We design customer acquisition and retention software for gambling operators and media companies.
Business overview
| Location | Edinburgh, United Kingdom |
|---|---|
| Social media | |
| Website | www.incentivegames.com/ |
| Sectors | Games Digital Mixed B2B/B2C |
| Company number | SC464201 |
| Incorporation date | 21 Nov 2013 |
Idea
Introduction
We create customer acquisition and retention tools for media companies and the gambling industry.
Premier Punt began as a fantasy football betting website and app.
However, the company has made several Business to Business (B2B) deals which are more lucrative than the Business to Consumer (B2C) revenues. The company has now pivoted to focus on these B2B deals and uses the UK Operation (B2C) as a live testing environment. Once the products have been tested in the UK we license it to partners both abroad and in the UK.
We create apps which allow users to experience social betting with a natural segway into actual gambling. For our flagship B2C product, Premier Punt, we attract users by providing a free-to-play fantasy tournament before upselling sportsbook and casino. We tailor sportsbook bets to each user based on their 6-a-side line-up.
We have several other products in development and we work with our clients to tailor a product that is right for them.
Intended impact
We believe the customer problem is twofold (our customer being the gambling operator).
1. Customer Acquisition Cost.
In our experience, gambling operators try to outdo each other to win every new customer.
This is why potential customers are often enticed with sign up offers that are ever costlier to operators. This strategy is not sustainable for the industry in the long term.
2. Customer Retention.
Many of these new users simply sign up for the offer and do not stay with the operator for long.
To try and solve these pain points, we have created social games, such as our fantasy football product, that act as a gateway into the experience of social betting.
Our mobile-first user interface, together with engaging social games, aim to retain the users on the platform for as long as possible by providing them with entertainment.
Substantial accomplishments to date
Below are some of our achievements from the last 12-18 months:
• 3 business-to-business deals signed and another 3 with agreed terms across 4 continents.
• One of these signed deals is with Bauer Media, one of the leading media groups in Europe, who we provided with their own app called 6-shot Fantasy Football. They were advertising it on radio stations across the country including Clyde 1, Forth 1 and Metro Radio.
• Awarded software, pool betting, and casino licenses from UK Gambling Commission.
• Over 30,000 users on our B2C platform.
• Accepted onto RBS’s Entrepreneurial Spark Programme, the world’s largest free accelerator.
• Sponsored Southampton FC in 2016/17.
• Number 1 searched app in the UK app store twice.
• Received the title of Highly Commended DFS Product at 2016 SBC Awards.
• Completed first round of crowdfunding with Seedrs in early 2017, seeking to raise £200k but actually raising c. £220k.
• Launched our Daily Fantasy Sportsbook (DFSB) product which combined fantasy football betting and sports betting.
• Integrated casino games into our app and website.
• Submitted a US patent application for the DFSB product with “patent-pending” status on it.
Monetisation strategy
We have pivoted to focus on B2B which provides us with three revenue streams:
- UK white label deals - we provide media companies/gambling operators bespoke versions of our app (white labels) with their own branding. They then market the product. We have two such deals signed in the UK, one of them being with Bauer Media, owner of household brands like Absolute Radio, Q and Mojo.
- UK sublicense deals - we sublicense our gambling licenses to companies with whom we jointly develop a product before we operate the venture in the UK.
We have agreed terms for one such deal with a fantasy stock trading platform.
- Overseas license deals - we license our software to overseas gambling operators for them to use outside the UK. We have three deals of this nature that we expect to be completed soon in 3 continents.
Typically, the revenue generated from B2B deals are by way of:
• a setup fee;
• a guaranteed monthly minimum fee; and
• a revenue share.
Use of proceeds
The fundamental areas of investment will be:
- Product development including cryptocurrency integration (44%).
- Team expansion (29%).
- Gambling licenses / legal & professional (21%).
- Marketing / talks & exhibitions (6%).
Please note that the Company has granted a total of 9,000 shares to an advisor, vesting upon certain milestones. These are not taken into account in the valuation.
Market
Target market
Our B2B target market is:
• Gambling operators in the UK and in unsaturated overseas markets;
• Media companies in the UK; and
• Overseas companies seeking a presence in the UK gambling industry with whom we can jointly develop products.
Characteristics of target market
As of March 2017, there were nearly 3,000 UK gambling operators and, to us, only one is capitalising on social gaming - Sky Betting and Gaming.
That means there are many others who could potentially benefit from having social games to offer their customers. We have spent several years honing such games, as demonstrated by our Premier Punt app, so we believe we are well placed to provide these operators with a means of engaging users in a similar fashion to Sky.
The UK remote betting sector (mostly online) is worth £4.7bn and makes up 34% of the total UK gambling market. These metrics have risen on the prior year by 11% and 2%, respectively, which we believe highlights the growth capabilities of the sector in what is an already saturated market.
We, therefore, are targeting growth regions like Africa and Latin America. It is for this reason we strategically pursued deals in these regions, agreeing terms on three.
Marketing strategy
The UK gambling industry is saturated and it was apparent that it would be unsustainable for us to compete with the big operators' marketing budgets.
This is partly the reason why we pivoted to focus primarily on B2B. We can provide clients with a white label version of our customer acquisition and retention products, branded to their specifications, which they then market themselves.
How will we market to potential B2B clients?
We plan on attending / speaking at a number of conferences and exhibitions held throughout the year in the gambling industry. We see this as an invaluable way to network with the decision-makers within businesses.
In 2018 our CEO has been invited to speak at several gaming / gambling conference panels across the globe including:
• iGaming Asia, Macau, John Gordon was part of the following panel: Explore the most innovative and alternative marketing solutions.
• Betting on Football, Stamford Bridge, John Gordon was part of the following panel: DFS – Fantasy’s last great opportunity in Eurpoe?
• World Gaming Executive Summit, Barcelona, John Gordon will be part of the following panels: Delivering successful brand engagement across multiple channels: What works and where? And Did the gambling industry miss the millennials? What can we do to ensure we reach Gen Z?
• Sports Betting West Africa Summit, Nigeria, John Gordon will be part of the following panel: The need for operators to invest in innovative gaming solutions.
• Cyprus Gaming Show 2018, Cyprus, John Gordon will be speaking on the following topic: Customer Acquisition, Upsell & Retention in 2018 and beyond. How to connect with millennials and young adults.
We also intend to employ one or two individuals with influential industry contacts whose sole purpose will be securing B2B sales.
Competition strategy
Fantasy sports products and social gaming/betting in general are beginning to be recognised within the industry as an effective way to engage and retain users. We believe only Sky Betting and Gaming in the UK is using this method to its fullest potential.
They have more than 1 million unique users on their social gaming app on a weekly basis, playing for free to win big jackpots, so they are really leading the way in this field.
We aim to replicate this success overseas in unsaturated markets with our suite of products which are all on a single platform.
The two big players in the fantasy betting sphere are Fan Duel and Draft Kings, however to our knowledge their desktop-first, weekly format has not taken-off outside of the US - where the regulations on traditional sports betting vary. Our mobile-first based apps look to bridge the gap between fantasy betting and traditional sports betting.
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