exploring optimal market entry strategies in the new regulatory environments (2012)
TRANSCRIPT
M A G
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Exploring optimal market entry strategies in the new regulatory environments
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2
What has just happened?
• In 2011, broadened its online gambling portfolio introducing poker cash and casino games • The related application period for issuing up to 200 new online licenses was closed on December
31st 2011
• The online gambling was introduced in 2010 with a narrow portfolio (Sport betting, Horse betting and Poker)
• The administrative procedure for issuing online licenses started in May 2010 and is still going on
• In 2009 passed a law that rules online gambling as “complementary” to the land based offer • The administrative procedure for issuing online licenses started in September 2011 and is still
going on
• In 2011 passed a law that rules all online games but Bingo • The administrative procedure for issuing online licenses started in September 2011 and is still
going on
• In 2011 passed a law that rules a huge online games portfolio • The administrative procedure for issuing online licenses started in November 2011 and is
currently over at least for “general licenses”. However no license has been issued up to now
Italy
France
Belgium
Denmark
Spain
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License Fee/ Guarantees
Games portfolio Tax Payout IT Aspects
Italy
• 300/350k € without/with Bingo una tantum
• Guarantee:1,5mln € for not gambling operators
• Betting • Poker • Casino • Lotteries • Bingo
• Betting-Skill: 3% of GGT
• Poker-Casino: 20% of GGR
• Bingo: 11% GGT
• Free • IT equipment integrated with Sogei
France
• 10k € for license per year
• No guarantees
• Betting
• Poker
• Poker:2% on GGT (with 1€ cap)
• SB: 9,3% of GGT • HB: 14,4% of GGT
• 85% of GGT for Betting (including bonus)
• Frontal
Belgium • Guarantee ranging from 25 to 250k €
• Betting • Poker • Casino • Slot • Bingo
• 11% of GGR • Free
• Inspections conducted by the Commision des Jeux d’Hasard
Denmark
• 140k € for license per year
• No guarantees
• All but Bingo and
Horse Betting • 20% of GGR • Free
• Data storage in a SAFE secured by Tamper Token
Spain
• 10k € for license
• Guarantee ranging from 500k to 2mln € for the 1° year
• Betting
• Poker
• Casino
• Concursos
• Poker, Casino and fixed-odds betting: 25% of GGR
• Concursos: 20% of GGT
• Free • Sistema de Control
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Regulatory models
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4
What has is going to happen?
• In December 2011 reformed the Interstate Treaty on Gambling, introducing licenses for online sport betting
• The administrative procedure for issuing the 20 online licenses has not yet begun
• Because of difficulties in passing a comprehensive law on online gambling, in 2011 set a “transitory period” of 6 months during with all operators having an online license issued in EEUU will be able to work regularly in Greece
• In 2010 passed a law ruling online casino games, poker and lotteries. • Since implementing regulation is still pending, the administrative procedure for
issuing online licenses has not yet begun
• Currently a law about online games is under discussion but so far there is not any draft
Germany
Greece
Austria
Netherland
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Markets’ Analysis: a Methodology
REGULATION
MARKET
GAMBLING MARKET
AREA
REGULATORY PROCESS STATUS
GAMING PORTFOLIO
GAMBLING TAX
REGULATION EFFECTIVENESS
PRO CAPITE GDP €
POPULATION
BROADBAND PENETRATION %
INTERNET USERS %
MOBILE USERS %
GINI INDEX
TRANSPARENCY INDEX
ONLINE MARKET SIZE
ONLINE GAMBLERS %
LANDBASED OFFER
MARKET ACCESSIBILITY
PARAMETER W
16,0%
10,0%
10,0%
4,0%
4,4%
12,3%
7,0%
3,5%
2,6%
2,6%
2,6%
6,2%
3,8%
6,2%
8,8%
It is considered the decisive category
since the regulation features deeply
affect the market attraction
This category determines the market
potential as a whole
It is considered the less relevant
category, since the online gambling is
just opening and the market demand
will be shaped by the offer
RATIO
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0
50
100
150
200
250
300
350
400
112
162 166 134 122 122 122
146 112
156
107
126 112 162 170
84 106
133
130
125
61
63 59
91 74
80
99
99
65
99
Regulation Market Gambling market
6
Avg 340
Markets’ Analysis Results
FRANCE
ITALY
SPAIN
GERMANY
DENMARK
BELGIUM
EIRE
NETHERLAND
AUSTRIA
GREECE
377
378
376
366
355
348
321
305
295
278
MARKETS’ RATING BY INDEX COMPOSITION
Source: MAG International Markets Index