The final countdown
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Friedrich Stickler, President, The European Lotteries The final countdown
description
The final countdown. Friedrich Stickler, President, The European Lotteries. Overview. The global market Two different models : state lotteries vs. private operators The fight against illegal operators. T he gaming market. GGR online worldwide ($ bn ). $ bn. - PowerPoint PPT Presentation
Transcript of The final countdown
Friedrich Stickler, President, The European Lotteries
The final countdown
Overview
The global market
Two different models: state lotteries vs. private operators
The fight against illegal operators
The gaming market
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
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
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
$bn
GGR landbased North America ($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
$bn
GGR Offshore Online Gambling US ($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
European gaming marketonline and landbased 2011
11,8% Online
88,2% Landbased
Consumer policies
% 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%
% 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
Playing with multiple playing accounts
EL and WLA members20 Operators
20% Yes
80% No
Non Lotteries15 Operators
7% No
93% Yes
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
Fight against illegal operators
Defending the classic lotterymodel
Fight against illegal operatorsConsumer protectionMoney for society (fiscal arguments and good causes)
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
Growing competitive disadvantage for authorised
providers
authorised provider comercial
operator
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
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
Fiscal arguments
Comercial online
operatorsEuropean Lotteries
average tax total revenues 0,5% – 1% 25%
20% (offshore 1%-2%) 65%average tax from GGR
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
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
How to forge a united front
Common aim
!! Guarantee a sustainable future for lotteries !!
How to forge a united front
Enter partnerships and strategic alliances with stakeholders
The role of politics
Communication and lobbying
