Together we are strong

Friedrich Stickler

Lottery Expo, 24th october 2012, Miami

Overview

The Global Market and forecasts

The European Lotteries

Legal certainty

Fight against illegal operators

Tasks for the future

The Global Market

GGR Global Market 2011

Source: gbgc Interactive Gambling Report, Jan. 2011

Turnover Global Market 2011

Source: gbgc Interactive Gambling Report, Jan. 2011

GGROnline Market

Source: gbgc Interactive Gambling Report, Jan. 2011

TurnoverOnline Market

Source: gbgc Interactive Gambling Report, Jan. 2011

The European Lotteries

Key figures

Turnover 99.1 billion EUR

Gross gaming revenue 37.3 billion EUR

Average full-time employees 24.800

Indirect employment 373.000

Legal certainty

Principles for a gambling policy

Sustainable policy for gambling

Law enforcement against illegal operators

Precaution: consumer protection

Coordinated solidarity aproach

Common measures for sport integrity

state

economic area

global

The role of state lotteries and licensed operators

Benefit for societyConsumer protection(Age) VerificationExclusionMonitoringResponsible AdvertisingPreventing crime and fraud

Benefit for Society

67% of the European Lotteries Members GGR:€ 25.1 billion: € 2.5 billion to Sport

€ 4.8 billion to Other Good Causes€ 17.8 billion to Treasury

Money from state lotteries to society

Charity (social projects)

27.47 %

Culture / cultural heritage

14.82 %

Sport 36.31 %

Education / youth 2.44 %

Environment / climate change 2.17

%

Development 1.96 %

Others 7.69 %

Science / health / research

7.14 %

Policy proposals

Licences for gambling products are issued only at national level

Principle of mutual recognition does not apply

You are either legal or you are not – no grey market

Policy proposals

Responsibility for the protection of consumers lies with the Member States

Internal consistency of a Member States’ gambling policy is a national competence

Legal certainty - threats

Trend towards liberalization

Offshore operators lobby increasingly

Fight against illegal operators

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

illegal

US Offshore InteractiveGambling GGR

Source: H2 Gambling Capital

Fight against illegal operators

Competitive disadvantage for authorised operators

Offshore operators without license offer a wide range of products:LotteryCasinoPokerSports BettingNo limits for wagers and age Higher payout percentageNo taxes

Portfolio

Provider SPORTS-BETTING ROULETTE CARD

GAMESVIDEOPOKER

SLOTMACHINES POKER SKILL

GAMES LOTTO SRATCHTICKETS BINGO KENO

Bwin x x x x x x x x x x

Bet-at-home x x x x x x x

PartyGaming x x x x x x x x x

Interwetten x x x x x x x x x

888 x x x x x x x x x x x

Fight against illegal operators

IP/DNS blocking mechanismsDefining payment solutions and blocking measures for transactions

Banning illegal advertising

Setting up of black lists

Adopting law enforcement measures

global

state

economic area

Fight against illegal operators

Explore solutions for coordination between National Regulatory Authorities

Implement the “unfair operator principle”

Implementation of an Anti-Money Laundering Directive

global

state

economic area

Preservation of Sport integrity

Common definition of sports fraud as a criminal offense

Definition of sports fraud as a criminal offense under national legislation

International platform for exchange of information and management of cross border aspects

International Agency for Sports integrity

global

state

economic area

Matchfixing – Known cases

308 cases in 2011 (open sources/monitoring FDJ)

Tasks for the future

Tasks for the future

Joint lobbyingCommon gamesInternational monitoring systemInternational cooperations:e.g. corporate purchasing

Joint lobbying European Lotteries

Office in BrusselsDevelopment of position papersSubmissions to EU papersImage Folders

Common games

Powerball – highest jackpot 364 million $

Mega Millions – highest jackpot 656 million $

Euromillionen – highest jackpot 190 million €

Trend for the future

Intensify cooperation amongst Lotteries in their continents

Powerball and Mega Millions

Both

Powerball

Mega Millions

Euromillionen

• Austria• Belgium• UK• France• Ireland• Luxembourg• Portugal• Spain• Switzerland

Eurojackpot and Viking Loto