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Past, Present and Future
Warwick Bartlett, CEOGlobal Betting & Gaming Consultants
GGY per Capita in 2013 (US$)
Source: GBGC’s Global Gambling Report
866
464 413 395 371
319 318 300 283 273 239 243 242 233 218
0100200300400500600700800900
1,000
Las Vegas Strip Casino GGY (US$bn) 2005-2014
5.58
6.396.75 6.68
5.665.62 6.01 6.05 6.29
6.61
0
1
2
3
4
5
6
7
8
Source: GBGC’s Global Gambling Report
Greece Casino GGY (€m) 2005-2014
631
712
804771
648
530
432
339 306275
0
100
200
300
400
500
600
700
800
900
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: GBGC’s Global Gambling Report
GBGC 50 vs iGBGC Index Jan/05 – Oct/15
Source: GBGC’s Global Gambling Report
50
150
250
350
450
550
650
75002
/01/
2005
02/0
7/20
05
02/0
1/20
0602
/07/
2006
02/0
1/20
0702
/07/
2007
02/0
1/20
0802
/07/
2008
02/0
1/20
0902
/07/
2009
02/0
1/20
1002
/07/
2010
02/0
1/20
1102
/07/
2011
02/0
1/20
1202
/07/
2012
02/0
1/20
1302
/07/
2013
02/0
1/20
1402
/07/
2014
02/0
1/20
1502
/07/
2015
GBGC 50 iGBGC
GBGC – Consulting, Data, Reports, Feasibility, Research
Gambling Tax: The Only Way Is UpJurisdiction Tax Change
Neuquen, Argentina Gaming tax increased from 16% to 22% in 2014
Bulgaria Lottery tax raised from 12% to 15% of sales (2011)
Massachusetts, US 5% tax on lottery and betting wins over $600
South Africa 1% levy on GGY instead of new winnings tax
Spain 20% tax on lottery prizes over €2,500
Armenia Gaming duties increased from 2013
Croatia Tax on gambling winnings increased twice, in April 2014 and then again from January 2015 for betting winnings
7
Gambling Tax: The Only Way Is Up cont.Jurisdiction Tax Change
Western Cape, South Africa Tiered casino tax increased by 2 percentage points for each rate (March 2013).
Panama Casino tax raised twice, from 10% in 2010 to 15% in 2012; machine tax raised several times from 10% in 2010 to 22% in 2014
Mexico Gaming tax up from 20% in 2008 to 30% in 2010
Finland Lottery tax on slots and casinos up from 8.25% to 10%, horse racing tax up to 10%, all from 2012
Romania Winnings and admissions tax up from 2010
Macedonia Gaming taxes increased, winnings tax introduced from 2013
UK Point of consumption tax of 15% on gross profits for remote gambling from 1 December 2014
8
Gambling Tax: The Only Way Is Up cont.Jurisdiction Tax Change
New York, US 5% tax also applied to out-of-state ADW operators 1 January 2014
Kenya 20% on gambling winnings from 2014
Ukraine War tax on lottery prizes announced in late 2014
Italy AWP and VLT tax in effect from January 2015, proposal to increase the rates in autumn 2015
Ireland Online gambling tax introduced in August 2015
Czech Republic Taxes for bookmakers proposed to increase to 23% and to 28% for slot machines from 2016
Vietnam A proposal to increase special consumption tax for casino from 30% to 35% from 2016
9
Gambling Tax: The Only Way Is Up cont.Jurisdiction Tax Change
Italy 20 to 25% Gross Profits
Belgium 11% Gross Profits
Denmark 20% Gross profits
Spain 25% Gross profits
France Sports 9.3% Horses 13.2% Poker 2% Cash Game Pot VAT 20%
Germany 5% tax amount staked for sports and lotteries.VAT at 19% for egaming.
Ireland VAT Ireland 23%
10
GBGC – Consulting, Data, Reports, Feasibility, Research
Combined Effect – Tax Increase and Recession
• Tough for smaller operators• Fewer start-ups• On-shore trying to marginalise off-shore• Complex and costly regulation• Consolidation (37 deals worth US$32bn in 18
months)
However...
Paddy Power, Betfair and Bet 365 produced shareholder value in excess of US$18bn in 10 years
Operator Concerns with Regulation
• Dormant accounts• Common standards• Suspicious transaction reporting
GBGC – Consulting, Data, Reports, Feasibility, Research
I will clog your arteries and
cause a stroke or heart attack!
GBGC – Consulting, Data, Reports, Feasibility, Research
www.gbgc.com
