THE WORLD SERIES OF PAIGOW - ExcelModels

1 THE WORLD SERIES . OF PAIGOW . Draft Business Plan Note: Names and details from the original version of this document have been changed. Revised May 10, 2014. Revised: 05/10/14, 11:18 PM Page 1. TABLE OF CONTENTS. 1. EXECUTIVE SUMMARY .. 3 COMPANY BACKGROUND .. 3 MANAGEMENT & ADVISORY 3 MARKET OPPORTUNITY .. 3 PRODUCTS .. 4 LEGALITY OF WSP .. 4 FINANCIAL OVERVIEW .. 4 2. COMPANY .. 5 DESCRIPTION OF BUSINESS .. 5 INITIATIVES AND REVENUE STREAMS .. 5 MANAGEMENT 5 SOURCES AND USES OF 6 EXIT STRATEGY .. 6 3. INDUSTRY & MARKET .. 7 GAMING PROLIFERATION .. 7 ADDRESSABLE 8 4. REGULATORY ENVIRONMENT .. 10 UNITED STATES .. 10 RECENT TRENDS .. 10 REGULATORY ENVIRONMENT IN ASIA .. 11 LEGALITY OF WSP .. 11 5. COMPANY'S LINES OF BUSINESS .. 12 ONLINE GAMBLING .. 12 TOUR & TELEVISION.

2 12 AFFILIATE LICENSING .. 12 SPONSORSHIP & MERCHANDISE .. 13 LAND-BASED EVENTS .. 13 6. MARKETING STRATEGY .. 14 PRIMARY INITIATIVES .. 14 SALES & PROMOTION .. 14 PUBLIC RELATIONS .. 15 GEOGRAPHICAL STRATEGY .. 15 7. TIMELINE & 16 8. OBSTACLES & CHALLENGES .. 18 COMPETITIVE LANDSCAPE .. 18 BARRIERS TO 19 RISK FACTORS .. 19 9. FINANCIAL OVERVIEW .. 20 APPENDIX A: GREATER CHINA OPPORTUNITY .. 21 APPENDIX B: REGULATORY ENVIRONMENT IN ASIA .. 22 APPENDIX C: CASINO TOUR PARTNER 23 Revised: 05/10/14, 11:18 PM Page 2. 1. EXECUTIVE SUMMARY. Company Background The WORLD SERIES of PAIGOW (WSP) is a gaming media company focused on expanding the popularity of Asian gaming, particularly PAIGOW Poker, through regulatory-compliant operations. WSP is the first company to build a sustainable, profitable online gaming business that complies with all laws and regulations of every Asian country in which it operates.

3 The company is focused on building a complementary set of gaming-related products and services that, collectively, will serve as an attractive, regulation-compliant foundation for larger movers in the fast-developing Asian gaming space. Management & Advisory Board Collectively, The WORLD SERIES of PAIGOW 's managers and board members have over 40 years' work experience and an extensive network of contacts in gaming and media. The founders have served in senior-level roles developing and catalyzing the online poker boom, and look to duplicate this success in Asia. Co-founder Jake Han was a Vice President of the Poker Advisors's internet division. Company president Evan Chou co-founded an online social network for poker players that was sold to PartyGaming in 2006.

4 Supporting the founders are two highly respected Asian entrepreneurs: Leo Cheong owns the Industry Casino, and Everly Ma is a former Chairman & CEO of Cloud Media Group, as well as a current and former board member for several Fortune 500 companies: Evan Chou- Founder Former Head of Backgammon and New Products at PartyGaming. Founder/CEO of DateAsia Former consultant to Poker Advisors, Industry Casino, Jake Han- Founder Former Head of Strategic Marketing at PartyGaming. Former Vice President- Online of the Poker Advisors Corp. Former Co-founder and CEO of ChipChamp Inc. Leo Cheong- Chairman of the Board Owner of Industry Casino and Metallic Park Casino Everly Ma- Chairman of the Advisory Board Former Chairman and Chief Executive of StarTV Group Former President of Gaming Systems International and Airbus Asia Market Opportunity Gaming went mainstream in the late 1990s, with the explosion of interest in poker as a participation sport and media spectacle.

5 A perfect storm of factors led to the proliferation of poker, including the movie Rounders , internet Poker websites, the televised Poker Advisors, and the victory in poker's signature event, The WORLD SERIES of Poker, by an amateur who won his entry fees by playing online. An independent estimate by Global Betting and Gaming Consultants ( GBGC') puts the global gaming market's gross gaming yield for 2006 at $ billion, up from $ billion in 2005. According to Datamonitor, Asia- Pacific alone generated $163 billion for the casino and gaming industry in 2006, which was equivalent to of total global revenues. The strength of the internet as a gaming medium and the growth in the popularity of poker as a leisure pursuit in international markets have delivered strong growth in both the number of people playing online and the total amount of revenue captured by the operators.

6 Revised: 05/10/14, 11:18 PM Page 3. Often referred to as "Chinese Poker", PAIGOW is the most widely played game in China, Japan, Taiwan, Korea and other Asian countries with high levels of play in USA and Europe. The opportunity in greater Asia is supported by significant trends: Nearly 300 million people worldwide play PAIGOW . Greater Asia is estimated to have 337 million internet users, a 235% compounded annual grown over the last seven years. China now has 23 million online game players. There were 8 million Asian viewers in the sports and games category of StarTV in 2006. Products WSP is engaged in creation of internationally-branded content, online & offline games, entertainment, and sponsorships. Specifically, the company is building a portfolio of 13 revenue-generating businesses centered on the proliferation of online gaming in Asia.

7 These businesses are grouped into several themes: Online Gambling Tour & Television Affiliate Licensing Sponsorship & Merchandise Land-Based Events The WORLD SERIES of PAIGOW focuses on Asia's most popular game in PAIGOW . WSP will use that game as an entry point into the marketplace but look to expand its operations and offerings into other popular Asian games, including: Traktor Poker Tuo La Ji ( ). Fight the Landlord Dou Di Zhu ( ). Pachinko ( ). Big Two Da Lao Er ( ). Legality of WSP. WSP has developed various proprietary business processes that will ensure that the game play is 100% fair and abides by the various regulations where WSP gaming transactions occur. Issues addressed include: Fraud Prevention Player Registration Customer Authentication Underground Gambling Such precautions will enable The WORLD SERIES of PAIGOW to attract large companies as strategic partners and potential acquirers who seek 100% legal business models for their inevitable expansion into Asia.

8 Financial Overview The WORLD SERIES of PAIGOW derives its valuation from two sources: a discounted cash flow based on company financials, and price-to-earnings ratios of similar companies. DCF Valuation: $419,414. Range of Comps Valuations: $164,115 TO $724,014. Revised: 05/10/14, 11:18 PM Page 4. 2. COMPANY. Description of Business The WORLD SERIES of PAIGOW (WSP) is a gaming media company focused on expanding the popularity of Asian gaming, particularly PAIGOW . The company owns and operates a high-stakes televised PAIGOW tour to serve mainly as a publicity tool for WSP's online properties. WSP is the first company to build a sustainable, profitable online gaming business that complies with all laws and regulations of every Asian country in which it operates.

9 Initiatives and Revenue Streams WSP is engaged in creation of internationally-branded content, online & offline games, entertainment, and sponsorships. Specifically, the company is building a portfolio of 5 revenue-generating businesses centered on the proliferation of online gaming in Asia: Online Gambling Tour & Television Affiliate Licensing Sponsorship & Merchandise Land-Based Events In addition to PAIGOW , WSP will be offering online and offline products involving other major Asian games, including Traktor Poker, Fight the Landlord, Pachinko, and Big Two. Revenue Streams are discussed in more detail in Section 4: Company's Products. Management Team Collectively, The WORLD SERIES of PAIGOW 's managers and board members have over 40 years' work experience and an extensive network of contacts in gaming and media.

10 The founders have served in senior-level roles developing and catalyzing the online poker boom, and look to duplicate this success in Asia. Co-founder Jake Han was a Vice President of the Poker Advisors's internet division. Company president Evan Chou co-founded ChipChamp, an online social network for poker players that was sold to PartyGaming in 2006. Supporting the founders are two highly respected Asian entrepreneurs: Leo Cheong owns the Industry Casino, and Everly Ma is a former Chairman & CEO of Cloud Media Group, as well as a current and former board member for several Fortune 500 companies. Evan Chou- Founder Former Head of Backgammon and New Products at PartyGaming. (London Stock Exchange: PRTY). Founder/CEO of DateAsia (Leading Asian online dating website) which raised over 20mm Former President of Amagazine (Leading Asian American print publication).