhunty
Non-Executive Director Non-Executive Director
KEY ADVISORS
Matthew Tripp Paul Bittar
Strategic Advisor Strategic Advisor
and Investor
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EXECUTIVE TEAM
Jake Henson Anthony Pullin
Chief Operating Officer Chief Financial Officer
Karl Begg Oliver Shanahan
Chief Technology Officer Chief Information Officer
Sam Adams Martin Tripp
Chief Legal Officer Chief Product Officer
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FINANCIAL OVERVIEW

BetMakers continues to have a strong balance sheet and is set up to support continued investment in growth.

FY2021 Revenue - $19.5m (+127% vs FY2020)

• Expansion across domestic platform and Managed Trading Services (MTS) clients.

• Growth of international distribution content offering reaches over 50,000 each year.

• FY21 Results include two weeks of Racing & Digital assets (acquired from Sportech PLC).

FY2021 Gross Profit - $10.2m (+61% vs FY2020) FY2021 adjusted EBITDA ¹ - negative $2.9m

• Investment in additional resources and infrastructure ahead of the curve, supporting international expansion.

• More than $2.4m invested in US operations during FY2021 (OPEX only).

30 June 2021 Cash Balance - $120.6m

FY22 Update

H1 FY2019 H2 FY2019 H1 FY2020 H2 FY2020 H1 FY2021 H2 FY2021 $'000 $'000 $'000 $'000 $'000 $'000	H1 FY2019 H2 FY2019 H1 FY2020 H2 FY2020 H1 FY2021 H2 FY2021 $'000 $'000 $'000 $'000 $'000 $'000	H1 FY2019 H2 FY2019 H1 FY2020 H2 FY2020 H1 FY2021 H2 FY2021 $'000 $'000 $'000 $'000 $'000 $'000	H1 FY2019 H2 FY2019 H1 FY2020 H2 FY2020 H1 FY2021 H2 FY2021 $'000 $'000 $'000 $'000 $'000 $'000	H1 FY2019 H2 FY2019 H1 FY2020 H2 FY2020 H1 FY2021 H2 FY2021 $'000 $'000 $'000 $'000 $'000 $'000	H1 FY2019 H2 FY2019 H1 FY2020 H2 FY2020 H1 FY2021 H2 FY2021 $'000 $'000 $'000 $'000 $'000 $'000	H1 FY2019 H2 FY2019 H1 FY2020 H2 FY2020 H1 FY2021 H2 FY2021 $'000 $'000 $'000 $'000 $'000 $'000	H1 FY2019 H2 FY2019 H1 FY2020 H2 FY2020 H1 FY2021 H2 FY2021 $'000 $'000 $'000 $'000 $'000 $'000
Revenue		2,780	3,379	4,038	4,543	7,594	11,864
- growth (HY-o-HY)			21.5%	19.5%	12.5%	67.2%	56.2%
Gross Profit		1,330	2,039	3,596	2,737	4,002	6,202
- margin		47.8%	60.3%	89.1%	60.2%	52.7%	52.3%
Loss After Income Tax		(1,786)	(1,818)	(556)	(1,584)	(4,435)	(13,024)
EBITDA		(2,185)	(590)	644	(437)	(4,761)	(13,382)
- margin		-78.6%	-17.5%	16.0%	-9.6%	-62.7%	-112.8%
Adjusted EBITDA ¹		(1,945)	(136)	574	259	(847)	(2,035)
- margin		-70.0%	-4.0%	14.2%	5.7%	-11.1%	-17.2%
Closing cash balance		301	453	2,699	31,625	68,637	120,608
Financial liabilities		(15,000)	(10,000)	(4,000)	-	-	-

• July annualised revenue run rate in excess of $70mil/year

• Note: calculated by multiplying July revenue x 12

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Note: Results include 14 days of the Racing and Digital assets acquired from Sportech PLC (completed 17 June 2021) ¹ : Adjusted EBITDA excludes impairment/recovery of receivables, share-based payments expense, and Sportech related deal costs

THE NEXT PHASE OF BETMAKERS’ GROWTH STRATEGY WILL BE DEFINED THROUGH THREE GLOBAL PRODUCT DIVISIONS

REVENUE OVERVIEW

BetMakers’ domestic business continues to deliver strong growth in FY21. This growth, along with the transformational acquisition of Sportech’s Racing and Digital assets, is expected to deliver a stepchange in revenue in FY22.

REVENUE

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$12
$10
$7.6
$8
$6
$4.5
$4.0
$4
$3.4
$2.8
$2
$-
H1 FY2019 H2 FY2019 H1 FY2020 H2 FY2020 H1 FY2021 H2 FY2021
Global Betting Services Global Racing Network Global Tote
Millions
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FY2021 Revenue - $19.5m (+127% vs FY2020)

Key revenue drivers include:

• Expansion of Platform and MTS Services clients.

• Expansion of international content offering.

• Integration of Sportech’s Racing and Digital assets delivered c.$2m in revenue in the first 14 days after completion.

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Note: Results include 14 days of the Racing and Digital assets acquired from Sportech PLC (completed 17 June 2021) ¹ : Adjusted EBITDA excludes impairment/recovery of receivables, share-based payments expense, and Sportech related deal costs

GLOBAL FOOTPRINT

BetMakers is a leader in business-to-business racing solutions globally.

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Denmark,
Norway and Russia
Finland
30+ United Kingdom 45+
and Ireland
COUNTRIES REGULATORY
LICENCES
France,
Germany, The
United States and
Netherlands
Canada
South Korea
Spain
Hong Kong and
55+ Macau 387
Turkey Vietnam
ONLINE WAGERING Puerto Rico, and EMPLOYEES
West Indies and Dominican Cyprus
OPERATORS (AT 30 JUNE 2021)
Republic
Malaysia
Peru, Argentina and
Chile
Australia
South
Africa
225+ 10
New Zealand
RACING OFFICE
PARTNERS LOCATIONS
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OUR BRANDS

Through our three global product divisions, BetMakers is now one of the leading technology providers for racing services worldwide.

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Platform Fixed Odds Data
Development Pricing Lifecycle
Managed
Form and Dynamic
Trading
Content Odds
Services
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Media and Aggregators
Wagering
Content and
Operators
Suppliers Affiliates
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Quantum™ Tote Tote Official Race Day Rights
Tote Engine Hosting Pooling Price Controls Management
Reporting
Betting Venue Interface Racing Integrity
and
Terminals Services Management Vision Platform
Analysis
Retail Online
Rights
Racetracks Wagering Wagering Racetracks Regulators
Holders
Venues Operators
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The technology engine room that stimulates and supports wagering on racing around the world.

PLATFORM DEVELOPMENT

BetMakers provides white-label bookmaker platforms and betting products to wagering operators across the world.

• Bespoke native and mobile applications

• Back-end betting and content management system

• 20+ Advance deposit wagering customers in the US

FIXED ODDS PRICING

BetMakers’ flagship product PriceManager powers the fixed odds of over 25 global racing books.

• Price management and automated trading strategies

• Proprietary racing rating and pricing model

• Market monitoring and analysis

DATA LIFECYCLE

BetMakers manages racing data for the entire event lifecycle from declaration of final field through to results and dividends.

• Normalisation

• Distribution and delivery

• Data warehousing

FORM AND CONTENT

BetMakers delivers both third-party premium content and internally built custom content for clients that stimulate wagering.

• Speed ratings, speed maps and tips

• Bespoke runner comments and race overviews

• Short and long form statistics

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MANAGED TRADING SERVICES

BetMakers provides a fully managed trading solution across fixed odds and tote-derivative betting, overseen by expert trading analysts.

• Bespoke trading solutions

• Risk liability and price management

• Customer analytics

DYNAMIC ODDS

Australia’s premium market monitoring tool for industry professionals.

• Price alerts and remote bet-slip function

• Market movement and storage of fixed odds, tote and exchange

• Over 1,500 customers

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FY21 HIGHLIGHTS

In FY21, Global Betting Services delivered material revenue growth through the acquisition of new customers and expansion of products.

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9 AUSTRALIAN PLATFORM CUSTOMERS

$1b+ ANNUALISED TURNOVER BY BETMAKERS’ AUSTRALIAN PLATFORM CUSTOMERS[*]

$14.6m revenue

+130% vs FY20

23

US ADW PLATFORM CUSTOMERS $400m+

ANNUALISED TURNOVER BY BETMAKERS’ US ONLINE WAGERING PLATFORM CUSTOMERS[*]

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• Annualised as at July 2021

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Global Tote combines one of the world’s most widely deployed pari-mutuel software and BetMakers’ global tote hosting and commingling capability to provide turnkey solutions for a growing network of over 300 racing and wagering partners.

QUANTUM[TM]

HOSTING & OPERATIONS

• Stable, scalable and reliable core engine with a proven reliability record.

• Basic and Enhanced operations services provided 24/7/365 by skilled operations personnel.

• Wide range of pools, bet types and features are supported including some of the most popular from around the world.

• Facilities in the US and Europe. Primary data centres in cloud.

• Modern data warehouse using data lakes to consolidate information from various sources.

• Extensible for adding new pools and features.

• API Gateways to facilitate global interconnectivity and third-party services.

• Feed consolidation from multiple sources.

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GLOBAL REACH

• A world leader in tote integration, BetMakers offers multiple bet-by-bet integrations directly with tote providers such as PMU, ZeTurf, ATG, and Rikstoto.

• BetMakers is the provider of World Pools for racings biggest international race meetings.

• BetMakers offers bet-by-bet into UK and interfaces geared for high volume players.

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over
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$15b AUD

Turnover / Handle processed Annually by the Quantum ™ Tote Engine

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FY21 HIGHLIGHTS

Global Tote is well positioned to become the hub of pari-mutuel wagering globally.

130+ HOSTING AND SERVICES CONTRACTS

300+ GLOBAL RACING PARTNERS

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145+ POOLING AND CO-MINGLING CONTRACTS

$1.7m revenue in first 14 days post acquisition 29k BETTING TERMINALS GLOBALLY

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The Global Racing Network provides a ‘one stop shop’ of racing data, content and integrity solutions for regulators, rights holders and racing bodies.

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Racing Bodies and Rights Holders
(Domestic and International)
Raw Data and Content
Reporting and Integrity
Analysis Platform
Race Day Rights
Official Price Racing Vision
Controls Management
Wagering Operators
Wagering Customers
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MANAGEMENT OF FIXED ODDS BETTING

• BetMakers has signed a long term deal with the Horsemen group (NJTHA) and Race track (Monmouth Park) in New Jersey to manage the roll out of Fixed Odds betting on Thoroughbreds within the state of New Jersey

DATA AND CONTENT DISTRIBUTION

• BetMakers is entrusted by racing authorities and rights holders to distribute content to bookmakers, including:

• the official price

• fields and scratchings

• official results

• live racing vision

• form, silks, runner comments

REVENUE GENERATION FOR RIGHTS HOLDERS

• Racetracks and rights holders seeking to expand into international markets trust BetMakers to be their fully licenced distributer of content.

• BetMakers provides a regulated integrity framework around distribution of all content. BetMakers doesn’t just build the network between rights holders and wagering operators, it supplies all the data and tools to promote the content so that it stimulates wagering.

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FY21 HIGHLIGHTS

In FY21, Global Racing Network experienced significant growth through the expansion of its content and distribution network.

36 COUNTRIES CONNECTED TO THE GRN

$3.2m revenue

$6.7m GENERATED IN REVENUE FOR RIGHTS HOLDERS

+44% vs FY20

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300k+

RACES COVERED IN FY21

10YR EXCLUSIVE AGREEMENT TO MANAGE FIXED ODDS IN NEW JERSEY[*]

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• : Please see the Company’s announcements dated 5 February 2020, 3 July 2020, 21 May 2021 and 22 June 2021 for further information regarding this agreement.

FY22 STRATEGIC FOCUS

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• Exploration of inorganic growth opportunities • ‘Land and Expand’ strategy to cross-sell new through acquisition or partnerships. and existing customers into all product divisions.

• • Increased focus on penetrating the US market • Continued investment in BetMakers’ global expansion opportunities. resource and technology.

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• Further development of the Managed Trading Services division including customers in US and Europe going live. • Next generation wagering technology for deployment into Australian, European and US marketplace. • Continued expansion of products and services for further deployment in Europe and US marketplaces.		• Deployment of brand-new self-service betting terminals and teller betting software. • Continued investment in Global Tote development including innovative bet-types and the creation of new pools. • Developing cutting edge technology for the full life cycle of on track betting with new self- service terminals, teller betting software and on track display screens. • Full integration of Sportech technology into the BetMakers stack. • Sign and roll out agreements with major USA and European partners.		• Initiate Fixed Odds betting on horse racing in the United States • Launch of domestic and international fixed odds racetrack partners in New Jersey. • Import / Export opportunity across customer jurisdictions. • Deployment of proprietary racing integrity and reporting platforms into new global racing jurisdictions. • Expand jurisdictions.

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US OPPORTUNITY UPDATE

BetMakers continues to make strong progress on its US growth strategy, reaching a breakthrough milestone in August with the approval of fixed odds betting on horse racing in New Jersey.

NEW JERSEY FIXED ODDS RACING BILL

• On 6 August 2021, the New Jersey Governor signed a bill to authorise fixed odds betting on horse racing in the state of New Jersey.

• BetMakers has exclusive arrangements with Darby Development LLC., the operator of Monmouth Park racetrack, and the New Jersey Thoroughbred Horsemen Association (together " NJ Partners ") to deliver and manage Fixed Odds thoroughbred horse racing into New Jersey. These arrangements mean that any wagering operator who wishes to offer fixed odds on the NJ Partners' thoroughbred racing must first enter into a commercial agreement with BetMakers.

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June 2018 First legal sports bets in the US (outside of Nevada) are taken in New Jersey.

August 2021

30 US States plus the District of Columbia have legalised sports betting or introduced legislation that will allow for legal sports betting in the near future.

NEW JERSEY SPORTS BETTING TURNOVER SINCE LAUNCH

(Cumulative, $USD)

PUSHING IN OTHER STATES

• BetMakers believes that, once the potential of fixed odds betting on racing is shown in New Jersey, other states will quickly follow (as has been the case with the legalisation of sports betting across the US).

CONTENT DISTRIBUTION OPPORTUNITIES

• BetMakers is currently working with its existing rights partners (and a number of prospective partners) on commercial arrangements that would see BetMakers distribute fixed odds betting on interstate and international racing to wagering operators in New Jersey.

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$18
$16
$14 Over $17 billion USD has been
$12 wagered in New Jersey since sports
$10 betting was legalised in June 2018.
$8
$6
$4
$2
$0
Billions
Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21
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Source: https://www.njoag.gov/about/divisions-and-offices/division-of-gaming-enforcement-home/financialand-statistical-information/monthly-press-releases-and-statistical-summaries/

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Jane Morgan Investor Relations Direct : +61 (0) 405 555 618 Email : investors@betmakers.com betmakers.com