TEAMING UP GAMING MARKET MOBILE CREATIVITY - Betsson AB

– THE ONLINE GAMING MAGAZINE – About BetssonBusiness ModelAttracting new customers at low levels of cost and risk isfundamental to Betsson’s business model. Customers arrivevia direct registration at our sites or via affiliates that directplayers to us. Our products belong to two revenue models:Betsson playing against the customer (Casino, Sportsbook,Scratch Cards, Bingo and Games) and customers playingagainst each other (Poker). Within our partnerships, profitsharing between us and our partners is based on the gamingsurplus generated by the customers on the partner sites.Betsson acts as the bank for gaming in Casino, Sportsbook,Scratch Cards, Bingo and Games. Sportsbook is distinctfrom the other types of gaming as Betsson takes a riskwhen setting the bet based on probable outcome.Probability is assessed by professional odds compilers. Asthe customers’ bets are often concentrated on a certain result,earnings from bets fluctuate. This risk is, however, minimizedover time due to the large number of bets placed inthis gaming area. In the other gaming fields, the bets arebuilt into the actual product and, consequently, gamingprofits fluctuate to a much smaller degree.In the Poker operation, Betsson takes a commission(rake) on every pot within cash games and fees for tournaments.The size of the commission depends on the sizeof the pot or the buy-in for the tournament. Consequently,Betsson takes no direct risk in the gaming itself but, instead,levies a charge for managing the play.ProductsCASINOCasino is Betsson’s largestproduct. Casino games includetable games like Roulette and BlackJack, as well as video slots and videopoker. Our casino offers a large varietyof world-class casino games that do notrequire downloads. Games with an opportunityto win large jackpots are themost popular ones. In 2011, many of ourcustomers won the jackpot, including aNorwegian who won EUR 11.7 million on afree bet. With this win, Betsson officiallyentered the Guinness World Records forthe “The Largest Online Jackpot Payout”in the world.Live CasinoLaunched in 2010, Live Casino has provenvery popular. Customers interact with livedealers and other players around a physicalgame table and the gambling experienceis the next best thing to a “real life”experience.POKERAs for many products, localizedoffers are a key to success andPoker is no exception. Therefore, Betssonoffers poker from multiple suppliersin order to cater to specific local demand,thus offering unrivaled variety in a keyproduct. Ongame Networks, one of theworld’s largest networks with approximately18 million registered poker payers,is our main Poker destination. In additionto Ongame, Betsson offers Entraction andMicrogaming poker on selected markets.A much appreciated addition to gaming isour Poker School, which has helped manynew users to dare participate in full.SPORTSBOOKSportsbook has grown substantiallyin recent years andhas become a prioritized product forcontinued growth. It lets players wageron various events throughout the world.In addition to being a first-class product,this game constitutes a good introductionfor our customers, who often go onto try other products. Our Sportsbookoffering is among the widest and deepestin the industry, and one of the fastestand most attractive sports bettingexper iences available.SCRATCHBetsson’s scratch card offeringis among the most extensivein the industry. Betsson offers a range ofscratch cards with a jackpot win of EUR1 million to be paid out over a multi-yearperiod. In addition, more than 50 typesof lottery tickets are available. Commonto all of these scratch tickets is that theyprovide considerably better oppurtunitiesto win than traditional scratch tickets. Ourselection of scratch cards has a high payoutrate and every third card is a winningticket.BINGOWe offer more than 50 bingogames where bingo cardscan cost as little as EUR 0.05. In orderfor people to enjoy themselves, wehave Bingo hosts who chat and socializewith the players.GAMESGames cover many types ofamusement, from lotteries todice games. Players try their luck at virtualhorse and dog racing or play the Slotbox,Betsson’s variation on the classic gameof Tetris. Games attract players who havelimited time but want a little excitement.Today Betsson offers over 60 differenttypes of games.multiple supplier strategyWith Betsson’s multiple supplierstrategy, we ensure that we alwaysoffer our customers the best andmost attractive product mix. A firstclassoffering is essential for successin the industry and Betsson isworking hard to maintain its prominentposition through innovationand technology. We continuouslyadd new products and suppliers asopportunities and needs arise.– 12 –