Having  successfully placed AUD  1Mil  in 2013 our Australian client  has re mandated BoxRED/Merkin.  Our client is an Australian company bringing an integration of new and innovative online wagering and social gaming products to the Australian market. BoxRED are to identify and facilitate the introduction of  global investors and/or strategic investors to place a further  AUD5Mil in a pre IPO capital raising.

Our client has identified opportunities through the integration of on-line wagering and social gaming assets in Australia and Europe in 2013.

The Company’s asset structure is underpinned by:

• A registered and approved Northern Territory (NT) sports betting license
• A socially responsible wagering model which ensures only modest potential losses for customers but significant benefits for the communities through partnerships with key charities and similar organisations
• Development of three products ready for commercialisation
• Commercial pilot of first product conducted in 2012
• First product commences December 2013
• Industry expertise to launch and commercialise these products
• Our client will be the first to launch this online product offering into the Australian market – in competition with established “traditional”, popular products such as State Lotteries and LOTTO draws
• IPO on the ASX planned for H1 CY2014 subject to market conditions
• Licence provides protection and asset value – approved and registered NT sports betting license
• Significant market opportunity – Australian lotteries has ~$6bn turnover pa – targeting 5% of that
• Early mover advantage in Australian market – no direct competitor
• Socially responsible online wagering model – new and innovative to Australia but proven and established overseas
• Compelling commercial model – low capital intensity and highly scalable
• Specialised and experienced management team in place to launch and commercialise products and drive company growth
• Limited issue – Plus Connect holds 1 of only 11registered and approved NT sports betting licences (other holders include NT TAB, Centrebet, Betstar,Bet 365, etc)
• Recent M & A activity by major betting houses acquiring business holding these licences demonstrates high underlying value of these licences
• Our client has a unique way to legally offer Australian residents a suite of lottery based products and social network cash games nationwide
• Key terms of licence:

 5 years (annually reviewed)

10% turnover tax to NT, indexed and capped at <$250k per annum

Unlimited number of products or extensions

Weather Lottery approved (YARZii and LottoPLUS – pending)

Conditions of game includes min. age 18 years

• NT licences are proven business and investor propositions yielding buyouts of $100m+

Our client is targeting the Australian traditional lotteries market, the online charitable lottery market and the social media gaming sector.

Proven management and board – known to us for 15 years.

Statistics on Australian Lottery and Keno Market:

• c.$6.7 billion annual turnover (according to IBISWorld Lotteries in Australia Feb 2012 Report)
• Current online lottery and keno share of this market is ~ 5% (c$0.3 billion in turnover)
• World industry standard for online gaming take up is ~15%

Interested parties should contact Sean Rothsey to register their interest and to discuss the potential investment. Normal confidentiality arrangements are required as a prelude to the provision of further information.

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https://www.merkin.com.au/?p=1514