WHITEPAPER RSN ENTERTAINMENT LTD - 6th August 2018 - CryptoMillionsLotto
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RSN ENTERTAINMENT LTD
WHITEPAPER
6th August 2018
A CRYPTOCURRENCY LOTTO THAT’S A WINNER FOR EVERYONE
DISCLAIMER This is a draft document and the contents are subject to change in accordance with local regulations and other factors. RSN Entertainment Ltd may make changes to its business model or tokens, and shall not be liable for any indirect, special, incidental, consequential or other losses of any kind, in tort, contract or otherwise (including but not limited to loss of revenue, income or profits, and loss of use or data), arising out of or in connection with any acceptance of, or reliance on, this Whitepaper. © RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io
CONTENTS Abstract: Win, Win 04 About The Business 06 Our Proposition 07 Who Is The Issuer? 08 What’s Our Mission? 09 An Introduction To Lotto 11 What Else Is Out There? 12 National And State Lotteries, Lotto-Betting Providers, Sports And Charity Lottos, Lotto Messengers, Lotto Affiliates Problems With Lottos 13 Our Solution CryptoMillionsLotto 14 Our Platform 16 Our Roadmap 17 Our Marketing Plan 18 Getting People To Play, Research And Education, Rollout Plans, Hearts And Minds Campaign, Major Launch And Ongoing Marketing, Acquisition Marketing Online, Social Media, Content Marketing, Influencer & Affiliate Marketing, Public Relations, Sponsorship, Retention Marketing, Who’ll Be Doing This? The Team & Advisors 23 Investment Attraction Of CML Tokens 29 Monthly Revenue Per CML Token, Investment Attraction Of Ofertas Shares, Tokens & Share Features, How To Buy CML Tokens, How To Receive Ofertas Shares, How To Sell CML Tokens & Ofertas Shares Annual Yield Per CML Token & Reward Token 31 Investment Attraction Of Ofertas Shares 32 Risk Disclaimer 36 Summary 37
ABSTRACT: WIN, WIN TOKEN NAME: CML TOKENS TOKEN SYMBOL: LOTO NUMBER OF TOKENS: 30,000,000 (25,000,000 CML Tokens and 5,000,000 Reward Tokens) PRICE PER CML TOKEN: US$2.50 (OR CRYPTOCURRENCY EQUIVALENT) PRICE PER REWARD TOKEN: free MAXIMUM RAISE: US$62,500,000 SOFT CAP: N/A Ofertas Share per CML Token: BETWEEN 2 TOKENS AND 2.6 TOKENS FOR 1 FREE SHARE WAYS TO BUY: BTC, ETH & FIAT USE OF PROCEEDS: MARKETING, DEVELOPMENT & SUPPORT Team TokenS: ZERO PRE-SALE START DATE: 9.00AM GMT, 18 JUNE 2018 PRE-SALE END DATE: 11.00PM GMT, 1 JULY 2018 ICO START DATE: 12.00AM GMT, 2 JULY 2018 ICO END DATE: 11.00PM GMT, 30 JULY 2018 Form D has been filed with the Securities & Exchange Commission under Rule 506 (c) of Regulation D of the Securities Act of 1933 for a Private Placement so that accredited investors in the US are permitted to purchase tokens - see http://bit.ly/2ENguoj. We are selling 25,000,000 ERC20 Ethereum CryptoMillionsLotto tokens (“CML Tokens”) via an Initial Coin Offering (“ICO”) to fund the launch and global rollout of CryptoMillionsLotto. Each CML Token will be priced at the cryptocurrency equivalent of US$2.50. A further 5,000,000 tokens (“Rewards Tokens”) have been created to reward ICO investors and participants, and CryptoMillionsLotto players. CML Tokens are security tokens, which carry quarterly dividends based on Gross Gaming Revenue generated through CryptoMillionsLotto. Gross Gaming Revenue is calculated as the revenue generated from lotto ticket sales less payouts. For each CML Token purchased, investors will receive shares of Ofertas365 Limited (“Ofertas”), which is the parent company of CML Token issuer RSN Entertainment Ltd. (“RSN”) and whose shares (“Ofertas Shares”) are publicly listed and have traded on the Dutch Caribbean Securities Exchange (“DCSX”) since December 2015 (see http://www.dcsx.cw/ofertas-365-limited). Ofertas is subject to supervision and regulation by the DCSX. Ofertas already operates more than 30 fiat currency lottos through its brand, AfroMillionsLotto (www.afromillionslotto.com). Here is a comparison between CML Tokens, Reward Tokens and Ofertas Shares. © RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 4
CML Tokens & Reward Tokens OFERTAS SHARES
DIVIDENDS PAID QUARTERLY DIVIDENDS PAID ANNUALLY
Dividends paid on Gross Gaming Revenue DIVIDENDS PAID ON GROUP PROFIT
DIVIDENDS PAYABLE AUTOMATICALLY DIVIDENDS SUBJECT TO BOARD APPROVAL
LIQUIDITY POST ICO, ONCE ON VARIOUS
LIQUIDITY AS ALREADY ON A STOCK EXCHANGE
CRYPTO EXCHANGES
NO VOTING RIGHTS VOTING RIGHTS
CryptoMillionsLotto will be the first ICO to offer both tokens and equity
in a publicly listed company. Unlike investing in cryptocurrencies,
investors will benefit from yield and capital appreciation.
USE OF PROCEEDS
2% Technology Upgrades,
Security & Compliance
0% To staff
(who are already
incentivised with
Ofertas Shares)
98% Marketing,
Operations, Support & Hosting
© RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 5ABOUT THE BUSINESS
• Based On An Existing Business
CryptoMillionsLotto is based on AfroMillionsLotto (www.afromillionslotto.com), an existing,
up-and-running business, which operates more than 30 lottos for football clubs and charities
across Africa.
• Experienced Team
Vastly experienced marketing and operations team.
• Proven And Tested
Our platform is live and already operational with Fiat currency lottos - the only difference with
CryptoMillionsLotto is that players will use cryptocurrency rather than Fiat currency to play and
win.
• Short Roadmap
Business rollout and revenue generation will start within days after the close of our ICO.
• Licensed and regulated
RSN and Ofertas foster responsible gambling, operating under an eGaming License issued by
the Curaçao eGaming Authority to a wholly-owned group subsidiary company; all gambling
activity is legal and compliant.
• Fully insured
Jackpots are fully insured through Lloyd’s of London so that winners are guaranteed payment
irrespective of the number of tickets sold. Valuable resources are dedicated to marketing and
promoting CryptoMillionsLotto and building the business rather than sitting idle forming jackpot
pools in case a jackpot winner needs to be paid out.
• Huge Market Opportunity
Offering life-changing jackpots and a familiar lotto format, CryptoMillionsLotto will make
cryptocurrency accessible to the mass market encouraging people, new to cryptocurrency, to
become part of the growing community.
Most ICOs are launched offering tokens to fund an untested idea.
CryptoMillionsLotto is more than an idea - it’s reality!
© RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 6OUR PROPOSITION
We are issuing 25,000,000 CML Tokens, all of which are for sale between the Start Date of the ICO
and the End Date. No further CML Tokens will be issued, and all unsold tokens existing at the End
Date will be held by RSN and may be re-sold in future at RSN’s discretion. There is no Soft Cap.
For every CML Token purchased in the ICO, investors will receive free Ofertas Shares as follows:
WEEK 01 WEEK 02 WEEK 03 WEEK 04
2 CML Tokens 2.2 CML Tokens 2.4 CML Tokens 2.6 CML Tokens
receives receives receives receives
1 Ofertas Share 1 Ofertas Share 1 Ofertas Share 1 Ofertas Share
15% of Gross Gaming Revenue from lotto tickets sales will be distributed proportionately to
wallets where CML Tokens are held on the last business day of each quarter: 31 March, 30 June,
30 September and 31 December.
Should investors decide to sell their CML Tokens, in whole or in part, at any time following the
ICO, such action shall have no bearing whatsoever as to their rights and entitlements as regards to
Ofertas Shares they hold; the two instruments are wholly separate and independent.
Reward Tokens will be offered to potential investors in an Airdrop campaign as well as loyalty
bonuses to CryptoMillionsLotto players. No Ofertas Shares shall be attached to Reward Tokens.
CML Tokens represent a genuine opportunity for cryptocurrency holders
to diversify their exposure into a very real business with recurring revenue
streams as well as prosper from their ownership of Ofertas Shares, which
generate profits from already launched AfroMillionsLotto.
© RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 7WHO IS THE ISSUER, RSN ENTERTAINMENT LTD?
The group structure is as follows:
Incorporated: Listing:
6 January 2017 Dutch Carribbean
Company No: Security Exchange
OFERTAS365
10551144 Curaçao
Address: Issued Capital:
71-75 Shelton Street
London WC2H 9JQ LIMITED US $100,000,000
100% 100%
OWNED OWNED
SUBSIDIARY SUBSIDIARY
Incorporated:
10 March 2017
Incorporated:
Company No:
13 September 2016
OFERTAS365 143000
Company No:
RSN
Address: ENTERTAINMENT
(CURACAO) Dr. Hugenholtzweg z/n
10373664
UTS Building, Willemstad,
Address: LTD
N.V. Curaçao
71-75 Shelton Street
London WC2H 9JQ
Curaçao eGaming Licence No:
1668 / JAZ
Ofertas operates fiat currency lottos and its wholly owned subsidiary, RSN, will operate
CryptoMillionsLotto. Both companies will operate under Ofertas365 (Curaçao) N.V.’s eGaming
License.
© RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 8WHAT’S OUR MISSION?
CryptoMillionsLotto will be a driving force in creating a new and vast market, dramatically
expanding the cryptocurrency universe by driving mass adoption to cryptocurrency use.
Unlike conventional lottos, CryptoMillionsLotto will be truly global and will use cryptocurrency and
blockchain to create a borderless and fully-transparent lotto experience.
Tickets will be bought and payouts made in BTC, ETH and BCH, with conversion from a range of
altcoins available through Shapeshift integration.
ACCESSIBLE
GLOBAL TO
EVERYONE
BASED ON FULLY
CRYPTO- TRANSPARENT
CURRENCY
Players over 18 from anywhere in the world where gambling is not prohibited will play to win
life-changing jackpots – bigger than any other cryptocurrency lotto and comparable to the biggest
national and state lotteries across Europe and the US.
© RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 9Here are some examples of recently launched crypto lottos and their corresponding ICOs.
ICO PRODUCT PRICE
RAISED JACKPOT
CLOSED READY TO PAY
KIBO c.US$4,000,000 NOV 2016 - n/a n/a
TRUE FLIP c.US$8,500,000 JUL 2017 c.US$5,000,000 c.US$7.00
WILD CRYPTO c.US$3,000,000 SEP 2017 - n/a n/a
FIRELOTTO c.US$4,600,000* MAR 2018 c.US$1,000,000 c.US$3.60
CRYPTOMILLIONSLOTTO n/a n/a c.US$20,000,000** c.US$3.35
* funds collected pre-sale
** rising to US$40,000,000 with rollovers
CryptoMillionsLotto will appeal to an audience already familiar with
cryptocurrency and also encourage new players to get involved thanks to
lotto’s mass market appeal.
© RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 10AN INTRODUCTION TO LOTTO
Lotto is a huge industry and one that continues to grow. Today, an estimated one fifth of the
world’s population plays and, according to La Fleur’s 2015 Almanac, global lotto sales were close
to US$300 billion1. Lotto offers huge rewards for minimal outlay and gives people the chance to
dream and hope in an increasingly uncertain world.
ONE IN FIVE PLAY LOTTO WORLDWIDE
A report by Research and Markets2 forecasts that the global lotto market will grow at a
compound annual growth rate (“CAGR”) of 8.85% over the period 2014-2019, whilst another
report by Technavio3 predicts the CAGR for lottery at 9% from 2017 to 2021. Online lotto is
the future. The segment is expected to expand at a CAGR of 10.8% from 2016 to 20244. Today
lotto represents a 29% share of global gambling revenue, but online only accounts for 10% of
revenues. The forecast is that this gap will close rapidly within the next few years with its global
appeal enabling players to play beyond their borders.5 Few industries offer the projected growth,
minimal regulation, and earnings potential of online lotto. The popularity of smartphones is
expected to continue driving online lotto sales through 2019.6
1. http://prn.to/2cSMSf
2. http://prn.to/2cQBtxG
3. http://bit.ly/2iYZDY4
4. http://bit.ly/2F4apnQ
5. http://bit.ly/2oyC9KO
6. http://bit.ly/2FG0LbW
© RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 11WHAT ELSE IS OUT THERE? Although lotto rules are essentially the same the world over, several different types of operator exist: National And State Lotteries Most countries operate their own lottos, where proceeds (after operating costs and prize pay outs have been deducted) are spread amongst charities and other good causes. For example, the UK National Lottery was cited as a significant contributor to the British Olympic and Paralympic sporting successes at the 2016 Rio de Janeiro Olympic Games. Lotto-Betting Providers This is a relatively new and innovative concept where players bet on the outcome of a lotto draw in another country. This space is booming and attracting customers away from national and state lotteries in their droves. The best-known operators - Zeal and Lottoland - have seen prolific growth in recent years. Sports And Charity Lottos These are privately-operated lottos, run for the benefit of various sports organisations and good causes. Famous organisations such as Arsenal, Leicester City, Swansea City and West Bromwich Albion football clubs; Glamorgan, Durham and Hampshire cricket clubs; Gloucester, Sale Sharks and Wasps rugby clubs; and the RSPCA and Cancer Research UK, promote their own lottos. Our own AfroMilionsLotto is another example of this model. Lotto Messengers These companies provide concierge services, i.e. buying tickets on behalf of non-residents. However, because tickets are bought in the company’s name, or their agents’ names, this constitutes a high level of risk for players who have no legal ownership rights. Lotto Affiliates The lotto industry is dominated by affiliates, which include convenience stores, petrol stations and supermarkets that sell physical tickets on behalf of national and state lotteries, and web marketing and promotion companies which sell tickets online on behalf of operators, see http://gaffg.com/affiliate-programs/lottery/ © RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 12
PROBLEMS WITH LOTTOS
Unlike most industries, lotto has not transitioned online owing to its complicated ecosystem.
The vast majority of tickets are still paper-based and sold using outdated technology.
There are several problems with lotto in its current format:
• In most countries, lotto is controlled by national and state governments, which means they
come complete with endless rules and regulations.
• A network of affiliates with vested interests against innovation, such as convenience stores,
regularly lobby governments to ensure lotto sales remain within their premises.
• There is a lack of transparency with regards to: (i) the formation of prize pools and distribution
of prizes - hence, the concept “Provably Fair” - https://en.wikipedia.org/wiki/Provably_fair,
and (ii) the commissions earned by affiliates who often wait weeks or months to be paid.
• There are territorial limits, which exclude non-resident players, meaning that the target
audience is restricted and winners from outside the country cannot claim their winnings.
• The games are unattractive to players who prefer to protect their anonymity and privacy.
• The inconvenient and antiquated ways to buy tickets make the games unappealing to internet-
savvy younger generation.
• Even when played online, there are exorbitant charges imposed on operators by card, e-wallet
and voucher providers.
• There are delays in paying out jackpot winners, who are often subject to punitive taxation.
The marketplace is ripe for fundamental change – countries where
lotto jackpots are relatively small and gambling is not prohibited
will be opened up to a new generation of players. There is a
significant opportunity to disrupt.
© RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 13OUR SOLUTION - CRYPTOMILLIONSLOTTO
CryptoMillionsLotto will get the balance right between the price to play (the affordability) versus the
size of the jackpot, which will be large enough to be considered ‘life-changing’, beating most state
lottery limits. Players will use BTC, ETH and BCH to play and win, with conversion available from any
Shapeshift compatible altcoin. Jackpots will be denominated and won in US Dollars to align with the
existing global familiarity of high USD value jackpots - if players want to receive it in cryptocurrency,
they will be responsible for conversion costs.
Tickets will cost the equivalent of US$3.35 in BTC, ETH or BCH and will be able to be purchased
after setting up an account and making a deposit on CryptoMillionsLotto’s website. Prizes will be as
follows:
NUMBERS MATCHED US$ EQUIVALENT PRIZE
6 Numbers + Bonus 20,000,000*
6 Numbers 1,500,000**
5 Numbers 10,000**
4 Numbers 150**
3 Numbers 10**
2 Numbers 1.70**
Cryptocurrency is ideal as a single global currency for lotto, standardising payments and pay-
outs across borders, to winners, affiliates and referrers. Blockchain will be used to track sales and
commissions clearly and in a timely manner.
CryptoMillionsLotto is completely transparent and will be based on the outcome of the twice-
weekly German National Lottery (6aus49). Using a third party lotto ensures that there is no
possibility of manipulating or influencing the results because the winning numbers are identical to
those of the German National Lottery, whose draws are televised live on German television and
published on the internet. 6aus49 was chosen for its timezone, but any globally recognised and
trusted lotto with the same draw format could be used.
© RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 14CryptoMillionsLoto players will select 6 numbers from 1-49, plus a bonus number between 0-9.
Prizes are awarded for matching 2, 3, 4, 5 or 6 of the winning numbers with the jackpot awarded
for picking all 6 winning numbers together with that of the bonus number. Winnings will be paid
out instantly to players’ wallets, and to any affiliate, without third party intervention. All prize
payments will be shown in the open blockchain ledger, so that any player or affiliate can verify that
prizes have been made in accordance with CryptoMillionsLotto rules.
Importantly, CryptoMillionsLotto prizes are pre-determined and fixed, overcoming the transparency
issues relating to prize pools that cast doubts over other lottos. Significantly, CryptoMillionsLotto’s
jackpot is fully insured with a Lloyd’s of London broker, regulated by the UK’s Financial Conduct
Authority. What this means is that minimum jackpots will be the largest available and winners will
be paid irrespective of the number of lotto tickets sold. The lotto is complemented by a number
of fun-to-play, Instant Win games that constitute an additional revenue stream and foster player
retention, with a range of crypto oriented games road mapped for future development.
CryptoMillionsLotto aims to introduce a whole new market to the
world of crypto and blockchain technology aligning the enjoyment
and familiarity of players’ existing lotto experience, but also providing
the additional benefits that global, frictionless and transparent
cryptocurrencies can bring.
© RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 15OUR PLATFORM
AFRICA ONE PLATFORM LATAM
ONE GAMBLING
Played locally, football club
Played locally,
& charities
football club & charities
Play to win
LICENCE
Play to win Live Q3 2018
Live now
www.afromillionslotto.com
CRYPTO
Played by Crypto holders
Play to win
Live post-ICO
www.cryptomillionslotto.com
Our games are simple and intuitive and run directly in the browser of any desktop or mobile device
without requiring an app to be downloaded, thereby completely eliminating one of the major pain
points for player on-boarding. The registration process is quick and easy, and open to anybody with
Internet access. The best possible game experience is delivered through a global Content Delivery
Network, which places our content at the leading edge of the internet to optimise performance.
CryptoMillionsLotto will be fully operational within days from the closing of its ICO. Minimal
changes to its existing platform are required to handle ticket sales, prize-payouts and withdrawals
using cryptocurrency as well as reporting transactions and affiliate fees on the blockchain.
© RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 16OUR ROADMAP © RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 17
OUR MARKETING PLAN We will launch disruptive marketing campaigns to ensure that CyptoMillionsLotto’s brand is top of the mind. Getting People To Play Research And Education Extensive research has been undertaken to determine what needs to be done to make it accessible, and more comprehensible to everyone, especially with regards to CryptoMillionsLotto. We will develop marketing campaigns based on our findings, tailored to the needs of the different markets to educate players about cryptocurrency. This will include: • Sponsorship alliances with professional sports clubs emulating the successful models deployed in the English Premier League with soccer clubs and also working to replicate the model with the Indian Premier League for their highly popular cricket clubs. These are both examples where the mass followings these entities enjoy is a fast and effective route to large audiences. • Brand Ambassadors/Influencers – alignment with high-profile celebrities, from sports, entertainment, music and media sectors to involve them in both cryptocurrency and CryptoMillionsLotto. • Worldwide targeted PR campaign across a wide range of media beyond the cryptocurrency focus. • Social media advertising, particularly via Facebook and Telegram, but also on country/regional local social media sites. • ‘Paper Wallet’ promotions setting up cryptocurrency paper wallets and distributing these free to potential players. They will receive their wallet address directly, and as soon as they undertake the simple online registration process with CryptoMillionsLotto they will access free tickets to play. © RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 18
Rollout Plans We have chosen territories by cross-referencing gambling legislation with cryptocurrency legislation and populrity. We will rollout CryptoMillionsLotto as follows: Phase 1 - Q3, 2018 Phase 1 rollout will target English speaking customers in countries such as India, Canada and Malaysia. Others countries where English is widely used such as Sweden, Netherlands and Switzerland will also be targeted. Phase 2 - Q4, 2018 Phase 2 will target China and Portuguese and Spanish speaking countries, which includes more than 500 million potential customers across Europe and Latin America. Phase 3 - Q1, 2019 Phase 3 will target the more complex countries which will require us to employ not only operational staff but full acquisition and management teams. This includes countries such as Russia, Korea, Vietnam and Japan with a staggered launch. Hearts And Minds Campaign Initially, we would work with global charities to educate them on the benefits cryptocurrency could offer them, whilst also donating a percentage of revenues to different projects. Over time, this would follow the AfroMillionsLotto model of supporting reputable charities on a country-by- country basis. Not only does this enhance the standing of a brand and cryptocurrencies amongst its target audience, it also provides ongoing PR opportunities to inform the world. Major Launch And Ongoing Marketing We will hold a huge launch and marketing campaign aimed at cryptocurrency-savvy and non-savvy sectors. The marketing campaign will be broken down into acquisition and retention marketing both online and offline. Where possible, we will align our campaigns with high-profile celebrities, media and influencers. © RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 19
Acquisition Marketing - Online Social Media Typically, social media does not deliver depositing players. However we plan to formulate a cost effective results driven strategy with our agency partner. We intend to concentrate on Facebook and Telegram ads. Our campaigns will be measured and focused on converting new traffic to depositing players and extending player lifetime value via a proactive retention strategy. Our social media partner has developed technology which can automate social media across all platforms combining performance data, customer data and insights into players’ betting habits enabling it to personalise propositions based on player data. Stimulation alerts that trigger players to make buying decisions are delivered instantaneously to enhance the customer experience. The technology driving all this can be configured to send alerts in real time based on specific parameters. It is cloud based, fast and scalable. Content will include: • Aspirational daily posts via CryptoMillionsLotto’s own social media platforms. • Advertising and boosted posts to key target audiences. Competitions and cross-promotions with major brands. • Seasonally-driven campaigns to encourage people to enter and win big for Christmas, Summer holidays, etc. • Posts reflecting the positive contribution that CryptoMillionsLotto donations have made to charities around the world. • Posts to support our ongoing ‘Paper Wallet’ sign up promotions with free plays upon registration. Content Marketing • Paid-for editorial across on and offline media providing relevant content about cryptocurrency to each media platform. • Work with leading Blockchain/Cryptocurrency media influencers across a range of platforms and geographies, based on our target markets. Influencer and Affiliate Marketing Influencer marketing will focus on using key leaders in specific geographical locations to drive our brand message to a larger market. As opposed to marketing directly to a large group of consumers, we will instead use “influencers” to promote CryptoMillionsLotto. This, we expect, will be especially effective when used on social media such as Instagram, Facebook, Twitter and others. In addition, we will plug into known affiliate networks aimed at the public and cryptocurrency community, and work with media partners who can offer ‘paid on results’ (CPA & revenue share deals). © RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 20
Public Relations We will work with market leading PR technology to distribute content to global journalists. Our Cision platform, licensed through PR Newswire, has worked very well for AfroMillionsLotto enabling fast reach to thousands of media partners to publish our news. We can target specific cryptocurrency, lotto and generic publications with the press of a button. • Tailored launch press releases to key media outlets, journalists and bloggers. • Monthly press release programme highlighting winners, jackpots and charity news. • Innovative media kit to be distributed to a broad range of media. • Online lifestyle magazine with regular, weekly editorial, syndicated to media. • Media tours by key CryptoMillionsLotto staff and ambassadors. Sponsorship • We will associate the CryptoMillionsLotto with well-known brands to establish trust and credibility. This will include innovative sponsorship deals across a range of outlets, including music, fashion and sport, e.g. similar to how AfroMillionsLotto has partnered with the Nigerian Professional Football League and Kanu, the former Arsenal player and Nigeria football captain. Retention Marketing Retaining existing customers and encouraging the re-activation of disengaged customers who have stopped playing is key to success. Customer retention is just as important as customer acquisition. A “first ten days” conversion CRM strategy will be implemented to convert registrations to depositing customers. While offering freebies encourages registrations it doesn’t mean players are going to deposit. Automated communication using artificial intelligence algorithms over various touch points will be used to encourage customers to play. However, we believe our ‘Paper Wallet’ promotion offering free tickets upon registration will overcome the largest barrier to those unfamiliar with cryptocurrency. By providing them with a free, ready set up cryptocurrency, we will have removed the principal hurdle of setting up a cryptocurrency wallet and focused attention on the area they are most familiar with – playing lotto. We will form distributon alliances with popular retail chains (fast food outlets, bars, restaurants, etc.) and mobile phone retail chains where these promotions will be distributed. We will create seasonal, monthly and weekly promotions which will be based around free tickets, cashback, loyalty programs, giveaways, prizes and bonus credit to cross sell other games. Registered players will receive regular communication around the two weekly draws as well as a regular promotion around Instant Win games. Data will be segmented to identify the higher spenders giving them access to a VIP club. We will also implement a reactivation strategy, which will also be devised for players who cease to play. © RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 21
KPI’s such as churn, player LTV (Lifetime Player Values) will establish accurate forecasting and we will include it in weekly/monthly reporting. Who’ll Be Doing This? Our marketing will be managed centrally with activities outsourced to established, online marketing agencies who focus on and specialise in online gambling. They will be complemented by cryptocurrency marketing specialists. The marketing strategy for CryptoMillionsLotto will benefit greatly from being able to leverage the extensive technical, logistical, relationship network building and marketing campaigns undertaken for AfroMillionsLotto. Much of the groundwork undertaken for the launch of AfroMillionsLotto will facilitate the marketing of CryptoMillionsLotto. © RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 22
THE TEAM & ADVISORS
RSN has built a team of executives, each with decades of experience managing gambling related
projects, representing a broad spectrum of specialisation across cryptocurrency, blockchain,
management, technology, product, licensing, regulatory affairs, operations and marketing.
MR SULIM MALOOK
Sulim spent 20 years trading financial markets in the City of London, 14 of which were on the
London Financial Futures and Options Exchange. With the advent of smartphones, he set up a
company that developed the most downloaded stocks and investment app on BlackBerry, securing
agreements with 20 mobile networks across the world to actively promote it.
He floated this company on the Deutsche Borse (the German Stock Exchange) in Frankfurt, where
early investors achieved a significant return on investment. As an evolution from the app, he went
on to lead a company that developed a stock market trading game based on lottery.
The IP and license was sold to Ofertas. Since then, Sulim has been developing business for Ofertas
in Africa, specifically building a relationship with, and signing up, the National Professional Football
League.
MR THOMAS JAMES LEPPARD
James has over 30 years international finance and business experience, primarily in Latin America.
He has a strong corporate finance, marketing and business development background, having
worked at senior levels for several leading financial institutions such as Lloyds Bank and Samuel
Montagu, together with start-up companies in Brazil, Argentina and Uruguay.
He was a co-founder of an internet-based, UK reverse auction business, Bidlowest2win, and was
also a founder of a factoring company in Uruguay, Sidosol S.A. He has been an adviser to Dynamite
S.A., the operator of the Subito Lotto in Argentina, helping them to migrate their business online.
For the past two years, he has been focusing on the development and launch of AfroMillionsLotto.
© RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 23MR NICK AYTON – CRYPTO & FAMILY OFFICES
Nick is a globally recognised authority in the world of decentralised business management, a
Blockchain thought leader, crypto entrepreneur, tokenomics expert and investor. A veteran of
40 years in the innovative technology sector and a stakeholder in more than a dozen start-ups
and several of successful ICOs and an advisor to several Family Offices for crypto investments.
He is a pioneer and strong advocate for creating the crypto infrastructure to attract and support
institutional investors, building investor confidence and creating a compliant structure that sits
between old and new (emerging) regulation - a new Crypto Capital Market economy.
A frequent speaker at major Blockchain and Crypto events and a prolific writer on all matters
Blockchain, including for CoinTelegraph, CryptoCoins News and other crypto publications. His
other activities in the sector include being a founder of ‘The 21 Million Project’, the world’s first
crypto-funded TV drama about the Bitcoin Revolution, and a co-founder of next generation Token
Launch Platform Chainstarter for ICOs, a Crypto Exchange for Security Tokens, as well as hosting a
new Crypto Gameshow ‘Chainstarter TV’.
MR MICHAEL JONES - LOTTERY & MARKETING
Michael recently completed his second stint as Illinois Lottery Director, one of the largest lotteries
in the world.
As Director, he led Illinois to a $425M sales increase in his first year, made the Internet Lottery Test
a reality, put together teams at both the lottery and its Private Manager, Northstar, that radically
transformed the Illinois Lottery’s brand in just months, making it one of the most liked consumer
brands in Illinois.
His efforts to broaden the lottery’s player base generated a record billion-dollar per year sales
increase at the same time winning numerous advertising industry awards and generating positive
brand awareness and support. One of the lottery’s first pieces of creative was named as one of the
top ten television ads ever aired in Chicago’s long and storied marketing history.
After resigning as Lottery Director in 2015, Michael became a Director of Ocilla Partners a
marketing/consulting company involved in advising government and senior private sector managers
on gaming and lottery issues. He is a well known international expert on gaming policy, lottery
marketing and games, and both the future of iGaming and lottery privatization.
Michael is a graduate of the University of Florida, served as an officer in the United States Army,
ran with the bulls in Pamplona three times, has surfed most of his life, writes for the Huffington
Post, and was a finalist in the New Yorker Magazine’s cartoon caption contest.
© RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 24MR DAYMON RUTTENBERG - LOTTERY & LEGAL
Daymon is an internationally known gaming lawyer with over 17 years of experience in both
the private and public sector. His experience in business development, operations, finance, and
regulatory compliance has made him a frequent speaker at international meetings and conventions.
As an attorney, he has advised clients on a broad range of topics, including lottery private
management strategies, public-private partnerships and many types of intellectual property and
information technology. In addition, Daymon has extensive experience in marketing, public
relations, creative development, and media relations.
Previously Daymon served as General Counsel for the State of Illinois Department of Lottery. In
this role, he advised the Director and the Office of the Governor on all legal, policy, legislative,
vendor management, operational, and financial issues related to the Illinois Lottery. As General
Counsel, he researched, evaluated, and recommended models for internet gaming in Illinois. He
was the chief architect for the State’s iGaming legislation and created a regulatory framework that
could be used to license, audit, and collect tax revenue.
Daymon received his Juris Doctor, cum laude, from John Marshall Law School in Chicago and his
bachelor of science in chemistry and philosophy from John Carroll University. He is licensed to
practice law in Illinois and before the United States Patent and Trademark Office.
MR SIMON COCKING - #2 EXPERT ON ICOBENCH
Simon is a recognised expert and leading influencer in the ICO sector, ranked as No. 2 industry
expert on ICObench. Having participated actively in more than 20 successful ICO projects in an
advisory and mentoring capacity, his unrivalled knowledge of the crypto markets adds significant
credibility to any project he is associated with.
Additionally, he is a successful business founder, writer, journalist, public speaker and digital
marketing advisor, currently working as Chief Editor at Irish Tech News, CryptoCoinNews and
InvestInIT and writing regularly for publications such as IrishTechNews, Sunday Business Post and
Irish Times among others. As an accomplished speaker, he has addressed a number of prestigious
industry events including TEDx, Web Summit, and others in a number of European and Asian
centres. His awards include winner of Irish Web Awards 2014, best Science & Technology category,
and 2016 winner of Littlewoods Best Ireland Blog for Digital & Tech.
© RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 25MR Paul Ash - Accountant
Paul is a highly experienced senior accountant and a Member of Council of the Chartered Institute
of Management Accountants (CIMA). He brings a wealth of international financial, commercial and
strategic experience across multiple sectors, having held senior financial roles in the manufacturing,
banking, energy and media sectors, including: Chief Accountant of The London Stock Exchange
at the time of “Big Bang”; Chief Financial Officer for the Canadian Imperial Bank of Commerce,
Europe; Group Finance Director for Institute for International Research and as a Member of the
inaugural Governing Board of the Association of International Certified Professional Accountants
(AICPA, the world’s largest Association of qualified Accountants).
Currently, he is Non-Executive Director, Finance, for the British Institute for Facilities Management
(BIFM) and Chairman of UK energy company, Basalt Global Limited.
DR. NICK ALMOND - CRYPTOGRAPHY EXPERT
Nick is a technologist and senior leader at one of the largest Universities in London. He has a
Masters of Research in Physics and Biophysics and a PhD in Condensed Matter Science.
After departing experimental science, he worked and researched in Astrophysics, Mathematics,
Complexity Theory and most recently Education and Organisational Theory. His research is on
the impact of decentralisation and blockchain technologies on organisational and social dynamics
and the application of complexity science to financial systems and the adoption of emerging
technology.
MR MILES CARROLL - GAMING & PAYMENTS
Miles is an entrepreneur with interests in several fast-growing companies. He started life working
for Rothschild Bank in London and latterly with Lloyds Banking Group, in commercial roles,
assessing risk and driving new business in aviation asset finance.
In the last 15 years, he has built the identity verification and compliance business at GB Group
(founding the ID verification business) and then as the CEO of the UK’s largest independent credit
card processing business. Miles has been active in M&A with over 20 deals completed. He has also
been an advisor to the Financial Conduct Authority and the Gambling Commission in the UK.
Miles has a deep understanding of technology, financial regulation, investor relations and running
businesses on the London Stock Exchange.
© RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 26MR ANDREW JARRETT - IT ADVISOR
An experienced, qualified and Chartered director with seventeen years’ experience in the eGaming
sector, used to working in highly competitive markets with a strong, entrepreneurial approach to
acquiring new business. Has a proven track record in developing, implementing and refining strategic
business plans.
Group CEO of Twelve40 he established the business as a significant technology provider to the
global lottery sector. Previously a director of Digital Jersey, responsible for establishing Jersey as a
leading centre for technology innovation. Co-founded BrainnWave a Big Data and AI platform.
Co- founded Foreshore, designed and implemented the strategy to become the leading ecommerce
eGaming and eCommerce providers in the offshore international market.
MR JASON STRATFORD - IT ADVISER
Jason is a leading software and systems architect having delivered state-of-the-art solutions to
global organizations for more than 20 years. He has been involved in internet development since
its inception, studying computer science at the University of Reading.
He specializes in internet service provider systems as well as global messaging platforms and
payment systems. This included developing a payment system platform which was ultimately
acquired by a major retail bank. Jason has led companies through strategic transitions and mergers.
Our team is complemented by a licensed platform provider whose technology has been approved
and tested by the Jersey Gambling Commission, a UK Financial Conduct Authority licensed
insurance broker which is a member of Lloyds of London, state-of-the-art acquisition and retention
platfrom providers and an outsourced customer support company who has provided round-the-
clock services for more than a decade.
© RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 27MR ELMAR MALIKOV - CRYPTO & GAMING
Elmar is a successful entrepreneur, business coach and consultant. In 2015, he founded the Moscow
based company, Investwing, where he is CEO. Investwing is a specialist ICO investment and advisory
firm, which has participated actively in advising on the development and completion of several
successful ICO projects, including HyperQuant - an open intelligent platform for blockchain-based
automated investment, and Play2Live, a trailblazing project merging blockchain technology and
streaming services into a single platform for online gamers and e-sports fans.
In addition to his active engagement in the world of cryptocurrency, Elmar is also CEO of Liwing,
which he founded in 2001, as a self-improvement coaching centre for people to achieve greater
personal efficiency, satisfaction and ecological awareness. It has steadily grown and now has offices
in Russia, Kazakhstan and Azerbaijan.
His earlier achievements include the establishment of MSC Group in Moscow in 2002, first as a travel
agency as then as a tour operator and event management company, which in 2013 set up a venture
fund. Elmar is a graduate in International Economics from the University of Khazar, Ajerbaijan and a
Post-graduate in Strategy Management from the Management Centre Europe, Belgium.
MR EVGENY ALEKHIN - INVESTMENTS
Evgeny is a blockchain specialist and accomplished businessman who has participated as an adviser
and investor on several recent ICO projects including HyperQuant and Play2Live, where for the
latter, he acted as Head of Investor Relations.
He is engaged in several ventures including as Team Head at ICO and partner at Investwing, both
ICO advisory firms. His 12 years of business experience includes co-founding 4dstudio, Straus
Group and StabiX where his clients and partners were companies such as Adidas, Mail.Ru Group,
Gazprom, Western Digitales, Malina, Rosatom, Sky Club, Wolka, Topgun and Maison Dellos.
Evgeny is a graduate in Economics from the State University of Land Management, Russia and a
postgraduate in Architectural Design from Orel State Technical University, Russia.
© RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 28INVESTMENT ATTRACTION OF CML TOKENS
SEVEN IN TEN ADULTS PLAY LOTTO IN THE UK
The monthly revenue potential for CryptoMillionsLotto is US$700 million based on extrapolating
readily available UK National Lottery data in the public domain from 2017.
Size of Market is Yield for CML Token &
US$700 Million Per Month Reward Token holders from 7% in
Year 1 to 55% in Year 3
21.5 Million UK Players Spend £416 70% of UK Adults
Cryptocurrency Wallets Per Annum Playing Play The Lotto
as at Dec 20177 Lotto & Instant Win Games8 Regularly9
7. http://bit.ly/2ElJKmR
8. http://bit.ly/2wUgDF0
9. http://bit.ly/1Ije5AC
© RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 29Financial Projections (US Dollars)
YEAR 01 YEAR 02 YEAR 03
REVENUE REVENUE REVENUE
24,544,274 137,798,068 202,561,718
YEAR 01 YEAR 02 YEAR 03
Administrative Expenses 38,618 40,549 42,576
Marketing Expenses 23,803,803 66,598,939 65,398,670
Operational Expenses 752,542 1,382,476 1,787,643
Total Costs 24,594,964 68,021,963 67,228,889
EBITDA -50,690 69,776,104 135,332,828
Net Profit/Loss -50,690 68,380,582 132,626,172
Total Investment In CML Tokens 62,500,000 - -
Total Dividends (Annual) 4,184,256 23,491,523 34,532,294
Dividend Yield on Investment 6.69% 37.59% 55.25%
The dividend yield for CML Token and Reward Token holders taking into account zero capital
appreciation rises from approximately 7% in year one to 55% in year 3, averaging more than 33%
over a three year period. The yield does not take into account returns from the appreciation in the
price of CML Tokens.
© RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 30ANNUAL YIELD PER CML TOKEN & REWARD TOKEN
YEAR 1 $0.20
YEAR 2 $0.39
YEAR 3 $0.58
0 1 2 3
© RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 31INVESTMENT ATTRACTION OF OFERTAS SHARES
Ofertas Shares opened at US$0.40 per share upon listing in December 2015 and have risen to a
high of US$1.40 closing at $1.39 as at the date of this Whitepaper. Management forecasts further
growth in the next three years, as shown below.
The projections exclude dividends paid out by Ofertas to shareholders and also dividends received
by Ofertas from RSN.
Financial Projections (US Dollars)
YEAR 01 YEAR 02 YEAR 03
REVENUE REVENUE REVENUE
5,814,139 39,669,610 67,458,473
YEAR 01 YEAR 02 YEAR 03
Administrative Expenses 65,222 87,547 120,519
Marketing Expenses 1,241,567 4,086,840 6,924,221
Operational Expenses 822,398 1,251,037 1,649,898
Total Costs 2,129,187 5,425,424 8,694,638
EBITDA 3,684,952 34,244,186 58,763,835
Net Profit/Loss 3,483,533 31,886,174 54,703,540
Return on Investment 88% 703% 1081%
Projected Share Price 2.61 11.16 16.41
© RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 32Based on receiving Ofertas Shares at the settlement price of US$1.39, the Return on Investment is projected to be 88% in year 1 rising to 1081% in year 3. For buyers of CML Tokens in the ICO, the capital appreciation is shown by way of an example, as follows: Buy 2000 CML Tokens = US$5,000 Receive 1,000 Ofertas Shares for free In year 1 - value of Ofertas Shares = US$2,610 In year 2 - value of Ofertas Shares = US$11,160 In year 3 - value of Ofertas Shares = US$16,410 © RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 33
TOKENS AND SHARE FEATURES i) CML Tokens CML Tokens are Ethereum-based tokens of value and issued via ERC-20 Standard Ethereum smart contracts enabling full transparency and security. Ethereum-based tokens are a digital asset, bearing value by themselves based on their underlying assets and associated rights. They rely on a well-established Ethereum infrastructure, that offers high levels of security and liquidity, such that they are inter-changeable with other Ethereum- based tokens or ETH. This facilitates easier listing on exchanges with infrastructure already in place. More detailed information about the ERC-20 standard: https://github.com/ethereum/EIPs/issues/20 CML Tokens (whose symbol is LOTO) and associated Smart Contracts have been created and can be viewed at http://bit.ly/2CpdAZp ii) Ofertas Shares Ofertas Shares are already issued, and listed on the DCSX. The total number of issued shares is 100,000,000, comprising a single class with one vote per share. The Ofertas Shares contemplated in this Whitepaper are currently restricted for trading until 3 December 2018, as are 70% of the total issued shares. They rank fully pari passu in all other respects. Visit the DCSX to view more information on Ofertas Shares at http://dcsx.cw/ofertas-365-limited HOW TO BUY CML TOKENS To participate in the ICO, prospective investors are required to open a cryptocurrency ETH e-wallet and then follow the step-by-step instructions from the “Buy Now” link at www.cryptomillionslotto.io. Investors may purchase CML Tokens for the equivalent of US$2.50 securely using BTC, ETH or fiat currencies, EUR and GBP. CML Tokens may only be sent the investor’s ETH e-wallet. Live conversion rates, wallet and bank details are all provided. Once the registration, verification and CML Token purchase are completed and receipt of funds confirmed, you will get a confirmation email. CML Tokens’ Smart Contract will be set to live and transfer will begin immediately to the ETH Address provided after the ICO ends. © RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 34
HOW TO RECEIVE OFERTAS SHARES In order to receive Ofertas Shares, investors will be required to complete the Account Opening process with Amergeris Global Listing And Exchange Services N.V. (“Amergeris”), which is Ofertas’ DCSX authorised Listing Adviser and Broker. All investors will receive the relevant Account Opening forms and Guidance Notes. Ofertas Shares shall be allotted to investors’ accounts once their accounts are opened with Amergeris (see www.amergeris.com). Ofertas undertakes to provide full assistance and supervision of this process. HOW TO EARN REWARD TOKENS Contributors to our ICO will be invited to earn Reward Tokens by helping spread the word about our ICO via Airdrop campaigns. After our ICO, Reward Tokens will be issued as loyalty bonuses to CryptoMillionsLotto players. Details for both will be announced on our websites. HOW TO SELL CML TOKENS, REWARD TOKENS AND OFERTAS SHARES CML Tokens including Reward Tokens will be listed on several crypto exchanges, a list of which will be released after the ICO End Date. Tokens will also be easily transferable between users’ existing wallets and tradable immediately after the End Date. Ofertas Shares shall be free to trade after 3 December 2018 on the DCSX or any other exchange on which they are listed. © RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 35
RISK DISCLAIMER Our corporate governance is transparent and benefits greatly from the fact that our parent company, Ofertas, has undergone rigorous listing, regulatory and reporting with the DCSX, ensuring that accountability to investors is fully ingrained in our culture. The attention of potential participants is drawn to the fact that ownership of CML Tokens and Ofertas Shares involves a variety of risks. Whilst all reasonable efforts will be made to protect the integrity of the CML Platform, the following non-exhaustive list of risks should be considered: • High and erratic fluctuations in the prices of cryptocurrencies and digitalised assets such as CML Tokens • Risks relating to regulatory changes for cryptocurrencies • Political and economic upheaval • Illiquidity in CML Tokens and Ofertas Shares • Risk of losing access to CML Tokens due to loss of private keys • Competition, with the introduction of more attractive lotto products and/or tokens • Hacking, mining attacks and introduction of viruses affecting the functionality of the CML Tokens • Malfunction of the Ethereum Protocol • Insufficient player interest • Uncertainties regarding the taxation status and new tax regulations • Additional capital requirements to execute the business plan If you are in any doubt about the risks or the contents of this Whitepaper, you should consult a person duly qualified or authorised in your jurisdiction to provide specialist advice. You should make the decision to invest only after careful consideration and, if appropriate, consultation with an independent suitably qualified expert. Your attention is also drawn to the ‘Terms & Conditions’ section on our website, which provides a fuller analysis of risks. © RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 36
SUMMARY The promotion of a truly global lotto experience, open to everyone, requires exceptional marketing, a sound platform and an experienced team. We believe that our model of combining the strengths of centralisation with decentralisation, guaranteed jackpots, fair and fully-transparent draws, results and prizes together with our proven and regulated platform and existing licensed business constitute an excellent investment opportunity. For anyone new to the world of cryptocurrency, CryptoMillionsLotto’s ICO is the perfect opportunity to test the waters, whilst for seasoned ICO investors, it’s a business that mitigates most of the usual risks whilst providing steady dividend income and capital appreciation to complement that of the underlying cryptocurrency. Our proposition of providing CML Token investors with publicly listed Ofertas Shares broadens the opportunity for returns and diversifies risk further, overcoming the perennial problems of corporate governance at the same time. © RSN Entertainment Ltd 2018 | www.cryptomillionslotto.io 37
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