We have about 30 minutes today, including the Q&A. If you have any questions, please submit them at the Q&A section at the bottom of your screen. With that, I will let you take over, Seth.
Thank you, Aashi, and thank you to Sidoti for including us in this wonderful event. Good afternoon, good morning, everybody, depending on where you are. My name's Seth Young. I'm the CEO at High Roller Technologies. I'm going to bring you through a little bit of our history and tell you where we're going as a business, where we are now. We're traded on the NYSE under the ticker ROLR, as Aashi mentioned, and the upshot is we're launching a prediction market in the U.S. This is a federally regulated financial product, not a gambling product, which is where we claim our roots. With that said, we've got the forward-looking statements. You guys can read this in your own time. Background. The business started in 2021 as an online casino business. Today, we operate two brands in that market. One is High Roller, our namesake, and Fruta.
We have a very strong leadership team that is very different than it was in the years past. This leadership team represents a different kind of sophistication and stability than High Roller had at IPO and into early 2025. Today, we're focused on the prediction market space in the U.S., which we'll talk a little bit more about, in a partnership with Crypto.com. We hold a license from the National Futures Association as a guaranteed introducing broker to enter this market and activities outside of the United States. We hold an Estonia gaming license, and we have a license pending in Ontario for entering into that regulated market at a certain point as we see fit.
Off the back of raising $25 million back in January on RDO at $13.21, today we have $18 million at the end of Q2, and we're in a very strong cash position as we trend towards launching the prediction market business shortly. Pardon me. As far as timeline goes, our history, it's important to understand where we came from to see where we're going. In 2021, the business was started as an online casino business only, let's say in 2,000 jurisdictions globally. The regulatory landscape surrounding gambling, online gambling, was very different than it is today in 2026. I joined in April of 2025 last year, and in taking a look at the business, we commenced and messaged a strategic shift.
As many countries around the world began implementing their own regulatory schemas, it either became untenable or uneconomical to operate in certain jurisdictions, whether it was product constraints or regulatory headwinds. We began shuttering markets after IPO-ing in October 2024, where the business raised $10 million at $7.50. Throughout 2025, we closed the vast majority of our markets, leaving only four active today. If anybody's done some work on our business, you'll see that we've had a declining casino revenue base as we trend towards launching the prediction market business. We have soft launched the prediction market business as of September 15th. It's in a controlled beta, and we are trending towards that hard launch in October, where we'll begin generating revenue again.
In October of last year, we filed an S-3 for $150 million, which is what powered our capital raise in January after we ballooned to over a $300 million market cap on the back of this news and some of the marketing agreements that we consummated to support our prediction market entry. In April 2026, we finalized those agreements. We received our GIB license, the Introducing Broker license from the NFA in May of the same year. In July 2026, we made an agreement with mrkts.com that sees us effectively having ownership of the technology and the front end of our platform, which is a big shift from where we have been years prior. Typically, we've rented our technology, meaning we've paid a revenue share to groups that have supplied it to us.
At this stage, we control our destiny as it relates to product and long-term economics are stronger. As I mentioned, we just, on September 15th, soft launched the product. It's in a closed beta. Everything's going well, and we're tracking towards our public launch in a matter of weeks now. We're addressing two markets today, although our focus is definitely on the market on the rights moving forward. Historically, we've addressed an online gambling market worth over $200 billion annually, globally. The markets that we're addressing are only a fraction of that TAM. But we're focused now on the massive emerging opportunity in the prediction market space. These are third-party estimates here, and third-party projections rather, on the annual trading volume and the TAM, which we're comfortable with.
That signals from Macquarie $1.5 trillion in annual contract trading volume and forming a $50 billion TAM in the U.S. alone based on a 3.25% operator commission rate or hold rate. Now, this is very different for us in some ways, and very much the same for us in other ways entering this market. We're built for this, so the transition from a people perspective has been quite straightforward. Many of the processes and procedures, if not all of them, and some of the same vendors are the same as we have for our B2C operations for online casino, and the methodologies to operate are largely the same as well. It's a very seamless transition, and now we're entering a new market on the ground floor.
But very different for us in the sense that this is a financial product, not a gambling product, and has some differences in regulatory nuance. It is a very exciting time for us. As I mentioned, $1.5 trillion in annual contract trading volume projected by 2030. The way that prediction market businesses earn revenue is through a marketplace model. Very different than taking a bet for sports or taking bets from a player on a slot machine where it is an against the house activity and we bank it. Very simply, when a trader opens or closes a trade, we make a commission. We have no stake in the outcome of the trade. We are simply providing the service. That is definitely a business model pivot. As you will see here, this is an important nuance in the market.
The breadth of markets and prediction markets is vast, which makes the opportunity so exciting and also explains why there are so many different kinds of companies that are focused on the space. At maturity, it is estimated that only 44% of all contracts will be related to sports, whereas the majority of contracts, whether it is fintech, crypto, AI, culture, entertainment, sport, non-sports, et cetera, represents 56%, the majority of the contract trading volume. As we look at the market with eyes wide open, we understand what is happening from a regulatory perspective, what is controversial and what is not, and where we sit in this competitive landscape. We are definitely focused on areas where we can be leaders, and we believe that we may be able to lead in certain areas, particularly as it relates to product.
This market today kind of reminds me of 2018 in sports betting, where all the products were kind of subpar. We take a look at this and think since we are pretty strong on the product side, that in time we will have one of the better, if not the best products out there. Very excited to move that along. On the bottom right, you will see a couple of comps for us. We are, as far as I am aware, the only pure-play public markets business that you may find exposure in for prediction markets. What this means is that if you believe we will have any modicum of success in this market, theoretically our stock should go up as we have no other material business units that would offset that growth.
You will see that Kalshi, in their most recent public funding round, raised at a $22 billion valuation, Polymarket at 21. We are trading between $60 million and $70 million in terms of our market cap today. Just to demonstrate some of the upside, let us assume that we obtain a fair share of the market. Today there are over 50 competitors in the space, all of different sizes and different kinds. If we just use an easy 50 competitor number, and we are able to obtain 2% of this market, by 2030 that is a $1 billion top-line business where analysts suggest this should run between a 20% to 45% EBITDA margin. You can do the math on where the alpha may be for us, and that is one of the reasons we are so excited, particularly because nobody plays for second place in the market.
But if that's a backstop, I'd say that's a pretty good backstop relative to where we are today. What makes us different and why are we positioned to win? We're working with Crypto.com to accelerate our entry into market. Once we launch, our consumers, our traders will have access to the wider Crypto.com network and have existing trading liquidity so contracts can be filled seamlessly. Today, Crypto.com holds the CFTC-related licenses for this operation, that being the FCM, which is the treasury, controlling the treasury. DCM, which is the market-making capabilities and all the things that come with that, and the DCO license, which is effectively the clearance mechanisms, the settlement mechanics. There's nothing in our agreement which precludes us from pursuing these licenses to the extent we'd like to.
And it may be fair to suggest that any company taking this business seriously would like to pursue those licenses at the right time. One of the things that really drew me to this business on the second panel is that the company has a proven customer acquisition engine. For all of the things that we have to work through on a day-to-day basis, this has been a quite unique structure for me. One of the things that I'm not concerned about at all is our ability to acquire customers efficiently. There's a group called Spike Up Media, which is our largest shareholder as a group. Because of this close alignment with them and their capabilities, they are one of the, I'd say, top three customer acquisition and lead generation firms over the last 15, 16 years in the gaming/gambling space and other affiliate verticals.
They are effectively doing our performance marketing. We hand them budget and we can acquire customers as close to cost as possible. The way that business model works for them is it's effectively media buying arbitrage. Let's say we would typically pay, or an operator may pay $200 per customer. These are arbitrary numbers. If Spike Up was to buy it for 50, their margin is 150. Now because of this alignment, theoretically, we should get a customer in this example at 50. Which means all other things being equal, with any other operator, that gives us theoretically the opportunity to reinvest and scale faster, acquire customers efficiently, and drive higher margin revenue with a shorter payback period. Now historically, Spike Up has a positive return on ad spend with High Roller for online casino in markets where they're not nearly as strong as the United States.
It was effectively a 2 or 3 to 1 ROAS, and we expect that to be higher as we enter this really exciting market. The Spike Up relationship is supplemented by other media relationships, including the Forever Network, which is a sports-focused media asset with a Comscore that's larger than Barstool Sports. We are their exclusive prediction markets partner, and this partnership will have us deliver over 1 billion impressions to more than 50 million potential unique users. Leverage Game Media, which is an Instagram and TikTok influencer network. They have about 8.5 million followers across those channels at last look. Highly engaged finance, crypto, and sports audience. And Lines.com, which Spike Up owns an operated property. They have 4.5 million- 5.5 million followers across their socials.
But what really excites me about this relationship is that we're introducing 10,000- 20,000 SEO-optimized pages on our site and their site each month to capture long-tail intent-based search. What that means is that, let's say somebody was to search for on Google, the gubernatorial race in California, how to trade that, for example. Or the race for the mayor in Orange County, California, how to trade that. And we may show up and surface as the number one option, which means that we're capturing that search organically. This is an investment that compounds over time in the interest of making organic customer acquisition funnels. I touched on this very briefly, but Spike Up has a history of performance, and given that we're in part reliant on them for our performance marketing spend, we're really thrilled to see that.
They delivered more than 1 million unique depositing customers to their partners in the gaming space over their 10-year spending, over $150 million to do so with over $600 million in player deposits made. And they have proprietary technology to pull this off. We've seen it in action, and it's one of the reasons that we're so confident and bullish about our future success. I touched on this earlier. On the technology side, this is quite important for us, controlling our own destiny as it relates to product. Since we have control over our product and since we're entering a new space, we wanted to build the right way. As some of you may or may hopefully know, once you integrate with a key piece of technology, you become reliant upon that.
If it's controlled by a third party and you're unable to do things at your own volition or at your own speed as a business, it may stymie your growth. Given the opportunity we had to enter the space and do it the right way, we wanted to make sure that we had that control. This agreement represents that we do have that control, and we're able to rapidly iterate, introduce new and interesting features, maybe novel products moving forward. And importantly, this deal with mrkts.com also carries the rights for an online casino platform, sports betting platform, effectively all the other verticals that we may choose to enter in the future, should we like to on the casino side, where we do claim our roots. So, it's built to regulatory standards.
We're thrilled with the collaboration with their team, and we've been building around this, and it's been a phenomenal relationship thus far. I'm not going to go into too much detail on our leadership team other than to say everybody's quite experienced, and we have a very good team that's working hand in hand at all times every day to execute. It's been a very intense period of execution for us over the last eight months following making this deal with Crypto.com. I'll call out Jake Francis, who has been driving the bus on the project management side. He's a former regulator, as is Andrew Walter, our Chief Legal and Compliance Officer, most recently in Connecticut. I had the privilege of working with Andrew at PointsBet, alongside some of the other folks we brought onto the team.
Carlo Scappaticci in particular is a seasoned marketing guy, having been the CMO at WynnBET, Pala Interactive, Dafabet, and did some work at Boyd Gaming. Fantastic team. On the board of directors side, we have a very strong governance team. Mike and Brandon in the first two panels are representing Spike Up Media. Daniel, Happy Hour Solutions. Kristen Britt, major HR executive, formerly at Aristocrat, a $26 billion market cap business. David Weild, who some of you may know is a former vice chair at Nasdaq. Jonas Mårtensson, who is the CEO of Mojang, which ran Minecraft or created Minecraft. The upshot, we are entering a massive market, which I consider to be Finance 2.0. We're seeing an emerging shift in generational consumption habits as it relates to engagement with real-world events.
It's effectively the same playbook to run, which we ran from 2021 to 2025, just in a market with a tremendous amount of upside, and amazing direct and indirect strategic implications for us. So we are anticipating very strong growth. Though we're not providing any guidance at this time, I would refer anybody who is curious about how they may price a business like ours to the A.G.P. research, which came out recently. I'm not uncomfortable with how they've conducted their research and what they've put out. So we're very excited to launch. It's coming up imminently. I want to make sure that I leave time for questions. So I'm going to pause it here, and I'd love to focus on anything that anybody in the audience may want to ask us about. Thank you for your time.
Thank you so much for presenting, Seth, and really appreciate it. I would 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. Could you share how the beta of ROLR Predict is going?
Sure. It's going well. We soft launched on the 15th. It's basically been, there's live trading. We're working out a lot of the kinks before we go and put some real money behind this. We have an incredible testing team. It's been very tight. We're slowly expanding it to a handful of people here and there. But yeah, going well. Everything's on track for October.
Perfect. Can you talk to us a little bit about the customer loyalty amongst prediction market participants, or do they tend to be active across multiple platforms?
It's a very good question. The answer is I don't know yet. What I can tell you is this. For those of you that may not know, I spent some time at a business called PointsBet. I was there quite early. This business reminds me a lot of PointsBet. We took that public. I joined, it was worth about AUD 5 million and topped out at about AUD 5 billion on the ASX. One of the things that was key to our growth at PointsBet was an ethos that we're bringing to this business, too. In a sea of businesses that largely have a similar value proposition with a lot of the same kinds of markets, what can you do to differentiate yourself?
With PointsBet, we had something called PointsBetting, and for anybody that wanted to engage in this particular type of betting on the sports betting side, you had to have an account with PointsBet. I am going to dangle the carrot a bit, regrettably. There are so many things I'd like to share, but not quite there yet ready to. What I can say is that we have a tremendous applied AI department that has been concepting and shipping product, both internally and for the B2C value proposition, whether that's integrated directly into the product or supplementary or both. It's a very exciting time. We have a lot of ideas. I would say anybody with questions about where we are on the product side, if you ask me in six months from now, if you even have to, I think the answer will be clear.
I can tell you, sitting where I'm sitting, I've seen some very cool stuff that we hope to bring to market. I hope that answers that question for you. Thank you.
Thank you. What are the key milestones you need to clear between the current beta and that October commercial launch?
There's not much left, to be candid. It's just making sure everything's working appropriately. We're testing its scale based on the numbers that we're expecting and the cash we're putting behind launch. It's fairly straightforward from here, to be candid. I'm not really sure there's much to add to that.
Okay.
Yeah.
What differentiates ROLR from the larger predictions market platforms that have already significant liquidity and customer scale? What do you think of the ones that are coming up new, of Kalshi or Polymarket, for example?
Yeah, I think there's two ways to answer this. One is on the corporate side, and then one is from a user experience perspective. I mentioned this earlier, as far as I know, we are the only publicly traded company where you may find access to prediction market exposure without having anything else to drag it back. I do think that makes us quite unique and quite attractive from an investment perspective. We're all here. We're working on it, too. Everybody in the business is involved and sees that. To answer your question directly on the other side, I think part of my last answer will show you how we're planning to differentiate. Look, we are not Kalshi, we're not Polymarket in the sense that we haven't raised $2 billion at $20+ billion valuations.
But I would contend that at last look, and I know this is being recorded, I don't want to butcher the numbers, so I can be fact-checked on this, the last number I saw for Kalshi's sports trading contracts as a percentage of their total volume was 89%. I contend that companies like that have a lot to lose, whereas we have almost everything to gain with a focus on sports, but also a focus on some of the other markets and where we're developing product. We're not in a position now with the cash that we have to be spending on speculative customer acquisition opportunities. But we also don't want to. We like to do things that we can measure. We'd like to learn more as we enter the space about how we are going to grow.
We're going to use that kind of information we get from our customers, our traders, to concept new product and introduce it. Approaching it more like a Netflix model, where the more data you have, you can build to suit. Somebody asked me a good question yesterday about where do you see yourself in a year or two years, and I've given up predicting the future. But what I can say is that we have a really strong data-driven approach to our growth, to our product, and we are deploying our capital in such a way that we have as limited breakage as possible. We're quite good stewards of capital. Last word on this is look, we know who we are, and we know who we aren't.
If you look at the competitive landscape, you have companies like DraftKings, FanDuel, Fanatics, that are vertically integrated iGaming companies in the United States. Then you have crypto exchanges, basically all of them, that are putting prediction market products out. And you have groups like Truth Social or sweepstakes platforms that are transitioning to the space. We're not implementing a tab on a larger site. This is our focus, and I do think that focus is important when it comes to introducing new product, and giving the customer the level of care that they may expect with a regulated product, especially in a market this large. I don't want to discount that. So really excited about moving forward on this one. Yeah.
Right. Can you spend a minute or two and talk about your balance sheet? You've got $18 million of cash at the quarter end. Do you believe that's sufficient to fund the predictions market rollout through breakeven, or do you need to raise more cash? A little bit about your cash burn as well.
Yeah, sure. When we raised the capital back in January, it was transformative relative to where we were as a company, and definitely more than enough to help us get from point A to point B. We had $18 million at the end of Q2. We are very comfortable with our cash position as we go into launch. At this moment, we are in great shape.
Okay. How much incremental operating expenses should we expect as ROLR moves from beta to a full commercial launch?
Yeah, great question. I cannot give you any exact number, as you might imagine. What I can say is that we have been managing our existing casino business appropriately. Because of the nuance of the markets that we are still active in, and there are only four. I am sure anybody who has looked at the business has seen the reduction in revenue year-over-year was about 50%, a little over 50%, but only 7% net, which I think speaks to the team's capabilities. We have done a lot of work to clean the business up. But we are in this interesting time between managing that and winding up the prediction market business, where we have had increased burn and investment related to the launch and declining revenue.
I would like to say, once we start with the prediction market business and start generating revenue, that we will be in a more favorable position. But I cannot give you any exact numbers, and I hope that answer is strong enough for you.
Right. No, that's understandable. Can you talk a little bit about the economics per dollar of the predictions market trading volume, and what is the cost of acquisition per customer, like the cap cost that you're seeing, and when do you expect those customers to start paying to recover the cost?
Yeah. So it depends on the platform, it depends on the marketing deals that you struck. It depends on so many things. There's no one-size-fits-all here. These are not High Roller specific numbers, but I can give you a sense directionally. Market-wide, I've seen customer acquisition rates range today from $80- $150 for a first-time trader. Again, this will vary widely. That is a good spread I think you can work with. As far as the economics go, typically, a commission. Look, I can point you to the Macquarie numbers. They're estimating about 3.25% commission on trading volume on any platform. It can be higher, it can be lower, depending on the platforms. Importantly, that doesn't tell the whole story about the potential monetization stack.
That $50 billion TAM can be quite a bit larger if you consider that groups like us, like an introducing broker or an FCM, really anybody can introduce other fees at their discretion, whether it's payments fees or data processing fees, what have you, as long as it is made clear to the consumer. We've done a lot of research around pricing around the market, and we expect to be competitive. I'm not sure if I missed anything in that question. I hope I did not.
No, you did good.
Okay.
Where do you see the largest opportunity for ROLR, like crypto, sports, any other verticals?
Are you going to be okay, Aashi? Yeah, sure. Sorry for laughing. Look, the largest opportunity for us is entering this market. The whole market is exciting. The breadth of markets is what makes this exciting. We are definitely going into the market, like I said, with eyes wide open about where we believe we might find ourselves in potential leadership positions.
What I do know is that a follow-the-leader strategy is likely a recipe for disaster. We have seen it so many times before. I have seen this movie before a few times in different kinds of business, B2C business, like DFS 2.0, sports betting, what have you. It is always the same. Look, this is a massive opportunity. It is the biggest one that I have been in front of in my career. I have been in front of some really interesting ones. It is the whole thing. The whole shebang.
Right. Just as my final question, can you sum up the value proposition for investors who might be looking across the predictions market and the casinos business?
Sure. I think I can sum that up by saying that $ 1.5 trillion in annual trading volume number was $ 1 trillion six months ago. So that is a pretty significant uplift based on what the market activity looks like. I think it is going to keep growing. That is just my opinion. For those of you looking at ROLR from an investment perspective, I would point you back to the comments I made about being a pure play opportunity effectively in the U.S., and where we are trading today versus the size of the market and the upside that a group like us may have. This is not investment advice, it is just a personal opinion. I think we are a very strong candidate to be a significant player in the market.
But even in that downside case where we are not a number one or even a number five, I point you back to that 2% example, which is a billion-dollar top-line company. We did a little over $20 million net revenue last year. I can leave it to you guys to do the math on the kind of revenue that we may generate in the context of the information that I have been able to provide. Look, very exciting, high upside market. We are on the ground floor of it. I would say we are in the bottom of the first inning for a market like this. The strategic implications, medium, long-term are tremendous, exciting.
The international opportunity is also way out there. We have estimated that TAM to be larger than the TAM of the United States. We have great experience, not just in the U.S., but also internationally as a team. I think this is such an exciting company. If you are on a call with us today or listening to this presentation, love to welcome you as an investor, but if you choose not to, I do want you to remember that you were here today.
Thank you so much. Thank you, Seth. Well, it is certainly an exciting time and an exciting market for ROLR, and we look forward to seeing everything you guys are doing with that. We are at time, but I would like to thank you very much for sharing your story with us today. Also everybody in the audience, thank you for listening and spending time with us today. Thank you.