Lotteries – A Winning Ticket

Warwick Bartlett, CEOGlobal Betting & Gaming Consultants

World Lottery GGY (US$ bn) 2006-2010

2Source: GBGC Analysis

US Lottery GGY (US$ bn) 2006-2010

3Source: GBGC Analysis

Lotteries – A Winning Ticket

Warwick Bartlett, CEOGlobal Betting & Gaming Consultants

Italian Gambling Tax Revenues (US$ m) 2006-2010

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Source: GBGC Analysis

Lotteries – A Winning Ticket

Warwick Bartlett, CEOGlobal Betting & Gaming Consultants

Bwin.Party William Hill

Margin of Operating Profit 20.3% 30.1%

Total Operating Cost US$950m US$901m

Net Profit Ratio 6% 13%

Profit US$71m US$258m

Marketing Spend US$400m US$122m

Bwin.Party vs. William Hill (2010)

Source: Company Reports, GBGC Analysis

Marketing Spend 2009 US$ -Internet Companies

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Marketing Spend Lotteries

• NY State Lottery $407million

• Camelot $562 million

• Florida $172 million

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iGBGC Index Jan-2010 – Aug-2011

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Source: GBGC Analysis

Lotteries – A Winning Ticket

Warwick Bartlett, CEOGlobal Betting & Gaming Consultants

World Lotteries by % of Interactive Revenue in Total in 2010

12Source: GBGC Analysis

Lottery Partner Area

Illinois State Lottery Northstar (GTECH+Scientific Games) Lottery management

California Lottery Viejas Casino Cross-promotion

Loto Quebec JOAGRUPE Casino know-how

SciPlay California Online Poker Association (COPA)

Online poker platform and management

British Columbia Lottery and Gaming Corporation (BCLC) OpenBet Online lottery, sports betting

and casino games

BCLC and Loto Quebec GTECH G2 Online poker platform

Croatian Lottery Intralot Online lottery, betting and casino games

Montenegro Lottery Amaya Gaming Online and text messaging lottery

Serbian Lottery Playtech Online casino and poker

Lotterywest Intralot Australia Online lottery and pool betting

ChinaLot Synergy IGT and GTECH Lottery terminals

Newly Established Partnerships

Source: GBGC Analysis

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Interstate Lottery CollaborationsLottery Game Participating Jurisdictions

EuroMillions Austria, Belgium, France, Ireland, Luxembourg, Portugal, Spain, Switzerland, the UK

Viking Loto Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, Sweden

Super Lotto Anguilla, Antigua, Barbados, the Dominican Republic, Jamaica, Turks and Caicos Islands, St. Maarten

MegaMillions

Arizona, Arkansas, California, Colorado, Connecticut, District of Columbia, Delaware, Georgia, Idaho, Iowa, Illinois, Indiana, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan,

Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South

Carolina, South Dakota, Tennessee, Texas, US Virgin Islands, Vermont, Virginia, Washington, West Virginia, Wisconsin

Powerball

Arizona, Arkansas, Colorado, Connecticut, District of Columbia, Delaware, Georgia, Florida, Idaho, Iowa, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York,

North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, US Virgin Islands, Vermont, Virginia, Washington, West

Virginia, Wisconsin

Source: GBGC Analysis

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VLT GGY per Machine in 2010 (US$k)

Source: GBGC Analysis

* Introduced in Oct-2010, by Jun-2011 GGY per VLT increased to US$32k

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GBGC’s Latest Reports

• Global Gambling Report– 1,500 pages, 55,000 data

points

• Interactive Gambling Report– Data &Forecasts for the

online sector

“Betting 0n Regulation”

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Tipp24 Revenues (US$m) 2006-2010

Source: Company reports, GBGC Analysis

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Zynga

Source: GBGC Analysis

• Founded in 2007• Filed for an IPO in July 2011, hope to raise

US$1bn• Total revenues US$600m in 2010 (vast

majority of players play for free)• Around 34 million people played Zynga Poker

monthly at the end of 2010

Talking to Government

• Goals• Trade Associations• Find a Champion• Know what matters• Use Data• Social Responsibility• Politics

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Thank you for Having Me!

warwick@gbgc.comwww.gbgc.com