Updates from Georgia and

Bulgaria

General Gambling overview Bulgaria vs GeorgiaBulgaria

• 7.4m people

• Internet users per 100 – 53.1 in 2014 (World Bank Data)

• Regulated remote gaming market

• Gaming tax: 20% on GGR

• Players winnings tax: No

• Total Gaming Gross Turnover 2014: 1.93 billion EUR

• Potential of the online market: 284m EUR

Georgia

• 4.3m people

• Internet users per 100 – 43.1 in 2014 (World Bank Data)

• Regulated remote gaming market

• Gaming tax: 5 % and 20 % on GGR

• Players winnings tax: 15 %

• Total Gaming Gross Turnover 2013: 520m EUR

• Potential of the online market: 203m EUR

Regulatory updates from

Bulgaria

• All interactive gambling products are taxed at 20% on the gross gambling revenues and a one time license fee of 51,127 EUR

• Currently there are 8 companies which have been awarded a license and couple of more have already applied.

• The market is heavily dominated by the international dot COM’s

• Active IPS’s blocking of websites without a license

• Certification of the online platforms and the gambling systems and content. Control server connected to the regulatory body.

Regulatory updates from

Georgia

• Land-based casino operators can offer online gambling via its licenses

• Online betting is taxed at 5% on Gross Revenues and online casino at 20% on GGR and quarterly fee ranging between 12 000 and 25 000 EUR

• Currently there are 8 online gaming websites in Georgia actively operating on the marker

• Strong local gaming brands- Adjarabet, Europe-bet, Lasvegas-bet.com

• No payment or IPS’s blocking of unlicensed websites.

Financial KPI’s Bulgaria

2012 2013 2014 2015 2016 2017

1.81 1.82 1.93

2.372.56 2.66

Total Gaming Turnover(EURb)

Total Gaming Turnover

2012 2013 2014 2015 2016 2017

47 4853 56 59 62

Gaming Spend per adult

Gaming Spend

2012 2013 2014 2015 2016 2017

443 483 516 552680

756

Online Gaming Turnover(EURm)

Online Turnover

Financial KPI’s Georgia • In 2013, the total turnover of enterprises associated with

gambling has been approximately 502m EUR

• Taxes and fess collected for 2013 were 43m EUR

• In 2014, there has been seen a decline in the gambling sector for Q1 and Q2 records show 143m EUR

• Possible ban on the online gambling

Opportunities and challengesChallenges

Effective measures and control mechanisms against the unlicensed operators in both Bulgaria and Georgia

• Payment blocking

• Platform and content provider filter

• Advertising campaigns supporting the regulated online space

• ISP´s restrictions on unlicensed operators

Opportunities

Convergence platform as new acquisition and technological innovation for land-based operators with online operations.

Bridging the gap between the offline space and the online gaming

Thank you for the attention