Gaming Realms plc
One Valentine Place
SE1 8QH
London
www.gamingrealms.com Gaming Realms plc
Annual Report and Accounts 2016 Gaming Realms is enjoying rapid growth as 
a developer , publisher and licensor of mobile 
games, building an international portfolio of 
highly popular gaming content and brands. 
Our continued vertically integrated approach, 
as well as investment in our proprietary mobile 
platform and successful brand partnerships 
gives us complete control to offer highly popular 
games to a very broad and loyal audience.
Strategic Report
Highlights 01
At a Glance 02
Chairman’s Statement 04
Chief Executive’s Review 06
Market Overview 08
Financial Review 10
 Principal Risks and 12 
Uncertainties
Corporate Governance
Board of Directors 14 
and Executive Management
Directors’ Report 16
Statement of Directors’ 17 
Responsibilities
Corporate Governance 18
Financial Statements
Independent Auditor’s Report 19
Consolidated Statement of 20 
Profit and Loss and Other 
Comprehensive Income
Consolidated Statement 21 
of Financial Position
Consolidated Statement 22 
of Cash Flows
Consolidated Statement 23 
of Changes in Equity
Notes to the Consolidated 24 
Financial Statements
Parent Company Statement 49 
of Financial Position
Parent Company Statement 50 
of Changes in Equity
Notes to the Parent Company 51 
Financial Statements
Company Information 55
gamingrealms.com highlights
2016 Financial highlights:
 > Revenue grew by more than 60% to £34.0m 
(2015: £21.2m) for the year ended 31 December 2016. 
106% growth excluding disposed non-core assets.
 — Real money gaming revenue increased by 100% 
to £21.5m (2015: £10.8m).
 — Daily social publishing revenue rose by 22% 
to £21,600 (2015: £17 ,7 47).
 — Licensing revenue increased 700% to £0.8m 
(2015: £0. 1m).
 > Improved profitability trend with H2/16 adjusted EBITDA 
of £2.0m (H2/15: loss £1.7m).
 > Total new depositing players grew 47% to 249,355  
(2015: 169,988).
 > Full year adjusted EBITDA loss reduced to £1.0m 
(2015: £4. 1m) which includes an adjusted EBITDA loss of 
£1.8m (10 August 2015 to 31 December 2015: £1.5m) 
from social publishing.
2016 Operati Onal highlights:
 > Game library growth to 8 proprietary games on our 
Grizzly platform.
 > Own game content and IP generated 44% (2015: 34%) 
of real money gaming and social publishing revenue.
 > Strategic brand partnership deployments with 
Britain’s Got Talent, The X Factor, Express Newspapers  
and Deal or No Deal.
 > Integration of real money gaming and social game 
development roadmap: 
 — Deployment of Slingo Arcade on Facebook and 
mobile featuring Slingo real money games and 
lottery game library.
 > IP licensing deals with Zynga and Scientific Games 
generated c.£0.7m in revenue in 2016.
 > Development of Remote Game Server completed for 
licensing of content to adjacent markets. Ready to  
generate new vertical revenue in 2017 .
strategic r eport Corporate Governance Financial Statements
01 Annual Report and Accounts 2016 at a glance
INNOvATION 
AT OuR HEART
Gaming Realms develops, publishes and licenses next generation mobile 
gaming content. Our market-leading mobile technology powers content 
distribution and monetisation across real money and social gaming markets.
As the creator of a variety of Slingo
™
, bingo, slots and other casual games, we use our proprietary data 
platform to build and engage global audiences that are expanding even further via strategic lottery, media 
and platform partnerships. Gaming Realms has partnered some of the most successful and popular global 
platforms and operators. 
inte grated game devel Opment, licensing and publishing
Game publishing
end to end publisher with 
100% regulated gaming and 
social games revenues
 > Our mobile-first, real money gaming 
platform ‘Grizzly’ is licensed in Alderney 
and by the UK Gambling Commission.
 > Our real money gaming players are 
exclusively in the UK today.
 > Our mobile-first, social games are 
available on iOS, Google Play, Facebook, 
Amazon and mobile web.
 > c.90% of our publishing revenue is 
derived from mobile with our platform 
and games optimised for every device.
 > Our platform is powered by sophisticated 
data science and engineering to drive 
optimal ROI for acquiring and retaining 
our audience.
Game licensing
ip l icensor
 > North American Lottery Printed Scratch 
Games – Scientific Games
 > Global Video Gaming Machines – 
Scientific Games
 > Global Lottery Mobile Instant Games – IWG
 > Social Slot Games – Zynga Inc.
content l icensor
 > Social Puzzle Games – Electronic Arts Inc.
 > Bingo – Pala Interactive
 > iGaming Library – Caesars Interactive, 
Resorts Inc, Pala Interactive and one 
other US casino operator signed to date
brand partnerships
 > Endemol – Deal or No Deal
 > Freemantle – Britain’s Got Talent, 
The X Factor
Game development
t hree mobile games studios
 > London, United Kingdom
 > Victoria, Canada
 > Brest, Belarus
02 Annual Report and Accounts 2016 Global audience 
creation and 
monetisation
With the latest digital acquisition 
methods, we concentrate on delivering 
a lower cost per acquisition by leveraging 
the mass appeal of branded content 
coupled with CRM specific to the 
individual user. This has expanded our 
audience well beyond the traditional 
gaming market gaining particular 
traction with both a younger and 
more female demographic.
Advanced mobile 
gaming platform
We have invested significantly in our 
mobile based gambling and social 
platforms powered by algorithmic 
CRM and personalised content. Our real 
money gambling business is operated 
from Guernsey and fully licensed by 
the UK Gambling Commission for both 
development and operation.
Our Key FOcus areas
Data and algorithmic 
optimisation
‘It’s all about the data’ – from advanced 
algorithms to individual landing 
pages designed to give the player an 
optimised experience.
Strategic partners  
and licensing
Partners include Fremantle, 
Zynga, NetEnt, Pala Interactive 
and Scientific Games.
Not only do we leverage our own IP 
across multiple brands, but we also 
license Slingo into markets adjacent to 
the Group’s core mobile gaming business.
Original game content 
and IP development
We build original content from our 
own London, Victoria and Brest based 
studios incorporating social meta games 
and real money mechanics with well-
known brands.
Experienced team
We have one of the most experienced 
teams in the real money and social 
industries gained from companies such as 
Bwin.Party, Cashcade, Gamesys, GTECH/
IGT, Aristocrat, Betfair, SkyVegas, Double 
Down, Virtue Fusion and Hasbro.
rmg studio  
(l ondon)
Focus: Slingo and  
unique IP
simpli Fied 
inte grated 
devel Opment
gl Obal distributi On 
t hr Oug h publishing  
& licensing
rm g
sOcial
uK: Own sites
uK: media partnerships
nJ: igaming licensees
l otteries: SGI & IWG 
europe: igaming  
licensees
slingo, slots, hidden 
Objects: Own apps 
social slots: Zynga
Additional Publishing & 
Licensing Partnerships 
e.g. Slingo, Bingo  
and Slots content
social studio  
(v ictoria, c anada)
Focus: Mobile (social)  
apps for re-use of  
RMG games
rgs
(soc/r m)
brands
(Tv shows)
strategic r eport Corporate Governance Financial Statements
03 Annual Report and Accounts 2016 chairman’s statement
CONTINuING 
TO DELIvER
michael bucKley
Chairman
26 April 2017
2016 has been another year 
of significant progress for 
Gaming Realms. Revenue 
increased by more than 60% 
to £34.0m (2015: £21.2m). 
The Group also delivered 
its first profitable reporting 
period in H2/16 with an 
adjusted EBITDA profit of 
£2.0m (H2/15: loss of £1.7m), 
reinforcing the Board’s view 
that its strategy of investing 
in high quality, high value 
assets and the focus on 
execution has allowed the 
Group to achieve strong top 
line growth while delivering 
an improving bottom line 
performance. 
During the first half of 2016 non-core 
assets, including our bingo sites on a 
third-party platform were disposed of, 
focusing the Group on our own platform. 
In addition, we disposed of QuickThink 
Media to Ayima, integrating our in-house 
digital marketing agency with a high 
growth full service agency in exchange 
for an equity stake in Ayima.
2016 has also been the first full year of 
integration and operation of the Slingo IP 
and social publishing business acquired 
from Real Networks in H2/15. In addition 
to driving significant new content for our 
real money gaming business, this 
acquisition has delivered third party royalty 
savings as well as providing a significant 
new addressable market for Gaming 
Realms’ game content, IP and marketing 
capability. During the year we created and 
deployed several new social apps and 
04 Annual Report and Accounts 2016 Real money gaming delivered year on 
year revenue growth of c.100%. The Group 
could have shown a small profit for the 
year had we decided to invest less heavily 
in the development and marketing of our 
new social publishing business. The social 
publishing adjusted EBITDA loss was £1.8m 
(10 August 2015 to 31 December 2015: 
£1.5m) due to new app development and 
new launches including the successful 
Slingo Arcade featuring our Slingo 
Original content.
Outlook for 2017
The Board has approved the 2017 
operating plan which is to drive continued 
top line growth in uK real money gaming 
operations on our Grizzly platform and 
balance that with continuing to improve 
bottom line contribution from social 
publishing and content licensing. As in 
2016, we will invest significantly in 
marketing during H1 particularly focused 
on the real money gaming business 
through strategic Tv partnerships to build 
awareness and play frequency and reap the 
benefits of a scaled player base across the 
full year.
Following the disposal of our non-core 
assets in 2016, and as we continue to scale 
the business, we are now focused on 
profitable growth. We will allocate our 
capital and resources on the most 
profitable areas particularly real money 
gaming and our new content licensing 
revenue stream. Our plan is to achieve 
profitability for the full year in 2017. 
We plan to extend our presence in New 
Jersey, having now achieved both product 
and platform approval. With the addition 
of several new licensees including Caesar’s 
Interactive, Pala Interactive, Resorts and 
one other uS operator, we will introduce 
our real money Slingo games into that 
territory. We hope to continue to benefit 
from the investment in development and 
integration synergies which were 
undertaken during 2016 in our social 
publishing business. 
integrated aspects of the business with 
our real money gaming business. Through 
further operational synergies as well as 
innovative new product growth, it is our 
expectation that these investments and 
enhancements to the way we operate will 
deliver greater profitability in 2017.
The Board continues to review growth 
opportunities in adjacent markets for our 
existing content. The acquisition of the 
Slingo brand and IP has allowed us to 
achieve significant licensing partnerships 
with Scientific Games, Zynga and Instant 
Win Gaming which are already yielding 
c.£0.7m in recurring revenue with limited 
recurring cost. 
With increased focus on producing our 
own proprietary games for our real money 
gaming business, we are developing 
additional high margin revenue 
opportunities in social and real money 
game content licensing markets. These 
will come on stream in 2017.
We are delighted with the performance of 
our real money gaming business in which 
we were awarded the Mobile Casino 
Product of the Year award by eGaming 
Review. This is a strong endorsement of our 
execution in 2016 and how our mobile first 
strategy is yielding significant growth over 
the twelve-month period.
Our investment in producing our own 
content and developing this on our own 
platform has allowed us greater flexibility 
to deliver high rate revenue growth. As we 
scale revenue across our fixed costs this 
will deliver increased margin and enable 
us to achieve greater bottom line 
contribution. using our own platform has 
reduced content royalties by 39% in the 
last year alone. In addition, the revenue 
from new content distribution and further 
IP licensing will further drive high margin 
revenue across the same fixed costs. 
In summary, the Group has never been in 
a better position to drive further profitable 
growth across our real money gaming and 
content licensing revenue streams. 
Board focus
achievements in 2016
 > POSITIvE ADJuSTED EBITDA H2/ 1 6
 > COMMON GAME DEvELOPMENT 
ROADMAP
 > DEvELOPMENT OF REMOTE GAME 
SERvER
 > REDuCTION IN DIRECT COSTS TO 
35% (2015: 42%) OF NGR IN RMG
 > LAuNCH OF SLINGO ARCADE IN 
Q4/ 1 6
priorities for 2017
 > GROWING REAL MONEY GAMING 
AND CONTENT LICENSING
 > PROFITABILITY IN SOCIAL 
PuBLISHING
strategic r eport Corporate Governance Financial Statements
05 Annual Report and Accounts 2016 chie F executive’s review
In 2016, the Group achieved 
market leading growth in 
its UK real money gaming 
business, integrated its 
new social business, built 
award winning content 
to complement its newly 
acquired IP and executed 
unique strategic partnerships 
with globally recognized 
brand licensors and 
gaming licensees.
Overview
The investment in both our proprietary 
platform and marketing has resulted in 
excellent growth in a competitive uK 
market place by allowing us to focus on 
a younger mobile based audience. Mobile 
now accounts for 84.0% (2015: 78.3%) 
of our player base. 
Growth in 2016 has been supported by 
key media deals with Fremantle including 
The X Factor and Britain’s Got Talent, which 
have allowed us to offer a more targeted 
gambling offering to our key demographic. 
We have augmented this by the in-house 
creation of 8 new unique ‘Slingo Original’ 
mobile games, which account for over 
£101m (2015: £56m) in wagering on the 
platform or 17% of the gross gaming 
revenue for the year. The most recent 
game Magic Mine is truly original in 
combining skill and chance as it attempts 
to mirror the ‘fun element’ of many social 
games, which are lacking in harder edged 
gambling products.
Overall wagering has increased by 51% to 
£609m (2015: £404m) and deposits have 
more than doubled to £49.0m (2015: 
£24.0m). As a more established platform 
we have been able to reduce bonus costs 
to 29% (2015: 43%) of gross gaming 
patric K sOuth On
Chief Executive Officer
26 April 2017
SET FOR
GROWTH
06 Annual Report and Accounts 2016 revenue and lessen direct costs associated 
with the operation to 35% (2015: 42%) of 
revenue. This has allowed greater focus on 
marketing and revenue growth in the year. 
Demand for our unique content has been 
such that it has led to the development of 
a Remote Game Server (‘RGS’) which allows 
our ‘Slingo Original’ games to be licensed 
to third party operators as premium 
content. This will form an increasing part 
of our strategy in 2017 as we look 
to differentiate ourselves from our 
competitors, as well as expand the 
reach of our content into new territories. 
Licensing deals to Zynga, Scientific Games 
and Instant Win Games in 2016 have paved 
the way for further deployment of our 
content into new jurisdictions such as 
Quebec through the Provincial Lottery 
monopoly and New Jersey through 
iGaming and Pala Interactive.
We have further integrated the social 
business, bought from Real Networks in 
2015, with the creation of a shared 
development path which now allows us to 
deliver content simultaneously to both real 
money gaming and social audiences. The 
first offering in this regard is Slingo Arcade 
which, following launch in late Q4/16 
rapidly has become the second highest 
grossing social app, scaling to an average 
of $8,000 per day in March 2017. In future, 
emphasis will be on using this channel to 
monetize content developed for real 
money gaming similar to licensing our 
content to third party operators. This will 
have resulted in a reduction in headcount 
from 53 in June 2016 to approximately 29 
in June 2017 within social publishing.
disposal of non-core assets
During the year we disposed of our 
non-core legacy third party platform assets 
which has allowed us to focus resources on 
our higher margin proprietary mobile 
gaming platform and our own high 
performance game content.
The disposal of our in-house digital 
marketing agency in a strategic 
partnership between Gaming Realms and 
Ayima, has allowed the Group to benefit 
from an enlarged marketing capability. 
We have been seeing the benefits of this 
on our acquisition channels on Grizzly. 
marketing
As a result of our marketing strategy our 
cost per acquisition on our Grizzly platform 
was £86 (2015: £79), one of the lowest 
across the industry for a uK casino and we 
gained 1 16,349 (2015: 78,198) new 
depositing players in the year. Our revenue 
per depositing player increased 22% to 
£153 (2015: £125) which is reflective of 
the greater operational improvements in 
the business despite a lower than normal 
gaming margin in H2.
Key goals for 2017
 > Allocation of capital and investment 
to the most profitable business 
segments i.e. real money gaming 
and content licensing.
 > Focus on scaling uK real money gaming 
business for full year double digit revenue 
and profit growth.
 > New regulated third party licensees for 
Gaming Realms proprietary content. 
 > Profitability in social publishing through 
integrated content development, 
marketing capability and focused 
marketing spend.
 > Continued proprietary content 
development available across all 
revenue streams.
 > Further expansion of strategic media 
partnerships across all revenue streams.
 11 6 ,3 4 9
New real money gaming 
depositors
game development and  
content licensing
 > OWN GAME CONTENT AND IP 
GENERATED 44% OF REAL MONEY 
GAMING AND SOCIAL PuBLISHING 
REvENuE
 > SLINGO ARCADE IS THE FASTEST 
GROWING APP IN SOCIAL 
PuBLISHING
 > REMOTE GAME SERvER TO CREATE 
NEW REvENuE STREAM IN 2017
strategic partnerships 
 > MEDIA –  FREEMANTLE, NORTHERN 
AND SHELL, ENDEMOL, SKY
 > CONTENT – CAESARS, PALA, 
RESORTS AND ONE OTHER 
uS OPERATOR
 > IP – ZYNGA, SCIENTIFIC GAMES, 
INSTANT WIN GAMING
22%
Increase in revenue per 
depositing player
strategic r eport Corporate Governance Financial Statements
07 Annual Report and Accounts 2016 mar Ket Overview
SuCCEEDING 
IN A DYNAMIC 
MARKET
We are continuing to focus on the younger more casual 
gambling demographic. We are targeting them through 
mobile delivery and original game IP . This is enabling us to 
acquire and engage players away from the more crowded, 
male orientated sportsbook market.
content strategy
The 25 to 34 year-old group are our 
largest segment accounting for over 40% 
of all players. As a result of our content 
strategy, women are delivering higher 
lifetime values on the platform despite 
the fact that the active players, male to 
female ratio is 50:50.
*  E u r op e an O n l in e G am b l in g 
Industry update –  
2017 Eilers & Krejcik Gaming 
27 March 2017. 
Online Gambling Quarterly –
Spring Edition March 2017.
€7.2 
BN
Est. value of the  
addressable European  
online casino market in 2016.
£2.7 
BN
The size of the UK online  
casino market in 2016.
7 
%
Estimated CAGR  
2016-2020 for  
UK online  
gaming market.
49 
%
Average of 
casino revenue 
via mobile.
the
mar Ket
*
08 Annual Report and Accounts 2016 0
50
100
150
200
250
300
93.4
58.5
159.9
104.9
227.1
164.7
258.9
200.5
260.1
149.7
224.6
155.4
NGR
Female Male
Avg.
65+ 55-64 45-54 35-44 25-34 18-24
r eal money players players under 35
demographic – ngr of funded users
snapshot: device age split (last 6 months)
game activity by device (last 6 months)
award winning  
and inspirational 
Gaming Realms is one of the fastest 
growing gaming companies, with more 
than 100% year-on-year revenue growth 
for real money gaming in 2015-16.
1000 companies 
to inspire britain
Gaming Realms has been named by 
the London Stock Exchange Group as  
one of the 1000 Companies to Inspire 
Britain in 2016 and 2017.
GGR
% of
total
GGR Margin
unique
funded
players
unique
players
Average
age Sessions
% of 
sessions
desktop 5,894,153 19.65 4.75% 47,807 132,599 41 1,140,287 18.05%
mobile 24,108,722 80.35 4.97% 129,800 439,064 35 5,178,161 81.95%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
65+
55-64
45-54
35-44
25-34
18-24
Age 
group
Mobile Desktop
50
%
50
%
60
%
strategic r eport Corporate Governance Financial Statements
09 Annual Report and Accounts 2016 Financial review
A STRONG 
PERFORMANCE
mar K segal
Chief Finance Officer
26 April 2017
Gaming Realms has delivered 
year-on-year revenue growth 
of more than 60% to £34.0m 
(2015: £21.2m). This growth 
is a result of our proprietary 
platform scaling in both 
real money gaming and 
social publishing. 
Overview
Real money gaming on the Grizzly platform 
has grown 100% to £21.5m (2015: £10.8m), 
with social gaming and licensing adding 
£8.7m (2015: £2.5m) of which content 
licensing was £0.8m (2015: £0.1m). 
In addition, affiliate marketing of £1.8m 
(2015: £2.1m) and disposed white label 
operations and agency business of £1.9m 
(2015: £5.7m) included below under real 
money gaming and marketing services. 
Adjusted EBITDA loss was £1.0m  
(2015: £4.1m) because of the investment 
in social publishing which contributed an 
adjusted EBITDA loss of £1.8m (10 August 
2015 to 31 December 2015: £1.5m) 
due to continued app development and 
new launches including Slingo Arcade.
Marketing for the year, excluding disposed 
assets, was £13.9m (2015: £9.1m) as the 
Group continued to acquire players to 
grow its platform and revenues.
During the year, Gaming Realms disposed 
of its non-core legacy third party assets 
and its digital agency assets into a 
strategic partnership with Ayima. This has 
resulted in a profit on disposal in the year 
of £0.3m.
income statement items
Like for like revenue growth (excluding 
the disposed assets) was 106% to £32.0m 
(2015: £15.5m) driven by the increase in 
real money gaming and social publishing.
10 Annual Report and Accounts 2016 costs of £7.6m (2015: £4.6m) with respect 
to our real money gaming vertical, because 
of the increase in revenue and size of the 
operation. However, due to operational 
leverage that scale gives us, we saw a 
reduction in the year to 35% (2015: 42%) 
as a proportion of revenue. 
Real money gaming and marketing services 
delivered positive adjusted EBITDA of 
£2.8m (2015: loss of £0.8m).
social gaming and licensing
Key highlights for 2016 include:
 > Completed development of RGS enabling 
a single development platform for our 
real money gaming operations, social 
publishing and content licensing. 
 > Investments in regulatory approvals in New 
Jersey provides a new high margin growth 
market for our proprietary content.
 > New IP licensing revenue from Zynga and 
Scientific Games.
 > 22% annualised social publishing revenue 
growth despite limited impact of new 
investment in Slingo Arcade which was 
launched in December 2016. 
 > Growth in player base to 1.2m (2015: 
1.0m) average monthly active users. 
dividend
During the year, Gaming Realms did not pay 
an interim or final dividend. The Board of 
Directors are not proposing a final dividend 
for the current year.
corporation and deferred 
taxation
The Group received £27,961 (2015: 
£213,083) in research and development 
credits in the year and has recognised the 
unwind of deferred tax of £248,941 (2015: 
£ 122,692) on business combinations.
r eal money gaming and 
marketing services
The increase in revenue in real money 
gaming to £21.5m (2015: £10.8m) 
reflects the continuing investment into 
development, £1.5m (2015: £1.8m) and 
marketing £9.6m (2015: £6.7m). The 
marketing performance has exceeded 
expectations in the year delivering 116,349 
(2015: 78,198) new depositing players at a 
cost per acquisition of £86 (2015: £79). 
Marketing services including disposed 
non-core assets contributed £3.7m (2015: 
£7.8m) to Group revenue, of which affiliate 
marketing services contributed £1.8m 
(2015: £2.1m) in revenue. 
Operating expenses include point of 
consumption tax, third party royalties and 
transaction costs. The total cost of £10.8m 
(2015: £10.0m) includes the increased 
£2.8m
Adjusted EBITDA profit from 
real money gaming and 
marketing services
106%
Increase in revenue excluding 
disposed non-core assets
2016 Real money
gaming and
marketing services
£
Social gaming
£
Licensing
£
Other
£
Total
2016
£
Revenue 25,241,659 7,884,101 786,843 45,515 33,958,118
Marketing expenses (10,847,107) (3,937,053) – (26,756) (14,810,916)
Operating expenses (7,729,060) (1,608,789) – – (9,337,849)
Administrative expenses (3,815,567) (4,140,794) (343,488) (2,526,921) (10,826,770)
Adjusted EBITDA* 2,849,925 (1,802,535) 443,355 (2,508,162) (1,017,417)
2015 Real money 
gaming and 
marketing services 
£
Social gaming
£
Licensing
£
Other
£
Total
2015
£
Revenue 18,640,602 2,413,566 123,592 30,686 21,208,446
Marketing expenses (10,040,166) (1,404,699) – (65,890) (11,510,755)
Operating expenses (5,163,629) (561,626) – – (5,725,255)
Administrative expenses (4,268,580) (1,940,543) (19,332) (1,851,397) (8,079,852)
Adjusted EBITDA* (831,773) (1,493,302) 104,260 (1,886,601) (4,107,416)
*  EBITDA and adjusted EBITDA are non-GAAP measures and excludes acquisition, restructuring and other expenses as described in note 4 and share based 
payment charges as described in note 24.
strategic r eport Corporate Governance Financial Statements
11 Annual Report and Accounts 2016 pr incipal ris Ks and un certainties
The Board constantly monitors and assesses risks and uncertainties 
within the Group’s trading activities. There will always be a level 
of risk which needs to be evaluated against the Group’s potential 
returns in any activity.
r isk description of risk how this risk is managed
Regulatory and 
Legislation
Online gambling and gaming is subject to 
a dynamic and complex regulatory regime. 
The Group now holds licences from the Alderney 
Gambling Control Commission, the uK Gambling 
Commission and a transactional waiver for New 
Jersey Division for Gaming Enforcement.
It is key to the Group to maintain compliance with 
all licences and any new ones that are required. 
These are critical to the continuing operation of 
the Group’s gambling activities and also the 
production and supply of its unique content into 
both its operations and other third parties.
The Group has a compliance team to ensure that 
all regulatory guidelines are maintained in its 
gambling operations. The Group also maintains 
close legal counsel to advise on any changes to 
the regulatory framework, as well as updates on 
territories currently outside the Group’s activities.
Taxation
From the end of 2014, the Group was subject 
to point of consumption tax in relation to its 
gambling activities within the uK. Any changes 
to the tax rate or the point it is incurred may 
adversely affect duty payable.
The Group continues to take advice and 
be prepared for any adverse changes in 
the gambling tax regime.
Residency
The Group has legal entities in several jurisdictions, 
including uS, Canada and Alderney. Its real money 
gaming operations are based in Alderney where 
there is a zero rate for corporation tax and is 
outside the scope of vAT. If there was a change to 
the rate of corporate tax or vAT in Alderney, it 
would have an adverse effect on the amount of 
tax payable within the Group.
The Group has undertaken a detailed transfer 
pricing exercise to ensure that revenue and profits 
are attributed correctly between the operating 
locations.
Brexit
In the June 2016 referendum, the uK voted to leave 
the Eu. This may increase the volatility of global 
currency and financial markets. In addition, it may 
reduce the Group’s ability to operate in certain Eu 
markets without a change in domiciliation, which 
could carry a higher tax burden.
The Group will continue to monitor the situation 
and respond as the timing and terms of the uK’s 
exit from the Eu become clearer.
Competition
The online and free to play gaming markets are 
highly competitive in North America and the uK. 
Failure to be able to hold a competitive advantage 
would result in attracting less players and have 
lower engagement on our apps and sites.
In following the Group’s strategy of developing 
new unique IP and content, the Group feels well 
placed to be able to compete in the markets it 
operates in. It invests significant resource to be 
able to improve its development and operations.
Diverse products and geographies also helps to 
diversify the risk.
12 Annual Report and Accounts 2016 r isk description of risk how this risk is managed
Time to market
The Group invests highly in technology and bringing 
new products and games to market. A delay in time 
to market will result in a loss of competitive 
advantage, a loss in potential revenue and also 
increasing cost of development.
The Group has invested highly in having a dual 
product track to allow its products and games to 
be ready for both licensing and publishing 
exploitation in the same release.
Extensive work is undergone on the planning stage 
to ensure that timeframes can be met and products 
go live at the highest standard.
Dependence on 
technology
As a provider of online gambling services, the 
Group’s business is reliant on technology and 
advanced information systems. If the Group does 
not invest in the maintenance and further 
development of its technology systems, there is a 
risk that these systems may not cope with the needs 
of the business and may fail. The Group is reliant on 
the Internet and is vulnerable to activities such as 
distributed denial of service attacks, other forms of 
cyber-crime and a wide range of malicious viruses.
The Group continues to invest in its proprietary 
platform to ensure the necessary features and 
functionality meet their partner needs. In addition, 
it has adopted industry standard protections to 
detect intrusions or other security breaches and 
implements preventative measures to protect 
against sabotage, hackers, viruses and other 
cyber-crime.
Dependence on 
third-party service 
providers
The Group engages with a number of providers 
of non-proprietary third party games and payment 
processing services, as well as other important 
service providers. In the event that there is any 
interruption to the products or services provided 
by third parties, problems in supplying the 
products, one or more ceased to be provided or 
are provided on onerous terms to the Group, this 
may have an adverse effect on the Group’s 
business and performance.
The Group uses reliable industry suppliers and 
ensures that contractual agreements with key 
partners offer adequate protection.
The team
During the year the team has expanded across 
multiple locations. The ability to carry out the 
Group’s strategy is dependent on the engagement 
of its senior management team, its technology, 
marketing and operations teams.
The Group continues to invest in its employees 
to ensure that it can attract, recruit and maintain 
a high-quality team.
To ensure this happens, the Group has taken on 
a management and engagement course during 
the year for all roles within the business.
Risk level
 
HIGH RISK
MEDIUM RISK
LOW RISK
The 2016 Strategic Report on pages 1 to 13 has been approved by the Board of Directors.
On behalf of the Board
michael bucKley
Chairman
26 April 2017
patric K sOuth On
Chief Executive Officer
26 April 2017
strategic r eport Corporate Governance Financial Statements
13 Annual Report and Accounts 2016 bOar d OF direct Ors
michael buckley
Chairman
Michael Buckley was Chairman of Cashcade, 
which he founded with Patrick Southon and 
Simon Collins in 2000. Cashcade became a 
leading uK-based online gaming company 
prior to its sale to PartyGaming plc in 2009 
for an aggregate sale consideration of 
£96m for shareholders.
Michael has invested in and been Chairman 
of a number of public companies. These 
include SelecTv plc, a producer of comedy 
and comedy drama series for television 
such as Lovejoy, Birds of a Feather and 
The New Statesman. SelecTv invested 
in a consortium which in 1991 won the 
franchise to create Meridian Television 
of which Michael was a founding Director. 
He was also Chairman of Pacific Media plc, 
which invested in a number of internet 
backbone companies in Asia during the 
1990s as well as creating a chain of movie 
theatres in South East Asia in partnership 
with united Artists Theatre Circuit Inc. 
Michael has held other public and private 
company directorships, having obtained 
a professional qualification as a chartered 
accountant in the uK.
atul bali
Deputy Chairman
Atul Bali was the President of RealNetworks 
Games business incorporating GameHouse, 
Slingo, GPN and other assets in the cross 
platform casual, social casino and next 
generation ad serving businesses. He also 
serves on the board of several real money 
gambling businesses focused on lottery, 
casino, sports betting and as an adviser 
to two fintech businesses.
Prior to RealNetworks, he served as the 
President of Aristocrat Americas, a leading 
supplier to the Casino industry; the CEO of 
XEN Group (now Disruptive Technologies 
Limited) a social media investment fund; 
President & CEO of GTECH G2 (following 
a long career in mergers and acquisitions, 
corporate and global business 
development for GTECH). 
He trained as a Chartered Accountant with 
KPMG in the uK, following a degree in Law 
and Economics. He lives in Seattle with his 
wife and three children.
patrick southon
Chief Executive Officer
Patrick Southon has been working within 
the online gambling sector for the last 
16 years. He is particularly focused on 
marketing, brand building and media 
buying. Patrick was Managing Director 
of Cashcade and Managing Partner of 
NewGame an investment fund focusing 
on innovation within the gambling sector. 
His marketing expertise allowed Cashcade 
to build a distinctive and prominent brand 
identity around, among others, its flagship 
‘Foxy Bingo’ brand and turned the 
company into one of the most effective 
advertisers on British television. Based on 
research by TNS, Marketing Magazine cited 
Foxy Bingo as having the best value television 
advertising between 2008 and 2010.
simon collins
Executive Director
Simon Collins was the co-founder of 
Cashcade in 2000. He formed a range of 
profitable B2B relationships for Cashcade 
and was an early adopter of both search 
engine and social network marketing in 
the monetised digital gaming space. 
In 2008 and 2009, Cashcade featured in 
The Sunday Times Top 20 fastest growing 
technology companies and the business 
won numerous other industry awards. 
In a M&A context, Simon helped scale 
Cashcade by identifying Herotech, the 
owner of ThinkBingo which was added in 
2007 for £13.5m. After Cashcade was 
acquired by bwin.party in 2009, Simon 
remained with the company until April 
201 1, where he focused on innovation, 
research and development as well as the 
ongoing development of Cashcade’s brand 
in the social media space. Since leaving 
bwin.party, Simon joined Patrick Southon 
in founding Gaming Realms plc.
mark w ilson
Non-executive Director
Mark Wilson is a strategic adviser and 
investor in media, gaming and real estate. 
Mark has held multiple senior leadership 
positions, serving as CEO of Television 
Games Network, Executive Chairman of 
Music Choice International, President of 
Hubbard Enterprises, Managing Member 
of New Mexico Gaming LLC, and General 
Counsel and Corporate Secretary of 
Churchill Downs. He received a Juris 
Doctorate from the university of Louisville.
mark segal
Chief Financial Officer
Mark Segal joined Gaming Realms in May 
2013 having left bwin.party as Finance 
Director for the bingo vertical. Previous 
to that Mark was Finance Director of 
Cashcade until it was acquired by 
PartyGaming plc in July 2009. Mark was 
responsible for the full finance function, 
including commercial negotiations, 
business intelligence and operational 
support in the business, and was involved 
in the sale to PartyGaming plc and 
acquisition by Cashcade of Independent 
Technology ventures in July 2007. Prior to 
joining Cashcade, in May 2005, Mark spent 
five years at the accountancy firm Martin 
Greene Ravden, where he qualified as 
a chartered accountant in 2003. 
Jim r yan
Non-executive Director
Jim Ryan is the CEO of Pala Interactive, LLC 
a real money gambling operator focused 
on the uS regulated online gaming market. 
Prior to Pala Interactive, Jim was the 
Co-CEO of bwin.party digital 
entertainment plc. He has spent the last 
14 years of his career in leadership roles 
within the online gaming sector. Jim has 
led a number of the industry’s largest 
merger and acquisition transactions which 
include the merger of PartyGaming plc and 
bwin, the acquisitions of Cashcade (Foxy 
Bingo) and the World Poker Tour and the 
sale of St Minver Limited to GTECH. Jim 
held senior posts at four publicly listed 
companies. In addition to his role of CEO of 
PartyGaming plc and Co-CEO of bwin.party 
digital entertainment plc he was President 
and Chief Executive Officer of Excapsa 
Software Inc. and as Chief Financial Officer 
of CryptoLogic Inc. and Chief Financial 
Officer of SXC Health Solutions Corp and 
was CEO of St. Minver Limited. Jim also held 
senior management posts at Procuron Inc., 
Metcan Information Technologies Inc. and 
Epson Canada Limited. Educated at Brock 
university (Goodman School of Business) 
in Ontario, Canada, where he obtained a 
business degree with first class honours, 
Jim obtained professional qualifications 
as a chartered accountant and certified 
public accountant from the Canadian 
Institute of Chartered Accountants.
14 Annual Report and Accounts 2016 executive management
paul munro
Operational Director of Bear 
Group Limited
Paul Munro has over 15 years experience 
in the online gambling sector. Previously he 
was Operations Director with Sportech plc, 
where he managed the growth and 
expansion of the business, including The 
Footballpools and Littlewoods. Prior to this 
he launched virgin Games online, as 
Marketing Manager, establishing the brand 
in the gaming sector and also built a Live 
Presenter bingo business establishing it 
into the B2B marketplace.
paul brownlow
Chief Product Officer
Paul Brownlow leads the product strategy 
and execution for all Blastworks (Social 
Division) games. Previously, he was general 
manager of Mobile at DoubleDown 
Interactive, where he led the launch the 
mobile DoubleDown Casino and grew 
it to a #1 top-grossing app. He also led 
development of one of the first mobile 
ad platforms for aQuantive (Atlas), and 
co-founded GalleryPlayer, where his team 
developed an HD content distribution 
platform that was adopted by several 
major television manufacturers. He has 
served as start-up and growth adviser to 
several companies in the Seattle area 
and at the university of Washington Foster 
School of Business. He’s a long-time fan of 
Jetpack Joyride, craft beer and road trips.
stephen downer
Chief Operating Officer
Stephen Downer has more than fifteen 
years of experience in online gaming. As 
Director of Gaming at Sky Bet for ten years, 
he launched and ran Sky vegas, Sky Poker 
and Sky Bingo until 2012. A year later, 
Stephen led Betfair’s online casino launch 
in New Jersey, and more recently managed 
Betfair’s regulated sports betting and 
gaming businesses in Spain, Denmark 
and Bulgaria.
paul gambrell
Chief Technology Officer
Paul Gambrell is a technology evangelist and 
web technologies expert with over ten years’ 
experience building online gaming platforms 
and driving the adoption of modern 
technologies in the gambling sector. 
After beginning his career at virtue Fusion 
and Playtech, Paul was part of the founding 
team of social gaming development house 
Bejig. Following the acquisition of Bejig by 
Gaming Realms in 2013, he has steered the 
technical direction of the Group, leading 
the platform development team for three 
years before taking over as CTO.
philip tuck
Business Intelligence Director
Philip Tuck is a specialist in algorithmic 
development, machine learning, predictive 
modelling, database management/
construction and behavioural science 
within the real money gambling and social 
gaming space. 
He brings a consistent track record of 
delivering algorithmic CRM systems, 
managing analytics platforms and utilising 
ROI focused BI across a wide range of 
gaming products and companies, including 
Betfair, Ladbrokes and Gaming Realms, and 
is a regular speaker on the gaming and 
data conference circuit.
Strategic Report corporate governance Financial Statements
15 Annual Report and Accounts 2016 direct Or s’ rep Ort
FOR THE YEAR ENDED 31 DECEMBER 2016
The Directors present their Annual Report together with the audited 
financial statements for the year ended 31 December 2016.
principal activities
The Group’s principal activities during the year continued to be 
that of an online bingo and casino operator, the provision and 
marketing of interactive bingo and casino services to customers 
in the uK and social gaming on Facebook and mobile to customers 
in the uS and Europe. 
These financial statements present the results of the Group from 
1 January 2016 to 31 December 2016.
names of directors and dates of any changes
The Directors who served during the year and to the date of this 
report were:
Michael Buckley
Atul Bali
Patrick Southon
Mark Segal
Simon Collins
Jim Ryan
Mark Wilson
r esults and dividends
The results for the year are set out on page 20. The Company will 
not be paying a dividend this year.
disclosures to auditors
The Directors who held office at the date of approval of this 
Directors’ Report confirm that, so far as they are aware, there is no 
relevant audit information of which the Company’s auditor is 
unaware; and each Director has taken steps that ought to have 
been taken as a Director to make themselves aware of any 
relevant audit information and to establish that the Company’s 
auditor is aware of that information.
BDO LLP, have expressed their willingness to continue in office and 
a resolution to reappoint them will be proposed for the Annual 
General Meeting in accordance with Section 489 of the 
Companies Act 2006.
Financial instruments
Details of the Group’s financial risk management objectives and 
policies are included in note 20 to the financial statements. 
r esearch and development
The Group maintains its level of investment in software 
development activities. In the opinion of the directors, continued 
investment in this area is essential to strengthen the Group’s 
market position and for future growth 
During the year the Group claimed Research and Development 
relief as per note 12.
Future developments
Future developments are discussed in the Chairman’s Statement 
on page 5 and in the Chief Executive’s Review on page 7.
patric K sOuth On
Chief Executive Officer
26 April 2017
16 Annual Report and Accounts 2016 statement OF direct Ors’ resp Onsibilities
The Directors are responsible for preparing the Annual Report 
and the financial statements in accordance with applicable law 
and regulations. 
Company law requires the Directors to prepare financial 
statements for each financial year. under that law the Directors 
have elected to prepare the Group financial statements in 
accordance with applicable law and International Financial 
Reporting Standards (‘IFRSs’) as adopted by the European union 
and the Parent Company financial statements in accordance with 
applicable law and uK accounting standards (uK Generally 
Accepted Accounting Practice), including Financial Reporting 
Standard 101 ‘Reduced Disclosure Framework’. under company 
law the Directors must not approve the financial statements 
unless they are satisfied that they give a true and fair view of the 
state of affairs of the Group and Company and of the profit or loss 
of the Group for that period. The Directors are also required to 
prepare financial statements in accordance with the rules of the 
London Stock Exchange for companies trading securities on the 
Alternative Investment Market (‘AIM’).
In preparing these financial statements, the Directors are 
required to:
 > select suitable accounting policies and then apply them 
consistently; 
 > make judgements and accounting estimates that are reasonable 
and prudent; 
 > state whether they have been prepared in accordance with 
IFRSs as adopted by the European union, subject to any 
material departures disclosed and explained in the financial 
statements; and 
 > prepare the financial statements on the going concern basis 
unless it is inappropriate to presume that the Company will 
continue in business.
The Directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the Company’s 
transactions and disclose with reasonable accuracy at any time the 
financial position of the Company and enable them to ensure that 
the financial statements comply with the requirements of the 
Companies Act 2006. They are also responsible for safeguarding 
the assets of the Company and hence for taking reasonable steps 
for the prevention and detection of fraud and other irregularities. 
w ebsite publication
The Directors are responsible for ensuring the Annual Report 
and the financial statements are made available on a website. 
Financial statements are published on the Company’s website in 
accordance with legislation in the uK governing the preparation 
and dissemination of financial statements, which may vary from 
legislation in other jurisdictions. The maintenance and integrity 
of the Company’s website is the responsibility of the Directors. 
The Directors’ responsibility also extends to the ongoing integrity 
of the financial statements contained therein.
Strategic Report corporate governance Financial Statements
17 Annual Report and Accounts 2016 cOrp Orate g Overnance
Although companies traded on AIM are not required to provide 
corporate governance disclosure, or follow guidelines in the uK 
Corporate Governance Code (the ‘Code’) issued by the Financial 
Reporting Council (‘FRC’), the Directors recognise the value and 
importance of high standards of corporate governance. 
Given the Company’s size and the constitution of the Board, the 
following is a brief summary of the main aspects of corporate 
governance currently in place. 
The Board has established an Audit Committee and a 
Remuneration Committee with formally delegated responsibilities. 
The Remuneration Committee is chaired by Mark Wilson. Its other 
members are currently Michael Buckley and Jim Ryan. This 
committee reviews the performance of the Executive Directors 
and makes recommendations to the Board on matters relating to 
their remuneration and terms of employment. The Remuneration 
Committee also makes recommendations to the Board on 
proposals for the granting of share options and other equity 
incentives. The Board sets the remuneration and terms and 
conditions of appointment of the Non-Executive Directors. 
The Audit Committee is chaired by Jim Ryan. Its other members 
are Mark Wilson and Michael Buckley. The Committee determines 
the terms of engagement of the Company’s auditors and, in 
consultation with them, the scope of the audit. It receives and 
reviews reports from management and the Company’s auditors 
relating to the interim and annual financial statements and the 
accounting and internal control systems in use by the Group. 
The Audit Committee has unrestricted access to the Company’s 
auditors. under its terms of reference, the Audit Committee 
monitors, amongst other matters, the integrity of the Group’s 
financial statements. The Committee is responsible for monitoring 
the effectiveness of the external audit process and making 
recommendations to the Board in relation to the re-appointment 
of the external auditors. It is responsible for ensuring that an 
appropriate business relationship is maintained between the 
Group and the external auditors, including reviewing non-audit 
services and fees. The Committee meets with Executive 
Directors and management as well as meeting privately 
with the external auditors. 
As the Board is small, there is not a separate Nominations 
Committee and the Board as a whole considers recommendations 
for appointments to the Board. 
The Directors follow the guidance set out by Rule 21 of AIM Rules 
relating to dealings by Directors in the Company’s securities and, 
to this end, the Company has adopted an appropriate share 
dealing code. 
going concern 
under company law, the Company’s Directors are required to 
consider whether it is appropriate to prepare financial statements 
on the basis that the Group and Company are a going concern. As 
part of the normal business practice the Group prepares annual 
and three-year plans and, in reviewing this information, the 
Company’s Directors are satisfied that the Group and the 
Company have reasonable resources and future cash flows to 
enable them to continue in business for the foreseeable future. 
For this reason, the Company and Group continue to adopt the 
going concern basis in preparing the financial statements. 
18 Annual Report and Accounts 2016 ind ependent aud it Or’s r epOrt  
t O the members OF gaming r ealms plc
We have audited the financial statements of Gaming Realms plc 
for the year ended 31 December 2016 which comprise the 
Consolidated Statement of Profit and Loss and Other 
Comprehensive Income, the Consolidated and Company 
Statement of Financial Position, the Consolidated Statement of 
Cash Flows, the Consolidated and Company Statement of Changes 
in Equity and the related notes. The financial reporting framework 
that has been applied in the preparation of the group financial 
statements is applicable law and International Financial Reporting 
Standards (IFRSs) as adopted by the European union. The financial 
reporting framework that has been applied in preparation of the 
Parent Company financial statements is applicable law and united 
Kingdom Accounting Standards (united Kingdom Generally 
Accepted Accounting Practice).
This report is made solely to the Company’s members, as a body, 
in accordance with Chapter 3 of Part 16 of the Companies Act 
2006. Our audit work has been undertaken so that we might state 
to the Company’s members those matters we are required to 
state to them in an auditor’s report and for no other purpose. To 
the fullest extent permitted by law, we do not accept or assume 
responsibility to anyone other than the Company and the 
Company’s members as a body for our audit work, for this report, 
or for the opinions we have formed.
r espective responsibilities of directors 
and auditors
As explained more fully in the Statement of Directors’ 
Responsibilities, the Directors are responsible for the preparation 
of the financial statements and for being satisfied that they give a 
true and fair view. Our responsibility is to audit and express an 
opinion on the financial statements in accordance with applicable 
law and International Standards on Auditing (uK and Ireland). 
Those standards require us to comply with the Financial Reporting 
Council’s (FRC’s) Ethical Standards for Auditors.
scope of the audit of the financial statements
A description of the scope of an audit of financial statements is 
provided on the FRC’s website at www.frc.org.uk/
auditscopeukprivate.
Opinion on financial statements
In our opinion: 
 > the financial statements give a true and fair view of the state of 
the Group’s and the Parent Company’s affairs as at 31 December 
2016 and of the Group’s loss for the year then ended;
 > the Group financial statements have been properly prepared in 
accordance with IFRSs as adopted by the European union;
 > the Parent Company’s financial statements have been properly 
prepared in accordance with united Kingdom Generally 
Accepted Accounting Practice; and
 > the financial statements have been prepared in accordance with 
the requirements of the Companies Act 2006.
Opinion on other matters prescribed by the 
companies act 2006
In our opinion, based on the work undertaken in the course of 
the audit:
 > the information given in the strategic report and directors’ 
report for the financial year for which the financial statements 
are prepared is consistent with the financial statements; and 
 > the strategic report and directors’ report have been prepared 
in accordance with applicable legal requirements.
matters on which we are required to 
report by exception
In the light of the knowledge and understanding of the group and 
the parent company and its environment obtained in the course 
of the audit, we have not identified material misstatements in the 
strategic report or the directors’ report.
We have nothing to report in respect of the following matters 
where the Companies Act 2006 requires us to report to you if, 
in our opinion:
 > adequate accounting records have not been kept by the Parent 
Company, or returns adequate for our audit have not been 
received from branches not visited by us; or
 > the Parent Company financial statements are not in agreement 
with the accounting records and returns; or
 > certain disclosures of Directors’ remuneration specified by law 
are not made; or
 > we have not received all the information and explanations we 
require for our audit.
Kieran st Oran (seni Or statut Ory audit Or)
For and on behalf of BDO LLP, statutory auditor 
London
26 April 2017
BDO LLP is a limited liability partnership registered in England  
and Wales (with registered number OC305127).
Strategic Report Corporate Governance Financial statements
19 Annual Report and Accounts 2016 cOns Olidated statement OF pr OFit and 
l Oss and  Ot her c Omprehensive inc Ome
FOR THE YEAR ENDED 31 DECEMBER 2016
Note
1 January 2016
to 31 december
2016
£
1 January 2015
to 31 December
2015
£
r evenue 33,958,118 21,208,446
Marketing expenses 3 (14,810,915) (11,510,755)
Operating expenses 3 (9,337,851) (5,725,255)
Administrative expenses 3 (10,826,769) (8,079,852)
adjusted ebitda * (1,017,417) (4,107,416)
Acquisition costs 4 – (318,853)
Profit on disposal of digital marketing agency and  
third-party platform driven website properties 5 318,834 –
Share-based payment 24 (993,349) (673,730)
ebitda (1,691,932) (5,099,999)
Amortisation of intangible assets 3 (3,979,941) (2,230,940)
Depreciation of property, plant and equipment 3 (120,789) (59,861)
Finance expense 11 (1,178,154) (393,579)
Finance income 11 3,022 7,579
l oss before tax (6,967,794) (7,776,800)
Tax credit 12 272,451 335,775
l oss for the financial year (6,695,343) (7,441,025)
Other comprehensive income
Items which may change in future periods:
Exchange losses arising on translation of foreign operations 1,836,352 605,546
total other comprehensive income 1,836,352 605,546
total comprehensive income (4,858,991) (6,835,479)
l oss attributable to:
Owners of the parent (6,685,120) (7,441,025)
Non-controlling interest (10,223) –
(6,695,343) (7,441,025)
total comprehensive income attributable to:
Owners of the parent (4,882,234) (6,835,479)
Non-controlling interest 23,243 –
(4,858,991) (6,835,479)
l oss per share 
Basic and diluted (pence) 13 (2.55) (3.45)
The notes on pages 24 to 48 form part of these financial statements.
*  EBITDA and Adjusted EBITDA are non-GAAP measures and excludes acquisition, restructuring and other expenses as described in 
Note 4 and share based payment charges as described in Note 24.
20 Annual Report and Accounts 2016 cOns Olidated statement OF Financial p Ositi On
AS AT 31 DECEMBER 2016
Note
31 december
2016
£
31 December
2015
£
assets
non-current assets
Property, plant and equipment 14 373,307 189,652
Goodwill 15 16,545,864 18,092,116
Available for sale investment 5 540,000 –
Intangible assets 15 12,115,973 10,835,685
Other assets 16 152,000 152,000
29,727,144 29,269,453
current assets
Trade and other receivables 17 3,347,595 4,018,084
Cash and cash equivalents 16 2,616,267 2,536,388
5,963,862 6,554,472
total assets 35,691,006 35,823,925
l iabilities
current liabilities
Trade and other payables 19 7,058,781 4,327,965
Deferred and contingent consideration 26 3,135,356 4,990,966
10,194,137 9,318,931
non-current liabilities
Deferred tax liability 12 1,202,889 1,232,597
Deferred and contingent consideration 26 – 2,474,533
1,202,889 3,707,130
total liabilities 11,397,026 13,026,061
net assets 24,293,980 22,797,864
equity
Share capital 21 27,413,329 24,920,829
Share premium 22 87,095,455 85,127,955
Merger reserve 22 (67,673,657) (68,393,657)
Foreign exchange reserve 22 2,408,432 605,546
Retained earnings 22 (25,154,580) (19,462,809)
total equity attributable to owners of the parent 24,088,979 22,797,864
non-controlling interest 205,001 –
total equity 24,293,980 22,797,864
The notes on pages 24 to 48 form part of these financial statements. The financial statements were approved and authorised for issue 
by the Board of Directors on 26 April 2017 and were signed on its behalf by:
patric K sOuth On
Chief Executive Officer
Strategic Report Corporate Governance Financial statements
21 Annual Report and Accounts 2016 cOns Olidated statement OF cash Fl Ow s
FOR THE YEAR ENDED 31 DECEMBER 2016
 
Note
2016
£
2015
£
cash flows from operating activities
Loss for the year (6,695,343) (7,441,025)
Adjustments for:
Depreciation of property, plant and equipment 14 120,789 59,861
Amortisation of intangible fixed assets 15 3,979,941 2,230,940
Finance income 11 (3,022) (7,579)
Finance expense 11 36,850 21,409
Movement in deferred and contingent consideration 11 1,141,304 372,170
Contingent consideration on prior period acquisitions – 105,000
unrealised currency translation gains (191,548) –
unwind of deferred tax recognised on business acquisitions 12 (248,941) (122,692)
Loss on disposal of property, plant and equipment 14 6,531 42,372
Loss on disposal of intangible assets 15 – 106,043
Profit on disposal of digital marketing agency and third-party platform driven website properties 5 (318,834) –
Share-based payment expense 24 993,349 673,730
Increase/decrease in trade and other receivables 643,961 (1,177,150)
Increase in trade and other payables 2,759,244 1,458,801
Decrease in other assets – 6,500
net cash flows from operating activities 2,224,281 (3,671,620)
investing activities
Acquisition of subsidiary, net of cash acquired 25,26 18,759 (6,652,050)
Purchases of property, plant and equipment 14 (289,256) (68,055)
Purchase of intangibles 15 (3,969,611) (1,805,913)
Proceeds from disposal of third-party platform driven website properties 1,200,000 –
Interest received 11 3,022 7,579
net cash from investing activities (3,037,086) (8,518,439)
Financing activities
Proceeds of Ordinary Share issue 4,025,000 12,500,000
Issuance cost of shares (45,000) (501,534)
Payment of deferred consideration 26 (3,071,447) (1,250,000)
Repayment of other loans – (14,504)
Interest paid 11 (36,850) (21,409)
net cash from financing activities 871,703 10,712,553
net increase/(decrease) in cash and cash equivalents 58,898 (1,477,506)
cash and cash equivalents at beginning of year 2,516,820 3,994,326
exchange gains on cash and cash equivalents 21,747 –
cash and cash equivalents at end of year 17 2,597,465 2,516,820
The notes on pages 24 to 48 form part of these financial statements.
22 Annual Report and Accounts 2016 cOns Olidated statement OF changes in equity
FOR THE YEAR ENDED 31 DECEMBER 2016
Share
capital
£
Share
premium
£
Merger
reserve
£
Foreign
exchange
reserve
£
Retained
earnings
£
Total
to equity
holders of
parent
£
Non-
controlling
interest
£
Total equity
£
1 January 2015 19,517,049 78,119,547 (69,334,935) – (12,695,514) 15,606,147 – 15,606,147
Loss for the year – – – – (7,441,025) (7,441,025) – (7,441,025)
Other comprehensive income – – 605,546 – 605,546 – 605,546
total comprehensive income 
for the year – – – 605,546 (7,441,025) (6,835,479) – (6,835,479)
contributions by and 
distributions to owners
Shares issued as part of the 
consideration in a business 
combination 413,722 – 941,278 – – 1,355,000 – 1,355,000
Shares issued as part of the 
capital raising 4,990,058 7,509,942 – – – 12,500,000 – 12,500,000
Cost of issue of Ordinary Share 
capital – (501,534) – – – (501,534) – (501,534)
Share-based payment on share 
options (Note 24) – – – – 673,730 673,730 – 673,730
31 december 2015 24,920,829 85,127,955 (68,393,657) 605,546 (19,462,809) 22,797,864 – 22,797,864
Loss for the year – – – – (6,685,120) (6,685,120) (10,223) (6,695,343)
Other comprehensive income – – – 1,802,886 – 1,802,886 33,466 1,836,352
total comprehensive income 
for the year – – – 1,802,886 (6,685,120) (4,882,234) 23,243 (4,858,991)
contributions by and 
distributions to owners
Shares issued as part of the 
consideration in a business 
combination 480,000 – 720,000 – – 1,200,000 – 1,200,000
Shares issued as part of the 
capital raising 2,012,500 2,012,500 – – – 4,025,000 – 4,025,000
Cost of issue of Ordinary Share 
capital – (45,000) – – – (45,000) – (45,000)
Share-based payment on share 
options (Note 24) – – – – 993,349 993,349 – 993,349
Non-controlling interests on 
acquisition of subsidiary – – – – – – 181,758 181,758
31 december 2016 27,413,329 87,095,455 (67,673,657) 2,408,432 (25,154,580) 24,088,979 205,001 24,293,980
The notes on pages 24 to 48 form part of these financial statements.
Strategic Report Corporate Governance Financial statements
23 Annual Report and Accounts 2016 1. accounting policies
General information
Gaming Realms plc (the ‘Company’) and its subsidiaries (together the ‘Group’).
The Company is admitted to trading on AIM of the London Stock Exchange. It is incorporated and domiciled in the uK. The address of its 
registered office is One valentine Place, London, SE1 8QH.
Basis of preparation
The principal accounting policies adopted in the preparation of the consolidated financial statements are set out below. 
The consolidated financial statements are presented in sterling.
These financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting 
Standards and Interpretations (collectively IFRSs) as adopted by the Eu. The comparative statement of cash flows has been restated 
which has resulted in a decrease of £244,1 17 in financing inflow and an increase of £244,1 17 in operating inflow. There were no 
changes to closing cash and cash equivalents.
The preparation of financial statements in compliance with adopted IFRSs requires the use of certain critical accounting estimates. 
It also requires Group management to exercise judgement in applying the Group’s accounting policies. The areas where significant 
estimates and judgments have been made in preparing the financial statements and their effect are disclosed in note 2.
Basis of consolidation 
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of the Company as at 31 December 2016 
and the results of all subsidiaries for the year then ended. 
Where the Company has control over an investee, it is classified as a subsidiary. The Company controls an investee if all three of the 
following elements are present: power over the investee, exposure to variable returns from the investee, and the ability of the investor 
to use its power to affect those variable returns. Control is reassessed whenever facts and circumstances indicate that there may be a 
change in any of these elements of control.
Intercompany transactions, balances and unrealised gains on transactions between entities in the Group are eliminated. unrealised 
losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of 
subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.
The consolidated financial statements incorporate the results of business combinations using the acquisition method. In the statement 
of financial position, the acquiree’s identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the 
acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date 
on which control is obtained. They are deconsolidated from the date on which control ceases.
Going concern
The financial statements have been prepared on a going concern basis. In August 2017 the final deferred consideration of $4m falls due 
to Real Networks from the acquisition made on 10 August 2015. The Directors have received draft terms, subject to normal commercial 
agreements, for an external debt facility of up to £5m and therefore have confidence that sufficient funds can be raised. The Directors 
will consider the approval of this external debt facility along with other options available to them.
Having reviewed the forecasts of the business and based on the status of current discussions with regards additional investment or 
financing, the Directors have a reasonable expectation to believe it is appropriate to continue to prepare the financial statements 
on a going concern basis.
Revenue
Revenue comprises net gaming revenue derived from real money gaming, commissions on marketing services, licensing, advertising and 
social gaming.
Net gaming revenue derived from real money gaming
Net gaming revenue derives from online gambling operations and is defined as the difference between the amounts of bets placed by 
the players less amounts won by players. It is stated after deduction of certain bonuses, jackpots and prizes granted to players.
Net gaming revenue is recognised to the extent that its probable economic benefits will flow to the Group and the revenue can be 
reliably measured. Revenue is recognised in the accounting periods in which the transactions occur.
Marketing services
Revenue is derived from marketing services provided in relation to online bingo and casino products. The commission revenue is 
calculated either as a percentage of net gaming revenue from the operators or in line with contracts (typically based on fixed price per 
player). Commission revenue is recognised to the extent that the probable economic benefits will flow to the Group and the revenue 
can be reliably measured. Revenue is recognised in the accounting periods in which the transactions occur.
nOt es t O the cOns Olidated Financial statements
FOR THE YEAR ENDED 31 DECEMBER 2016
24 Annual Report and Accounts 2016 Revenue is also derived from digital marketing services provided to both gaming and non-gaming clients. The revenue is calculated as 
a percentage of marketing spend and is recognised as a percentage of completion.
Advertising revenue
Advertising revenue derives from contractual relationships with agencies, advertising brokers and certain advertisers for advertisements 
within our social games. Advertising revenue is recognised to the extent that it is probable economic benefits will flow to the Group and 
the revenue can be reliably measured. Revenue is recognised in the accounting periods in which the transactions occur.
Social gaming revenue
Social gaming revenue derives from the purchase of credits and awards on the social gaming sites. Social gaming revenue is recognised 
to the extent that it is probable economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is 
recognised in the accounting periods in which the transactions occur.
Licensing revenue
Licensing revenue derives from contractual relationships for the use of intellectual property. Revenue is recognised where substantially all 
risk and rewards have been transferred and there are no further monetary or financial obligations to be fulfilled by the licensor. However, 
where there is ongoing obligations to the Group, license fees are recognised over the estimated period of the license to the licensee.
Administrative expenses
Administrative expenses include staff costs, professional, consulting and legal fees and other costs.
Adjusted EBITDA
EBITDA is a non-GAAP, company specific measure. Adjusted EBITDA excludes adjusting items from EBITDA. Adjusting items are 
non-recurring material items which are outside the normal scope of the Group’s ordinary activities. These items are separately disclosed 
in order to enhance the reader’s understanding of the Group’s profitability and cash flow generation. Adjusting items include costs 
arising from a fundamental restructuring of the Group’s operations, acquisition costs and share-based payment charges. 
Goodwill
Goodwill represents the excess of the cost of a business combination over the total acquisition date fair value of the identifiable assets, 
liabilities and contingent liabilities acquired. 
Cost comprises the fair value of assets given, liabilities assumed and equity instruments issued, plus the amount of any non-controlling 
interests in the acquiree plus, if the business combination is achieved in stages, the fair value of the existing equity interest in the 
acquiree. Contingent consideration is included in cost at its acquisition date fair value and in the case of contingent consideration 
classified as a financial liability, remeasured subsequently through profit or loss. 
Goodwill is capitalised as an intangible asset with any impairment in carrying value being charged to the consolidated statement 
of comprehensive income. Where the fair value of identifiable assets, liabilities and contingent liabilities exceed the fair value of 
consideration paid, the excess is credited in full to the consolidated statement of comprehensive income on the acquisition date.
Impairment of non-financial assets
Impairment tests on goodwill and other intangible assets with indefinite useful economic lives are undertaken annually at the financial 
year end. Other non-financial assets are subject to impairment tests whenever events or changes in circumstances indicate that their 
carrying amount may not be recoverable. Where the carrying value of an asset exceeds its recoverable amount (ie the higher of value 
in use and fair value less costs to sell), the asset is written down accordingly.
Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is carried out on the smallest 
group of assets to which it belongs for which there are separately identifiable cash flows; its cash generating units (‘CGus’). Goodwill is 
allocated on initial recognition to each of the Group’s CGus that are expected to benefit from a business combination that gives rise to 
the goodwill.
Impairment charges are included in profit or loss, except to the extent they reverse gains previously recognised in other comprehensive 
income. An impairment loss recognised for goodwill is not reversed.
Foreign currency
Transactions entered into by Group entities in a currency other than the currency of the primary economic environment in which they 
operate (their ‘functional currency’) are recorded at the rates ruling when the transactions occur. Foreign currency monetary assets and 
liabilities are translated at the rates ruling at the reporting date. Exchange differences arising on the retranslation of unsettled monetary 
assets and liabilities are recognised immediately in statement of comprehensive income.
On consolidation, the results of overseas operations are translated into sterling at rates approximating to those ruling when the 
transactions took place. All assets and liabilities of overseas operations, including goodwill arising on the acquisition of those operations, 
are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate 
and the results of overseas operations at actual rate are recognised in other comprehensive income and accumulated in the foreign 
exchange reserve.
Strategic Report Corporate Governance Financial statements
25 Annual Report and Accounts 2016 nOt es t O the cOns Olidated Financial statements
FOR THE YEAR ENDED 31 DECEMBER 2016 (CONTINuED)
1. accounting policies (continued)
Exchange differences recognised as profit or loss in Group entities’ separate financial statements on the translation of long-term 
monetary items forming part of the Group’s net investment in the overseas operation concerned are reclassified to other comprehensive 
income and accumulated in the foreign exchange reserve on consolidation.
On disposal of a foreign operation, the cumulative exchange differences recognised in the foreign exchange reserve relating to that operation 
up to the date of disposal are transferred to the consolidated statement of comprehensive income as part of the profit or loss on disposal.
Financial assets
The Group classifies its financial assets depending on the purpose for which the asset was acquired. The Group has not classified any 
of its financial assets as held to maturity.
The Group’s accounting policies for financial assets are as follows:
Loans and receivables
These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise 
principally through the provision of goods and services to customers (e.g. trade receivables), but also incorporate other types of 
contractual monetary asset. They are initially recognised at fair value plus transaction costs that are directly attributable to their 
acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for 
impairment. 
Impairment provisions are recognised when there is objective evidence (such as significant financial difficulties on the part of the 
counterparty or default or significant delay in payment) that the Group will be unable to collect all of the amounts due under the terms 
receivable, the amount of such a provision being the difference between the net carrying amount and the present value of the future 
expected cash flows associated with the impaired receivable. For trade receivables, which are reported net, such provisions are 
recorded in a separate allowance account with the loss being recognised within administrative expenses in the consolidated statement 
of comprehensive income. On confirmation that the trade receivable will not be collectable, the gross carrying value of the asset is 
written off against the associated provision.
The Group’s loans and receivables comprise trade and other receivables and cash and cash equivalents in the consolidated statement 
of financial position. 
Available-for-sale investment
Non-derivative financial assets not included in the above categories re classified as available-for-sale and comprise principally the Group’s 
strategic investments in entities not qualifying as subsidiaries, associates or jointly controlled entities. They are carried at fair value with 
changes in fair value, other than those arising due to exchange rate fluctuations and interest calculated using the effective interest rate, 
recognised in other comprehensive income and accumulated in the available-for-sale reserve. Exchange differences on investments 
denominated in a foreign currency and interest calculated using the effective interest rate method are recognised in profit and loss. 
Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short-term highly liquid investments with 
original maturities of three months or less.
Financial liabilities
Financial liabilities held by the Group consist of deferred and contingent consideration, customer funds, trade payables and other 
short-term monetary liabilities. 
Financial liabilities are initially recognised at fair value net of any transaction costs directly attributable to the issue of the instrument 
and with the exception of deferred and contingent consideration, subsequently recognised at amortised cost. Contingent consideration 
arising from business combinations that is classified as liability is subsequently measured at fair value through profit and loss. Deferred 
consideration arising from business combinations is recognised at present value and unwound over the period until settlement.
Share capital
Financial instruments issued by the Group are classified as equity only to the extent that they do not meet the definition of a financial 
liability or financial asset.
The Group’s ordinary shares are classified as equity instruments.
Non-controlling interests
Non-controlling interest is recognised at the present ownership instruments’ proportionate share in the recognised amounts of the 
acquiree’s identifiable net assets. The total comprehensive income of non-wholly owned subsidiaries is attributed to owners of the 
parent and to the non-controlling interests in proportion to their relative ownership interests.
Share-based payments
Where equity-settled share options are awarded to employees, the fair value of the options at the date of grant is charged to the 
consolidated statement of comprehensive income over the vesting period. Non-market vesting conditions are taken into account 
by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount 
26 Annual Report and Accounts 2016 recognised over the vesting period is based on the number of options that eventually vest. Non-vesting conditions and market vesting 
conditions are factored into the fair value of the options granted. As long as all other vesting conditions are satisfied, a charge is made 
irrespective of whether the market vesting conditions are satisfied. The cumulative expense is not adjusted for failure to achieve 
a market vesting condition or where a non-vesting condition is not satisfied.
Where equity instruments are granted to persons other than employees, the consolidated statement of comprehensive income is 
charged with the fair value of goods and services received.
The fair value of share options issued without market-based vesting conditions is measured by the application of the Black-Scholes option 
pricing model by reference to the grant date of the options. The fair value of share options issued with market-based vesting conditions 
is measured by use of the Monte Carlo method.
Externally acquired intangible assets
Externally acquired intangible assets are initially recognised at cost and subsequently amortised on a straight-line basis over their useful 
economic lives. 
Intangible assets are recognised on business combinations if they are separable from the acquired entity or arise from other contractual/
legal rights. The amounts ascribed to such intangibles are arrived at by using appropriate valuation techniques (see section related to 
critical estimates and judgements below).
Internally generated intangible assets (development costs)
Expenditure on internally developed products is capitalised if it can be demonstrated that:
 > it is technically feasible to develop the product for it to be sold;
 > adequate resources are available to complete the development;
 > there is an intention to complete and sell the product;
 > the Group is able to sell the product;
 > sale of the product will generate future economic benefits; and
 > expenditure on the project can be measured reliably.
Capitalised development costs are amortised over the periods the Group expects to benefit from selling the products developed. 
Development expenditure not satisfying the above criteria and expenditure on the research phase of internal projects are recognised in 
the consolidated statement of comprehensive income as incurred.
The significant intangibles recognised by the Group, their useful economic lives and the methods used to determine the cost of 
intangibles acquired in a business combination are as follows:
Intangible asset Useful economic life
Customer databases 1-2 years
Development costs 3 years
Intellectual property 8 years
Domain name 2-3 years
Software 3 years
Deferred taxation
Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the consolidated statement 
of financial position differs from its tax base, except for differences arising on:
 > The initial recognition of goodwill
 > The initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction 
affects neither accounting or taxable profit
 > Investments in subsidiaries and jointly controlled entities where the Group is able to control the timing of the reversal of the difference 
and it is probable that the difference will not reverse in the foreseeable future.
Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be available against which 
the difference can be utilised. 
The amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by the reporting date 
and are expected to apply when the deferred tax liabilities/(assets) are settled/(recovered). 
Strategic Report Corporate Governance Financial statements
27 Annual Report and Accounts 2016 nOt es t O the cOns Olidated Financial statements
FOR THE YEAR ENDED 31 DECEMBER 2016 (CONTINuED)
1. accounting policies (continued)
Property, plant and equipment
Items of property, plant and equipment are initially recognised at cost. As well as the purchase price, cost includes directly attributable 
costs and the estimated present value of any future unavoidable costs of dismantling and removing items. The corresponding liability 
is recognised within provisions.
Depreciation is provided on all property, plant and equipment at rates calculated to write off the cost less estimated residual value, 
of each asset evenly over its expected useful life as follows:
Office, furniture and equipment 20% per annum straight-line
Computer equipment 33% per annum straight-line
Leasehold improvements Over the life of the lease
 
Player liabilities
Liabilities to players comprise the amounts that are credited to customers’ accounts including provision for bonuses granted by the 
Group. These amounts are repayable in accordance with the applicable terms and conditions. 
Provisions
Provisions are recognised when the Group has a present or constructive obligation as a result of a past event from which it is probable 
that it will result in an outflow of economic benefit that can be reasonably estimated. The provision is measured at the best estimate 
of the expenditure required to settle the obligation at the reporting date, discounted at a pre-tax rate reflecting current market 
assessments of the time value of money and risks specific the liability. 
Standards and interpretations
There are no new standards, interpretations or amendments which became effective in the period which have had a material effect 
on the Group’s financial statements.
Management are considering whether IFRS 15 Contracts with customers and IFRS 16 Leases, which are effective for periods beginning 
after 1 January 2018 and 1 January 2019 respectively, will have a material effect on the Group’s future financial statements. 
2. critical accounting estimates and judgements
The Group makes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based 
on historical experience and other factors, including expectations of future events that are believed to be reasonable under the 
circumstances. In the future, actual experience may differ from these estimates and assumptions. The estimates and assumptions that 
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year 
are discussed below.
Estimates
(a) Impairment of goodwill and other intangible assets
Goodwill and other intangible assets are reviewed for impairment and their values are written-down on the basis of the Group’s 
expectations of future economic benefits expected to be received by the Group. Any process which attempts to estimate future 
outcomes is subject to uncertainty. Where it is believed that the estimation uncertainty can give rise to material differences in asset 
carrying values, this will be stated in the relevant notes to the financial statements.
(b) Amortisation of development costs
Capitalised development costs are subject to amortisation over its useful life and reviewed for impairment whenever events or changes 
in circumstances indicate that the carrying amount may not be recoverable. The Group amortises the assets over the life of the product. 
The estimated useful life of these assets at period end is three years.
(c) valuation of assets acquired on business combinations 
Identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 are recognised at their fair 
value at the acquisition date. The identified intangibles are capitalised if they are separable from the acquired entity or arise from other 
contractual or legal rights. The amounts ascribed to these assets are arrived at by using appropriate valuation techniques to determine 
the fair value. Capitalised intangible assets are amortised over the useful economic life of the assets. This has ranged between twelve 
months to eight years for acquisitions to date. 
(d) Deferred tax
Deferred tax assets and liabilities are recognised for temporary differences and for tax loss carry-forwards. The assessment of temporary 
differences and tax loss carry-forwards is based on management’s estimates of future taxable profits against which the temporary 
differences and loss carry-forwards may be utilised.
28 Annual Report and Accounts 2016 The Group has not recognised a deferred tax asset in respect of their losses given that this is the Group’s second period of operation and 
there is no track record of taxable profits at this time. Deferred tax assets will be recognised when the Group has established a track 
record of expected future taxable profit.
Judgements
(a) Revenue recognition
Social gaming revenue is recognised as the service is delivered. This is considered to be when the player buys credits to play the game 
on the basis that there is no further service to be delivered. In addition, revenue generated from in app ads are recognised when the 
advertisement is displayed or offer has been completed by the customer and confirmed by third-party reports.
Net gaming revenue is derived from real money gaming and is recognised as the total wagers less wins less promotional money 
to players.
Other revenue comprises of affiliate services and marketing services.
(b) Capitalisation and amortisation of development costs
The identification of development costs that meet the criteria for capitalisation is dependent on management’s judgement and 
knowledge of the work done. Development costs of gaming software platforms are separately identified. Judgements are based on the 
information available at each period end. Economic success of any development is assessed on a reasonable basis but remains uncertain 
at the time of recognition. 
3. expenses by nature
2016
£
2015
£
Operating, administrative and marketing expenses includes:
Employee benefit expenses (see Note 9) 8,190,491 6,186,605
Depreciation of property, plant and equipment 120,789 59,861
Amortisation of intangible assets 3,979,941 2,230,940
Advertising expenses 14,810,915 11,510,755
4. adjusted ebitda
2016
£
2015
£
Acquisition costs – (318,853)
Profit on disposal of digital marketing agency and third-party platform driven website properties 318,834 –
Share-based payments (993,349) (673,730)
(674,515) (992,583)
Strategic Report Corporate Governance Financial statements
29 Annual Report and Accounts 2016 nOt es t O the cOns Olidated Financial statements
FOR THE YEAR ENDED 31 DECEMBER 2016 (CONTINuED)
5. profit on disposal
Disposal of third-party platform driven website properties
On 4 March 2016, the Group disposed of its third-party platform driven website properties, for a total consideration of £2.4m. Black 
Spark Media Limited paid the Group an upfront cash payment of £1.2m with the remaining £1.2m payable by Silverspin Media Limited, 
settled by way of waiving the final earn out payment to the previous shareholders of Blueburra Holding Limited. Chris Phillips and Scott 
Logan, shareholders of Silverspin Media, and were Directors of the Company’s subsidiaries Blueburra Holdings Limited and Digital Blue 
Limited at the time of the disposal are therefore classified as related parties. The above waiving of £1.2m contingent consideration 
in exchange for the disposal of assets constitutes a major non-cash transaction in the year. An additional £500,000 is receivable under 
a transitional services agreement over a 5-month period with Black Spark Media Limited.
2016
£
Consideration received:
Cash consideration 1,200,000
Contingent consideration waived with respect to the Blueburra Holdings Limited 1,200,000
2,400,000
Net assets disposed:
Property, plant and equipment 427
Intangible 246,081
Goodwill 2,266,241
Trade and other receivables 14,763
Trade and other payables (108,060)
2,419,452
Loss on disposal of third-party platform driven website properties (19,452)
Disposal of digital marketing agency
On 6 June 2016, the Group entered into a strategic partnership with digital marketing company Ayima Limited. under the terms of 
the partnership, the Group has agreed to contribute assets comprising its external digital marketing agency to Ayima Limited. As 
consideration for the disposal of the Assets, the Group were issued shares to 10% of the enlarged issued share capital of Ayima Limited. 
The 10% shares have been valued at approximately £540,000, based on a valuation performed by an external advisor. This is a level 3 
valuation as defined by IFRS 13. The valuation is based on the net present value of future results. The directors consider the value 
unchanged at the reporting date. 
2016
£
Consideration received:
Available-for-sale investment in Ayima Limited 540,000
Net assets disposed:
Property, plant and equipment 4,190
Goodwill 247,524
Trade and other payables (50,000)
201,714
Profit on disposal of the digital marketing agency 338,286
30 Annual Report and Accounts 2016 6. auditor’s remuneration
During the year the Group obtained the following services from the Company’s auditor:
2016
£
2015
£
Fees payable to the Company’s auditor for the audit of the company’s annual accounts 25,000 30,000
Fees payable to the Company’s auditor for the audit of the subsidiary’s financial statements 75,000 76,727
Fees payable to the Company’s auditor for other services:
– Acquisition and assurance services – 24,227
– Tax compliance services 57,630 14,601
– Tax advisory services 13,735 18,235
7. Key management personnel remuneration
2016
£
2015
£
Short-term benefits of key management personnel 2,118,036 1,496,837
Post-employment benefits of key management personnel 50,475 40,014
Share-based benefits of key management personnel 478,237 291,960
2,646,748 1,828,811
The table represents remuneration paid to the key management personnel (which include directors) of the consolidated entity.
8. directors’ remuneration
The following table presents the Directors’ remunerations of the Company for the year ended 31 December 2016.
Salary
and fees
£
Benefits
£
2016
total
£
2015
Total
£
Michael Buckley
*
 335,000 – 335,000 260,000
Patrick Southon 218,750 11,453 230,203 141,283
Simon Collins 140,000 7,517 147,517 126,596
Mark Segal 150,000 659 150,659 137,516
Jim Ryan 40,000 – 40,000 40,000
Mark Wilson 40,000 – 40,000 40,000
Atul Bali 335,268 16,706 351,974 139,618
1,259,018 36,335 1,295,353 885,013
*  These consulting fees of £275,000 (2015: £200,000) include payment for expenses incurred by Dawnglen Finance Limited, a company controlled by 
Michael Buckley, on behalf of the company.
Directors’ interests in long-term incentive plans
The Directors’ ordinary shares in the Company, were as follows:
£0.10 ordinary shares
2016
number of
shares
2015
Number of
shares
Michael Buckley 22,000,000 21,000,000
Patrick Southon 11,735,501 11,585,501
Simon Collins 10,624,924 10,524,924
Mark Segal 740,761 740,761
Jim Ryan 1,384,615 1,384,615
Mark Wilson 384,615 384,615
Atul Bali 1,825,000 1,000,000
48,695,416 46,620,416
Strategic Report Corporate Governance Financial statements
31 Annual Report and Accounts 2016 nOt es t O the cOns Olidated Financial statements
FOR THE YEAR ENDED 31 DECEMBER 2016 (CONTINuED)
8. directors’ remuneration (continued)
The Directors’ interests in share options, over ordinary shares in the Company, were as follows:
Option at
1 January
2016
Option
granted
Options
lapsed
Option at
31 December
2016
Exercise
price
Hurdle
price Date of grant
Michael Buckley
1
5,769,230 – – 5,769,230 £0.01 £0.20 1 August 2013
Patrick Southon
1
5,769,230 – – 5,769,230 £0.01 £0.20 1 August 2013
Simon Collins
1
4,615,384 – – 4,615,384 £0.01 £0.20 1 August 2013
Mark Segal
1
3,076,923 – – 3,076,923 £0.01 £0.20 1 August 2013
Jim Ryan
2
769,230 – – 769,230 £0.13 – 1 August 2013
Mark Wilson
2
769,230 – – 769,230 £0.13 – 1 August 2013
Atul Bali
3,4
5,750,000 – – 5,750,000 £0.23 –
17 June 2014, 
10 October 
2015
1
 On the 1 August 2013 the Company granted options to B Shares under the Gaming Realms 2013 EMI plan. The B Share value will be 20 pence less than the 
prevailing price of the ordinary shares and will therefore have no value unless the value of the new ordinary shares exceeds 20 pence. EMI options can only be 
granted to employees who meet the statutory working time requirement, and cannot normally be exercised before 15 July 2015. All options granted under the 
New Share Option Scheme on Admission will be exercisable over B Shares at their nominal value of £0.01 and will be capable of exercise, subject to certain 
exceptions, after two years of the date of grant.
2
 On the 1 August 2013, the Company granted unapproved Options which have the same rights as the options granted over the B Shares under Gaming Realms 
2013 EMI plan, save that the exercise price will be 13 pence per ordinary share.
3 
On the 17 June 2014, the Company granted unapproved Options which have the same rights as the options granted over the B Shares under Gaming Realms 2013 
EMI plan, save that the exercise price will be 23 pence per ordinary share.
4
 On the 10 October 2015, the Company granted unapproved Options which have the same rights as the options granted over the B Shares under Gaming Realms 
2013 EMI plan, save that the exercise price will be 23 pence per ordinary share.
9. employee benefit expenses
2016
£
2015
£
Employee benefit expenses (including directors) comprise:
Wages and salaries 8,827,513 5,970,983
Share-based payment expense (Note 24) 993,349 673,730
Social security contributions and similar taxes 604,086 640,604
Pension contributions 135,455 144,107
10,560,403 7,429,424
Staff costs capitalised in respect of internally generated intangible assets (2,369,912) (1,242,819)
8,190,491 6,186,605
The Group makes contributions to defined contribution plans and has no further payment obligations once the contributions have been 
paid. The contributions are recognised as employee benefit expense when they are due. The assets of the individual schemes are held 
separately from those of the Group in independently administered funds. 
2016
£
2015
£
The average number of persons, including Directors:
Operational 50 32
Development 52 39
Marketing 18 27
Management and administrative 30 23
150 121
32 Annual Report and Accounts 2016 10. segment information
The Board is the Group’s chief operating decision-maker. Management has determined the operating segments based on the 
information reviewed by the Board for the purposes of allocating resources and assessing performance. The Group has three reportable 
segment. The social publishing provides freemium games to the uS and Europe. Licensing includes IP brand and content licensing to 
partners in the uS and Europe. The real money gaming products and marketing services operates our brands and provides other digital 
marketing services to both gaming and non-gaming clients in the uK. 
During the year, the Group disposed of the digital marketing agency and third-party platform driven website properties previously 
included in the real money gaming and marketing services segments. 
Revenue by product:
2016
£
2015
£
Real money gaming and affiliate marketing 23,313,208 12,933,225
Disposed white label and agency business 1,928,451 5,707,377
Social publishing 7,884,101 2,413,566
Licensing 786,843 123,592
Other 45,515 30,686
33,958,118 21,208,446
There was 0 (2015: 1) customer who generated more than 10% of total revenue. Total sales to this customer, which received marketing 
services in the prior year were £1,296,670. 
Geographical information
The Group considers that its primary geographic regions are the uK, including Channel Islands, uS and the Rest of World. No revenue 
is derived from real money gaming in the uS. Revenues from customers outside the uK (including Channel Islands) and uS are not 
considered sufficiently significant to warrant separate reporting. All non-current assets are based in the uK.
external
revenue
by location of
customers
2016
£
External
revenue
by location of
customers
2015
£
uK, including Channel Islands 23,925,469 17,656,043
uS 6,754,016 1,752,753
Rest of the World 3,278,633 1,799,650
33,958,118 21,208,446
Strategic Report Corporate Governance Financial statements
33 Annual Report and Accounts 2016 nOt es t O the cOns Olidated Financial statements
FOR THE YEAR ENDED 31 DECEMBER 2016 (CONTINuED)
10. segment information (continued)
Segmental reporting for the year is as below:
Real money
gaming and
marketing
services
£
Social
gaming
£
Licensing
£
Other
£
Total
2016
£
r evenue 25,241,659 7,884,101 786,843 45,515 33,958,118
marketing expense (10,847,107) (3,937,053) – (26,756) (14,810,916)
Operating expense (7,729,060) (1,608,789) – – (9,337,849)
administrative (3,815,567) (4,140,794) (343,488) (2,526,921) (10,826,770)
adjusted ebitda 2,849,925 (1,802,535) 443,355 (2,508,162) (1,017,417)
Profit on disposal of digital marketing agency and third-party 
platform driven website properties 318,834
Share-based payment (993,349)
ebitda (1,691,932)
Amortisation of Intangible assets (3,979,941)
Depreciation of property, plant and equipment (120,789)
Finance expense (1,178,154)
Finance income 3,022
l oss before tax (6,967,794)
Real money
gaming and
marketing
services
£
Social
gaming
£
Licensing
£
Other
£
Total
2015
£
r evenue 18,640,602 2,413,566 123,592 30,686 21,208,446
marketing expense (10,040,166) (1,404,699) – (65,890) (11,510,755)
Operating expense (5,163,629) (561,626) – – (5,725,255)
administrative (4,268,580) (1,940,543) (19,332) (1,851,397) (8,079,852)
adjusted ebitda (831,773) (1,493,302) 104,260 (1,886,601) (4,107,416)
Listing and acquisition costs (318,853)
Share-based payment (673,730)
ebitda (5,099,999)
Amortisation of Intangible assets (2,230,940)
Depreciation of property, plant and equipment (59,861)
Finance expense (393,579)
Finance income 7,579
l oss before tax (7,776,800)
Other segment noted above includes unallocated head office activities. Management do not report segmental assets and liabilities internally and as such an 
analysis is not reported. 
34 Annual Report and Accounts 2016 1 1. Finance income and expense
2016
£
2015
£
Finance income
Interest received 3,022 7,579
total finance income 3,022 7,579
Finance expense
Bank interest expense paid 36,850 21,409
Deferred and contingent consideration movement 292,212 233,053
Fair-value adjustment of contingent consideration – (134,017)
Foreign exchange movement on deferred consideration 849,092 273,134
total finance expense 1,178,154 393,579
The deferred consideration in relation to the acquisition from RealNetworks, Inc. was retranslated at the year-end exchange rate which 
resulted in a £849,092 (2015: £273,134) charge in the current year. 
12. tax expense
2016
£
2015
£
Tax expense 
Current tax expense
Adjustment for over provision in prior periods (4,451) –
Current tax credit on losses for the period 27,961 213,083
Total current tax 23,510 213,083
Deferred tax expense
Origination and reversal of temporary differences 248,941 122,692
Total deferred tax 248,941 122,692
Total tax credit 272,451 335,775
The reasons for the difference between the actual tax charge for the period and the standard rate of corporation tax in the uK applied 
to profits for the year are as follows:
2016
£
2015
£
Loss for the period (6,967,794) (7,776,800)
Expected tax at effective rate of corporation tax in the uK of 20% (2015: 20.25%) (1,393,559) (1,574,802)
Expenses not deductible for tax purposes 224,896 273,077
Depreciation in excess of capital allowances 7,543 18,501
Effects of overseas taxation (224,795) 316,501
unwind of deferred tax recognised on business acquisitions (248,941) (122,692)
Research & development tax credit (27,961) (213,083)
Adjustment for over provision in prior periods 4,451 –
Tax losses carried forward 1,385,915 966,723
Total tax credit (272,451) (335,775)
Strategic Report Corporate Governance Financial statements
35 Annual Report and Accounts 2016 nOt es t O the cOns Olidated Financial statements
FOR THE YEAR ENDED 31 DECEMBER 2016 (CONTINuED)
12. tax expense (continued)
Changes in tax rates and factors affecting the future tax charge
On 15 September 2016, the Finance Act received Royal Assent and so the previous rate of corporation tax of 20% was enacted from 
1 April 2016. Accordingly, deferred tax balances as at 31 December 2016 have been recognised at 20% (2015: 20%).
The Chancellor has further stated his intention to reduce the main rate of incorporation to 19% from 1 April 2017 and to 17% from 
1 April 2020. These changes have not been substantively enacted at the balance sheet date. This will have the effect of reducing 
the Group’s future current tax charge accordingly.
There are unused tax losses carried forward as at the balance sheet date of £31,365,784 (2015: £27,278,988) equating to an 
unrecognised deferred tax asset of £6,273,157 (2015: £5,455,798). No deferred tax asset has been recognised in respect of these 
losses, as the recoverability of any asset is dependent upon sufficient profits being achieved in future years to utilise this asset. 
The timings of such profits are uncertain. 
Deferred Tax Liability 
2016
£
2015
£
At 1 January 1,232,597 39,288
Addition – 1,247,434
unwind of deferred tax recognised on business acquisitions (248,941) (122,692)
FX movement 219,233 68,567
1,202,889 1,232,597
13. l oss per share
Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average number of shares 
in issue during the year. For fully diluted loss per share, the weighted average number of ordinary shares in issue is adjusted to assume 
conversion of dilutive potential ordinary shares. The Group’s potentially dilutive securities consist of share options and performance 
shares. As the Group is loss-making, none of the potentially dilutive securities (see note 24) are currently dilutive.
2016
£
2015
£
Loss after tax (6,695,343) (7,441,025)
number Number
Weighted average number of ordinary shares used in calculating basic loss per share 262,432,743 215,672,706
Weighted average number of ordinary shares used in calculating dilutive loss per share 262,432,743 215,672,706
Basic and diluted loss per share (pence) (2.55) (3.45)
36 Annual Report and Accounts 2016 14. property, plant and equipment
Leasehold
improvements
£
Computers
and related
equipment
£
Office
furniture and
equipment
£
Total
£
cost
Balance at 1 January 2015 71,393 66,633 36,796 174,822
Acquired through business combination 49,711 16,268 15,026 81,005
Additions – 54,176 13,879 68,055
Disposals (34,614) (13,392) (4,850) (52,856)
FX movement (161) (52) (49) (262)
At 31 December 2015 86,329 123,633 60,802 270,764
Acquired through business combination – – 8,549 8,549
Additions 196,096 48,141 45,019 289,256
Disposals – (13,568) – (13,568)
FX movement 11,550 3,889 3,876 19,315
at 31 december 2016 293,975 162,095 118,246 574,316
accumulated deprecation
Balance at 1 January 2015 6,917 19,624 5,117 31,658
Depreciation charge 16,957 32,737 10,167 59,861
Disposals (7,417) (1,865) (1,202) (10,484)
FX movement 39 26 12 77
at 31 december 2015 16,496 50,522 14,094 81,112
Depreciation charge 58,322 40,304 22,163 120,789
Disposals – (7,037) – (7,037)
FX movement 3,256 1,855 1,034 6,145
at 31 december 2016 78,074 85,644 37,291 201,009
net book value
At 1 January 2015 64,476 47,009 31,679 143,164
At 31 December 2015 69,833 73,111 46,708 189,652
at 31 december 2016 215,901 76,451 80,955 373,307
Strategic Report Corporate Governance Financial statements
37 Annual Report and Accounts 2016 nOt es t O the cOns Olidated Financial statements
FOR THE YEAR ENDED 31 DECEMBER 2016 (CONTINuED)
15. intangible assets
Goodwill
£
Customer
database
£
Software
£
Development
costs
£
Domain
names
£
Intellectual
property
£
Total
£
cost
Balance at 1 Jan 2015 13,543,905 3,189,553 361,684 1,082,811 26,514 – 18,204,467
Acquired through business 
combination (Note 25) 4,300,671 1,289,563 1,039,236 – 320,832 5,076,493 12,026,795
Additions – – – 1,805,913 – – 1,805,913
Disposals – – (361,684) – – – (361,684)
FX movement 247,540 64,532 52,005 – 16,055 277,886 658,018
at 31 december 2015 18,092,116 4,543,648 1,091,241 2,888,724 363,401 5,354,379 32,333,509
Acquired through business 
combination (Note 25) 75,413 – 217,216 – – – 292,629
Additions – – – 3,969,611 – – 3,969,611
Disposals (2,513,765) (698,446) – – – – (3,212,211)
FX movement 892,100 266,769 230,043 – 66,217 1,047,051 2,502,180
at 31 december 2016 16,545,864 4,111,971 1,538,500 6,858,335 429,618 6,401,430 35,885,718
amortisation
Balance at 1 Jan 2015 – 857,986 222,834 365,795 428 – 1,447,043
Amortisation charge – 1,202,670 172,321 554,061 46,325 255,563 2,230,940
Disposals – – (255,641) – – – (255,641)
FX movement – (4,711) (3,797) – (1,172) (6,954) (16,634)
At 31 December 2015 – 2,055,945 135,717 919,856 45,581 248,609 3,405,708
Amortisation charge – 1,156,153 440,219 1,517,989 132,965 732,615 3,979,941
Disposals – (452,365) – – – – (452,365)
FX movement – 81,939 67,052 260 20,386 120,960 290,597
at 31 december 2016 – 2,841,672 642,988 2,438,105 198,932 1,102,184 7,223,881
net book value
At 1 January 2015 13,543,905 2,331,567 138,850 717,016 26,086 – 16,757,424
At 31 December 2015 18,092,116 2,487,703 955,524 1,968,868 317,820 5,105,770 28,927,801
at 31 december 2016 16,545,864 1,270,299 895,512 4,420,230 230,686 5,299,246 28,661,837
Goodwill
During the year, the Group acquired 62.5% of the share capital of Hullabu Inc resulting in addition to goodwill of £75,413 (see note 25).
In accordance with IAS 36, the Group regularly monitors the carrying value of its intangible assets. A detailed review was undertaken at 
31 December 2016 to assess whether the carrying value of assets was supported by net present value of futures cash flows derived from 
those assets. The Group has three cash generating unit for which the carrying amount of goodwill is allocated. The recoverable amounts 
to which the goodwill is allocated has been determined using a value in use calculation. The calculation of value in use is based on 
several assumptions which feed into a forecast model based on past player lifetime values and experience.
Cash flow projections have been prepared for a five-year period following which a long term growth rate of 2% (2015: 2%) has been 
assumed. A discount rate of 25% (2015: 25%) has been used in discounting the projected cash flows, is based on the Group’s specific 
risk adjusted Weighted Average Cost of Capital. 
38 Annual Report and Accounts 2016 The key assumptions of the forecasts were as follows:
 > number of new player depositing registrations;
 > rate of retention of existing players;
 > spending patterns of players;
 > CPA or installs from different acquisition sources;
The above assumptions are based on the trends noted to date, industry standard measurements and management’s experience. 
The Directors do not believe any reasonably possible change in the key assumptions would lead to an impairment of the carrying 
amount of the CGus. The carrying amount of goodwill is allocated to the CGus as follows:
2016
£
2015
£
Real money gaming and affiliate marketing 11,030,140 13,543,905
Licensing 2,263,770 1,894,439
Social gaming 3,251,954 2,653,772
16,545,864 18,092,116
16. Other assets
2016
£
2015
£
Other assets 152,000 152,000
Other asset represents the rental deposit on operating leases and deposits held with third-party suppliers.
17. cash and cash equivalents
2016
£
2015
£
Cash and cash equivalents 2,597,465 2,516,820
Restricted cash 18,802 19,568
2,616,267 2,536,388
Restricted cash of £18,802 (2015: £19,568) relates to funds held in Swiss subsidiaries which are currently in liquidation. The funds are 
restricted and are not included in the consolidated statement of cash flows.
18. trade and other receivables
2016
£
2015
£
Trade and other receivables 2,736,039 2,473,844
Allowance for doubtful debts (1,478) (8,938)
2,734,561 2,464,906
Prepayments and accrued income 613,034 1,553,178
3,347,595 4,018,084
All amounts shown fall due for payment within one year.
Strategic Report Corporate Governance Financial statements
39 Annual Report and Accounts 2016 nOt es t O the cOns Olidated Financial statements
FOR THE YEAR ENDED 31 DECEMBER 2016 (CONTINuED)
19. trade and other payables
2016
£
2015
£
Trade and other payables 2,012,196 2,105,335
Accruals 4,681,212 1,883,805
Player liabilities 365,373 338,825
7,058,781 4,327,965
The carrying value of trade and other payables classified as financial liabilities measured at amortised cost approximates fair value.
20. Financial instruments and risk management – group
The Group is exposed through its operations to risks that arise from use of its financial instruments. The Group does not make any use 
of derivative financial instruments. The Group’s financial assets and liabilities are shown on the face of the consolidated statement of 
financial position and in the table below and they can be classified wholly as either loans and receivables, other assets or other liabilities. 
The Group has operated with a positive cash balance throughout the year.
Loans and receivables Available-for-sale
2016
£
2015
£
2016
£
2015
£
Financial assets
Cash and cash equivalents 2,616,267 2,536,388 – –
Trade and other receivables 2,734,561 2,464,906 – –
Other assets 152,000 152,000 – –
Equity investments – – 540,000 –
Financial liabilities
Trade and other payables 2,012,196 2,105,335 – –
Accruals 4,681,212 1,883,805 – –
Player liabilities 365,373 338,825 – –
Loans and borrowings – – – –
Deferred and contingent consideration 3,135,356 7,465,499 – –
Financial assets of the Group are classified as loans and receivables and all financial liabilities are held at amortised cost except 
contingent consideration which is recognised at fair value through profit and loss. In the Directors’ opinion, there is no material 
difference between the book value and the fair value of any of the financial instruments.
The Group has some exposure to credit risk and liquidity risk. There has been no material change to the financial instruments used within 
the business during the year except for contingent consideration and therefore no material changes to the risk management policies put 
in place by the Board which are now discussed below.
The Board has overall responsibility for the determination of the Group’s risk management objectives and policies. Whilst acknowledging 
this responsibility, it has delegated the authority and day to day responsibility for designing and operating systems and controls which 
meet these risk management objectives to the finance and administration function. The Board regularly reviews the effectiveness of 
these processes in meeting its objectives and considers any necessary changes in response to changes within the business or the 
environment in which it operates.
Currency risk
The Group is exposed to currency risk on translation and on sales and purchases that are denominated in a currency other than Pounds 
Sterling (GBP). The currency in which these transactions are primarily denominated is uS Dollars (uSD).
The Group’s policy is, where possible to allow group entities to settle liabilities denominated in their functional currency with the cash 
generated from their own operations in that currency. Where group entities have liabilities denominated in a currency other than their 
functional currency cash already denominated in that currency will, where possible, be transferred from elsewhere in the Group.
40 Annual Report and Accounts 2016 As of 31 December 2016 the Group’s net exposure to foreign exchange risk was as follows:
net foreign
currency financial
assets/(liabilities)
sterling
2016
£
sterling
2015
£
us dollar
2016
£
us dollar
2015
£
Other
2016
£
Other 
2015
£
Sterling – – – – – –
uS Dollar (2,706,802) (4,225,242) – – 41,322 20,054
Other (3,881) 2,456 – – – –
total (2,710,683) (4,222,786) – – 41,322 20,054
The effect of a 20% strengthening of the uS Dollar against Sterling at the reporting date on the uS Dollar denominated payables carried 
at that date would, all other variables held constant, have resulted in an increase in losses after date and decrease of net assets of 
£542,137 (2015: £844,557). A 20% weakening in the exchange rate would, on same basis decrease loss after tax and increase net assets 
by £542,137 (2015: £844,557).
Liquidity risk
The Group’s policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due. Customer 
funds are kept in dedicated client accounts, separately from the Group’s operational bank accounts. 
The following table sets out the contractual maturities of financial liabilities:
at 31 december 2016
w ithin 1
year
£
1–2 years
£
Over
2 years
£
Trade and other payables 2,012,196 – –
Accruals 4,681,212 – –
Player liabilities 365,373 – –
Deferred consideration 3,135,356 – –
total 10,194,137 – –
At 31 December 2015
Within
1 year
£
1–2 years
£
Over
2 years
£
Trade and other payables 2,105,335 – –
Accruals 1,883,805 – –
Player liabilities 338,825 – –
Deferred and contingent consideration 4,990,966 2,474,533 –
total 9,318,931 2,474,533 –
Credit risk
At 31 December 2016, the analysis of trade and other receivables that were past due but no impaired is as follows:
Current
0-30 days*
£
Between
30 and 60
days
£
Between
61 and 90
days
£
Over
91 days
£
Trade and other receivables 1,887,870 407,374 251,210 189,585
Allowance for doubtful debts – – – (1,478)
at 31 december 2016 1,887,870 407,374 251,210 188,107
Trade and other receivables 1,829,369 557,693 52,420 34,362
Allowance for doubtful debts – – – (8,938)
at 31 december 2015 1,829,369 557,693 52,420 25,424
* not past due.
Strategic Report Corporate Governance Financial statements
41 Annual Report and Accounts 2016 nOt es t O the cOns Olidated Financial statements
FOR THE YEAR ENDED 31 DECEMBER 2016 (CONTINuED)
20. Financial instruments and risk management – group (continued)
Financial liabilities measured at fair value
The fair value hierarchy of financial liabilities measured at fair value is provided. 
2016 2015
l evel 1
£
l evel 2
£
l evel 3
£
Level 1
£
Level 2
£
Level 3
£
Contingent consideration (Note 26) – – – – – 2,400,000
The fair value measurement hierarchy is based on the inputs to valuation techniques used to measure fair value. The inputs are 
categorised into three levels, with the highest level (level 1) given to inputs for which there are unadjusted quoted prices in active 
markets for identical assets or liabilities and the lowest level (level 3) given to unobservable inputs. Level 2 inputs are directly or 
indirectly observable inputs other than quoted prices. Contingent consideration is recognised as managements best estimate of the 
amounts ultimately to be settled, based on probability settlement. The liability was settled at £2,400,000.
Capital management
The Group is funded entirely through shareholders’ funds.
If financing is required, the Board will consider whether debt or equity financing is more appropriate and proceed accordingly. 
The Group is not subject to any externally imposed capital requirements.
21. share capital 
Ordinary shares
2016
number
2016
£
2015
Number
2015
£
Ordinary shares of 10 pence each 274,133,292 27,413,329 249,208,292 24,920,829
On 2 March 2016, 7,625,000 shares were issued at £0.20 per share for a total consideration of £1,525,000.
On 9 June 2016, 4,800,000 shares were issued at £0.25 per share to the previous shareholders of Blueburra Holdings Limited to satisfy 
the final £1,200,000 share element of vendor consideration.
On 2 September 2016, 12,500,000 shares were issued at £0.20 per share for a total consideration of £2,500,000.
Movements in share capital
Number £
At 1 January 2015 195,170,489 19,517,049
Ordinary shares issued for cash consideration 49,900,578 4,990,058
Ordinary shares issued in settling the Blueburra Holdings Limited contingent consideration 4,137,225 413,722
at 31 december 2015 249,208,292 24,920,829
Ordinary shares issued for cash consideration 20,125,000 2,012,500
Ordinary shares issued in settling the Blueburra Holdings Limited contingent consideration 4,800,000 480,000
at 31 december 2016 274,133,292 27,413,329
42 Annual Report and Accounts 2016 22. reserves
The following describes the nature and purpose of each reserve within equity:
Reserve Description and purpose
Share premium Amount subscribed for share capital in excess of nominal value.
Merger reserve
Adjustments arising on the reverse transaction and the excess of the fair value over nominal value for shares 
issued in business combinations qualifying for merger relief under the Companies Act 2006.
Retained earnings All other net gains and losses and transactions with owners not recognised elsewhere.
Foreign exchange reserve Gains/losses arising on retranslating the net assets of overseas operations into sterling.
23. leases
The Group has future lease payments under non-controllable operating leases on land and buildings and other leases. The total future 
value of minimum lease payments is due as follows:
2016
£
2015
£
Not later than one year 293,107 227,125
Later than one year and not later than five years 833,390 285,959
Later than five years – –
1,126,497 513,084
24. share-based payment 
Gaming Realms 2013 EMI Plan
On 1 August 2013 the Company adopted the Gaming Realms 2013 EMI Plan to allow, at the discretion of the Board, any eligible employee 
to be granted EMI or non-EMI qualified options at an exercise price to be determined by the Board but not to be less than the nominal value 
of a share and will vest subject to such time based and share price performance based conditions as the Board may determine. 
Options to acquire ordinary shares under the EMI plan may be granted up to a maximum of £3,000,000 (based on the market value 
of the shares placed under option at the date of the grant).
No consideration is payable for the grant to of the option and the options are not transferable or assignable. Cash consideration is 
paid to the Company by the employee at the point that the share options are exercised. 
In 2013, the Company granted options for B Shares under the Gaming Realms 2013 EMI plan. B Share value will be 20 pence less 
than the prevailing price of the ordinary shares and will therefore have no value unless the value of the new ordinary shares exceeds 
20 pence. EMI options can only be granted to employees who meet the statutory working time requirement, and cannot normally be 
exercised before 15 July 2015. All options granted under the New Share Option Scheme on Admission will be exercisable over B Shares 
at their nominal value of £0.01 and will be capable of exercise, subject to certain exceptions, after two years of the date of grant.
Options are not exercisable later than midnight on the day before the tenth anniversary of the date of grant.
Options were fair valued using the Black-Scholes option pricing model, or where there are market-based performance conditions, 
a Monte Carlo simulation pricing model.
Expected volatility was determined by calculating the historical volatility of the Company’s competitors in the sector.
The following information is relevant in the determination of the fair value of options granted during the year under the equity-settled 
share based remuneration schemes operated by the Group.
Strategic Report Corporate Governance Financial statements
43 Annual Report and Accounts 2016 nOt es t O the cOns Olidated Financial statements
FOR THE YEAR ENDED 31 DECEMBER 2016 (CONTINuED)
24. share-based payment (continued) 
2016 2016 2015 2015
Option scheme
emi
Option
unapproved
Options
EMI
Option
Unapproved
Options
Equity-settled
Option pricing model used black-scholes black-scholes Black-Scholes Black-Scholes
Weighted average share price at grant date (in pence) 20 20 25 25
Exercise price (in pence) 20 20 25-33 24.75
Expected life (years) 6.5 6.5 6.5 6.5
Risk free rate 0.13% 0.13% 0.32-0.55% 0.50%
Expected dividend yield – – – –
IFRS 2 (Share-based payment) requires that the fair value of such equity-settled transactions is calculated and systematically charged to 
the statement of comprehensive income over the vesting period. The total fair value that was charged to the income statement in 
relation to the equity-settled share-based payments charge was £993,349 (2015: £673,730).
Number
Weighted
average
exercise
price
(pence)
Outstanding at 1 January 2015 35,082,512 5.42
Granted during the year 14,353,698 23.80
Forfeited during the year (621,819) 23
number of options outstanding at 31 december 2015 48,814,391 11.23
Granted during the year 2,638,696 20.00
Forfeited during the year (2,594,505) 26.25
number of options outstanding at 31 december 2016 48,858,582 10.91
exercisable at 31 december 2016 13,846,148 0.01
Options to subscribe under various schemes, including those noted in Directors’ interests in Note 8, are shown in the table below:
Date granted
Exercise
price
(pence)
Exercisable
between
2016
number of
shares
2015
Number of
shares
Approved 1 August 2013 0.01 31 July 2015 to 31 July 2023 26,153,837 26,153,837
unapproved 1 August 2013 13 31 July 2015 to 31 July 2023 1,538,460 1,538,460
Approved 2 April 2014 23 1 April 2017 to 1 April 2024 4,793,096 5,455,418
unapproved 17 June 2014 23 16 June 2016 to 16 June 2024 750,000 750,000
Approved 17 June 2014 28.88 16 June 2017 to 16 June 2024 467,391 597,826
Approved 19 February 2015 33 19 February 2018 to 19 February 2025 617,929 1,121,970
Approved 15 October 2015 25.13 15 October 2018 to 15 October 2025 9,025,000 10,250,000
Approved 10 November 2015 25 10 November 2018 to 10 November 2025 2,901,673 2,946,880
Approved 28 July 2016 20 28 July 2018 to 28 July 2026 2,326,196 –
unapproved 28 July 2016 20 28 July 2019 to 28 July 2026 285,000 –
48,858,582 48,814,391
44 Annual Report and Accounts 2016 25. business combinations during the year
Acquisition of Hullabu Inc
On 22 July 2016, Blastworks Inc acquired 62.5% of the share capital of Hullabu Inc a company that develops and publishes social games. 
Hullabu Inc in conjunction with Blastworks Inc, developed, published and marketed the Hidden Artefacts game, the acquisition of 
Hullabu Inc is expected to expedite the development and growth of Hidden Artefacts. Details of the fair value of identifiable assets and 
liabilities acquired and purchase consideration and goodwill are as follows:
Book value
£
Adjustment
£
Fair value
£
Software – 217,216 217,216
Trade and other receivables 378,344 – 378,344
Cash 18,759 – 18,759
Trade and other payables (2,516) (127,114) (129,630)
total net assets 394,587 90,102 484,689
l ess: non-controlling interest at fair value (181,758)
total attributable net assets 302,931
£
Deferred consideration – Loan note 378,344
total consideration 378,344
goodwill arising on acquisition (note 15) 75,413
The existing shareholders of Hullabu Inc, issued new shares equating to 62.5% of the overall share capital of Hullabu Inc in exchange for 
a loan note of $500,000. The loan is expected to be repaid monthly over a twelve-month period.
Goodwill recognised in the acquisition of Hullabu Inc relates to the presence of certain intangible assets such as an experienced 
workforce, which do not qualify for separate recognition. Prior to acquisition for the period 1 January 2016 to 21 July 2016, the revenue 
generated was $1 1 1,123 and loss after tax was $34,670. Since acquisition, Hullabu Inc generated $124,285 in revenue and loss after tax 
of $109,604.
Strategic Report Corporate Governance Financial statements
45 Annual Report and Accounts 2016 nOt es t O the cOns Olidated Financial statements
FOR THE YEAR ENDED 31 DECEMBER 2016 (CONTINuED)
26. business combinations completed in prior periods
Acquisition of Gaming Assets and Backstage Technologies Inc (rebranded as Blastworks)
On 10 August 2015, the Group acquired the following assets from RealNetworks, Inc.: GameHouse uS and Canadian Game studios; 
Social & Mobile Freemium portfolio games and publishing network; Slingo Brand & Patents; certain game domains including Sudoku.
com and Mahjong.com; an intellectual property licence relating to the GameHouse Promotion Network and the entire issued share 
capital of Backstage Technologies Inc. The acquisition is in line with the Group’s strategy to build an international portfolio of engaging 
casual gaming brands. The Slingo assets provide the Group with entry into the fast growing Social Casino Gaming segment of online 
gaming, whilst the experienced management team and game studio will allow the Group to further grow its ability to develop, 
distribute and market casual and real-money brands. Acquisition costs of £318,853 arose as a result of the transaction. These have been 
recognised as part of administrative expenses in the statement of profit and loss. Details of the provisional fair value of identifiable assets 
and liabilities acquired and purchase consideration and goodwill are as follows:
Book value
£
Adjustment
£
Fair value
£
Non-contractual customer lists and relationships – 1,289,563 1,289,563
Software – 1,039,236 1,039,236
Domain names – 320,832 320,832
Intellectual property – 5,076,493 5,076,493
Property, plant and equipment 162,927 (81,922) 81,005
Trade and other receivables 490,736 125,373 616,109
Cash 202,506 – 202,506
Trade and other payables (118,743) – (118,743)
Deferred tax asset/(liability) 25,778 (1,273,212) (1,247,434)
total net assets 763,204 6,496,363 7,259,567
Fair value of consideration paid
£
Cash consideration 6,854,556
Deferred consideration 4,705,682
total consideration 11,560,238
goodwill arising on acquisition (note 15) 4,300,671
Deferred consideration at acquisition date 4,705,682
unwinding of discount on deferred consideration (Note 11) 86,683
FX movement 273,134
contingent consideration at 31 december 2015 5,065,499
The total consideration for the acquisition is £1 1,987,862 ($18,682,482), of which £6,854,556 ($10,682,482) was settled in cash. The 
Group has recognised £4,705,682 ($7,333,571) being the net present value of the deferred consideration of £5,133,306 ($8,000,000) 
at acquisition date. The deferred consideration is payable in two parts, $4,000,000 twelve month following the acquisition date and 
a further $4,000,000 twenty-four months following the acquisition date.
Goodwill recognised in the acquisition of Gaming Assets and Backstage Technologies Inc from RealNetworks, Inc. represents the 
estimated future economic benefits arising from other assets acquired that could not be individually identified and separately 
recognised. Goodwill includes an experienced workforce, future synergies and material cost savings. The net cash acquired was 
an outflow of £6,652,050. The revenue and profit or loss of the acquired assets for the period 1 January 2015 to 9 August 2015 
is unavailable and therefore have not been disclosed. Revenue since acquisition totals £2,537,158 and loss since acquisition 
totals £1,754,604.
46 Annual Report and Accounts 2016 27. r elated party transactions
Atul Bali was appointed as an advisor of Gamerail Entertainment LLC, a social lottery gaming company. During the year, Blastworks, Inc. 
entered into a platform and game licensing agreement with Gamerail Entertainment LLC to provide platform development, operational 
and marketing services. During the year, Blastworks, Inc. provided platform development services to the value of $256,089 and at 
31 December 2016, the balance owed to Blastworks, Inc. was $206,089.
Atul Bali is an advisor to Instant Win Gaming. In April 2016, Instant Win Gaming entered into a agreement with Bear Group Limited to 
supply Instant Win Games on its online gaming websites. During the year, the total revenue share payable by Bear Group Limited for the 
supply of game content totalled £55,221, £6,679 was owed at 31 December 2016. In addition, Instant Win Gaming has entered into 
a licensing agreement with Blastworks Limited for the Slingo Brand. Instant Win Game licensed the Slingo Brand to create and distribute 
Slingo Branded Instant Win Games. During the year, the total license fees were £4,063 payable at 31 December 2016.
Jim Ryan is a non-executive Director of the Company and the CEO of Pala Interactive. On 22 March 2016, Pala Interactive launched 
a real-money online bingo site in New Jersey. The Bingo software is provided by AlchemyBet Limited on a revenue share basis. Pala 
Interactive paid Gaming Realms an royalty advance to the value of $16,667 which is re-coupable on future royalties due. No other 
transactions were made in the year.
During the year £275,000 (2015: £200,000) of consulting fees were paid to Dawnglen Finance Limited, a company controlled by 
Michael Buckley. No amounts were owed at year end.
The details of key management compensation are set out in Note 7.
28. subsidiaries
The subsidiaries of the Company, all of which have been included in these consolidated financial statements, are as follows:
Name Registered Office
Country of
Incorporation Principal activity
Proportion
held by
Parent
Company
Proportion
held by
Group
Quickthink Digital Limited (formerly 
Bingo Realms Limited)
1 valentine Place, London, 
SE1 8QH uK Marketing services 100% 100%
Blastworks Limited
1 valentine Place, London, 
SE1 8QH uK IP owner 90.66% 100%
AlchemyBet Limited
1 valentine Place, London, 
SE1 8QH uK Software Developer 88.85% 100%
Bear Group Limited
Inchalla,Le val, Alderney 
GY9 3uL Alderney
Real money gaming 
operator 100% 100%
Blueburra Holdings Limited
49 victoria Street, Douglas, 
Isle of Man, IM1 2LD Isle of Man Marketing services 100% 100%
Digital Blue Limited
49 victoria Street Douglas, 
Isle of Man, IM1 2LD Isle of Man Marketing services 0% 100%
Blastworks Inc
300 Deschutes Way SW, 
Tumwater, WA 98501 uSA Social gaming operator 100% 100%
Backstage Technologies Inc
808 Douglas Street, victoria BC, 
v8W 2B6 Canada Software Developer 100% 100%
Hullabu Inc
848 N Rainbow Blvd, Las vegas, 
Nv, 89101 uSA IP owner 0% 62.5%
Blastmedia LLC
Prospekt Masherova 6a,Brest, 
Belarus, 224000 Belarus Software Developer 0% 62.5%
Strategic Report Corporate Governance Financial statements
47 Annual Report and Accounts 2016 nOt es t O the cOns Olidated Financial statements
FOR THE YEAR ENDED 31 DECEMBER 2016 (CONTINuED)
28. subsidiaries (continued)
The Group held 100% interest in the following subsidiaries which were in the process of being liquidated at the balance sheet date:
Name Registered Office Country of Incorporation Principal activity
Proportion
held by
Parent
Company
Proportion
held by
Group
PDX Businessgroup AG Switzerland In liquidation 100% 100%
PDX Technologies AG Switzerland In liquidation 0% 100%
PDX Management AG vordergasse 53 Switzerland In liquidation 0% 100%
PDX Public Health and Safety AG 8200 Schaffhausen Switzerland In liquidation 0% 100%
BFX Solutions AG Switzerland In liquidation 0% 100%
DDX Solutions AG Switzerland In liquidation 0% 100%
 
48 Annual Report and Accounts 2016 par ent c Ompany statement OF Financial p Ositi On
AS AT 31 DECEMBER 2016
Note
31 december
2016
£
31 December
2015
£
Fixed assets
Investment in subsidiary undertakings 2 21,277,593 23,012,004
Tangible assets 214,015 58,440
Intangible assets 3,416 –
total fixed assets 21,495,024 23,070,444
current assets
Debtors: amounts falling due within one year 3 18,918,168 23,967,669
Debtors: amounts falling due after more than one year 120,000 120,000
Cash and cash equivalents 94,090 117,164
total current assets 19,132,258 24,204,833
Creditors: amounts falling due within one year 4 3,440,386 6,511,705
net current assets 15,691,872 17,693,128
total assets less current liabilities 37,186,896 40,763,572
Creditors: amounts falling due after more than one year 4 – 2,474,533
net assets 37,186,896 38,289,039
equity
Share capital 5 27,413,329 24,920,829
Share premium 87,815,455 85,127,955
Merger reserve 2,683,702 2,683,702
Retained earnings (80,725,590) (74,443,447)
total equity 37,186,896 38,289,039
As permitted by section 408 of the Companies Act 2006, a separate profit and loss account of the Company is not presented. 
The Company’s loss for the financial year was £7,275,492 (2015: £3,283,123). The financial statements on pages 51 to 54 were 
approved and authorised for issue by the Board of Directors on 26 April 2017 and were signed on its behalf by:
patric K sOuth On
Chief Executive Officer
Strategic Report Corporate Governance Financial statements
49 Annual Report and Accounts 2016 par ent c Ompany statement OF changes in equity
Share
capital
£
Share
premium
£
Merger
reserve
£
Retained
earnings
 £
Total 
equity
£
1 January 2015 19,517,049 78,119,547 1,742,424 (71,834,054) 27,544,966
Loss for the year – – – (3,283,123) (3,283,123)
Shares issued as part of the consideration in a business 
combination 413,722 – 941,278 – 1,355,000
Shares issued as part of the capital raising 4,990,058 7,509,942 – – 12,500,000
Cost of issue of Ordinary Share capital – (501,534) – – (501,534)
Share-based payment on share options – – – 673,730 673,730
31 december 2015 24,920,829 85,127,955 2,683,702 (74,443,447) 38,289,039
Loss for the year – – – (7,275,492) (7,275,492)
Shares issued as part of the consideration in a business 
combination 480,000 720,000 – – 1,200,000
Shares issued as part of the capital raising 2,012,500 2,012,500 – – 4,025,000
Cost of issue of Ordinary Share capital – (45,000) – – (45,000)
Share-based payment on share options – – – 993,349 993,349
31 december 2016 27,413,329 87,815,455 2,683,702 (80,725,590) 37,186,896
The notes on pages 51 to 54 form part of these financial statements.
50 Annual Report and Accounts 2016 nOt es t O the parent c Ompany Financial statements
FOR THE YEAR ENDED 31 DECEMBER 2016
1. principal accounting policies
These financial statements present the results of Gaming Realms plc for the year ended 31 December 2016.
These financial statements were prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework 
(FRS 101). 
The financial statements are prepared under the historical cost convention. No profit and loss account is presented by the Company 
as permitted by Section 408 of the Companies Act 2006. 
The financial statements are prepared in Sterling. 
Basis of preparation
The accounting policies which follow set out those policies which apply in preparing the financial statements for the year ended 
31 December 2016. 
The Company has taken advantage of the following disclosure exemptions under FRS 101: 
a)  IFRS 2 Share-based Payment disclosure, the share-based payment arrangement concerns its own equity instruments and its separate 
financial statements are presented alongside the consolidated financial statements of the Group. 
b) IFRS 7 Financial Instruments disclosures, given that equivalent disclosures are included in the consolidated financial statements of the 
Group in which the entity is consolidated. 
c)  IFRS 13 Fair value Measurement disclosures. 
d)  Certain disclosures required by IAS 1 Presentation of Financial Statements, including certain comparative information in respect of 
share capital movements.
e)  IAS 7 Statement of Cash Flows and related notes. 
f)  IAS 24 Related Party Disclosures relating to key management personnel compensation. 
g)  IAS 24 Disclosure of related party transactions entered into between two or more members of a group, given that any subsidiary 
which is a party to the transaction is wholly owned by such a member. 
Investments
Investments in subsidiaries are stated at cost less provision for impairment in value, except for investments acquired before 1 October 
2013 where shares issued to effect business combinations and the conditions of the Companies Act 2006 are met, merger relief was 
applied and the resulting investment is recorded at the nominal value of the shares issued.
Taxation
Current tax, including uK corporation tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that 
have been enacted or substantively enacted by the balance sheet. 
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, where 
transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at 
the balance sheet date.
A net deferred tax asset is recognised as recoverable and therefore recognised only when, on the basis of all available evidence, it can 
be regarded as more likely than not that there will be suitable taxable profits against which to recover carried forward tax losses and 
from which the future reversal of underlying timing differences can be deducted.
Deferred tax is measured at the average tax rates that are expected to apply in the period in which the timing differences are expected 
to reverse, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Strategic Report Corporate Governance Financial statements
51 Annual Report and Accounts 2016 nOt es t O the parent c Ompany Financial statements
FOR THE YEAR ENDED 31 DECEMBER 2016 (CONTINuED)
1. principal accounting policies (continued)
Foreign currencies
Transactions denominated in foreign currencies are recorded at exchange rates as of the date of the transaction. Monetary assets and 
liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date.
Any gain or loss arising from a change in exchange rates subsequent to the date of the initial transaction is included as an exchange gain 
or loss in the profit and loss account, except where financing of a foreign subsidiary through long-term loans is intended to be as 
permanent as equity. Such balances are treated as part of the net investment and any exchange differences are recorded in reserves.
Financial liabilities
Financial liabilities held by the Group consist of deferred and contingent consideration, customer funds, trade payables and other 
short-term monetary liabilities. 
Financial liabilities are initially recognised at fair value net of any transaction costs directly attributable to the issue of the instrument 
and with the exception of deferred and contingent consideration, subsequently recognised at amortised cost. Contingent consideration 
arising from business combinations that is classified as liability is subsequently measured at fair value through profit and loss. Deferred 
consideration arising from business combinations is recognised at present value and unwound over the period until settlement.
2. investments
£
At 1 January 2015 21,407,847
Additions 1,604,157
At 31 December 2015 23,012,004
Additions 540,000
Disposals (2,274,411)
at 31 december 2016 21,277,593
Disposals during the year relates to the sale of the digital agency business and the entity, Quickthink Media Limited to Ayima Limited. 
In exchange for the disposal, the company acquired 10% investment in Ayima Limited. Refer to note 5 of the consolidated financial 
statements for further details.
Details of these are shown below:
Name
Country of
Incorporation Principal activity
Proportion
held by
Parent
Company
Proportion
held by
Group
Quickthink Digital Limited 
(formerly Bingo Realms Limited) uK Marketing services 100% 100%
Blastworks Limited uK IP owner 90.66% 100%
AlchemyBet Limited uK Software Developer 88.85% 100%
Bear Group Limited Alderney Real money gaming operator 100% 100%
Blueburra Holdings Limited Isle of Man Marketing services 100% 100%
Digital Blue Limited Isle of Man Marketing services 0% 100%
Blastworks Inc uSA Social gaming operator 100% 100%
Backstage Technologies Inc Canada Software Developer 100% 100%
Hullabu Inc uSA IP owner 0% 62.5%
Blastmedia LLC Belarus Software Developer 0% 62.5%
52 Annual Report and Accounts 2016 The Group held 100% interest in the following subsidiaries which were in the process of being liquidated at the balance sheet date:
Name
Country of
Incorporation Principal activity
Proportion
held by
Parent
Company
Proportion
held by
Group
PDX Businessgroup AG Switzerland In liquidation 100% 100%
PDX Technologies AG Switzerland In liquidation 0% 100%
PDX Management AG Switzerland In liquidation 0% 100%
PDX Public Health and Safety AG Switzerland In liquidation 0% 100%
BFX Solutions AG Switzerland In liquidation 0% 100%
DDX Solutions AG Switzerland In liquidation 0% 100%
3. debtors
2016
£
2015
£
Amounts due from Group companies 18,778,182 23,703,521
Other debtors 42,037 180,306
Prepayments and accrued income 97,949 83,842
18,918,168 23,967,669
4. creditors
2016
£
2015
£
Creditors: amounts falling due within one year
Amounts due to Group companies – 1,278,671
Trade creditors 82,026 90,978
Other creditors 42,229 58,507
Accruals and deferred income 180,775 92,583
Deferred and contingent consideration 3,135,356 4,990,966
3,440,386 6,511,705
2016
£
2015
£
Creditors: amounts falling due after more than one year
Deferred and contingent consideration – 2,474,533
– 2,474,533
Strategic Report Corporate Governance Financial statements
53 Annual Report and Accounts 2016 nOt es t O the parent c Ompany Financial statements
FOR THE YEAR ENDED 31 DECEMBER 2016 (CONTINuED)
5. called up share capital
allotted, called up and fully paid
2016
£
2015
£
274,133,292 (2015: 249,208,292) ordinary shares of 10 pence each 27,413,329 24,920,829
allotted and fully paid
£
As at 1 January 2015 24,920,829
Issued during the year 2,492,500
as at 31 december 2016 27,413,329
On 2 March 2016, 7,625,000 shares were issued at £0.20 per share.
On 9 June 2016, 4,800,000 shares were issued at £0.25 per share to the previous shareholders of Blueburra Holdings Limited.
On 2 September 2016, 12,500,000 shares were issued at £0.20 per share with the costs of £45,000 associated with the share issue.
6. employee information
The Company had a monthly average of ten (2015: ten) employees during the year.
The employee costs for the Company were £1,068,345 (2015: £791,967). 
Details of Directors’ remuneration can be found in Note 8 of the consolidated financial statements.
7. leases
The Company has future lease payments under non-controllable operating leases on land and buildings and other leases. The total 
future value of minimum lease payments is due as follows:
2016
£
2015
£
Not later than one year 125,000 125,000
Later than one year and not later than five years 160,959 285,959
Later than five years – –
285,959 410,959
8. r elated party transactions
During the year £275,000 (2015: £200,000) of consulting fees were paid to Dawnglen Finance Limited, a company controlled by 
Michael Buckley.
The details of key management compensation are set out in Note 7.
54 Annual Report and Accounts 2016 cOmpany in FOrmati On
directors
Michael Buckley, Chairman
Atul Bali, Deputy Chairman
Patrick Southon, Chief Executive Officer
Simon Collins, Executive Director
Mark Segal, Chief Financial Officer
Jim Ryan, Non-executive Director
Mark Wilson, Non-executive Director
company secretary
Mark Segal
auditors
BDO LLP, 55 Baker Street, London, W1u 7Eu
bankers
Barclays Bank plc, 1 Churchill Place, London, E14 5HP
nominated advisors
Peel Hunt, 120 London Wall, London, EC2Y 5ET
solicitors
Memery Crystal LLP, 44 Southampton Buildings, London, WC2A 1AP
r egistrars
Computershare Investor Services PLC, The Pavilions, Bridgwater Road, Bristol, BS13 8AE
r egistered office
One valentine Place, London, SE1 8QH
r egistered number
04175777
Strategic Report Corporate Governance Financial statements
55 Annual Report and Accounts 2016 nOtes
56 Annual Report and Accounts 2016 NoteS
F Annual Report and Accounts 2016