Gambling in Eastern Europe

Tihana Jurican, Zagreb Office Manager Global Betting & Gaming Consultants

Mor Weizer, CEO, May 2015: “The regulatory progress in Romania, Bulgaria, the Czech Republic, Poland, Hungary and others represents a good opportunity for the company...”

Economic Conditions

-8.0

-4.0

0.0

4.0

8.0

12.0

2007 2008 2009 2010 2011 2012 2013 2014EU 28 BulgariaCzech Republic CroatiaHungary PolandRomania SloveniaSlovakia MacedoniaSerbia

Real GDP Growth Rate (YoY change) 2007-2014

Source: Euromat

Gambling and the CrisisGambling GGY in EE (US$bn) 2007-2019f

Source: GBGC Analysis

7.17

9.21

7.91

6.87 7.07 6.41 6.50 6.68 6.96 7.26

7.65 8.08

8.47

0

1

2

3

4

5

6

7

8

9

10

Gambling and the Crisis cont.Gambling GGY by Country (US$m) 2008-2019f

Source: GBGC Analysis

0

400

800

1,200

1,600

2,000

2008 2014 2019

Propensity to Gamble

Source: GBGC Analysis

Share of Gambling in GDP by Country (%) in 2014

0.0%

0.1%

0.2%

0.3%

0.4%

0.5%

0.6%

0.7%

0.8%

0.9%

Legal OverviewInternet Sports Betting

Internet Casino

Open to Foreign Companies

Blacklisting/ ISP Blocking

Bulgaria X X X X

Croatia X X

Czech Republic X X

Estonia X X X X

Hungary X X X

Latvia X X X X

Lithuania X X

Macedonia X

Montenegro X X

Poland X X

Romania X X X X

Serbia X X

Slovakia X X X

Slovenia X

Internet Gambling

Source: GBGC Analysis

Share of Internet in Total Gambling by Country (%) in 2014 and 2019

5%

19%

9%

0%3%

4% 3%0%

11%

3%

11%

23%

10%

0%3%

5% 4% 4%

11%

3%

0%

5%

10%

15%

20%

25%

2014 2019

Liberalisation and Setbacks

Liberalisation• Estonia• Poland• Romania

Closing-Up• Hungary• Slovenia• Lithuania

Major Markets

• Bulgaria• Czech Republic• Poland• Romania

Growing Regionalisation

Company Seat HR CZ EE LV LT ME PL RO RS SK

Mozzart Serbia L, I L L, I L, IHattrick Ireland L, I L, IStanleybet UK L L L, I L, IFortuna CZ L, I L, I L, ITonybet EE L, I L, IOlympic EE L, I L, I L, I L LMaxbet Serbia L L, ITip Sport CZ L, I L

Maltese Operators with Local LicencesCompany Country Brand

BML Group Estonia Triobet

Eurofootball Malta Bulgaria Efbet

Reel Spain Malta Bulgaria, Romania PokerStars

Polco Limited Malta Bulgaria Betfair

Betfair International Romania Betfair

Cosmo Gaming Company Romania Netbet

WM Interactive Romania Winmasters

PT Entertainment Services Romania Winner

Headlong Limited Romania Sportingbet

Unibet Limited Romania Unibet

Europe Entertainment Limited Romania Stargames, Skill 7

Offshore TargetingBG HR CZ EE HU LV LT PL RO RS SK SI

PokerStars X X X X X X X

Full Tilt X X X X X X X X

Bwin X X X X X X X X

Party Poker X X X

Unibet X X X X X

Betsson X X X X

William Hill X X X X X X

888 X X X

Bet 365 X X X X X X

Offshore Targeting cont.

2014 2019

Source: GBGC Analysis

49.6%50.4%

Local Licence Offshore

60.3%

39.7%

Local Licence Offshore

Conclusion

• Markets opening up• No overcrowding yet• Fast growth• Complex and costly rules and regulations• Legislative process moving slowly

Thank you!

www.gbgc.comTihana Juricantihana@gbgc.com