VIP PLAY, INC. Company Update

December 16, 2025
Blog, Press Release

VIP Play, Inc. has made meaningful progress in 2025 building a foundation that we believe will serve us well going forward. This update highlights five areas in particular: our operational turnaround, operational technology initiatives, AI-driven consumer initiatives, market expansion opportunities, and strategic direction.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Statements in this Company Update that are not descriptions of historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management’s current expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial condition and stock price. VIP Play, Inc. (the “Company,” “we,” “us,” or “our”) has attempted to identify forward-looking statements by terminology including “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “should,” or “will” or the negative of these terms or other comparable terminology.

We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in the section titled “Risk Factors” in our Annual Report on Form 10-K.

Forward-looking statements contained in this Company Update include, but are not limited to, statements about: the online gambling industry; the impact of AI to our business; our financial performance; our ability to attract and retain customers; our ability to expand our business; and our estimates regarding capital requirements and needs for additional financing.

Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this Company Update may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

You should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Because we are an OTC-traded company, investors should consider the additional risks associated with limited liquidity, reduced public information requirements, and heightened market volatility. Investors are encouraged to review the Company’s

filings, disclosures, and risk factors available through the OTC markets and any reports filed with applicable regulatory authorities.

Nothing in this Company update constitutes an offer to sell or a solicitation of an offer to buy any securities.

Operational Turnaround

Our sportsbook operations have demonstrated improvement across all key performance metrics during the second half of 2025. We have successfully transitioned our customer base from sharp bettors to profitable casual players, resulting in a 93% decrease in sharp wagering since June 2025. This strategic shift has been instrumental in improving our profitability profile.

For the first time in company history, we have achieved positive Gross Gaming Revenue (GGR) growth across three consecutive months. Our hold percentage improved from negative 12% in May to positive 8% in October, representing a fundamental transformation in our operating economics. Overall, VIP Play, Inc. has improved by more than 150% during this period.

We have reduced marketing expenses while simultaneously increasing gaming handle. This disciplined approach has improved margins across the company. Our customer acquisition costs have decreased, with new customer CAC averaging $139 compared to $216 for legacy customers, moving toward our target of $75.

Daily reviews and performance tracking have been implemented to ensure operational responsiveness. We have improved operational transparency and alignment between Finance and IT departments, creating a more cohesive operating environment.

Operational Technology Initiatives

We have completed or initiated several operational technology deployments to support our growth objectives:

On October 15, 2025, executive directors from Black Fire Innovation, the #1 Gaming Research & Innovation Center, joined VIP Play, Inc. We continue to develop influencer and referral programs to drive brand awareness. A potential ‘Beat AI’ campaign is planned for Q1 2026.

Our ACH payment rollout is complete, and we are attempting to reactivate dormant users through this improved payment capability. We launched a new payment processor on October 29, 2025. A new VIP Play website launched the same day.

On November 5, 2025, we launched our new VIP Play website, followed by our Hootsuite-powered social media management capability on November 10, 2025 and the launch of our enhanced customer retention program on November 14, 2025.

AI-Driven Consumer Experiences

We believe consumer experiences powered by artificial intelligence represent a significant opportunity for differentiation in the gaming and sports entertainment market.

85% of sports fans see value in integrating AI into their sports experiences with real time updates and personalized content cited as top priorities. 61% of those expressed trust in AI-generated sports content. (ValueinAI)

80% believe technology, specifically AI will have the greatest influence on how they follow sports by 2027. (IBMStudyContent)

Research shows that 70% of sports fans believe that leaderboards make watching sports more exciting, and 53% are more likely to engage with a sports platform that includes gamification. (PsychologyFan)

These consumer preferences inform our product development strategy.

We have developed OrangeZone, a Tennessee Football AI Intelligence platform providing smart analytics and AI insights for fans with real-time updates on recruiting, strategy, and performance. Features include an AI-powered Playbook Lab, Hype Video Studio, Recruiting Builder, Face Paint Generator, and Trash Talk Generator. We also operate RebelZone for additional fan communities.

We have achieved early success leveraging AI for content creation, with one AI generated video achieving 142,000 views. Additional TikTok content has reached 481,000 and 131,000 views, respectively, demonstrating the potential of AI-powered engagement at scale with minimal incremental cost.

Market Expansion Opportunities

Daily Fantasy Sports

We intend to offer Daily Fantasy Sports (DFS) contests, a market with an estimated U.S. contest base of 15-25 million adults (DFSCustomer) and total addressable market of $10-13 billion (DFSTAM). DFS offers high engagement tied to NFL, NBA, and college football cycles, creates a strategic cross-sell pipeline into sportsbook markets where we are licensed, and provides retention benefits through seasonal engagement cycles. Industry estimates suggest rake rates of 10-15% (DFSRakes) with net margins of 20-30% (DFSNetMargins) derived from an estimate based on publicly sourced rate and cost benchmarks, not directly disclosed segment margin from any single operator.

Skill-Based Gaming

We may enter the skill-based gaming market, which has an estimated U.S. contest base of 10-20 million adults (SBGCustomer) and a total addressable market of $9-11

billion (SBGTAM). Skill-based games are legally accessible without sportsbook licenses in many states, enabling national brand reach and diversified revenue streams. The category offers higher margins, scalability, and year-round engagement without seasonal dependencies. Industry sources suggest rake rates of 8-20% (SBGRakes), which typically yield net margins of 18-28% (SBGNetMargins) for scaled operators, depending on game format and cost structure.

Strategic Direction

Our strategic priorities are focused on creating shareholder value through three key pillars:

Stabilize: We have focused on stabilizing our core sportsbook operations through improved risk management, compliance, and operational discipline. The positive GGR results and improved hold percentages demonstrate progress toward operational stability.

AI-First: We are positioning VIP Play, Inc. as an AI-first company, leveraging artificial intelligence across consumer engagement, content creation, and operational efficiency. We believe AI-powered experiences can differentiate our offerings and improve economics.

Grow TAM: We intend to expand our total addressable market through entry into Daily Fantasy Sports and Skill-Based Gaming, which together represent approximately $19-24 billion in market opportunity and do not require additional sportsbook licenses in many jurisdictions.

Potential capital development may benefit these growth strategies by enabling us to scale the business, maintain our AI-first approach, and open the scope of investment opportunities.

Conclusion

We have made meaningful progress in 2025 toward building a foundation for VIP Play, Inc.’s future. Our operational turnaround has delivered positive GGR and reduced costs. Our AI-driven initiatives should position us to capture evolving consumer preferences. We believe that our planned market expansions offer pathways to diversified revenue and broader geographic reach.

Sincerely,

Les Ottolenghi

Chief Executive Officer VIP Play, Inc.

Additional References

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