Fourth Quarter and Full Year 2025 INVESTOR PRESENTATION 1 Forward Looking Statements Certain statements made in this presentation contain forward-looking information within the meaning of applicable securities laws, including within the meaning of the Private Securities Litigation Reform Act of 1995 ("forward-looking statements"). Words such as "strategy," "expects," "continues," "plans," "anticipates," "believes," "would," "will," "estimates," "intends," "projects," "goals," "targets" and other words of si ...

Group 1 - A study from Northwestern Mutual indicates that 50% of adults now consider themselves "financially secure," up from 44% a year ago [1] - Financial discipline is on the rise, with 53% of individuals identifying as disciplined planners, recovering from a post-pandemic low [1] - Despite the overall improvement in financial security, younger generations are increasingly engaging in high-risk investments as a reaction to feeling financially behind [2][4] Group 2 - Younger adults, particularly Gen Z, are turning to high-risk assets like cryptocurrency and sports betting, with nearly one-third already invested or considering investment [4] - The motivation for these investments stems from a belief that traditional methods of wealth accumulation are too slow, with 80% of Gen Z and 75% of Millennials feeling financially behind [4][5] - High-interest debt, such as $10,000 in credit card debt at 24%, significantly hampers wealth-building efforts, emphasizing the need for debt consolidation to improve financial strategies [6]

Core Viewpoint - DraftKings Inc (NASDAQ:DKNG) is attempting to recover from its post-earnings lows, influenced by a bipartisan bill introduced by U.S. Senators that aims to ban sports betting from prediction markets, impacting its market share [1] Group 1: Stock Performance - DKNG stock is currently trading at $24.57, reflecting a 3.8% increase [1] - Despite the recent rally, DKNG shares have declined by 28.6% in 2026, with a low of $21.01 reached on February 13 [2] - The stock is now testing its descending 40-day moving average following the recent price movements [2] Group 2: Market Dynamics - Competitors like Kalshi and Polymarket have captured significant market share from sportsbooks, contributing to the challenges faced by DKNG [1] - Flutter Entertainment (FLUT), a sector peer, has also seen a 6% increase in stock price today [2] Group 3: Options Activity - Call traders are responding positively to the current price action, with over 25,000 calls traded, which is double the average intraday volume [3] - The April 27.50 call is the most popular among traders, with new positions being opened at the weekly 3/27 26-strike call [3] - DKNG's Schaeffer's Volatility Scorecard (SVS) is rated at 95 out of 100, indicating that the stock typically exceeds volatility expectations [3]

Financial Data and Key Metrics Changes - Codere Online reported a record Net Gaming Revenue (NGR) of EUR 224 million for the full year 2025, with Adjusted EBITDA reaching EUR 13.8 million, more than double the previous year [4][12] - In Q4 2025, NGR was EUR 60 million, a 15% increase compared to Q4 2024, marking the highest quarterly NGR in the company's history [5][10] - Adjusted EBITDA for Q4 2025 was EUR 6.7 million, significantly up from EUR 1.9 million in Q4 2024, resulting in an EBITDA margin of approximately 11% [12][13] Business Line Data and Key Metrics Changes - Casino operations accounted for 64% of total NGR in Q4 2025, while sports betting contributed 36%, consistent with previous quarters [5] - The average monthly active users reached approximately 177,000 in Q4 2025, a 20% increase year-on-year, indicating strong customer acquisition and retention [6][12] - The average monthly spend per active user was EUR 114, about 4% lower than the same period last year, reflecting a more diversified customer base [6] Market Data and Key Metrics Changes - In Mexico, NGR grew by 31% year-on-year to EUR 32.8 million, driven by a significant increase in active customers [10][15] - Spain's NGR increased by 7% to EUR 24.5 million, supported by a 14% rise in the number of active customers [14] - Other markets, including Colombia, Panama, and Buenos Aires, contributed EUR 3.5 million, a 25% decline from the previous year due to a 19% tax on deposits in Colombia [11] Company Strategy and Development Direction - The company plans to guide NGR for 2026 in the range of EUR 235 million to EUR 245 million, reflecting confidence in continued growth despite recent regulatory changes [9][18] - Codere Online aims to optimize marketing efficiency and maintain profitability while investing in customer acquisition, particularly in Mexico, which is seen as a key growth market [8][19] - The company is focused on leveraging its brand and expanding its customer base in Mexico ahead of the World Cup, while also maintaining a disciplined approach to marketing spend [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's ability to grow profitability in 2026 and beyond, despite challenges faced in 2025 [4][9] - The regulatory environment in Mexico remains uncertain, with ongoing discussions about federal regulations and tax implications, but management does not foresee significant risks to revenue generation [26][34] - The company is optimistic about the impact of the World Cup on its operations and marketing strategies, anticipating increased engagement and customer acquisition [19][34] Other Important Information - The company has executed a share buyback program, purchasing approximately 391,000 shares for around $2.7 million, reflecting management's confidence in the business's medium-term outlook [8] - Codere Online ended 2025 with EUR 50 million in total cash, with EUR 45 million available for operations and investments [16] Q&A Session Summary Question: How competitive is Spain currently on promotional activity, and are margins stabilizing in that market? - Management noted that Spain remains competitive but is stabilizing, with growth in the customer base achieved through current promotional activities [23][24] Question: Can you update us on the regulatory environment in Mexico? - Management indicated that there is no new information on federal regulations, and while two major competitors have been shut down, online business remains unaffected [26][27] Question: Can you walk us through the financial impact of the Mexico tax hike on guidance? - Management acknowledged the tax increase as a negative factor but emphasized that they have implemented mitigation measures to minimize its impact on revenue and EBITDA [33][34] Question: What are the implications of the VAT tax removal in Colombia? - Management is cautious about investing in Colombia until it is confirmed whether the VAT removal is permanent, but they are seeing positive trends in player engagement [42][43] Question: What competitors are rumored to be entering the Mexican market? - Management mentioned several companies, including Hard Rock and Sportium, as potential entrants into the Mexican market, but noted that the competitive landscape remains stable for now [54][55]

Financial Data and Key Metrics Changes - In 2025, the company achieved record revenue of $1.13 billion, representing a 23% year-over-year growth, exceeding the high end of the raised guidance range [5][18] - Adjusted EBITDA grew by 66% year-over-year to a record of $153.7 million, also exceeding the high end of the raised guidance [6][20] - Net income increased significantly to $74 million in 2025, compared to $7.2 million in 2024 [6] Business Line Data and Key Metrics Changes - North American monthly active users (MAUs) grew 37% year-over-year in Q4 to over 278,000, with online casino MAUs increasing by 51% [6][22] - Latin American MAUs grew 47% year-over-year in Q4, reaching over 493,000 [7][22] - Online casino revenues grew 30% in Q4 and 28% for the full year, while online sports betting revenue grew 20% in Q4 and 7% for the full year [24] Market Data and Key Metrics Changes - North American revenue grew 29% in Q4 and 25% for the full year, while Latin American revenue grew 17% in Q4 and 12% for the full year [24] - North American ARPDAU declined 5% year-over-year, while Latin America ARPDAU was down 21% due to bonusing strategies in Colombia [22][23] Company Strategy and Development Direction - The company maintains a casino-first strategy, focusing on online casino markets which have shown exceptional growth [10][11] - Plans to increase investments in differentiated casino content and online casino legalization efforts in 2026 [12] - The company is optimistic about upcoming market expansions, particularly in Alberta, and continues to evaluate opportunities in North America and Latin America [15][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory and strategic positioning, highlighting the successful navigation of regulatory challenges in Colombia [12][15] - The company anticipates a strong performance in 2026, with revenue guidance of $1.375 billion to $1.425 billion, representing growth of 21%-26% year-over-year [28] - The new tax environment in Colombia is expected to have a less punitive impact on profitability compared to previous years [25][26] Other Important Information - The company ended 2025 with $336 million in cash and generated $142 million of cash during the year [26] - Marketing expenses were optimized, with a 2% year-over-year increase for the full year, reflecting a decrease in marketing spend as a percentage of revenue [19][20] Q&A Session Summary Question: Impact of Colombia's tax on revenue and EBITDA - Management indicated that the VAT tax on deposits in 2025 resulted in about $75 million of incremental bonusing, costing approximately $25 million-$30 million in EBITDA [33][35] Question: Timing of Alberta launch and market share in Ontario - The Alberta launch is expected around the end of Q2 or early Q3, with current casino share in Ontario being mid to low single digits [39][40] Question: ARPU trends and cohort analysis - Management noted that without the deposit tax bonusing, a rebound in ARPU is expected, particularly in Colombia, with Mexico becoming a more significant part of the business [45][47] Question: Investment in content and legalization efforts - The company is focused on enhancing its content library and increasing lobbying efforts for iCasino legalization [49][53] Question: Minimum bet strategy in Illinois - The minimum bet increase was not directly in response to the Chicago tax, and the company may consider similar strategies in other markets [55][56] Question: Prediction markets and potential cross-sell opportunities - Management is monitoring prediction markets closely, noting potential cross-sell opportunities between prediction markets and traditional gaming products [64][91]

Core Viewpoint - Flutter is recognized as one of the largest online gambling operators globally, with significant market shares in both sports betting and iGaming across established markets and emerging regulated markets [1] Group 1: Market Position - Flutter holds leading positions in mature markets such as the UK, Ireland, Australia, and Italy [1] - The company is also expanding its presence in faster-growing regulated markets, notably the United States and Brazil [1] Group 2: Growth Potential - The US market represents a significant opportunity for Flutter, indicating potential for future growth [1]

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Rush Street Interactive (NYSE:RSI) FY Conference Summary Company Overview - **Company**: Rush Street Interactive (RSI) - **Industry**: Online Gaming and Sports Betting Key Points Business Performance and Growth - The company has experienced remarkable growth in customer acquisition and market share, particularly in the casino segment, due to a focus on delivering a premier customer experience and leveraging proprietary technology [3][4] - Monthly active users in North America grew by 34% in Q3, with online casino markets seeing a 46% year-over-year growth, marking the fastest growth in four years [8] - First-time depositor records were achieved in Q3, up 10% from the previous quarter, indicating effective marketing strategies [9] Competitive Environment - The competitive landscape has become more rational, with competitors increasing focus on online casino offerings [8] - The exit of ESPN BET from the market has not significantly impacted RSI's business, as it held a small market share [10] - The company is focusing on its strengths in the casino market while competitors are diverting resources to prediction markets, which are currently highly competitive [12][13] Market Trends and Predictions - The company anticipates continued growth in the casino segment, with a focus on international markets, including Latin America [4][13] - The upcoming World Cup is expected to drive significant customer acquisition, particularly in sports betting, which could also convert new users to online casino offerings [58][59] - Legislative changes are anticipated, with states like New York and Virginia showing interest in iGaming legalization, which could present new opportunities for RSI [32][37] Regulatory Environment - The company is monitoring the impact of prediction markets and potential regulatory changes, emphasizing that these markets are unlikely to affect their current operations significantly [18][26] - In Colombia, a new tax structure has been implemented, which is expected to improve profitability compared to the previous tax regime [45][48] Financial Outlook - EBITDA margins have shown significant improvement, moving from -16% in 2022 to 13.5% in 2025, with expectations for further growth in 2026 [69][70] - The company aims to achieve low to mid-20% EBITDA margins in the long term, contingent on the launch of new online casino markets [71] Technology and Product Development - RSI has optimized the user journey to reduce friction in the sign-up process, which is expected to lower customer acquisition costs [72] - The company continues to innovate with new features and products, enhancing the gaming experience and maintaining customer engagement [74][76] Strategic Focus - The company is committed to maintaining a strong ROI by focusing on casino growth and leveraging its unique product offerings to differentiate from competitors [13][64] - RSI is excited about its roadmap for 2026, which includes expanding into new markets and enhancing existing product features [78][79] Additional Insights - The company has successfully managed to grow its customer base while simultaneously reducing acquisition costs, a rare achievement in the industry [66] - The focus on localized marketing strategies has proven effective in reaching target demographics that are often overlooked by larger competitors [65] This summary encapsulates the key insights and strategic directions discussed during the Rush Street Interactive FY Conference, highlighting the company's growth trajectory, competitive positioning, and future opportunities in the online gaming industry.

Market Trends & User Behavior - Prediction market business presents upside for the fintech space, with Robinhood and Coinbase users nine times more likely to participate than non-users [1] - Survey data indicates that users betting on sports are the same people buying equities and crypto [2][3] - Gen Z views buying crypto as investing, and potentially sports betting as investing as well [5] - Combining investing, prediction markets, and sports betting may blur the lines between wealth building and gambling [6] Regulatory & Risk Considerations - The new administration's policies may be contributing to the ease of access to crypto and gambling/betting [2] - Concerns exist regarding the lack of guardrails and potential regulatory changes in the future that could separate these activities [7] - Sports betting carries risks and enters users into the gambling world [6] Company Strategy & Financial Implications - Robinhood and Coinbase aim to provide a one-stop shop for users betting on sports, crypto, and equities [8] - Robinhood's numbers are projected to increase by 6-7% due to the launch of sports betting on the platform [8] - 37% of the average Coinbase user is likely to sell crypto rather than put in fresh money for sports betting, potentially leading to self-cannibalization [9] - Caution is advised regarding Coinbase's entry into betting/prediction markets due to potentially dilutive take rates compared to crypto [10]

Core Insights - The iGaming market has experienced significant growth, driven by an increase in online players and the number of real money online casino sites, resulting in a multi-billion-dollar industry [1] Company Analysis - **Flutter Entertainment PLC**: Stands out due to its portfolio diversification across online casinos, sports betting, and daily fantasy sports, serving a wide audience in various regions including Europe, Australia, and the emerging US market [2][3] - **DraftKings**: Has established a strong presence in the US market through aggressive marketing and diversification into casino games and sports betting, leading in user numbers [4] - **Entain PLC**: Benefits from a strong position in regulated markets, particularly in Europe, which has provided sustainable revenue streams and includes well-known brands like Ladbrokes [5] - **Evolution Gaming Group AB**: Focuses on strategic acquisitions and investments in live casino technology, becoming a leader in B2B live casino and slot development [6] - **Bet365**: Excels in online sports betting, casinos, and bingo, with a strong emphasis on market expansion and deep penetration in the UK, Europe, and newly regulated markets like the US [9] - **Kindred Group**: Promotes safe gambling and corporate responsibility, enhancing its market share in Europe while offering diverse services through brands like Unibet [10] - **888 Holdings**: Utilizes diversification and strategic acquisitions of international assets, maintaining a dominant position in a competitive landscape [11] - **Betsson AB**: Focuses on emerging markets with high growth potential, particularly in Latin America and Central and Eastern Europe, while diversifying its services and brands [12] - **Playtech PLC**: Provides full-service B2B software solutions for online casinos and sports betting, adapting to changing regulations and creating solutions for new markets [13] - **Rush Street**: Offers online casino and sports betting services through brands like BetRivers, utilizing a unique platform for cross-selling and a localized approach in the US and Latin America [14] Industry Trends - Successful iGaming companies prioritize high-quality services, market diversification (geographically and through products), and unique strategies to attract and retain customers [15]