GAMING INDUSTRY OVERVIEW & FANDOM SPORTS PEER ANALYSIS

June 2021

FANDOM SPORTS MEDIA CORP.

CSE: FDM, OTCQB: FDMSF

www.fandomesports.com

Fandom Sports Media Corp. (CSE: FDM, OTCQB: FDMSF) Table of Contents

Fandom Sports Media Corp. – Overview ...... 2 Industry Overview ...... 2 Gaming Industry - Overview ...... 2 Global gaming market is expected to reach US$296 billion by 2026 ...... 2 Video gaming industry revenue increased to US$180 billion in 2020 ...... 3 Global esports audience is forecast to reach 577.2 million in 2024 ...... 5 Games’ live-streaming audience to reach 920.3 million by 2024 ...... 5 Global esports betting market size is expected to reach US$20.49 billion by 2026 ...... 6 The US esports ad revenue is forecast to reach US$226 million in 2021 ...... 7 Fandom Sports Media Corp.’s Peers ...... 8 i. Public Peers ...... 8 ii. Private Peers ...... 11 Recent M&A Activities ...... 12 Sources ...... 14 Disclaimer ...... 14

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Fandom Sports Media Corp. (CSE: FDM, OTCQB: FDMSF) Fandom Sports Media Corp. – Overview

Fandom Sports Media Corp. ("Fandom Sports" or "the Company") (CSE: FDM, OTCQB: FDMSF) is a Canada-based esports entertainment company. The Company has developed and deployed a proprietary wagering platform, "Fandom Esports Platform". Fandom Esports Platform is a web-based machine learning wagering platform, which allows sports fans to express their passion towards the game. Sports fans can express their admiration for their favorite team and criticism about their opponents in a variety of sport categories. The Company's Fandom Esports network operates in the Company's proprietary private cloud and offers multilingual support. In addition, Fandom Sports' web applications operate on Android and iOS mobile devices. Fandom Sports targets "Superfans" and provides them a chance to play, predict/bet and get rewarded.

On August 10, 2020, Fandom Sports received its Curacao iGaming wagering license to market, promote and provide its games of chance to affiliated jurisdictions. On March 16, 2021, the Company launched an esports prediction platform globally. The platform facilitates real-time predictive capabilities through completed APIs for League of Legends, DOTA 2 and Counter Strike: Global Offensive (CS: GO). On March 25, 2021, Fandom Sports minted its first Fancoin Non-Fungible Token (NFT). The Company continues to explore potential partnership-based revenue streams, including advertising, brand sponsorships, white labeling, esports leagues, wagering commissions and wagering subscriptions.

Industry Overview

Gaming Industry - Overview The gaming industry has been changing promptly over the past few years and has seen exponential revenue growth, even including the COVID-19 period. New technological advances are being introduced in the market every year. Technology and gaming companies such as Microsoft (: MSFT), Group Corporation (NYSE: SONY) and Nintendo Co., Ltd. (PINX: NTDOY) benefit from the increasing number of people interested in gaming. The mobile gaming industry has also grown at a faster pace in recent times. The current COVID-19 pandemic has accelerated the adoption of live streaming. The league of Legends World Championship became the 2020’s biggest tournament in terms of viewership, with approximately 91.9 million live viewership hours on YouTube and . League of Legends Champions Korea Summer had a live viewership of about 53.9 million hours on YouTube and Twitch.

Global gaming market is expected to reach US$296 billion by 2026 According to Mordor Intelligence, an India-based market research firm, the global gaming market was estimated to be about US$162.32 billion in 2020 and is forecast to reach approximately US$295.63 billion by 2026, growing at a CAGR of 10.5% over the forecast period (2021 – 2026). This increase is mainly due to the emergence of and the adoption of gaming platforms, including esports. Companies such as StreamMyGame, Onlive, T5-Labs, G-Cluster and provide commercial cloud gaming services globally. DotA 2 and with League of Legends are some significant examples in the esports business. Due to the COVID-19 pandemic, home entertainment has become the only/primary option for gamers as theaters and cinemas remain closed or partially opened in many countries.

The Asia-Pacific region is expected to have the largest market share in the gaming industry during the forecast period (2021 – 2026). Countries such as China, South Korea and Japan have significant potential in gaming market growth. Further, technologies such as 5G drives the mobile-based VR (“Virtual Reality”) gaming market in China. For instance, on May 21, 2020, Archiact, a Canada-based VR games studio, partnered with Migu to bring VR games to its 5G cloud gaming platform and named it Migu Quick Gaming. Migu is a subsidiary of telecom provider China Mobile. Exhibit 1 presents the projected global gaming market from 2021 to 2026.

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Fandom Sports Media Corp. (CSE: FDM, OTCQB: FDMSF)

Exhibit 1: Global Gaming Market is forecast to grow at a CAGR of 10.5% in 2021 – 2026 (in US$ billions)

Source: Mordor Intelligence – Gaming Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Video gaming industry revenue increased to US$180 billion in 2020 According to International Data Corporation (IDC – a US-based market research firm), the global industry revenue was estimated to be US$179.7 billion in 2020, up 20% year-over-year (y-o-y). This increase was mainly due to the release of new next-generation consoles and a surge in mobile growth. The gaming industry revenue has three segments: Mobile, Console, and Personal Computer (PC) markets.

Mobile gaming generated approximately US$87.7 billion in revenues in 2020, a 24% year-over-year increase. The higher share of mobile gaming in total video game revenue is primarily due to low prices for devices (compared to PCs and consoles) and China's influence in the mobile market. China contributed to a significant share of the mobile market in the Asia-Pacific region, with revenues of US$56.6 billion in 2020 (an increase of 25% year-over-year). Holdings Ltd (OTCMKTS: TCTZF) and NetEase, Inc. (OTCMKTS: NETTF) have controlled over 50% of China's mobile market. Activision Blizzard, Inc. (NASDAQ: ATVI), Zynga Inc (NASDAQ: ZNGA) and Inc (NASDAQ: GLUU) have significant control in other countries.

Console gaming contributed to about US$52.5 billion of the total revenue of the video gaming industry, a 19.6% increase y-o-y. The US contributed to a significant share of the total console market revenues. During the eleven months ended November 2020, US users spent a total of approximately US$44.5 billion on video games, including US$38.4 billion in games, US$4 billion in consoles and US$2.1 billion in accessories. Revenues from the console market peaked in November 2020 due to the release of Series X|S on November 10, 2020, and PlayStation 5 on November 12, 2020. Finally, PC gaming generated about US$39.5 billion in revenues in 2020, an 11% y-o-y increase.

Exhibit 2 below presents revenue trends of the global and the rapidly growing share of mobile gaming over the past three years.

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Fandom Sports Media Corp. (CSE: FDM, OTCQB: FDMSF)

Exhibit 2: Video Gaming Industry Revenue is estimated to be US$180 billion in 2020 (in US$ billions)

Source: International Data Corporation

Esports revenue is forecast to reach US$1.6 billion by 2024 According to Newzoo (a Netherland-based games and esports analytics provider), esports revenues are expected to increase from US$947.1 million in 2020 to US$1,084.1 million in 2021, a 14.5% increase year-over-year. China is expected to generate over 50% of worldwide esports revenues. Further, the global esports revenues are forecast to reach approximately US$1.6 billion by 2024, at a CAGR of 11.1% during 2019 - 2024. Both mature and growth markets would continue to have strong esports revenue growth potential during the forecast period. Sponsorship revenues are the most significant revenue stream in the total esports market and is expected to generate US$641 million (up 11.6% y-o-y) in 2021 or 59% of the total revenue stream, followed by Media Rights with US$192.6 million (up 13.4% y-o-y). However, Sponsorship’s share is expected to decline slightly in forthcoming years as ticket revenues recover from the pandemic restrictions. Revenues from merchandise and tickets are expected to remain lower to US$66.6 million in 2021 due to fewer real-world events. Exhibit 3 shows the trend of the global esports revenue growth.

Exhibit 3: Esports revenue is expected to cross the US$1 billion mark in 2021 (in US$ millions)

Source: Newzoo – Global Esports & Live Streaming Market Report

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Fandom Sports Media Corp. (CSE: FDM, OTCQB: FDMSF)

Global esports audience is forecast to reach 577.2 million in 2024 According to Newzoo, the global esports audience is forecast to grow from 435.9 million in 2020 to 474 million in 2021. In 2021, the esports enthusiasts and occasional viewers (see definitions in Exhibit 4) are expected to account for 234 million and 240 million viewers respectively. Further, the global esports audience is forecast to reach 577.2 million in 2024, at a CAGR of 7.7%. The COVID-19 lockdown has added many new viewers across the globe and is expected to continue to do so in 2021. Mobile growth also drives demand in countries such as India and Brazil. In 2021, China is anticipated to have the largest share in esports enthusiasts, with 92.8 million, followed by the US and Brazil. Exhibit 4 shows the forecast of the global esports audience growth.

Also, the global average revenue per esports enthusiast is forecast to increase by 2.8% y-o-y to US$4.63 in 2021 from US$4.40 in 2020. However, this average revenue per esports enthusiast is low compared to US$4.86 in 2019. At the same time, Newzoo expects the average to reach US$5.25 in 2022 once live sporting events are back to full operations.

Exhibit 4: Global esports audience is expected to reach 474 million in 2021 (in millions)

Source: Newzoo – Global Esports & Live Streaming Market Report *Esports Enthusiasts – People who watch professional esports content more than once in a month **Occasional Viewers – People who watch professional esports content less than once in a month

Games’ live-streaming audience to reach 920.3 million by 2024 Newzoo expects the global games' live-streaming audience to grow by 10% year-over-year to 728.8 million in 2021, compared to 662.7 million in 2020. Further, the global live-streaming audience is forecast to reach 920.3 million in 2024, at a CAGR of 9.2% for the forecast period of 2019-2024. Increased time spent at home during the COVID-19 outbreak has accelerated the growth in live-streaming of games. Developing countries, including India and South American countries, are expected to have high growth rates during the forecast period. Exhibit 5 depicts the global games’ live-streaming audience growth trends and forecasts.

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Fandom Sports Media Corp. (CSE: FDM, OTCQB: FDMSF)

Exhibit 5: Gaming live-streaming audience is forecast to reach 920.3 million in 2024 (in millions)

Source: Newzoo – Global Esports & Live Streaming Market Report

Global esports betting market size is expected to reach US$20.49 billion by 2026 According to RnR Market Research, a Texas-based market research firm, the global esports betting market size was valued at US$12.04 billion in 2020 and is forecast to reach US$20.49 billion by 2026, at a CAGR of 14.2%. The COVID-19 pandemic has accelerated global esports betting volumes. According to EveryMatrix’s (a US-based B2B iGaming software provider) report on The state of Esports Betting - May 2020, esports betting volume surged by 40x in April 2020, of which 80% of total volume came from two games: FIFA and NBA . The postponement of the 2019- 2020 NBA season drove lead players and fans towards NBA 2K for their basketball fix. Exhibit 6 shows the growth of the global esports betting market.

Exhibit 6: Global esports betting market size is expected grow at a CAGR of 14.2% 2021-2026 (in US$ billions)

Source: RnR Market Research - Global eSports Betting Market Growth (Status and Outlook) 2021-2026 – March 2021

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Fandom Sports Media Corp. (CSE: FDM, OTCQB: FDMSF)

The US esports ad revenue is forecast to reach US$226 million in 2021 According to eMarketer (a US-based marketing and advertising research firm), US esports ad revenues were estimated to grow by 12% y-o-y to US$196 million in 2020 and by 15% y-o-y to US$226 million in 2021. Ad revenues consist of both sponsorship and advertising revenues from organized competitions, such as the League of Legends Championship Series, Evolution Championship Series and Overwatch League. According to eMarketer, the US market was estimated with over 35 million monthly esports viewers in 2020, a 10.6% increase y-o-y. Exhibit 7 shows the US esports digital ad revenue from 2018 to 2021.

Exhibit 7: US esports ad revenue was estimated to be US$196 million in 2020 (in US$ millions)

Source: eMarketer – US Esports June 2020

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Fandom Sports Media Corp. (CSE: FDM, OTCQB: FDMSF)

Fandom Sports Media Corp.’s – Public & Private Peers All prices and monetary units are denoted in Canadian dollars, unless otherwise noted.

i. Public Peers

• Enthusiast Gaming Holdings Inc. (TSX: EGLX, NASDAQ-GS: EGLX) (“Enthusiast Gaming”) – Enthusiast Gaming is a Canada-based gaming company that is engaged in media, esports, content and entertainment businesses in Canada, the US and other foreign countries. Enthusiast Gaming is committed to developing the world’s largest network of communities for video gamers to connect and engage through multi-channel media, events and original content. Enthusiast Gaming offers its products and services under three major business activities, namely, media & content, esports & entertainment and subscription. The media & content segment consists of more than 100 websites that are fully owned or exclusively monetized and contain message boards, live streams, blog posts, videos, reviews, news, tips and other video-gaming related content. Enthusiast Gaming generates revenue from the sales advertising space in these websites and video channels. The esports and entertainment segment owns the Toronto-based professional esports organization Luminosity Gaming (“Luminosity”). Luminosity owns and operates six pro esports teams that compete in games such as , Overwatch and Fortnite. Further, Enthusiast Gaming operates Resource, one of the world’s largest network of female gamers, as a subscription-based model and has a monthly subscriber base of about 130,000. Enthusiast Gaming generates a majority of its revenues through sales of ad inventory, subscriptions and endorsements. For the quarter ended December 31, 2020, Enthusiast Gaming generated total revenue of C$42.5 million, a sequential increase of 34% compared to C$31.7 million in Q3 2020. On April 7, 2021, Enthusiast Gaming partnered with ESPAT TV to produce premium esports and gaming content.

• Esports Technologies Inc. (NASDAQ-GS: EBET) (“Esports Technologies”) – Esports Technologies is a US-based technology company that develops and operates online gaming platforms. Esports Technologies has a gaming license from the Curacao Gaming Authority, which enables it to accept sports and esports wagers from over 149 jurisdictions across the world. Currently, Esports technologies owns and operates gogawi.com, a licensed online gambling platform. Esports Technologies’ gogawi.com accepts wagers for professional sports such as soccer, National Football League and Major League Baseball and esports including FIFA, Dota 2 and League of Legends. Currently, gogawi.com is focused on bettors in Latin America and Asia. Esports Technologies also offers iGaming such as blackjack, slot machines and online casinos. On April 14, 2021, Esports Technologies priced its initial public offerings and commenced trading on the Nasdaq Capital Market on April 15, 2021. Esports Technologies offered 2.4 million common shares at $6.00 per share. At the same time, the share prices increased over 500% to close at $36.42 on the first day of trading. On April 29, 2021, Esports Technologies partnered with Spinomenal, an online gaming software developer, to launch table games and online casino games on gogawi.com.

• Esports Entertainment Group Inc. (NASDAQ: GMBL) (“Esports Entertainment”) – Esports Entertainment is a Malta-based esports entertainment and online gambling company. Esports Entertainment is purely focused on esports and intends to help connect the world with the future of sports entertainment that brings together gamers and fans through unique and entertaining ways. Esports Entertainment is mainly focused on esports entertainment, esports wagering and iGaming & traditional sports betting markets. Esports Entertainment offers wagers on professional esports events in a licensed and secured environment through its Vie.gg platform. Esports Entertainment provides its various content and betting offerings through three product families, Esports Entertainment Group (EEG) Play, EEG Watch and EEG Bet. EEG Watch offers content, while EEG Play and EEG Bet provide platform and betting services. Esports Entertainment primarily generates revenue through the settlement of bets. For the quarter ended December 31, 2020, Esports Entertainment generated total revenue of US$2.4 million. On April 16, 2021, Esports Entertainment’s esports betting platform VIE.bet partnered with Liquipedia.net, an affiliate of esports organization Team Liquid and a premier esports wiki, to develop the most responsible and community-centric esports betting integration.

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Fandom Sports Media Corp. (CSE: FDM, OTCQB: FDMSF)

• ESE Entertainment Inc. (TSXV: ESE, OTCQB: ENTEF) (“ESE Entertainment”) – ESE Entertainment is a technology and entertainment company headquartered in Vancouver, Canada. ESE is focused on gaming, primarily in esports and is based in Europe with digital and physical assets across the world. ESE Entertainment is primarily focused on bridging Europe, North America and Asia. ESE Entertainment operates and owns many assets across the esports and gaming sectors, such as existing global distribution for esports and gaming-related content, physical infrastructure and broadcasting capabilities. Further, ESE Entertainment owns and operates world-class brands and esports teams in the fastest growing games like League of Legends, Rocket League, Apex Legends and FIFA 2020. ESE Entertainment generates revenue through sponsorship, advertising, events, merchandise, media rights and competition earnings. For the three months ended January 31, 2021, ESE Entertainment generated total revenue of C$192,506. On April 13, 2021, ESE Entertainment completed the acquisition of 51% stake in WPG, an esports & gaming infrastructure company.

• Allied Esports Entertainment Inc. (NASDAQ: AESE) (“Allied Esports”) – Allied Esports is a US-based esports entertainment company that offers live experiences, interactive services and multiplatform content. Allied Esports intends to connect players, fans and streamers through mobile esports trucks and integrated arenas, which serve as gaming battlegrounds and content generation hubs. Allied Esports delivers live experiences through esports arenas such as the flagship HyperX Esports Arena Las Vegas, other affiliate arena and mobile arenas (18-wheeler trucks). Allied Esports generates revenue through multiplatform content, distribution, music royalty, advertising, sponsorships, events, merchandise, food & beverage sales etc. On March 30, 2021, Allied Esports amended a stock purchase agreement to sell its poker-related business (World Poker Tour) to Element Partners Inc. for US$105 million. The transaction is expected to close in April 2021. For the three months ended December 31, 2020, Allied Esports generated revenue of US$900,000.

• FansUnite Entertainment Inc. (CSE: FANS, OTCQB: FUNFF) (“Fansunite”) – Fansunite is a Canada-based sports and entertainment company that is focused on technology-related to lawful and regulated online sports betting. Fansunite aims to become the leading player in the iGaming industry through its vertically integrated and versatile platforms. Fansunite’s platforms offer a portfolio of unique products focusing on the next generation of bettors, casinos, esports and sports betting. Fansunite’s primary offerings include FansUnite Sportsbook and Chameleon Gaming Platform (“Chameleon”). FansUnite Sportsbook is a B2C offering that takes bets using smart contracts on all college, pro and regulated sporting events and esports. Chameleon is a B2B white label iGaming solution for esports. Chameleon provides real-time analytics, tailored reporting and is also offered as API and turnkey solutions. On March 17, 2021, Fansunite partnered with TGS Esports Inc., an esports solutions company, to launch prediction games for live esports tournaments. For the quarter ended September 30, 2020, Fansunite generated total revenues of C$473,562.

• Real Luck Group Ltd. (TSXV: LUCK, OTCQB: LUKEF) (“Luckbox”) – Real Luck Group, the parent company of Esports Limited (doing business as “Luckbox”), is a Canada-based esports betting company. Through its subsidiary, Real Luck Group Ltd. runs an esports-betting website, Luckbox.com (“Luckbox”). Luckbox is fully licensed in the Isle of Man for B2C and B2B sports and esports betting and casino. Luckbox provides betting, statistics and live streams on 13 esports on mobile and desktop and serves esports fans in over 80 territories across the world. Luckbox generates revenues through the fulfillment of bets. On April 19, 2021, Luckbox added betting for VALORANT, a 5v5 first-person shooter game from Riot Games, to its esports- wagering platform. For the three months ended September 30, 2020, Luckbox generated total betting revenue of £19,770.

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Fandom Sports Media Corp. (CSE: FDM, OTCQB: FDMSF)

Table 1 presents Fandom Sports’ public peers with highlights on products and relevant metrics.

Table 1: Fandom Sports’ Public Peers (as of May 24, 2021) Public Peers Enterprise Market Value Products/ Company Ticker Cap (USD Revenue Model (USD Services millions) millions) ●Media & Content ●Ad inventory sales TSX: EGLX ●Esports & Enthusiast Gaming Holdings Inc. $774.60 $769.51 ●Endorsements NASDAQ: EGLX Entertainment ●Subscription ●Subscription ●Esports & Sports betting Esports Technologies Inc. NASDAQ: EBET $268.15 $266.66 ●Fulfillment of bets ●Online Casino & Table games ●EEG Play Esports Entertainment Group Inc. NASDAQ: GMBL $194.83 $178.85 ●EEG Watch ●Fulfillment of bets ●EEG Bet ●Multiplatform content ●Live experiences ●Advertising ●Multiplatform ●Sponsorship Allied Esports Entertainment Inc. NASDAQ: AESE $93.54 $98.03 content ●Events ●Interactive ●Merchandise Services ●Music royalty

●Sponsorship ●Esports teams TSXV: ESE ●Merchandise ESE Entertainment Inc. $65.98 $63.50 ●Gaming-related OTCQB: ENTEF ●Media rights content ●Competition earnings ●FansUnite CSE: FANS Sportsbook ●Fulfillment of bets FansUnite Entertainment Inc. $85.07 $81.49 OTCQB: FUNFF ●Chameleon ●iGaming solutions sales Gaming platform

TSXV: LUCK ●Sports and Real Luck Group Ltd. $24.07 $20.97 ●Fulfillment of bets OTCQB: LUKEF Esports betting

●Advertising ●Brand Sponsorships CSE: FDM Esports and Fandom Sports Media Corp. $7.18 $7.07 ●Esports Leagues OTCQB: FDMSF iGaming/Wagering ●Wagering commissions ●Subscriptions Source: Morningstar, SEC filings, SEDAR filings and companies’ websites

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Fandom Sports Media Corp. (CSE: FDM, OTCQB: FDMSF) ii. Private Peers

• Unikrn Inc. (“Unikrn”) – Unikrn is a US-based betting and entertainment media company that provides online eSports gaming and gambling platforms. Rahul Sood and Karl Flore founded Unikorn in 2014. Unikrn offers esports viewers and fans to game and bet on esports such as Counter-Strike: Global Offensive, League of Legends, Dota 2, etc. On September 15, 2020, the Securities and Exchange Commission (SEC) filed charges against Unikrn for raising approximately US$31 million through an unregistered initial coin offering (ICO) between June 2017 and October 2017. Unikrn settled the charges by paying a US$6.1 million penalty.

• GG.BET (“GGBet”) – GGBet is an online bookmaker with a primary focus on esports. GGBet also takes bets on traditional sports and conducts various casino games. GGBet’s partnership with Max Entertainment Limited, a Malta-based iGaming company, has made it fully licensed in Malta and enabled Esports fans access to its website from across the world. GGbet’s esports betting includes games such as League of Legends, Call of Duty, Halo, Dota 2 and NBA 2K18.

• Bet365 – Bet365 is a UK-based online sports betting company that is licensed and regulated by the Malta Gaming Authority. Bet365 offers in-play betting services for esports and various traditional sports across the world from its licensed platform. In addition, Bet365 offers live streaming and online casino, bingo and poker- type games.

• Pinnacle – Pinnacle is a Curaçao-based online bookmaker that offers sports and esports betting on its online gaming website. Pinnacle offers betting on traditional sports such as baseball, basketball, hockey and rugby and esports, which include Counter Strike: Global Offensive, League of Legends, Dota 2 and Warcraft 3. Pinnacle also provides online casino games on its website. On April 8, 2021, Pinnacle partnered with DeckPrism Sports (“DeckPrism”), a Las Vegas-based in-play odds originator, to further advance its in-play betting experience using DeckPrism’s proprietary models.

Table 2 presents Fandom Sports’ private peers with highlights on products and relevant metrics.

Table 2: Fandom Sports’ Private Peers Private Peers

Company Products/ Services Revenue Model ●Advertising Unikrn ●Sports and Esports betting ●Wagering commissions ●Advertising GG.BET ●Sports and Esports betting ●Wagering commissions ●In-Play betting ●Advertising Bet365 ●Live Streaming ●Wagering commissions ●Casino-type games ●Sports and Esports betting ●Advertising Pinnacle ●Casino games ●Wagering commissions ●Advertising ●Brand Sponsorships Fandom Sports Media Corp. Esports and iGaming/Wagering ●Esports Leagues ●Wagering commissions ●Subscriptions Source: Morningstar, Companies’ websites

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Fandom Sports Media Corp. (CSE: FDM, OTCQB: FDMSF)

Recent M&A Activities All prices and monetary units are denoted in Canadian dollars, unless otherwise noted.

• Esports Entertainment Group (NASDAQ: GMBL) acquired Lucky Dino (March 2021) – Esports Entertainment Group, Inc. (NASDAQ: GMBL) is a US-based esports entertainment and online gambling company. On March 01, 2021, GMBL’s licensed subsidiary, Esport Entertainment (Malta) Limited, acquired the business assets of Lucky Dino Gaming Limited (“Lucky Dino”) for approximately US$30 million. Lucky Dino is a Malta-licensed online casino operator, which owns a proprietary casino platform. GMBL financed the $30 million through cash raised in an equity offering on February 16, 2021. Lucky Dino generated revenues of approximately US$21.5 million and EBITDA of US$4.0 million in FY 2020.

• Microsoft (NASDAQ: MSFT) acquired ZeniMax Media (March 2021) – In March 2021, Microsoft (NASDAQ: MSFT) acquired ZeniMax Media for approximately US$7.5 billion. ZeniMax Media is the parent company of Bethesda Softworks, which is a privately-owned US-based leading game developer. ZeniMax has developed hit video games such as Doom, Elder Scrolls and Fallout. ZeniMax is expected to strengthen Microsoft’s Xbox Businesses.

• Inc (NASDAQ: EA) acquired (Feb 2021) – On February 18, 2021, Electronic Arts Inc, through its subsidiary Codex Games, acquired Codemasters, a UK-based game developer and publisher, for an implied enterprise value of US$1.2 billion. Electronic Arts Inc is a US-based game developer and publisher. Electronic Arts offered shareholders of Codemasters a per-share price of £6.04 (approximately US$8.37) in cash for each ordinary share of Codemasters. The acquisition would add Codemasters’ racing games to EA’s racing game portfolio. The acquisition brings together the most passionate racing brands in the world, such as DIRT, DiRT Rally/WRC, Formula 1®, , Project CARS, Real Racing, , etc.,

• Electronic Arts Inc (NASDAQ: EA) acquired Glu Mobile (Feb 2021) – On February 08, 2021, Electronic Arts Inc. (NASDAQ: EA) signed a definitive agreement to acquire Glu Mobile Inc. (NASDAQ: GLUU), a US-based leading global developer and publisher of mobile games. According to the agreement, Glu Mobile stockholders will receive US$12.50 in cash for each share of Glu Mobile. This exchange ratio represents a 36% premium to the price of Glu Mobile shares on February 05, 2021, at market close and the acquisition price is estimated to be US$2.1 billion in enterprise value. The acquisition is expected to close in the quarter ending June 30, 2021, subject to approval by the Glu Mobile shareholders. , , Covet Fashion, Glu, Design Home and Tap Sports are some well-known trademarks of Glu Mobile Inc.

• Embracer Group (OTCMKTS: THQQF) acquires Gearbox Entertainment (Feb 2021) – On February 03, 2021, Embracer Group (OTCMKTS: THQQF), a Sweden-based computer gaming company, entered into a merger agreement with Gearbox Entertainment Company ("Gearbox"), a US-based video game development company. The total transaction value is estimated to be up to US$1.378 billion. The transaction includes an upfront consideration of US$363 million on a cash and debt-free basis, operational earn out of US$300 million over six years and financial earn-out of up to US$715 million over six years. The transaction is anticipated to close by Q2 2021. Randy Pitchford (the Founder and CEO of Gearbox) would continue to lead Gearbox. Gearbox holds famous videogames such as Borderlands, Brothers in Arms, Homeworld and Duke Nukem.

• Tencent Holdings (OTCPK: TCEHY) acquired Technologies (Dec 2020) – On December 24, 2020, Tencent Holdings (OTCPK: TCEHY), through its fully-owned subsidiary Image Frame Investment, acquired Leyou Technologies Holdings Limited ("Leyou") for approximately US$1.5 billion. This cash-deal transaction was based on the exchange of HK$3.3219 per share for each Leyou share or about HK$11.6 billion (US$1.5 billion - proposed in August 2020). Tencent is a China-based media conglomerate. Leyou's wholly-owned , a Canada-based video game company, owns video games and studios, including and UK studio Splash Damage. Digital Extremes also owns Inc, a US-based publisher of console and PC games.

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Fandom Sports Media Corp. (CSE: FDM, OTCQB: FDMSF)

• Flutter Entertainment plc (LSE: FLTR) acquired 37.2% of interests in FanDuel Group (Dec 2020) – On December 30, 2020, Flutter Entertainment plc (LSE: FLTR, OTC US: PDYPY, “Flutter”) acquired approximately 37.2% of interests of FanDuel Group Parent LLC (“FanDuel”) from Fastball Holdings LLC (“Fastball”) for about £3.340 billion. Flutter is a US-based sports betting and gaming company. The £3.3 billion transaction consists of the issuance of 11,747,205 new ordinary shares of Flutter (£1.794 billion) and a cash payment of US$2.088 billion (£1.546 billion). Through this 37.2% stake acquisition, Flutter increased its ownership stake to 95%. FanDuel’s U.S. division owns PokerStars, FanDuel, TVG, FOX Bet and Betfair brands.

• Better Collective (NASDAQ: BETCO) acquired HLTV.org (February 2020) – On February 28, 2020, Better Collective, Denmark-based, privately-held leading sports betting media group, acquired HLTV.org ApS for €34.5 million. Out of the €34.5 million acquisition price, €26.4m (197 million DKK) was paid upfront. HLTV.org ApS includes HLTV.org and Dust2.dk, which offers Counter-Strike: Global Offensive (CS: GO) platforms for esports enthusiasts. HLTV.org was founded in 2002 in Denmark and provides match coverage, news, and player and team rankings. HLTV.org website had an average of over 26.5 million visits per month in 2020. Dust2.dk (was founded in 2016) is a leading CS: GO community in Denmark, which offers live scores and news from the esports industry. Dust2.dk website had an average of more than 250,000 visits per month during the acquisition.

Table 3 presents the significant recent merger and acquisition activities in the gaming industry.

Table 3: Significant Recent Merger and Acquisition Activities in the Gaming Industry

Transaction Date/ M&A Activity Value (in US$ Anticipated Transaction Summary million) Date

On March 01, 2021, GMBL’s licensed subsidiary, Esport Entertainment (Malta) Limited, acquired the business assets of Esports Entertainment March 01, $30 Lucky Dino Gaming Limited for approximately US$30 million. Group acquired Lucky Dino 2021 GMBL financed the $30 million through cash raised in an equity offering on February 16, 2021.

In March 2021, Microsoft acquired ZeniMax Media for approximately US$7.5 billion. ZeniMax Media is the parent company of Bethesda Softworks, which is a privately-owned Microsoft acquired ZeniMax $7,500 March 2021 US-based leading game developer. ZeniMax has developed Media hit video games such as including Doom, Elder Scrolls and Fallout. ZeniMax is expected to strengthen Microsoft’s Xbox Business. On February 18, 2021, Electronic Arts Inc, through its subsidiary Codex Games, acquired Codemasters, a UK-based Electronic Arts Inc. acquires February 18, game developer and publisher, for an implied enterprise value $1,200 Codemasters 2021 of US$1.2 billion. Electronic Arts offered shareholders of Codemasters a per-share price of £6.04 GBP (approximately US$8.37) in cash for each ordinary share of Codemasters. On February 08, 2021, Electronic Arts Inc. signed a definitive agreement to acquire Glu Mobile Inc., a US-based leading global developer and publisher of mobile games. According to Electronic Arts Inc acquired the agreement, Glu Mobile stockholders will receive US$12.50 $2,100 Q2 2021 Glu Mobile in cash for each share of Glu Mobile. This exchange ratio represents a 36% premium to the price of Glu Mobile shares on February 05, 2021, at market close and the acquisition price is estimated to be US$2.1 billion in enterprise value. On February 03, 2021, Embracer Group, a Sweden-based computer gaming company, entered into a merger agreement with Gearbox, a US-based video game development Embracer Group acquires company. The total transaction value is estimated to be up to $1,378 Q2 2021 Gearbox Entertainment US$1.378 billion. The transaction includes an upfront consideration of US$363 million on a cash and debt-free basis, operational earn out of US$300 million over six years and financial earn-out of up to US$715 million over six years.

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Fandom Sports Media Corp. (CSE: FDM, OTCQB: FDMSF)

On December 24, 2020, Tencent Holdings, through its fully- owned subsidiary Image Frame Investment, acquired Leyou Tencent Holdings acquired December 24, Technologies Holdings Limited for approximately US$1.5 $1,500 Leyou Technologies 2020 billion. This cash-deal transaction was based on the exchange for HK$3.3219 per share for each Leyou share or about HK$11.6 billion (US$1.5 billion - proposed in August 2020). On December 30, 2020, Flutter Entertainment plc acquired Flutter Entertainment plc approximately 37.2% of interests of FanDuel Group Parent acquired the remaining December 30, LLC from Fastball Holdings LLC for about £3.340 billion. The £3.340 billion 37.2% of interests in 2020 £3.3 billion transaction consists of the issuance of 11,747,205 FanDuel Group new ordinary shares of Flutter (£1.794 billion) and a cash payment of US$2.088 billion (£1.546 billion). On February 28, 2020, Better Collective, Denmark-based, Better Collective acquired February 28, privately-held leading sports betting media group, acquired €34.5 million HLTV.org 2020 HLTV.org ApS for €34.5 million. Out of the €34.5 million acquisition price, €26.4m (197 million DKK) was paid upfront. Source: Company filings and websites

Sources

• Fandom Sports - Website and Press Releases • Morningstar • SEC Filings • SEDAR • International Data Corporation - Website • Mordor Intelligence – Gaming Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026) • eMarketer – US Esports June 2020 • Global Esports & Live Streaming Market Report - Newzoo • Global eSports Betting Market Growth (Status and Outlook) 2021-2026 - RNR Market Research

Fandom Disclaimer

The Canadian Securities Exchange (CSE) has not reviewed and does not accept responsibility for the adequacy and accuracy of this information. This report may contain forward-looking statements. These forward-looking statements do not guarantee future events or performance and should not be relied upon. Actual outcomes may differ materially due to any number of factors and uncertainties, many of which are beyond the Company’s control. Some of these risks and uncertainties may be described in the Company’s corporate filings (posted at www.sedar.com). This report does constitute any type of investment advice and is strictly for informational purposes.

The Company has no intention or obligation to update or revise any forward-looking statements due to new information or events. This report contains forward-looking statements about Fandom Sports and the Esports Industry. Forward-looking statements may be identified by the use of words like “believe,” “expect,” “anticipate,” “estimate,” “plan,” “consider,” “project,” and similar references to the future. Forward-looking statements reflect Fandom Sports’ good-faith evaluation of information available at the time the forward-looking statements were made. These forward-looking statements are subject to a number of risks and uncertainties, and our actual results may differ materially from those projected.

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