Esports, Gaming and Gambling Bi-Weekly Update Volume 1 - October 11, 2019

With this issue we are inaugurating our Esports, Gaming and Gambling bi-weekly update report which includes industry news and delves into an in-depth feature story. It also covers global industry-wide and company specific Feature Story news, including our current coverage of The Stars Group, Inc. (TSGI-TSX, Tender), Score Media and Gaming, Inc. (SCR-TSXV, $0.60, Speculative Buy, PT $0.90/shr) and Cineplex, Inc. (CGX-TSX, $23.58, Buy, PT $34/shr). Our Drill Down into Twitch recent esports industry white paper explored the ecosystem, trends and investments in detail. (LINK) Monetization Streams

Esports: Global Viewership and Partnerships Remain as Top Headlines Understand How Twitch and Its Content Creators Monetize Viewership – There are five dominant ▪ ESL’s (formerly Electronic Sports League) Joint Venture with Huya for Potential China Expansion – methods to monetize Twitch viewership including The JV brings competition to Twitch’s 75.6% streaming market share and will enable ESL to host channel subscriptions, donations, sale of branded Chinese tournaments and competitions. (Bloomberg) merchandise, advertising and sponsorship. (JUMP TO THE DETAILS) ▪ US President Donald Trump Joins Twitch; Twitch Tops the Chart in Q319; Gaining ~2% Market Share Q/Q – Subsequent to signing exclusive deal with former Twitch personality Ninja, Mixer’s Q319 total ------hours watched declined 6% from Q219 reflecting in part on lower seasonality. We believe that Ninja’s Trivia Time move garnered meaningful media attention for Mixer, especially in the streamer’s community What Were the Top Three Most Watched Titles exploring broadcasting mediums other than overcrowded Twitch. (CNN, Stream Elements) by Live Esports Hours on Twitch and YouTube in

2018 (In Order)? ▪ Activision Blizzard’s Overwatch Leagues Grand Finals Broke Last Year’s Global Viewership Record A. Fortnite, League of Legends, Counter-Strike: with a 16% Boost – Additionally, the live event sold-out the 19,500 seat Walls Fargo Center in Global Offensive Philadelphia, home of the NHL’s Philadelphia Flyers and NBA’s Philadelphia 76ers, and was attended B. League of Legends, Counter-Strike: Global by a diverse demographic of fans. (Esports Observer) Offensive, Dota 2 C. Fortnite, Apex Legends, League of Legends ▪ Call of Duty: Mobile Game Surpassed Record 100M Downloads Worldwide In Just A Week, (Answer on pg. 10) Outshining PUBG and Fortnite – With average gross revenue per download at $0.17, the game brought in $17M in player spending. We view this as a positive catalyst for the title’s further ------mainstream adoption. Meanwhile, the esports industry welcomed the newly franchised Call of Duty Snapshot: Market Performance 25/09/2019-10/10/2019 - 2 League (“CDL”) to join the League of Legends and Overwatch franchised leagues in 2020. Enthusiast NA Europe APAC weeks return Gaming (EGLX-TSXV, NR) and OverActive Media (private) have secured franchise teams in the Publisher -6.6% -10.4% 0.5% recently formed league. EGLX acquired non-controlling interest (NCI) in the Overwatch Leagues’ Hardware 2.1% -3.6% -4.7% Media -5.2% -6.8% -0.6% Vancouver Titans and the Seattle-based Call of Duty team. NCI represents a new strategy for Gambling -4.5% -0.9% -0.5% publicly listed companies to gain exposure to franchised teams. (Sensor Tower) Tournaments -13.9% 0.0% -9.4% Streaming -2.9% 0.0% -2.4% Gambling: Regulations Surrounding Online Betting Continue to Evolve Investment Firms -14.0% 0.0% 0.0% Simple Average Return -4.7% -3.2% -1.0% ▪ The Stars Group, Inc. (TSGI-TSX, Tender) Agreement to be Acquired by Flutter Entertainment (FLTR- Weighted Average Return - LON, NR) in a Mega Merger – See Technology & Gambling Analyst, Gianluca Tucci’s recent note. by Market Capital -2.0% -4.3% -1.3% S&P 500 0.0% ▪ Fnatic Announced Continued Multi-Year Partnership with Rivalry.GG – Rivalry, the esports betting S&P/TSX -0.4% Nasdaq Composite 0.5% platform, signed a six-figure deal with Fnatic’s CS:GO team. Partnerships between teams and betting platforms is not new, Betway, a global bookmaker, has partnerships with various teams including the Ninjas in Pyjamas CS:GO team, Invictus Gaming Dota 2 team, among others. (Esports Observer) All the figures in the report are in US$, unless stated.

Rob Goff, CFA | 416.933.3351 | [email protected] Gianluca Tucci | 647.794.1926 | [email protected] Pooja Sharma, MFIN, B.E. | 647.794.1922 | [email protected] Karolina Kosior | 604.647.4379 | [email protected] Page 1 of 30

Top Highlights

More than $6M in Prizes Announced for Activision Blizzard’s (ATVI-NASDAQ, NR) 2020 Season of Call of Duty League (CDL) – The prize money for the 2019 tournament series was at $6M. The tournament series was discontinued in favour of franchise-based league under the official Call of Duty League. The 2020 franchise league is a city-based league with twelve teams from eleven cities (Atlanta, Chicago, Dallas, Florida, London, Minnesota, New York, Paris, Seattle, Toronto and two Los Angles teams). The inaugural event will play the soon-to-be released Call of Duty: Modern Warfare, exclusively on Sony PlayStation 4 (event co- sponsor) in 5v5 format. Additionally, the league will have the franchised teams travelling between cities. No additional information on the format of games was provided or if the games will resemble the Overwatch Leagues homestand format. (IGN)

The Overwatch League Grand Finals Drew 12,000 fans in Philadelphia with Global Viewership of 1.12M – The San Francisco Shock defeated the Vancouver Titans to win the 2019 title. ESPN reported the Overwatch League grand finals reached 1.12M global AMA (Average Minute Audience), which represented a 16% increase from the previous year. AMA is calculated by dividing the total minutes watched by the total minutes broadcast. In the US, AMA was up 41% and up 13% for the 18-34 demographic, specifically. Activision Blizzard partnered with third-party data measurement firm Nielsen earlier in the year to track both the Overwatch League and Call of Duty League viewership. The key differences from last year was that the 2018 competition was two days and broadcast on ESPN as well as DisneyXD, while this year ABC/ESPN network television had linear broadcast rights for the one-day event. The Finals were also exclusively streamed on Twitch, which entered into a $90M media rights deal with Activision Blizzard to digitally stream Season 1 and 2 of the Overwatch League. The sold-out Overwatch Finals live event was held at the Wells Fargo Center, home of the NHL’s Philadelphia Flyers and NBA’s Philadelphia 76ers and attended by a diverse community of Overwatch fans. (Esports Observer)

The Overwatch League Media Rights are in the Market for Possible Renewal or New Deals – The Overwatch League has seen increased interest from bidders in negotiations, more than it is first media rights cycle two years ago, according to Overwatch Commissioner, Pete Vlastelica. Although details have not been revealed. The second year of the Overwatch League has media deals with ABC/ESPN for linear TV and Twitch for digital streaming in place, the deals end after the second season. (Esports Observer)

Anzu (Private), an In-Game Advertising Platform, Appoints Mike Cookson, Former Head of Brand Media for Nike, as CSO – The appointment of Mr. Cookson as chief strategic officer follows the Company’s $6.5M Series A funding led by BITKRAFT Esports Ventures in late August. The Anzu platform integrates brand ads into gameplay with real-time data and programmatic tracking technology to make gaming accessible to marketers. Mr. Cookson was previously responsible for Nike’s brand and digital advertising media across Europe. (Esports Observer)

Just Chatting Category Top Content by Hours Watched for the Year on Twitch – The “just chatting” category has reportedly led all content on Twitch eight out of nine months this year, except for February when Apex Legends was first released. The category was watched on Twitch for 1.1B hours from Oct/18-Sept/19 more than 200M higher than Fortnite at 905.8M hours watched, that came second. The just chatting category was created as a spinoff of Twitch’s “IRL” category. (Esports Observer)

Red Bull Will Be the Official Energy Drink Partner for Global League of Legends – Red bull will support the League of Legends Mid-Season Invitational, All-Star Event, and the World Championship. Financial terms were not disclosed. Red Bull will have broadcast placements in video content, specifics were not disclosed. In addition, Red Bull will produce drink bottles with game artwork to be featured on stage and a Red Bull Area will be provided at events for competing teams. An amateur player will also be selected to compete in the All-Star event by qualifying through the Red Bull Player One Competition. Other LoL global partners include, Mastercard, Alienware, State Farm, Secretlab, Chinese mobile phone brand OPPO and Louis Vuitton. (Esports Observer)

North American Developments Canada

Enthusiast Gaming Holdings (EGLX-TSXV, NR) ▪ Hired Sales Team to Drive Direct Advertising Sales Across its Platform – Enthusiast has hired an executive team including, Jon Dwyer, SVP, Head of Sales and Special Partnerships; Amanda Rubin, VP Sales, East Coast and Rob Frohling, VP Sales, West Coast, which combined bring experience in gaming media sales with brands such as EA, PlayStation and Sony. ▪ Closed Acquisition of Steel Media for a Total Consideration of ~US$3.4M – Steel Media adds 20 mobile gaming websites and 25 live mobile events worldwide to Enthusiast’s network of over 100 websites. The Company paid $1.9M upfront in cash and issued EGLX common shares in aggregate of $500,000, in closing the transaction. An additional $1.0M will be paid on the one-year anniversary of closing. Steel Media will be eligible for an earn-out payment of up to US$500,000. Terms of the earn-out were undisclosed. The Company has the option to settle US$1.0M, of the US$1.5M outstanding, by issuing common shares at a deemed price per share equal to the 5-day VWAP. ▪ Verified as Largest Gaming Network in the US by Comscore (SCOR-NASDAQ, NR) – Enthusiasts Gaming network of over 100 gaming websites, 900 YouTube channels and over 50 influencers and players reaches more unique viewers than other gaming information networks measured such as Twitch.tv, IGN Entertainment and GameSpot. ▪ Acquired Non-Controlling Interest in the Overwatch Leagues’ Vancouver Titans and the Seattle-based Call of Duty team – Enthusiast Gaming, through its wholly-owned subsidiary Luminosity Gaming Inc., will manage the team and players for majority owner, the Aquilini Investment Group, through a long-term management agreement. (Enthusiast Gaming) Millennial Esports Corp. (GAME -TSXV, NR) Raised $2.8M in Private Financing to Build First Esports Racing Arena in Miami – The 12,000 SFT arena, to open in 2020, will be located in the entertainment district of Wynwood, Miami and feature 30 Allinsports eRacer simulators for esports competitions and real-life race-car driver training. The Company acquires controlling interest in racing simulator maker Allinsports for $6.5M in August. (Millennial Esports)

New Wave Esports to List on the CSE in Late October Under the Ticker “NWES” – The esports portfolio company has invested in multiple esports verticals with an equity stake in Even Matchup Gaming (EMG), PlayLine, Tiidal Gaming, Thunderbolt CDG, and Luckbox. (Morning Star)

Tiidal Gaming Acquired Space Esports, LA-based gaming platform, for Undisclosed Amount – Space Esports hots online esports tournaments for games including Call of Duty to smaller weekly Dead By Daylight, among others. The acquisition allows the Company to build a diversified esports and gaming platform with events being a core focus, according to management. (Esports Insider )

OverActive Media (Private) Confirmed Layoffs in Rochester, New York Where the Splyce Brand is Headquartered – OverActive Media (“OAM”) will be headquartered in Toronto to support player, coaches and key business functions. OAM will also add key hires in the weeks ahead, according to Paulo Senra, OAM VP Global Content and Communications. No informationUnited States was provi ded about the future of the Splyce brand. (Esports Observer)

ESL (MTG.AB-STO, NR) Partners with Huya Inc. (HUYA-NYSE, NR) for Chinese Esports Expansion – ESL’s parent company Modern Times Group entered into a binding term sheet with Chinese streaming platform, Huya to host Chinese esports competitions. In addition, MTG and Huya plan to form a JV where Huya will purchase $30M worth of shares of MTG. The deal will also include ESL issuing $22M in new shares, bringing MTG’s pre-money enterprise value to $424M. (Bloomberg)

Activision Blizzard (ATVI-NASDA, NR) Announced Call of Duty: Mobile Passed 35M Downloads – The free-to-play, first-person shooter, CoD Mobile game was launched on Oct. 1 on Android and iOS worldwide, except Mainland China, Vietnam, and Belgium. The game was developed in collaboration with TiMi Studios, a subsidiary of Tencent Holdings Ltd. The game hit number one on the App Store in more than 100 countries. ATVI shares were stranding up ~5% for the week following the release. (Seeking Alpha)

PlayVS (Private) raised $50M in Series C funding to Expand its US High School Footprint – PlayVS provides a high school esports platform, with plans to expand its National Federation of State High School (“NFHS”) footprint. Reportedly 13,000 US high schools have either created esports teams or are on waitlist, according the Company, which represents 68% of the 19,000 NFHS member US high schools. (INC)

VENN (Private) raised $17M in funding Co-Led by BITKRAFT to Launch Post-Cable TV Network in 2020 – VENN, esports media company, will produce premium content incorporating live audiences in studios in New York and Los Angeles aimed at core gaming, esports and entertainment audiences. The Company’s management includes Ariel Horn, four-time Emmy winning producer, esports production for BlizzCon and League of Legends at Riot Games, as well as Ben Kusin, brand marketing veteran on franchises such as Medal of Honor, The Sims, among others and former head of New Media and Strategic Alliances for Vivendi Universal Games. (Venn)

Dignitas (Private) Organization Received $30M in Series A Funding, Formed Parent Company New Meta Entertainment – New Meta Entertainment will operate esports teams, content and marketing as well as investments. The diversified business is in line with its view that esports is not just gaming but entertainment and media, according to Dignitas and now New Meta Entertainment CEO, Michael Prindiville. Dignitas acquired the League Championship Series’ (LCS) Clutch Gaming in June. Dignitas applied for a franchise spot in LCS in 2017 but was not selected for a franchise spot, the acquisition marked its return. The Clutch Gaming team will be rebranded to Dignitas for the 2020 season. (Esports Observer)

Scuf Gaming (Private) Announced Brazilian Soccer Legend, Ronaldinho as New Brand Ambassador – Scuf Gaming, the speciality controller maker, will create a customized controller for Ronaldo de Assís Moreira’s (known as Ronaldinho) new esports team R10. (Esports Observer)

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Best and Worst Performing Stocks in NA: Stars Group gained 26.3% in the last two weeks post merger news with the Irish firm Flutter. During the same time, Turtle Beach (+11.7%), gaming hardware manufacturer, caught investors eyes after new product launches (PC audio enhancer and gaming mouse) in the last few weeks. Turtle Beach competes with Logitech. QYOU Media (+8.3%) completed $1.2M non-brokered PP deal and units (one common share and one warrant) were priced at $0.05.

On the other hand, Fandom Sports Media was down 31% in the last two weeks post the announcement of Q220 results and new operational strategy. Super League Gaming (-26%), a company that hosts amateur esports tournaments, stock price fell after IPO on the NASDAQ and ePlay Digital (-25%) stock declined indicating possible shareholder uncertainty.

European Developments Europe: Gaming, Esports and Gambling 2-weeks 11.0% GVC Holdings PLC Logitech (LOGN-SWX, NR) Acquired Streamlabs for $89M in Cash – Logitech, PC peripheral manufacturer, will pay an 5.3% Gamenet Group SpA additional earn-out of up to $29M to General Workings Inc. (dla Streamlabs) based on net revenue post merger. 4.9% Gamesys Group PLC Streamlabs is a provider of software tools used by streamers to engage and monetise the viewership on the major 2.6% Flutter Entertainment Plc streaming platforms like Twitch, Mixer, YouTube etc. Streamlabs claims that ~70% Twitch streamers use their tools. (The 2.2% Rank Group Plc Verve) 1.8% William Hill PLC 1.3% Evolution Gaming Group AB DreamHack (MTG.AB-STO, NR) Partners with Microsoft (MSFT-NASDAQ, NR) Xbox, and Kellogg’s (K-NYSE, NR) Pringles 0.2% Kindred Group plc Shs Swedish… 0.1% bet-at-home.com AG for DreamHack Winter 2019 Event – DreamHack Winter 2019 is a three-day festival in Jönköping, Sweden including 0.0% Endor AG esports tournaments, and an expo area. Microsoft’s Xbox brand will be the main partner and provide a free-play zone set -0.4% Logitech International S.A. up with over 140 Xbox machines. Fans with an Xbox Game Pass (Microsoft’s gaming subscription service) will have access -1.0% adesso AG to an exclusive lounge at the festival. Additionally, those with the Xbox Game Pass will receive beta access to the upcoming -1.2% 888 Holdings Plc PC version of the Game Pass. The Pringles partnership includes a “Fan Can Art Competition”, for fans to create their own -2.8% Tobii AB Pringles can design. Additionally, a booth will be set up at the expo area during DreamHack Winter 2019. Pringles already -2.9% Betsson AB Class B NetEnt AB Class B has sponsorships in place with Riot Games, Activision Blizzard and ESL. Financial terms for both partnerships were not -2.9% -3.3% LeoVegas AB disclosed. (Esports Observer) -5.0% Gfinity PLC -5.4% International Game… ESL (MTG.AB-STO, NR) and Intel (INTC- NASDAQ, NR) have Partnered with National Student Esports (NSE) to Launch -5.6% CD Projekt S.A. Intel FutureGen UK University Program – The FutureGen program will provide esports-focused educational opportunities -7.2% Embracer Group AB Class B to ten full-time UK University students. The ten selected students will gain esports industry skills including experience at -8.7% Modern Times Group MTG AB… an ESL event from “leading industry figures”. (Esports Observer) -9.6% Mail.ru Group Ltd. Sponsored… -9.9% Playtech plc

German Government Plans to Offer Better Visas to Pro Esports Players – The German government has drafted legislation -11.4% Guillemot Corp. SA -18.9% Kambi Group plc Class B that would permit pro esports athletes from outside the EU to compete and reside in the country, similar to sports visas. -19.3% Ubisoft Entertainment SA Applicants will need to be at least 16 years old and employed by an esports organization registers in Germany and required to compete in national or international leagues, such as the League of Legends European Championship (LEC) or PLAYERUNKOWN BATTLEGROUNDS Europe League (PEL). The current visa regulations hinder teams and tournament organizers in bringing non-EU citizens to competitions, according to Hans Jagnow, president of the German Esports Federation (ESBD), which has been lobbying for improved visas. (Esports Observer)

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Best and Worst Performing Stocks in Europe: GVC Holdings (+11%), owner of bookmaker Ladbrokes, Party Poker, among others, shares rose after upgrading profit guidance alongside potential growth opportunities in the US. Gamenet Group SpA (+5.3%), a gaming company that also operates slot machines and video betting, in Italy, gained in line with increase seen in the general online gambling market with possible US expansion. Kambi (-18.9%) stock fell ahead of third quarter results, to be announced Oct. 25th and Ubisoft (-19.3%), known for the Rainbow Six Siege game among others, dropped in price alongside other gaming stocks. 5

APAC Developments APAC: Gaming, Esports and Gambling 2-weeks 62.8% Tencent Holdings (0700-HGK, NR) Announced 10 Teams for the CrossFire Franchised League – Teams will compete in COLOPL, Inc. 12.5% Gamewith, Inc. compete in the CrossFire Pro League (CFPL) on PC, and CrossFire Mobile League (CFML), which will be organized by Versus 9.4% Square Enix Holdings Co., Ltd. Programming Networks (“VSPN”) which Tencent owns a stake of. The minimum franchise fee for a slot was ¥10M RMB 7.3% gumi, Inc. (US$1.41M), reportedly. The franchised teams include All Gamers (AG), Edward Gaming (EDG), eStar, Kong Zone (KZ), 6.7% CyberStep, Inc. LGD.REC, Suning Gaming, Qingjiu Club, Baisha Esports, Team WE, and Super Vallant (SV). (Esports Observer) 4.7% Ainsworth Game Technology… 4.3% Capcom Co., Ltd. Gravity Co Ltd Sponsored ADR TEPPEN World Championship Sponsored by Amazon (AMZN-NASDAQ, NR) to be Held in Tokyo – The first TEPPEN World 4.0% 3.9% Koei Tecmo Holdings Co., Ltd. Championship will have online regional qualifiers and a US$446K (50M yen) prize pool. TEPPEN, a mobile card-battling 3.6% Changyou.com Ltd. Sponsored… game, was released in July reportedly gaining over 3M downloads to date. (Esports Observer) 3.1% BANDAI NAMCO Holdings Inc. 2.3% AfreecaTV Co., Ltd. Aiming, Inc. Riot Games to Form New League of Legends League in Southeast Asia, Hong Kong, Taiwan and Macau – The publisher 1.6% Webzen Inc. combined two of its professional competitions (The League Master Series (LMS) and League of Legends Southeast Asia 1.4% 1.3% PearlAbyss Corp. Tour (LST)) creating the Pacific League Championship Series (PCS). The PCS will feature 10 teams and launch in 2020, with 0.5% Netmarble Corp. more detail to follow. (Esports Observer) 0.0% NCsoft Corporation 0.0% NCsoft Corporation -0.6% Aristocrat Leisure Limited Razer (Private) Named as Official Esports Partner of Gamescom Asia 2020 – Razer, a gaming hardware and peripheral maker, has partnered with Koelnmesse Pte Ltd. (event organizer) for the popular German gaming convention, gamescom. -1.9% KONAMI HOLDINGS CORP -2.2% Com2us Corporation Gamescom Asia will be held from Oct. 15-18, 2020 in Singapore. Razer will design an esports and gaming zone at the -2.4% Kingsoft Corp. Ltd. gaming convention that is expected to attract more than 30,000 visitors. The gamescom event in Cologne, Germany event -2.7% DeNA Co., Ltd. had approximately 373,000 visitors in attendance in August. (Esports Observer) -3.6% Micro-Star International Co., Ltd. -3.9% NetEase, Inc. Sponsored ADR

Sri Lanka Recognized Esports as an Official Sport – Esports is thriving in the country and set to be included as a medal -4.3% Sony Corporation -5.0% Asustek Computer Inc. event at the 2019 Southeast Asian Games. (Esports Observer) -5.6% Tencent Holdings Ltd. -5.9% Nintendo Co., Ltd. IGG, Inc. ------6.6% -7.6% DoubleUGames Co., Ltd.

Best and Worst Performing Stocks in APAC: COLOPL (+62.85%), the Japanese game developer, stock price rose following -8.2% Bilibili, Inc. Sponsored ADR… -8.9% Mixi, Inc. the recent release of their Dragon Quest Walk game. Gamewith, which owns and operates a game information website, -8.9% Gungho Online Entertainment,… stock saw a boost of 12.5% -9.8% NEXON Co., Ltd. -13.3% Akatsuki, Inc.

The9 (-17.5%) and HUYA (-22.4%) were among the lowest performers, with The9’s sell-off of several subsidiaries to Kapler -13.7% Sea Ltd. (Singapore) Sponsored…

Pte. Ltd and HUYA’s recent partnership with ESL. -14.8% KLab Inc. -17.7% The9 Ltd. Sponsored ADR -22.4% HUYA, Inc. Sponsored ADR…

Esports Streaming Giants: Q319

Exhibit 13. Top Streaming Platforms (by Million Hours Watched – Q319 vs Q219)

Source: StreamElements, Echelon Wealth Partners

Streaming Update

StreamElements released its quarterly ‘State of the Stream Q3 2019’ report this week. The report highlights the increase in Twitch’s dominance from 72.2% in Q219 to 75.6% in Q319. Overall q/q viewership (hours watched) growth was a negative 10% due to a seasonally weak quarter.

Facebook peaked its performance in the month of September, up an impressive 41% m/m. The growth can be attributed to Facebook’s new ad campaigns and updated infrastructure such as improved chat feature, new buy/sell feature for trading virtual items through Facebook Marketplace without actually leaving the live stream etc. We expect Facebook to gain market share and continue the uptrend as it launches its Level Up Program in 21 countries where Facebook is already deep-rooted.

On August 1, 2019, Ninja left Twitch where he had around 14M subs to join Mixer. This move brought the intensifying streaming war to the surface by attracting huge media coverage. Ninja has ~2.4M subs on Mixer at the moment. Mixer’s viewership increased by 6.6% m/m in August when Ninja joined although it was down by 26.3% in the following month reflecting lower seasonality and the trial viewing seen in August. We believe that Mixer’s move to buy-out Ninja has helped the platform by attracting not just subscribers but also additional streamers wanting to ride the Ninja wave. Mixer’s Q319 overall viewership was disappointing but it provides a viable alternative to streamers against Twitch’s dominance.

3-months

Twitch Trend Tracker: Viewership; Top Games (Ranking Based on Last Seven Days Average)

2-week Change 3-month Change 1-year Change Average Viewers (Weekly Average) Change

LoL Just CS:GO Fortnite WoW Apex GTA V FIFA 20 Dota 2 Destiny 100.6 90.9 Chatting Legends 2 34.2 44.1 29.7 21.7 36.8 33.2 37.7 34.2 15.8 7.7 11.1 13.5 10.2 5.3 61.3 58.4 8.9 53.0 52.6 2.3 45.4 44.1 -2.0 -1.3 -3.6 -1.5 34.2 -2.3 -20.2 -11.0 -36.0 16.4 -15.2 -36.3 -28.7 -60.9 -75.8 -90.0

Hours Watched (Weekly Average)

2.4 0.7 0.8 1.1 2.2 0.5 0.9 0.8 0.9 0.8 0.4 0.2 0.3 0.3 0.3 0.2 0.0 0.0 0.1 1.5 1.4 1.3 1.3 0.1 1.1 1.1 -0.1 0.0 -0.4 0.8 -0.1 -0.2 -0.9 -0.9 0.4 -0.3 -1.5 -1.8 -0.7 -2.2

Peak Viewers (Weekly Average)

161.9 153.8 29.0 106.7 61.2 10.1 82.1 32.7 4.4 101.3 102.0 4.8 1.1 4.8 10.1 -3.3 -9.1 -2.1 -5.4 -10.1 81.3 82.1 -25.6 -32.9 47.8 -10.5 -1.2 -42.6 -49.4 -14.1 -59.9 -163.1 15.9 22.2 15.1 -96.4 -76.3 -124.6 -328.7 -334.5

Source: Twitch Tracker, Echelon Wealth Partners

Esports Events Recent

Game September - Top Tournament (By Prize Pool; Prize Type Peak Viewers Hours Watched Duration Money >= $500K) Organizer (Online/Offline) Date Prize Money ('000) ('000) (Hours) Venue Fortnite Champion Series Season X Finals Epic Games Online 20.09.19-23.09.19 $4,079,400 102,011 1,202,997 25 NA Overwatch League 2019 Playoffs Blizzard Entertainment Offline 30.08.19-29.09.19 $3,500,000 318,019 5,844,057 53 Blizzard Arena LA & Wells Fargo Center Twitch Rivals TwitchCon Fortnite Showdown Twitch Offline 27.09.19-28.09.19 $1,350,000 214,503 937,831 11 San Diego Convention Center StarLadder Major Berlin 2019 StarLadder Offline 23.08.19-08.09.19 $1,000,000 837,748 45,166 129 Mercedes-Benz Arena, Berlin Twitch Rivals TwitchCon Apex Legends Showdown Twitch Offline 29.09.19-30.09.19 $500,000 80,731 440,654 9 San Diego Convention Center Apex Legends Preseason Invitational EA Offline 13.09.19-15.09.19 $500,000 107,082 1,876,731 36 Alvernia Planet

Ongoing

Game Ongoing - Top Tournament (By Prize Pool; Prize Type Peak Viewers Hours Watched Duration Money >= $500K) Organizer (Online/Offline) Date Prize Money ('000) ('000) (Hours) Venue EU LCS studio (Berlin)/ AccorHotels Arena (Paris)/ 2019 World Championship Riot Games Offline 02.10.19 - 10.11.19 $2,225,000 986.06 19,990 38 Palacio Vistalegre (Madrid)/ Verti Music Hall (Berlin) Upcoming

Major Tournament (Prize Money >= $500K) Organizer Type (Online/Offline) Date Prize Money Venue Masters Tour 2019 Bucharest (Hearthstone) Blizzard Entertainment Offline 2019-10-18 $500,000 Bucharest, Romania StarSeries & i-League CS:GO Season 8 StarLadder Offline 2019-10-21 $500,000 Belek, Turkey WCS Global Finals 2019 (StarCraft II) Blizzard Entertainment Offline 2019-10-25 $500,000 Anaheim Convention Center, California, US PUBG Global Championship 2019 PUBG Corporation Offline 2019-11-08 $2,000,000 Oakland, Los Angeles, US CS:GO Asia Championships 2019 Perfect World Offline 2019-11-21 $500,000 Shanghai, China ESL Pro League Season 10 Finals ESL Offline 2019-12-03 $600,000 Sparekassen Fyn Arena/ODINCON EXPO, Denmark ONE Esports Dota 2 World Pro Invitational Singapore ONE Esports/PGL Offline 2019-12-17 $500,000 Singapore Indoor Stadium Shadowverse World Grand Prix 2019 Cygames Esports Offline 2019-12-25 $1,000,000 Tokyo, Japan

Source: Esports Charts, Echelon Wealth Partners

Physical Infrastructure (Pipeline)

Source: Business Insider Source: Venture Beat The Fusion Arena, Philadelphia: $50M project by Comcast Spectacor and Esports Racing Arena, Miami: ~$2.8M project by Millennial Esports Corp. The Cordish Cos. with seating capacity of 3,500 with 30 racing simulators

Details: 10,000-square-foot training facility, two balcony bars, a broadcast Details: 12,000-square-foot arena to train both esports and real-world

studio and premium seating racing drivers

Projected Opening: 2021 Projected Opening: 2020

Answer to Trivia Question: “B”

League of Legends, Counter-Strike: Global Offensive, Dota 2

Source: Newzoo 10

Sports/Esports Gambling

Gambling Update The Stars Group, Inc. (TSGI-TSX, Tender) Agreement to be Acquired by Flutter Entertainment (FLTR-LON, NR) in a Mega Merger – FLTR owns and operates powerful brands such as PaddyPower, betfair, and FanDuel, among others, of which TSGI’s investments, most notably Fox Bet, should be greatly leveraged along with its technical superiority, to exploit the relatively new business of Betting in America. Fox Sports will have the right to purchase an 18.5% equity interest in FanDuel Group at its 2021 market value. We view the probability of shareholder approval as likely and do not expect material anti-trust impediments. LOOT.BET Announced Joining the Esports Integrity Commission (ESIC) – Loot.Bet, an esports-dedicated bookmaker, will provide internal data for anti- corruption investigations such as match-fixing and fraud. Livestream Ltd. (Private), Loot.Bet’s operator, said that ESIC’s infrastructure, experience and expertise will aid in effectively detecting match-fixing and protect both bookmakers and its customers. The Company will join ESIC as a sponsor of esports events. ESCI has also signed agreements with other betting operators including Rivalry.GG (Private). (Esports Insider)

Fnatic Announced Continued Multi-Year, Six-Figure Deal, Partnership with Rivalry (Private) for CS:GO Team – Rivalry, the esports betting platform, will have access to global image rights of the players and work alongside Fnatic in developing exclusive content on the betting platforms community hub. (Esports Observer)

Recent Regulatory Update

Michigan Lawmakers Plan to Legalize Sports Betting by Separating It from Online Casino Gambling – The updated version of the Lawful Sports Betting Act plans to separate sports betting from online casino gambling in order to advance sports betting, which saw less resistance. (Legal Sports Report)

Ohio Lawmakers Hope to Pass Sports Betting Bill through House by Early November – The

House and the Senate bills present different alternatives of how sports betting could be regulated, with either the Casino Control Commission or the Ohio Lottery Commission as the controlling body. (Legal Sports Report)

Pennsylvania Gambling Revenue in 2018-2019 Hit $3.29B – Sports betting revenues were $21.7M but that number is expected to increase with the roll out of online betting in the summer. In fact, sports wagering revenues were $9.9M in August or ~46% of the total in 2018-

2019. (IGB)

Regulators in the UK Have Been Investigating the Loot Box Mechanics Found in Many Games to See if They Should be Considered Gambling – The UK Government's Department for Digital, Culture, Media & Sport Committee released a report which recommends that games Source: ESPN containing loot boxes should be regulated as gambling and not be sold to children. Although, the committee’s recommendations are not laws. (Engadget) 11

FEATURE STORY: Drill Down into Twitch Monetization Streams Amazon-owned Twitch dominates the online game streaming market with its 76% share in terms of hours watched in Q319. Notably, viewers spent ~8B hours on the content published on Twitch in the first three quarters of 2019. Apart from user-friendly streaming infrastructure, it is mission-critical to offer multiple ways for content creators to monetize their channel. The revenue share retained by Twitch or any other platform for that matter, depends on the control a streamer commands in terms of subscriber base, views, popularity etc. However, we look for the increased competitive intensity across the tech/social media titan-owned platforms to see pricing or payouts used as a tool to entice streamers and in turn pull their traffic. While never one to bet against Amazon/Twitch, a core part of our thesis on the ecosystem call for improved content payouts as the platform providers move aggressively to take share and dominance away from Twitch. Where it maintains its market share dominance, Twitch’s audience size gives it a significant advantage in negotiating publisher/streamer payouts. For this reason, we see the technology/social network titans moving aggressively to reduce Twitch’s share.

We have highlighted five revenue streams available for streamers on Twitch and its would-be peers: 1. Subscription fees (tier-based subs); 2. Cheer Bits (to motivate streamers); 3. OTT advertising; 4. Sponsored merch (links on the profile page); and 5. In-stream sponsorships (in-game stickers/recommendations).

Starting with the basics, the content creators on Twitch are referred to as “streamers”, as they stream themselves playing games with added commentary. The Twitch platform, however, also has a “Just Chatting” category where streamers do not necessarily play any game but rather discuss games and other topics. The “Just Chatting” category is currently amongst the top three categories on the Twitch platform by viewership alongside categories for Fortnite and League of Legends. Although the top three categories vary frequently with actions by top streamers or events able to influence viewership. While some streamers are also professional players the two are not necessarily mutually exclusive. In fact, popularity in streaming usually translates to higher earnings with a large percentage of earnings from subscriptions, advertisement and sponsorship. For this reason, many professional players are encouraged by their organizations to stream as it provides recurring revenue, rather than tournament prize money winnings which are more unpredictable. Additionally, streaming provides stability for prospective investors seeking recurring revenue sources.

The key metrics used for tracking streamers performance are average monthly subscribers, average monthly views and average monthly cheer bits received.

Top Streamers – By Subs – By Viewership – By Cheer Bits

Top 5 streamers Current subs Paid Prime Gifted Tier 1 Tier 2 Tier 3 Top 5 streamers Top 5 streamers (Last 30 days) 4.99 9.99 24.99 (Last 30 days) Million hours (September) Bits ($ value) xQcOW 31,311 13,119 16,854 6,579 13,012 55 52 Asmongold 10.1 bajheera 1,093,483 ($10,934.83) shroud 30,655 8,952 15,059 1,893 8,778 110 64 Riot Games 7.49 castro_1021 929,037 ($9,290.37) dougisraw 638,089 ($6,380.89) MontanaBlack88 26,874 7,027 18,462 1,732 6,932 59 36 xQcOW 5.58 xqcow 491,300 ($4,913.00) Dr Disrespect 26,397 10,804 14,321 2,756 10,436 242 126 shroud 5.19 MOONMOON_OW 24,483 10,853 12,391 2,854 10,328 186 339 MontanaBlack88 5.18 dizzykitten 436,073 ($4,360.73) Source: Twitch tracker, Twitch Stats, EWP

1. Subscription Fees – paid by viewers to a particular streamer’s channel

Sub to Streamer Channel (Partner/Affiliate) 50-60% subs Tier 1 ($4.99), Tier 2 ($9.99), Tier 3 ($24.99), Twitch Prime $7.99 revenue shared

Other ways to subscribe on the platform with streamers Twitch Turbo for ad-free viewing across platform and additional features $8.99/month (not shared with streamers)

Twitch has two categories of streamers, “Affiliate” and “Partner”. To be an Affiliate a streamer must stream 500 minutes on at least seven days of a month, receive an average of three concurrent viewers

per stream and grow an audience of at least 50 followers. Top streamers or Partners and have the option of running video advertisements in their content generating additional revenue. To be eligible for the Partner program a streamer needs to stream for 25 hours, stream 12 unique days and reach 75 average viewers all in a period of 30 days. However, completing these requirements does not guarantee Partners status, applications are reviewed manually by Twitch staff.

Both affiliates and partners earn a portion of the total viewer subscription revenue, which range from

Tier 1 of $4.99 (~$2.99 with a payout ratio of 60%), Tier 2 of $9.99 and Tier 3 of $24.99 per subscription set by Twitch. Twitch Prime, which is included in an Amazon Prime membership also counts as a normal subscription for streamers (i.e. $4.99 subscription)

The revenue generated from subscriptions is initially divided 50:50 between the individual content streamer and Twitch, but top streamers receive higher percentages, in some cases, even 100% of the proceeds. Although usually the split ranges from 60-70%. For context, the subscription revenue is reported to be ~$3,000-5,000 per month (for 1,000-2,000 Tier 1 subs with a payout ratio of 50%), with

top streamers generating substantially more. For illustrative purposes, Shroud (a top Twitch streamer)

with a ~30,000 Tier 1 sub count and a ~60% split is generating over $1.0M a year. Shroud generally

averages around 30,000 subscribers per month although this number fluctuates.

Go Turbo subscription is another way viewers can watch ad-free content and the subscription fees of $8.99/month applies to platform-wide ad-free viewing. 100% of this revenue is retained by Twitch. This is Twitch’s strategy to provide value and retain viewers who are interested in multiple-games and players.

Source: Twitch Follow the link for Twitch Subs tracker: Twitchtracker

2. Cheer Bits

Bits to cheer for streamers: 100 ($1.40) to 25,000 ($308.00) 1 Bit = 1 cent

Content streamers receive donations or “Bits”, which is Twitch’s virtual currency. Fans purchase the Bits that are then redeemed as “emotes” (esports emoticons). Bit emotes can range in cost from one to 10,000 in Bits, in order to “Cheer” on Twitch streamers. 100 Bits costs $1.40 while at the high end 25,000 Bits costs $308.00.

Screenshot of cheers shared during live streaming Bits also allow fans to chat in subscription only chat rooms. Streamers, however, can set minimum bit thresholds on Cheering for their channel to reduce spam messages.

Bits are currently only available to be purchased via Amazon and PayPal payments. Twitch viewers in the US only can earn Bits without spending cash by watching short advertisements on Twitch’s desktop website. (Refer screenshot on left)

Twitch pays the streamer for receiving Bits at a rate of about one cent per Bit. Top streamers reportedly earn $1,000-5,000 from Bits per month. Follow the link for monthly Cheer Bits earned by the streamers: Twitchstats

Demo Video: Cheering Bits

Source: Twitch

3. OTT Advertising Twitch OTT Ads: Pre-roll, mid-roll, banners

Only Twitch Partners have the option to roll advertisement before, during and after streams. The streamers are paid based on standard CPM model – for every 1,000 views. The CPM prices are generally said to vary between $2-$10, Q4 prices skewed to the higher side of the range. Streamers get a cut from the CPM and make about $0.9-2 per 1000 views. HubSpot reported that Google’s YouTube median CPM rates

were between $7.5-12.8 during Q118-Q119. One could submit that the audience profile for esports should warrant a premium to YouTube’s average.

Twitch individually signs confidential ad revenue sharing agreements with streamers, making it difficult to estimate advertising rates. We view this a potential battleground for platforms such as YouTube and Mixer to persuade streamers by offering more favourable revenue splits than Twitch and more community building features, such

as ‘channel progression’ that allows fans to show their dedication by interacting with Source: Twitch the channel. Use of Ad Blocker has hurt OTT’s ad revenue and to mitigate the loss, Twitch offers

‘Go Turbo’ subscription (discussed in revenue stream 1) which offers platform wide ad-free viewing. For perspective, according to a recent survey conducted by Charlton Insights on 1,457 Ontarians aged between 13-49, ~40% reportedly use ad-blocker for 4. Sponsored Merch viewing esports content. Sponsored merchandise: Links on Streamer channels

These external links appear right below the stream, on the channel page, and redirect to an online store that the streamer supports. In the cases of a streamer representing an organization, the streamer also might have a revenue sharing agreement signed with the organization.

Source: Twitch

5. Sponsored Branding

Sponsored Screen Branding

Channel stickers and/or product use, recommendation

Top streamers also generate recurring revenue through brand sponsorship. For example, sponsorship includes sponsored streams and long-term deals with various brands. Sponsored streams include streamers playing newly released games to bring Red Bull attention to the game. For example, many top streamers such as Shroud were sponsored by EA to play Apex Legends.

Long-term deals involve both endemic brands to esports such as headphone makers

and peripheral manufactures as well as non-endemic brands such as Red Bull and Maxnomics Uber Eats.

Samsung Galaxy Moreover, sponsored content appears on streamers screens as stickers (see Uber S10+ Eats sticker) and as links on the streamers’ channels. Streamers also offer promo codes for brands they endorse. DrDisrepect has the promotion code “DOC” for Gfuel energy drink on his channel page, among others. The promotion code allows brands to better track the ROI of the influencers.

Follow the link below to view how stickers and brand links are placed: NINJA; NINJA HOME Channel Sticker: Twitch faces competition from other platforms like Facebook, Mixer, YouTube that Uber Eats preying to grab a share of eyeballs that esports attracts. We view that streamers ability to better monetize their content on one platform over another, will play critical role.

We have not included direct donations in the list as it is not consistent month-over- month and is also difficult to track.

Source: Twitch

Twitch Streamers Dashboard to Track Earnings (Sample)

Source: Twitch

Esports Comps Sheet

Market Cap Enterprise Company Ticker Last Price ($M) Value ($M) Returns EV/Sales EV/EBITDA P/E 1 Month 3 Month YTD 2018 2019 2020 2018 2019 2020 2018 2019 2020 Game Publishers Activision Blizzard, Inc. ATVI-US $53.69 $42.13 $34.35 -4.2% 14.6% 15.3% 4.6x 6.4x 5.8x 11.4x 18.1x 15.3x 19.8x 25.0x 21.6x Electronic Arts Inc. EA-US $92.53 $27.92 $26.65 -7.0% -1.5% 17.3% 6.5x 4.8x 4.5x 20.6x 14.4x 12.8x 36.3x 20.1x 19.0x Take-Two Interactive Software, Inc. TTWO-US $122.40 $13.94 $8.73 -4.7% 4.5% 18.9% 5.1x 4.3x 4.3x 32.5x 17.4x 16.6x 63.5x 25.8x 25.2x NetEase, Inc. Sponsored ADR NTES-US $258.96 $34.77 $25.55 -5.0% -1.4% 10.0% 2.5x 2.7x 2.4x 17.1x 14.6x 12.5x 32.8x 21.2x 19.4x Nintendo Co., Ltd. 7974-JP ¥40,300.00 ¥5,249.64 ¥2,712.25 -3.3% 0.8% 37.6% 4.4x 3.1x 2.9x 22.1x 12.6x 10.7x 40.3x 22.3x 18.8x Konami Holdings Corp. 9766-JP ¥5,060.00 ¥720.37 ¥534.47 3.7% 3.4% 5.3% 2.7x 2.1x 2.0x 11.3x 8.6x 7.6x 24.8x 19.9x 17.5x Bandai Namco Holdings Inc. 7832-JP ¥6,600.00 ¥1,496.28 ¥927.59 6.6% 27.2% 34.0% 0.9x 1.8x 1.7x 6.1x 11.8x 10.9x 14.2x 22.6x 20.7x Tencent Holdings Ltd. 700-HK $318.80 $3,102.92 $3,054.03 -6.3% -10.7% 1.5% 8.2x 7.6x 6.1x 19.6x 19.9x 17.1x 31.8x 29.2x 25.2x Ubisoft Entertainment SA UBI-FR € 56.88 € 6.74 € 9.76 -19.9% -22.8% -19.3% 5.2x 3.4x 3.0x 12.2x 7.3x 6.2x 54.4x 25.7x 18.8x Average -4.5% 1.6% 13.4% 4.5x 4.0x 3.6x 17.0x 13.9x 12.2x 35.3x 23.5x 20.7x Median -4.7% 0.8% 15.3% 4.6x 3.4x 3.0x 17.1x 14.4x 12.5x 32.8x 22.6x 19.4x Companies with eSports Exposure Amazon.com, Inc. AMZN-US $1,720.26 $860.65 $758.60 -5.5% -14.7% 14.5% 3.3x 3.2x 2.7x 30.0x 21.8x 17.4x 74.6x 73.8x 52.4x Microsoft Corp. MSFT-US $139.10 $1,070.83 $991.23 2.2% 0.9% 36.9% 6.6x 7.8x 7.1x 14.6x 17.9x 15.9x 46.3x 28.1x 24.9x Alphabet Inc. Class A GOOGL-US $1,209.47 $792.14 $629.78 0.3% 6.0% 15.7% 4.6x 4.6x 3.9x 14.3x 12.7x 10.9x 23.9x 25.2x 22.1x Facebook, Inc. Class A FB-US $180.03 $445.88 $342.29 -3.3% -11.2% 37.3% 6.1x 7.0x 5.8x 11.5x 13.2x 11.0x 17.3x 28.2x 19.5x Intel Corp. INTC-US $51.11 $231.20 $234.90 -1.4% 6.0% 8.9% 3.3x 3.7x 3.6x 7.1x 8.0x 7.7x 10.4x 11.9x 11.7x NVIDIA Corp. NVDA-US $183.03 $113.84 $94.66 -0.1% 14.4% 37.1% 15.3x 10.1x 8.6x 43.0x 34.9x 25.9x 50.5x 34.3x 26.4x Advanced Micro Devices, Inc. AMD-US $28.38 $32.26 $19.05 -6.1% -16.0% 53.7% 2.9x 4.9x 3.9x 30.7x 34.2x 21.7x 55.7x 48.0x 28.5x HUYA, Inc. Sponsored ADR Class A HUYA-US $21.63 $1.44 $1.71 -6.7% -12.0% 39.7% 2.4x 3.5x 2.6x NA 71.2x 27.0x NA 70.7x 34.3x Walt Disney Company DIS-US $129.34 $235.17 $198.13 -4.7% -9.9% 18.0% 3.3x 3.0x 4.2x 10.6x 10.5x 17.3x 17.3x 19.4x 22.8x GameStop Corp. Class A GME-US $5.05 $0.48 $0.34 -0.8% -2.5% -60.0% 0.2x 0.2x 0.2x 2.9x 4.7x 5.2x 47.5x 4.0x 5.0x Lions Gate Entertainment Corp. Class A LGF.A-US $9.30 $2.01 $6.85 -15.5% -26.7% -42.2% 2.3x 1.5x 1.4x 4.4x 11.1x 10.4x 11.4x NA 17.8x Sony Corp. 6758-JP ¥6,136.00 ¥7,924.82 ¥5,266.72 -3.7% 3.0% 15.2% 0.7x 0.9x 0.9x 4.1x 6.3x 6.0x 13.3x 12.3x 13.4x Modern Times Group MTG AB Class B MTG.B-SE € 77.06 € 5.26 € 23.87 -7.7% -28.2% -24.8% 1.2x 1.1x 0.9x 12.6x 25.4x 13.1x 18.9x NA NA Average -4.1% -7.0% 11.5% 4.0x 4.0x 3.5x 15.5x 20.9x 14.6x 32.2x 32.3x 23.2x Median -3.7% -9.9% 15.7% 3.3x 3.5x 3.6x 12.1x 13.2x 13.1x 21.4x 28.1x 22.5x Canadian Publicaly-listed Companies with eSports Exposure Cineplex Inc. CGX-CA $23.57 $1.48 $2.18 -7.9% 1.6% -7.4% 1.3x 2.1x 2.0x 8.5x 8.4x 7.9x 20.9x 32.7x 21.0x Enthusiast Gaming Holdings EGLX-CA $2.12 $0.11 NA -21.5% -69.3% -44.2% #N/A NA NA NA NA NA NA NA NA Axion Ventures Inc. AXV-CA $0.40 $0.10 $0.19 -33.3% -50.0% -55.6% 16.6x 7.7x 1.5x NA NA 2.5x NA NA 3.2x Millennial Esports Corp. GAME-CA $0.50 $0.00 NA -46.8% 28.2% -44.4% NA NA NA NA NA NA NA NA NA Victory Square Technologies Inc. VST-US $26.92 $13.41 $21.54 5.1% 20.0% 17.6% 2.1x 2.1x 2.0x 10.6x 7.5x 7.4x NA 11.6x 12.2x Average -20.9% -13.9% -26.8% NA 3.9x 1.8x 9.5x 7.9x 6.0x 20.9x 22.2x 12.1x Median -21.5% 1.6% -44.2% NA 2.1x 2.0x 9.5x 7.9x 7.4x 20.9x 22.2x 12.2x

Source: FactSet, Echelon Wealth Partners

EWP North American Gaming, Esports and Gambling Index

NA: Gaming, Esports and Gambling NA: Gaming, Esports and Gambling NA: Gaming, Esports and Gambling 2-weeks 6-Months YTD-2019 26.3% 60.0% 86.7% Stars Group Inc. Score Media and Gaming Inc.… Score Media and Gaming Inc.… 11.7% Turtle Beach Corporation 58.5% Versus Systems Inc 66.0%Everi Holdings, Inc. 8.3% QYOU Media, Inc. 28.4% Take-Two Interactive Software,… 58.2% Versus Systems Inc 7.4% GameStop Corp. Class A 15.7% Microsoft Corporation 55.2% Zynga Inc. Class A 6.0% NVIDIA Corporation 12.2% Activision Blizzard, Inc. 53.7% Advanced Micro Devices, Inc. 5.3% Glu Mobile Inc. 11.5% Zynga Inc. Class A 43.8% Razer, Inc. 5.3% Glu Mobile Inc. 10.4% Walt Disney Company 37.3% Facebook, Inc. Class A 0.8% Intel Corporation 8.3% QYOU Media, Inc. 37.1% NVIDIA Corporation 0.0% YDx Innovation Corp. 6.8% Stars Group Inc. 36.9% Microsoft Corporation -0.2% Microsoft Corporation 3.0% MGM Resorts International 30.2% KuuHubb Inc -1.0% Zynga Inc. Class A 2.0% Advanced Micro Devices, Inc. 20.8% Boyd Gaming Corporation -1.0% Great Canadian Gaming… 1.2% Facebook, Inc. Class A 20.8% Stars Group Inc. -1.5% Pollard Banknote Limited 0.3% Alphabet Inc. Class A 18.9% Take-Two Interactive Software,… -1.7% Alphabet Inc. Class A -2.7% Cineplex Inc. 18.0% Walt Disney Company -2.0% Activision Blizzard, Inc. -2.7% Scientific Games Corporation 17.3% Electronic Arts Inc. -2.0% Lions Gate Entertainment Corp… -4.7% NVIDIA Corporation 15.7% Alphabet Inc. Class A -2.2% Walt Disney Company -6.9% Amazon.com, Inc. 15.3% Activision Blizzard, Inc. -2.2% KuuHubb Inc -7.1% Electronic Arts Inc. 14.5% Amazon.com, Inc. -2.5% Wynn Resorts, Limited -8.3% Intel Corporation 14.4% Scientific Games Corporation -2.5% Versus Systems Inc -9.7% Pollard Banknote Limited 13.1% MGM Resorts International -2.7% Las Vegas Sands Corp. -10.6% Turtle Beach Corporation 10.6% Eldorado Resorts Inc -2.9% Boyd Gaming Corporation -12.2% Penn National Gaming, Inc. 8.9% Intel Corporation -3.2% Razer, Inc. -12.4% Monarch Casino & Resort, Inc. 8.3% Monarch Casino & Resort, Inc. -4.1% Enthusiast Gaming Holdings Inc -14.0% Boyd Gaming Corporation 7.2% Wynn Resorts, Limited -4.1% Amazon.com, Inc. -14.2% Everi Holdings, Inc. 5.3% Las Vegas Sands Corp. -4.5% Golden Entertainment, Inc. -14.5% Great Canadian Gaming… -0.6% Red Rock Resorts, Inc. Class A -4.9% MGM Resorts International -16.1% Razer, Inc. -0.8% Century Casinos, Inc. -5.0% Red Rock Resorts, Inc. Class A -16.8% Las Vegas Sands Corp. -1.6% Penn National Gaming, Inc. -5.2% Facebook, Inc. Class A -17.1% Eldorado Resorts Inc -2.7% Pollard Banknote Limited -5.6% Advanced Micro Devices, Inc. -18.6% Century Casinos, Inc. -7.4% Cineplex Inc. -5.8% Monarch Casino & Resort, Inc. -19.8% Golden Entertainment, Inc. -13.2% Great Canadian Gaming… -6.3% Take-Two Interactive Software,… -24.8% Wynn Resorts, Limited -17.2% ePlay Digital Inc. -6.3% Electronic Arts Inc. -26.2% Red Rock Resorts, Inc. Class A -19.9% Golden Entertainment, Inc. -6.3% Penn National Gaming, Inc. -29.3% Enthusiast Gaming Holdings Inc -21.9% Turtle Beach Corporation -6.8% Everi Holdings, Inc. -35.5% Victory Square Technologies Inc -23.5% QYOU Media, Inc. -7.2% Eldorado Resorts Inc -38.0% KuuHubb Inc -33.7% Glu Mobile Inc. -7.9% PlayAGS, Inc. -40.3% Super League Gaming, Inc. -33.7% Glu Mobile Inc. -8.3% Cineplex Inc. -43.5% ePlay Digital Inc. -42.2% Lions Gate Entertainment Corp… -10.0% Century Casinos, Inc. -44.6% Lions Gate Entertainment Corp… -44.2% Enthusiast Gaming Holdings Inc -10.9% Scientific Games Corporation -49.3% GameStop Corp. Class A -44.4% Millennial Esports Corp. -11.7% SciPlay Corp. Class A -52.4% Millennial Esports Corp. -45.5% YDx Innovation Corp. -13.1% Victory Square Technologies Inc -53.4% Glu Mobile Inc. -54.1% Victory Square Technologies Inc -14.9% Axion Ventures Inc -53.4% Glu Mobile Inc. -55.1% PlayAGS, Inc. -17.6% Score Media and Gaming Inc.… -53.8% YDx Innovation Corp. -55.6% Axion Ventures Inc -23.1% Millennial Esports Corp. -58.1% PlayAGS, Inc. -60.0% GameStop Corp. Class A -25.0% ePlay Digital Inc. -60.0% Axion Ventures Inc -78.0% Fandom Sports Media Corp -25.9% Fandom Sports Media Corp -63.8% Fandom Sports Media Corp -30.9% Super League Gaming, Inc.

Source: FactSet, Echelon Wealth Partners

EWP European Gaming, Esports and Gambling Index

Europe: Gaming, Esports and Gambling Europe: Gaming, Esports and Gambling Europe: Gaming, Esports and Gambling 2-weeks 6-months YTD-2019 11.0% 36.4% 98.7% GVC Holdings PLC GVC Holdings PLC Evolution Gaming Group AB 5.3% Gamenet Group SpA 35.1% Evolution Gaming Group AB 64.6% Gamenet Group SpA 4.9% Gamesys Group PLC 28.4% Flutter Entertainment Plc 58.3% CD Projekt S.A. 2.6% Flutter Entertainment Plc 25.9% Gamenet Group SpA 57.1% Embracer Group AB Class B 2.2% Rank Group Plc 23.0% William Hill PLC 34.7% Rank Group Plc 1.8% William Hill PLC 22.7% LeoVegas AB 30.8% Logitech International S.A. 1.3% Evolution Gaming Group AB 21.1% Rank Group Plc 29.8% Tobii AB 0.2% Kindred Group plc Shs Swedish… 12.4% Gamesys Group PLC 24.7% William Hill PLC 0.1% bet-at-home.com AG 10.9% CD Projekt S.A. 21.5% Flutter Entertainment Plc 0.0% Endor AG 9.5% Embracer Group AB Class B 19.8% GVC Holdings PLC -0.4% Logitech International S.A. 4.8% Tobii AB 18.0% Gamesys Group PLC -1.0% adesso AG 4.7% 888 Holdings Plc 8.0% bet-at-home.com AG -1.2% 888 Holdings Plc 2.8% NetEnt AB Class B 6.2% adesso AG -2.8% Tobii AB 2.3% Endor AG 5.9% Endor AG -2.9% Betsson AB Class B -1.3% Logitech International S.A. 3.3% Playtech plc -2.9% NetEnt AB Class B -1.9% Gfinity PLC -7.2% International Game… -3.3% LeoVegas AB -2.5% adesso AG -9.3% 888 Holdings Plc -5.0% Gfinity PLC -2.7% International Game… -10.5% LeoVegas AB -5.4% International Game… -7.4% Playtech plc -11.3% NetEnt AB Class B -5.6% CD Projekt S.A. -11.3% Kambi Group plc Class B -14.6% Mail.ru Group Ltd. Sponsored… -7.2% Embracer Group AB Class B -16.2% Mail.ru Group Ltd. Sponsored… -19.3% Ubisoft Entertainment SA -8.7% Modern Times Group MTG AB… -17.6% bet-at-home.com AG -24.8% Modern Times Group MTG AB… -9.6% Mail.ru Group Ltd. Sponsored… -18.6% Guillemot Corp. SA -26.8% Kambi Group plc Class B -9.9% Playtech plc -27.6% Betsson AB Class B -28.4% Betsson AB Class B -11.4% Guillemot Corp. SA -29.2% Ubisoft Entertainment SA -29.4% Kindred Group plc Shs Swedish… -18.9% Kambi Group plc Class B -32.6% Modern Times Group MTG AB… -30.5% Guillemot Corp. SA -19.3% Ubisoft Entertainment SA -38.8% Kindred Group plc Shs Swedish… -45.9% Gfinity PLC

Source: FactSet, Echelon Wealth Partners

EWP APAC Gaming, Esports and Gambling Index

APAC: Gaming, Esports and Gambling APAC: Gaming, Esports and Gambling APAC: Gaming, Esports and Gambling 2-weeks 6-months YTD-2019 62.8% 139.4% 146.0% COLOPL, Inc. COLOPL, Inc. Sea Ltd. (Singapore) Sponsored… 12.5% Gamewith, Inc. 40.9% Square Enix Holdings Co., Ltd. 112.1% COLOPL, Inc. 9.4% Square Enix Holdings Co., Ltd. 32.5% BANDAI NAMCO Holdings Inc. 71.7% Square Enix Holdings Co., Ltd. 7.3% gumi, Inc. 25.1% KLab Inc. 67.5% AfreecaTV Co., Ltd. 6.7% CyberStep, Inc. 23.7% Sea Ltd. (Singapore) Sponsored… 60.8% Kingsoft Corp. Ltd. 4.7% Ainsworth Game Technology… 22.4% Nintendo Co., Ltd. 40.8% Aristocrat Leisure Limited 4.3% Capcom Co., Ltd. 20.4% Aristocrat Leisure Limited 39.7% HUYA, Inc. Sponsored ADR… 4.0% Gravity Co Ltd Sponsored ADR 20.0% DeNA Co., Ltd. 37.6% Nintendo Co., Ltd. 3.9% Koei Tecmo Holdings Co., Ltd. 19.8% Sony Corporation 35.6% gumi, Inc. 3.6% Changyou.com Ltd. Sponsored… 18.6% Capcom Co., Ltd. 34.0% BANDAI NAMCO Holdings Inc. 3.1% BANDAI NAMCO Holdings Inc. 16.9% Koei Tecmo Holdings Co., Ltd. 32.1% Akatsuki, Inc. 2.3% AfreecaTV Co., Ltd. 12.5% Akatsuki, Inc. 31.1% Capcom Co., Ltd. 1.6% Aiming, Inc. 12.2% AfreecaTV Co., Ltd. 30.7% Koei Tecmo Holdings Co., Ltd. 1.4% Webzen Inc. 11.1% gumi, Inc. 23.5% KLab Inc. 1.3% PearlAbyss Corp. 10.1% PearlAbyss Corp. 15.6% Micro-Star International Co., Ltd. 0.5% Netmarble Corp. 6.4% KONAMI HOLDINGS CORP 15.2% Sony Corporation 0.0% NCsoft Corporation 4.7% NCsoft Corporation 11.7% NCsoft Corporation 0.0% NCsoft Corporation 4.7% NCsoft Corporation 11.7% NCsoft Corporation -0.6% Aristocrat Leisure Limited 2.7% Micro-Star International Co., Ltd. 10.9% Gungho Online Entertainment,… -1.9% KONAMI HOLDINGS CORP -1.9% Ainsworth Game Technology… 10.0% NetEase, Inc. Sponsored ADR -2.2% Com2us Corporation -2.5% Gamewith, Inc. 7.1% DeNA Co., Ltd. -2.4% Kingsoft Corp. Ltd. -5.1% NetEase, Inc. Sponsored ADR 6.6% Gamewith, Inc. -2.7% DeNA Co., Ltd. -6.8% HUYA, Inc. Sponsored ADR… 6.6% CyberStep, Inc. -3.6% Micro-Star International Co., Ltd. -10.1% Com2us Corporation 5.3% KONAMI HOLDINGS CORP -3.9% NetEase, Inc. Sponsored ADR -12.3% DoubleUGames Co., Ltd. 1.5% Tencent Holdings Ltd. -4.3% Sony Corporation -13.8% Asustek Computer Inc. -0.5% Asustek Computer Inc. -5.0% Asustek Computer Inc. -14.3% Webzen Inc. -1.3% Ainsworth Game Technology… -5.6% Tencent Holdings Ltd. -14.8% Mixi, Inc. -3.9% PearlAbyss Corp. -5.9% Nintendo Co., Ltd. -15.0% CyberStep, Inc. -4.0% Bilibili, Inc. Sponsored ADR… -6.6% IGG, Inc. -15.8% Kingsoft Corp. Ltd. -7.9% Mixi, Inc. -7.6% DoubleUGames Co., Ltd. -18.0% Tencent Holdings Ltd. -10.0% NEXON Co., Ltd. -8.2% Bilibili, Inc. Sponsored ADR… -20.5% Bilibili, Inc. Sponsored ADR… -10.7% DoubleUGames Co., Ltd. -8.9% Mixi, Inc. -24.8% Netmarble Corp. -12.1% The9 Ltd. Sponsored ADR -8.9% Gungho Online Entertainment,… -25.0% NEXON Co., Ltd. -13.7% Netmarble Corp. -9.8% NEXON Co., Ltd. -27.4% Aiming, Inc. -16.9% Webzen Inc. -13.3% Akatsuki, Inc. -41.2% Gungho Online Entertainment,… -21.8% Gravity Co Ltd Sponsored ADR -13.7% Sea Ltd. (Singapore) Sponsored… -43.0% Changyou.com Ltd. Sponsored… -27.6% Com2us Corporation -14.8% KLab Inc. -47.1% Gravity Co Ltd Sponsored ADR -28.2% Aiming, Inc. -17.7% The9 Ltd. Sponsored ADR -54.9% IGG, Inc. -48.0% Changyou.com Ltd. Sponsored… -22.4% HUYA, Inc. Sponsored ADR… -56.0% The9 Ltd. Sponsored ADR -53.9% IGG, Inc.

Source: FactSet, Echelon Wealth Partners 21

EWP North American Gaming, Esports and Gambling Index (By Category)

Weighted Average Return - by Weighted Average Return - by Weighted Average Return - by (2.0%) 2.7% 24.3% Market Capital Market Capital Market Capital

Average Return Average Return Average Return (4.7%) n=48 (15.3%) n=48 1.3% n=48

0.5% Nasdaq Composite Nasdaq Composite 24.4% Nasdaq Composite 15.3% (0.4%) S&P/TSX 9.5% S&P/TSX 17.1% S&P/TSX

13.3% 0.0% S&P 500 S&P 500 20.8% S&P 500

(14.0%) Investment Firms (n=2) (47.7%) Investment Firms (n=2) (54.8%) Investment Firms (n=2)

(2.9%) Streaming (n=2) (3.3%) Streaming (n=2) 15.1% Streaming (n=2)

(13.9%) Tournaments (n=3) 5.1% Tournaments (n=3) 25.4%Tournaments (n=3)

(4.5%) Gambling (n=19) (12.7%) Gambling (n=19) 10.5% Gambling (n=19)

(5.2%) Media (n=6) (19.6%) Media (n=6) (22.1%) Media (n=6)

2.1% Hardware (n=8) (15.7%) Hardware (n=8) 6.7% Hardware (n=8)

(6.6%) Publisher (n=8) (19.7%) Publisher (n=8) (2.8%) Publisher (n=8)

Source: FactSet, Echelon Wealth Partners

EWP Europe Gaming, Esports and Gambling Index (By Category)

Weighted Average Return - by Weighted Average Return - by Weighted Average Return - by (4.3%) 7.2% 40.3% Market Capital Market Capital Market Capital

(3.2%) Average Return 1.2% Average Return 8.3% Average Return n=28 n=28 n=28

0.5%Nasdaq Composite Nasdaq Composite 24.4% Nasdaq Composite 15.3%

(0.4%) S&P/TSX 9.5% S&P/TSX 17.1% S&P/TSX

Tournaments (n=0) Tournaments (n=0) Tournaments (n=0)

(0.9%) Gambling (n=17) 6.2% Gambling (n=17) 10.4% Gambling (n=17)

(6.8%) Media (n=2) (17.2%) Media (n=2) (35.4%) Media (n=2)

(3.6%) Hardware (n=4) (3.2%) Hardware (n=4) 9.0% Hardware (n=4)

(10.4%) Publisher (n=4) (6.3%) Publisher (n=4) 20.4% Publisher (n=4)

Source: FactSet, Echelon Wealth Partners

EWP APAC Gaming, Esports and Gambling Index (By Category)

Weighted Average Return - by Weighted Average Return - by Weighted Average Return - by (1.3%) 2.8% 9.6% Market Capital Market Capital Market Capital

n=40 (1.0%) Average Return n=40 (0.7%) Average Return n=40 15.1% Average Return

0.5% Nasdaq Composite 15.3%Nasdaq Composite 24.4% Nasdaq Composite

(0.4%) S&P/TSX 9.5% S&P/TSX 17.1% S&P/TSX

0.0% S&P 500 13.3% S&P 500 20.8% S&P 500

Investment Firms (n=1) (15.8%) Investment Firms (n=1) 60.8% Investment Firms (n=1) (2.4%) (9.4%) Streaming (n=3) (5.0%) Streaming (n=3) 34.4% Streaming (n=3)

(0.5%) Gambling (n=4) (2.0%) Gambling (n=4) 3.0% Gambling (n=4)

(0.6%) Media (n=2) 10.6% Media (n=2) 76.3% Media (n=2)

(4.7%) Hardware (n=4) 7.8% Hardware (n=4) 17.0% Hardware (n=4)

0.5% Publisher (n=26) (1.5%) Publisher (n=26) 8.0% Publisher (n=26)

Source: FactSet, Echelon Wealth Partners

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ANALYST CERTIFICATION Company: Score Media and Gaming Inc. | SCR:TSX.V I, Rob Goff, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report. IMPORTANT DISCLOSURES

Is this an issuer related or industry related publication? Issuer

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Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No

During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? No

Has the Analyst had an onsite visit with the Issuer within the last 12 months? Toronto Head Office, January 2019 AGM Yes

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