Everyone, welcome to the day two.
Information about our company. Historically, we have been an online casino business that started in 2021, and we are pivoting and expanding into the very exciting, exponentially larger prediction market space through a partnership with Crypto.com under the brand ROLR, Roller to match our ticker. Customary forward-looking statements. You guys can read this in your own time. Who are we? High Roller historically has been an online casino operator, started in 2021. Operating under a Curacao license and an Estonia license in many markets operating the brands Fruta and High Roller. Since then, we have experienced some significant change as a business, which started with a strategic pivot in 2025, after IPO-ing in 2024.
In 2025 in Q2, we reconstituted most of the executive team throughout the year, and we began shuttering markets in advance of this transformational change, which we experienced in January of 2026. Excuse me, when we raised $25 million through a registered direct offering, which was transformative for us as a business and very exciting for us as we move into the future. Our primary focus today is now the prediction market opportunity in the U.S. We will talk more about the TAM, the addressable market opportunity, our position therein, and what makes us different. At a very high level, one of the big differentiators that we have, and one of the things that drew me to the business, when I joined in April of 2025, taking the seat of CEO in September 2025, was the close alignment with a business called Spike Up Media.
Spike Up Media is our largest shareholder, and they are quietly over the last 16 years, one of the most prolific customer acquisition and user lead generation companies in the gaming space and other affiliate verticals at scale. For all the things that we are solving for, one of the things that we are very confident in our ability to execute upon is our customer acquisition strategy, which we have also buttressed with some other fantastic deals, which we will talk about further too. Today we have an online casino business that is operating in a handful of jurisdictions. In 2024, did about $30 million top line, 2025 about $20 million top line, and that is in the context of shuttering the vast majority of those markets.
As we wind up the prediction market opportunity, that casino opportunity is still being managed appropriately, and we have one of the widest game libraries in the world with over 6,000 games from more than 90 providers. Since September, we have really done a great job at cleaning up the inside of that casino business where every single unit economic that we have had improved despite a decline in revenue, which you might see, which is expected and easily explained. What this gives me a tremendous amount of confidence in is our team's ability to execute in a market, prediction markets, where we are effectively built for the opportunity. Many of the processes and many of the vendors, frankly, are the same in prediction markets as online casino. There are differences in regulatory nuance, but we are built for this. Great team composition.
We have taken the right repetitions over the last year and a half, and we are prepared for launch very soon. We hope to put that information out to market shortly. Today, from a licensing perspective for our online casino business, we hold an Estonian license, which allows us to operate in the jurisdictions in which we are active. We have an Ontario market license pending for online gambling, which we began last year. And we today have secured an introducing broker license from the National Futures Association, which will power our launch into the prediction market space. To clarify here, our partnership with Crypto.com sees them holding the FCM, DCM, and DCO licenses, whereas we control the customer, and we are able to plug that into their liquidity pool, so that our consumers are able to have trading capabilities straight away.
There is nothing in our agreement that precludes us from pursuing those licenses, those FCM, DCM, DCO licenses, which we can talk more about on a different call. We are exclusive to them in the United States for a period of 24 months that started in April. We are not exclusive with them internationally, and we have both a domestic and international strategy. After raising $26 million in January, $1 million through a private placement and $25 million through a registered direct offering. We reported $18 million in cash equivalents and just under $30 million in shareholders' equity as of the end of Q2. So, we are entering a tremendously large market, which Macquarie estimates will have roughly $1.5 trillion in annual contract trading volume by 2030. This market is growing significantly, the prediction market space.
This number informs a $50 billion TAM, which I will talk more about shortly. But to power our entry into this space. As I mentioned, we are working with Crypto.com. We own and will operate our technology through a relationship with mrkts.com. This technology deal that we have made, and we have been working on this, the technology profile effectively since we announced this deal with Crypto.com, though this partnership was announced recently. It also gives us the optionality to pursue online casino, online sports betting, and other gaming verticals in the future, should we choose to do so.
Spike Up Media, I just lightly referenced, we will talk more about them, and Lines.com, which is a tremendous marketing partnership for us, which will see us pursuing long-tail intent-based search efforts from a consumer perspective, adding tens of thousands of SEO-optimized pages to both our and their portfolio each month in addition to exclusivity on Lines.com and exclusivity across their social portfolio of roughly 5 million followers. Not listed here, we also have partnerships with the Forever Network, which will deliver us over 1 billion impressions. We are their exclusive prediction markets partner. They have a Comscore that is larger than Barstool Sports. I deal with Leverage Game Media, which hits our core demographic across sports, finance, and crypto, with I want to say, about 6 - 7.5 million followers across Instagram and TikTok. Those will support our launch.
We have a clear path from a licensing perspective. We have secured our guaranteed introducing broker license, and we are considering the rest of the licensing stack. As you have noticed, we are a public company with a strong capital position today. So we are coming from a tremendously large gambling market where our roots in online casino and regulated market operations are a perfect transition for our prospective entry into the prediction market space. Macquarie estimated that the $1.5 trillion in annual contract trading volume will inform a $50 billion TAM by 2030, and that is based on a 3.25% contract take rate. Some operators will have a higher take rate, some lower. This is an average estimate that they have made. We are on the ground floor. This does not necessarily tell the whole story about the TAM.
This TAM is just solely based on the contract take rate, whereas many operators are able to introduce additional fees into the fee stack, whether it is for payments or information processing and so on, which could increase the TAM. From a TAM composition perspective at scale, sports today, which dominate prediction markets and Kalshi, which is the major incumbent. Think they have claimed it is 89% of their contracts are sports-related. Do not quote me on that. The number is out there somewhere. It is estimated to be something like 44% at scale, which means that 56% of the market is non-sports, and the breadth of markets is crazy. It is finance, politics, crypto, entertainment and culture, and music, and so on.
The beauty of prediction markets is it allows consumers to trade on the outcomes of events. They can make an opinion and take a position with their cash, which is super exciting.
Oh, wrong slide. Part of the impetus of partnering with Crypto.com was to inform a turnkey entry to the space and accelerate our entry to the space. Crypto.com has the full licensing stack that allows them to both control treasury, create markets, and do the financial settlement for this non-gambling, federally regulated product. It is different than in the U.S., where you see state-by-state regulation for sports betting and online casino. Prediction markets are a financial product regulated by the NFA. National Futures Association and the CFTC, the Commodity Futures Trading Commission. This will allow us to enter 42 states via Crypto's compliance profile, access their existing trading liquidity. So our consumers will be able to plug into consumers across their network, whether it is their owned and operated brand or their other partners, which include groups like DraftKings and Truth Social, and Fanatics and so on.
Deep liquidity, which ensures that our consumers will have their markets filled. This is the beginning of our long-term strategy, and a very exciting time for us as we enter this incredibly exciting space. We talked about some of the pillars. I mentioned some of the pillars that we have in place. We have this framework in place with Crypto.com to enter the market. We have a scalable customer acquisition engine. We are starting in a position that is a bit different relative to some of our competitors. The beauty of the prediction market space in many ways is that there are so many different kinds of competitors.
For us, we are a pure play in the public markets, and as far as I know the only publicly traded entity that has a pure play exposure to the prediction market space, which means that if you believe we will have any modicum of success in this space, we do not have any other at-scale business units dragging down our projected success in this space. For example, arbitrary numbers, if we were to generate $100 million in top line on prediction markets and lose $100 million somewhere else, this is not balanced out. If we succeed, our stock performs, or at least theoretically it should. This is very exciting for us as we consider the breadth of the market. The size of the TAM, the strategic implications.
Just to give you a sense of how this can potentially pan out, if you consider that, let us say there are 50 competitors in the market, and it is roughly that. A fair share at scale, based on Macquarie's estimates, is a 2% share. That means you have a billion-dollar top-line business with infrastructure operators that analysts project will run between a 20%-45% EBITDA margin. Now, you could do the math. Obviously, every company will be different, but I think that shows you the tremendous upside that we have as a company. Look, nobody plays for second place, right?
Nobody goes into a market and says, "We want to be last." But in this case, and I said this on our earnings call, we have an incredible backstop, and I liken it to the golfer that plays on the PGA Tour and comes in 18th place every single time they play. They are making a very good living, and for our part, we are playing to win. We are getting out there. But in the downside case that we are not the market leader, we still have an incredibly strong business with a tremendous amount of upside from here.
This market is growing very fast. Just to draw your attention to some of the comps in the space for those of you that may be unaware, the two major pure-play competitors, the incumbent competitors, who I am sure you have seen some of are Kalshi and Polymarket. These numbers are dated.
Kalshi recently raised at a $20 billion valuation. They are rumored to be raising at a $40 billion valuation. Polymarket is pursuing what is rumored to be a $20 billion valuation. Massive valuations in the private markets. For us, we only see this as groups that have everything to lose while we have everything to gain. This is an important factor in what will likely be our success. Historically, we have been dependent on third parties to license us technology, and it is not operated by our team, or it is not something we can control. It is not something that we can iterate upon. In this case, we have acquired the rights to a platform, which will power our entry into the prediction market space, allow us to rapidly iterate, innovate, and control our own destiny.
For us, we have been working a tremendous amount on building infrastructure that allows us to concept and ship products, whether it is direct-to-consumer product that will be in our emerging B2C value proposition or product to support that. I couldn't be more excited about our applied AI capabilities, and the products that we are developing and that will differentiate us in the market. This platform also allows us the optionality to pursue other verticals, should we choose to in the future, whether that is online casino, online sports betting. It is worldwide, it is ours, and it is now owned and operated within our four walls. Touch briefly on Spike Up Media. I can't really overstate the importance of this partnership that we have. Spike Up as a group, their founders are our largest shareholders, and they have a tremendous amount of experience doing performance marketing at scale.
They are doing effectively our in-house performance marketing. What this means for us, and how they typically will make money as a group historically, Spike Up again, arbitrary numbers here. Let's say you are an operator, DraftKings. DraftKings may pay Spike Up $200 to deliver to them a first-time trader a first-time depositing consumer. In this case, Spike Up may be able to acquire them for $100. That means their margin is the delta between what they acquire at and what they are paid. While DraftKings, in this hypothetical example, may pay them 200, Spike Up makes 100 when they have acquired at 100. Because of this alignment that we have with Spike Up Media, our thesis that we believe to be true is that we can acquire at a more efficient customer acquisition cost to lifetime value ratio.
Given this alignment, we will be acquiring closer to cost, than with a markup, which means that we can invest more rapidly. Ideally, our payback periods are shorter so we can scale fast. Spike Up has a tremendous amount of experience doing this for 16 years. They have done it across many verticals. Historically, as a company, High Roller has a demonstrated positive return on ad spend in many markets where Spike Up is not necessarily as strong as they are in the U.S. That was basically, that was effectively a three to one value to a lifetime value to acquisition ratio. We expect this to be much higher in the prediction market space. Time will tell.
But this is a very important feather in our hat, that we couldn't be more confident in and is a huge part of the reason that I joined the company, frankly. To support Spike Up's performance marketing spend, we have made relationships with some other groups, and we are working on more additional marketing partnerships to support our launch and our expansion. The Forever Network will deliver us over 1 billion impressions to more than 50 million unique potential users or traders that can be onboarded. Leverage Game Media across 7.5 million followers on TikTok and Instagram, highly engaged followers that will very much amplify our messaging and value proposition, with strong conversion we anticipate. Couldn't be more excited about that. And with Lines.com, it's perhaps the one I'm most excited about. It's a Spike Up owned and operated property.
It's largely focused towards sports, but the unseen value that we get here is that we're investing in the long-term success of our customer acquisition funnels. As part of this deal, we will be creating tens of thousands of new SEO, long-tail intent-based search pages each month, which means that let's say somebody might search for, "How can I trade on the outcome of the gubernatorial race in California?" Ideally, we'll show up at a very high position for that. We'll be able to convert that into a trader that can now engage with markets on our site. This is a relationship which value compounds, the longer that these pages are gaining authority on Google, on other search engines.
And with Spike Up's acumen, we're able to work across other platforms that are not just Google, but to ensure that we're showing up in AI-based search as consumption habits shift from traditional to new age. It's a very exciting time for us. So great partnerships to ballast our to anchor our entry. A tremendous amount of upside as we trend towards launch. Here's a glimpse at I guess, what our product will be. Debated whether or not to say this, but I guess I will. As we look at product in the market, we think there's a tremendous amount of. We think there's an incredible ability to compete on product. There's no real great product out there. It kind of reminds me of sports betting in 2018 when everybody's product kind of sucked.
We are product experts, and we have a great opportunity to put out something that is slick, clean, fast. We're not going to let the perfect get in the way of good enough as we trend towards launch. But once we launch, we are very much going to be rapidly iterating on this product, shipping product to support it. And we think there's an ability to lead in different areas of the market, both on product and I guess verticals within this vertical. So very exciting for us to consider that. Look, we want to make a very easy, accessible experience for the trader where there's very little friction from taking an opinion to taking a position. To tie it up here, we have an incredible opportunity that we're pursuing in the prediction market space.
One and a half trillion of projected annual trading volume at scale in a market that's growing at an 81% CAGR. A massive TAM with a massive fair share opportunity that we intend to over-index on. Tremendous blue-chip partnerships in place with more brewing. A proven customer acquisition engine that we hope to continue to reinvest in. A clear regulatory path with a tremendous amount of upside to unlock additional economics, and this is both in the U.S. and international. Strong governance in place, being a public company, and really the only pure play in the public markets. We have a tremendous leadership team outside of myself. I have been in the gaming and entertainment and technology business for 20 + years. This is my second major public build. The first being PointsBet, which we took from $ 5 million to roughly $5 billion AUD on the ASX.
Prior to this, involved with many executive and founder-based roles across all shades of market. We've seen this movie before. Supported by a tremendous team, all experts in their field. Adam Felman, who's an amazing CFO. Jake Francis, one of the best executors and operators in the business. Carlo Scappaticci, who has a tremendous resume as a marketer. Andrew Walter, who's a former regulator in Connecticut. Thomas Scaria, our new Chief Product Officer, who does not have a gambling background. Tremendous finance, crypto trading background. We have all come together for this opportunity. We're all working in tandem. We all want the same thing. We have a team that represents stability and a team that's looking at it from many different angles to put out an amazing product with an incredible plan to execute on. I have all the faith and confidence that we will be successful post-launch.
We have a lot coming out on the tagline side, "Trade what the world is watching." We have an incredible board of directors. Don't have to go into that. I want to leave some time for Q&A. I guess that'll be that. Just want to leave you with the understanding that we are very shortly trending towards launch. I am hoping to put that timing out very soon, along with a tremendous amount of other information. We have a lot of catalysts over the next six to 12 months. Appreciate your support and your interest in High Roller.
Thank you so much for the presentation, Seth. I really appreciate it. I'd like to remind everybody in the audience, if you have any questions, you can submit them at the Q&A section at the bottom of your screen. Seth, I will kick off with a few of my questions. With the NFA approval now in place and DeepEther Technology agreement announced, what are the major milestones that still need to be completed before Aloha High Roller can commercially launch?
Sure. I'd say the last real hurdle we have, is to the extent we want to launch an app, is the App Store submission and acceptance. We're not concerned about this, it's just timing. But now that we have the license in place, the guaranteed introducing broker license. It's just about tech readiness, user acceptance testing. We're in the final throes of the technology build, and we do hope to launch in the very near term.
Right. Can you talk a little bit about the DeepEther Labs agreement and how that changes the capabilities now that you already didn't have through the Crypto.com relationship?
Yeah, you bet. Go ahead.
Change the economics. Sorry, just Yeah.
Yeah. I also want to clarify that the DeepEther agreement, it's with mrkts.com, also known as Elantil . The work on the tech side has been going well before we announced this agreement. It's just been a longer negotiating process. But we were working under a consulting arrangement in parallel to negotiating this, which we released recently. The tech work has been ongoing. What this agreement represents is our ability to control this platform and control our destiny on the product side. There's usually two ways to go about building or deploying product in a B2C environment, and that's either you control it or you lease it. In this case, we're controlling it. Typically, when you lease it, you have to pay ongoing fees, whether it's flat fees, maintenance fees, support costs, even a revenue share to some platforms.
In this case, we have not released the specific, I don't believe we've released the specific information about the deal, but this is a deal that allows us to have ownership of the platform, of the front end of the perpetual worldwide license to the back end, and there are no ongoing fees once the commercial side is initially satisfied. We have all the upside that we take internally. You're on mute, Rashi.
Sorry. Yeah. Can you walk us through the economics of the prediction markets business? How should we think of revenue and how do you earn per dollar of trading volume?
Sure. In one of the slides, I mentioned that Macquarie pinned a 3.25%, let's call that hold rate or contract commission rate on the trading volume. Let's say for every dollar in notional trading volume, you as a group, let's say it's us in crypto you hold 3.25%. That would be variable. I'm sure they pinned an average number on that. That's going to vary by operator and by the composition of the deals the operator has with their supporting cast, so to speak. Typically, operators are taking a 1%-2% commission, but with all of the other fees that are typically added or with variable pricing, the 3.25% is a good average. Like I said, some are going to be higher, some are going to be lower. But that's how you can think about projecting the volume versus income.
Right. You have been using a $25 million free-to-trade challenge to build the awareness ahead of the real money launch. Can you talk to us about what you have learned so far, and how do you plan to convert these accounts to the real money accounts?
Sure. For those that are not aware, we launched a $25 million free-to-trade challenge about a month ago during the World Cup. It was a really interesting learning experience a great learning experience for us that has had a lot of value in a lot of different ways. Namely, it allowed us to unveil our brand, ROLR, to match our ticker, which is different than the High Roller brand we have for casino or Fruta. This is the brand we are going with, and the identity that we were thrilled to share to the market.
The headline prize was like the perfect bracket challenge you might see for March Madness, where you have to predict correct answers in order to achieve it. We will be releasing some news about the winners of this pretty shortly. I have got the PR in my inbox. I do not think that is anything I cannot share.
That contest is over. What this allowed us to do was get our accounts whitelisted and active across platforms that we will be marketing on for our real money launch, and keep them warm until we get there. We are not starting from scratch where we have to wait to ramp up our spend on the real money side. We were able to hone our copy and creative on the ad side. So we know what works and what does not, vis-a-vis our value proposition. This will reduce a tremendous amount of breakage as we spend real money when we launch on the performance marketing end. We were able to get some really interesting insights about our traders' trading proclivities, and now we have an interesting, good-sized database in waiting that we can cross-market against once we launch.
We have not released any specific numbers, but I can say that it met and exceeded our expectations internally for what we wanted out of this campaign as we trend towards launch.
Right. Can you discuss a little bit about the competitive market that is there in the predictions market? There are a lot of players. Why would a customer choose ROLR over Kalshi. For example, or anybody in that space?
Yeah, it is a fantastic question, and I think we will show you why over time. Right now, as we trend towards launch, we want to get in the game. We want to get live. We understand everybody wants to see us live. Nobody wants to see us live more than us. When you look at the composition of the space, you have all kinds of different operators. We are going into this pretty eyes wide open about what we are and what we are not. We are not a vertically integrated U.S. facing online gambling business like some of our competitors. We are not dominating the United States in terms of sports today. We are not a crypto exchange. We are not a social network. We are not a sweepstakes operator. We are a pure play prediction markets operator.
We are focusing on developing a product, and iterating upon a product with this in mind and with nothing else in mind right now, which means that we can really focus on providing value in this segment for our consumers. As we consider where we might be able to lead, we will likely have to follow. We are developing very interesting product in that spirit. We have done a lot of work on the applied AI side. There is so much I want to share that I cannot right now, but what I can share is that we have the ability to concept and ship product pretty quickly. We have been working on some things for months. Longer than that, frankly. We have a lot in the pipeline for how we will be able to support and engage our consumers, and keep them interested.
At the end of the day, the prediction market, the value proposition across all platforms is relatively similar, right? We can compete on product, look and feel, speed, breadth of markets, and in time, on the supporting economy that we plan to work so hard around. I want you to ask me this next year if you do not already know the answer to that. Right now, we are excited to get in the game, and we are really, really excited to show you what we can do.
Right. Will the launch of the app be on the iOS and Android platforms both, or is it going to be only one of them?
That is a TBD.
Okay. Do you plan on-
I am sorry. I can tell you, we have been developing across all platforms. I am hoping to release more information about our launch very shortly.
Okay. Another one from the audience is do you plan on doing the white label and/or co-brand with the platform?
As in, will we license our platform out?
Yeah.
It is a good question. Right now, my focus is on launching our B2C product.
Perfect. Okay. Lastly, I would just like to end by asking if you want to just sum up the value proposition for investors who might be looking in this space, and just any closing remarks that you might have.
Sure. Tremendous market. I think we're looking at Finance 2.0. I'm 42. I'm on the tail end of being a millennial. I've worked in the gaming space my entire life. The one thing I know is that the generation younger than me doesn't necessarily trust the stock market. They don't necessarily trust casinos. But they do like to engage for real money, and real money value propositions. The breadth of the prediction market opportunity is already proving to have a significant product market fit across all consumer cohorts. But I think we're witnessing a generational shift in consumption, which for me is a very interesting thing to say, since I've been so bullish on the gaming space for my entire career.
I've been in front of some pretty interesting things, but this is by far the most exciting and scalable opportunity without bias, that I have seen in my life. Couldn't be more excited about it. Couldn't be more thrilled to be in the position that we're in. Should any of you choose to invest in High Roller, I'd love to welcome you as shareholders. To the extent you don't, I would love for you to remember today.
Thank you so much. With that, we are out of time. Thank you so much, Seth, for sharing your story with us. I'd also like to thank everybody here for listening and spending time with us today. Have a good day.
Thank you so much.