The final countdown
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Transcript of The final countdown
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Friedrich Stickler, President, The European Lotteries
The final countdown
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Overview
The global market
Two different models: state lotteries vs. private operators
The fight against illegal operators
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The gaming market
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GGR online worldwide ($bn)
$ bn
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012P 2013E 2014E 2015E
0
5
10
15
20
25
30
35
40
45
8.811.9
15.719.6 20.9
24.026.7
29.4 30.532.6
35.839.6
43.3
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GGR State Lotteries online worldwide ($bn)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012P 2013E 2014E 2015E
0
1
2
3
4
5
0.23 0.45 0.630.93
1.321.77
2.08 2.312.54
2.87
3.46
4.20
4.77
$ bn
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GGR landbased worldwide ($bn)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E
0
50
100
150
200
250
300
350
400
450
240.3263.1 278.2 296.5 315.9 321.7 318.9 327.3
357.8 377.4 390.3 399.4 405.6
$bn
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GGR landbased North America ($bn)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E
0
10
20
30
40
50
60
70
80
90
100
62.1 64.2 68.876.1
80.976.4 75.0 77.4 82.3
87.1 90.1 91.8 92.9
$bn
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GGR Offshore Online Gambling US ($bn)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
0
1
2
3
4
5
6
2.4
3.5
4.6
5.2
4.3
3.8
4.8 5,0
3.73.5 3.4
3.3 3.3
$bn
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European gaming marketonline and landbased 2011
11,8% Online
88,2% Landbased
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Consumer policies
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% of „legal GGR
SboBet
Bodog
Betsson
Unibet
Pokerst
ars
Bet365
bwin.party 888
Sporti
ngbet
Betfair
PaddyPower
Ladbrokes
William Hill
Lotterie
s
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
10% 10% 15%25% 30% 35%
45%55% 60%
75%85%
95% 97% 100%
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% of operators checking Identity, Age, Bank accounts
Identity Age Banking accounts0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%90% 90%
60%
47%
60%
33%
Lotteries
Non Lotter-ies
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Playing with multiple playing accounts
EL and WLA members20 Operators
20% Yes
80% No
Non Lotteries15 Operators
7% No
93% Yes
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Monthly deposit limits
No Limit40%
Over €1m27%
€100k to €1m 13%
€5k to €10k13%
€1k to €5k 7%
Deposit Limits Non-Lotteries15 operators
Bwin.fr
Bodog, Pokerstars
Bet365, Sportingbet
2/3 of commercial operators allow deposits over €1m
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Fight against illegal operators
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Defending the classic lotterymodel
Fight against illegal operatorsConsumer protectionMoney for society (fiscal arguments and good causes)
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Threats
Offshore operators without license offer a wide range of products:Lottery, Casino, Poker, SportsbettingNo limits for wagers and age Higher payout percentageNo taxesOffshore operators acquire customers without licence
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Growing competitive disadvantage for authorised
providers
authorised provider comercial
operator
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Fight against illegal operators
15.000 existing websitesAnnual revenues exceeding €12 billion in 2013
12.500 without a license = unauthorised
500 licensed operators in Malta
Source: greenpaper on online gambling, european commission 2011
5 times more operators without a license than licensed operators
illega
l
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Fight against illegal operators
Combined measures – UIGEA as role model:Strong legal framework and severe sanctionsIP/DNS blocking together with payment blockingBanning illegal advertisingSetting up black lists (white lists)Public information about illegal gambling and operatorsCoordination between national authorities
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Fiscal arguments
Comercial online
operatorsEuropean Lotteries
average tax total revenues 0,5% – 1% 25%
20% (offshore 1%-2%) 65%average tax from GGR
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Online Regulation in Europe
Some states without regulationSubsidiarity principle: states hold primary competence to regulate gambling No mutual recognitionResponsibility for consumer protection lies with the member stateInternal consistency of a Member States gambling policy is a national duty
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Online Regulation Systems
MonopoliesState monopolies – Germany, PortugalPrivate monopoly (concessions) – Austria, Great Britain
Liberalized markets with licenceslimitated or unlimited number of licences
Free license Systemse.g. Malta (for international market except Malta)
Prohibition
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How to forge a united front
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Common aim
!! Guarantee a sustainable future for lotteries !!
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How to forge a united front
Enter partnerships and strategic alliances with stakeholders
The role of politics
Communication and lobbying