TEAMING UP GAMING MARKET MOBILE CREATIVITY - Betsson AB

“Source:EUROPEeurope is an important market for continuedgrowth for Betsson. Through itsdual strategy Betsson captures manyopportunities in Europe in both the B2Cand B2B segments. According to H2Gambling Capital, the European gamingmarket on the Internet will continueto grow in the coming year to an estimatedmarket size of EUR 13.9 billionin 2012, equivalent to an increase of 18percent from 2011. In 2015, the marketis estimated to be worth EUR 16.2 billionmeaning an additional marketgrowth of 39 percent, a compoundedannual growth rate of 8.5 percent. Theonline gaming market has actually increasedmore than 14 times since 2001and the yield per active account hasmore than doubled since 2003. Follow-– THE ONLINE GAMING MAGAZINE – Describing the marketThe online segment of the gambling industry is by far one of its fastestgrowing divisions and piquing the interest of the industry’s largest players.The European gaming market on theInternet will continue to grow in thecoming years to an estimated size ofEUR 13.9 billion in 2012.Interactive global totalgross gambling yieldBILLIONS EUR14.820.223.130.4KPMG Intl Online Gaming 2010ing the examples of the U.K. and Italy,and under pressure from the EuropeanCommission, many other countries arecurrently preparing for a controlledopening of their markets. Denmark andEstonia have been liberalizing their onlinegaming regulations and the marketsin Germany and Spain are expected toopen up soon. Italy, with a favorableregulation is estimated to grow with acompounded annual growth rate of 11.2percent going from market size of EUR1.23 billion in 2011 to EUR 1.87 billion in2015. Denmark, which has been live withits new regulated market since January2012, is expected to almost double interms of market size in 2015, going froman estimated market of EUR 285 millionin 2011 to EUR 550 million in 2015.6.92003 2006 2009 2011 2015Interactive Gross GamblingYield by Player Location 201128%16,4%9%46,6%EuropeAsia and Middle EastInteractive Gross GamblingYield by Product 20119%5%7%24%BettingPokerCasino14%BingoOtherState LotteriesNorth AmericaOther41%NORDICfor betsson, the Nordic market is veryimportant, especially for its B2C segmentwhere Betsson has a strong position.Even though the Nordic market hasbeen in the forefront for many years interms of online gaming growth, there isstill a huge upside with many new playersfinding the benefits of playing online.The Nordic online market is quite fragmentedwith each government managingits own gaming regulation. Denmarkliberalized and deregulated its gamingregulations in 2012 while the other countriesare still a bit behind in this regard.However, if the Danish model provessuccessful, it could very well become themodel for its neighbors.Betsson has grown faster than the marketin recent years and we see no reasonwhy we shouldn’t continue to grow inthe years to come. Since Betsson onlyhas a fraction of the total market, wehave a great position in view of i) theoverall underlying market growth andii) the ability to take market share fromthe competitors, mainly state-ownedmonopolies. We trust that the companyand the market for Internet gaming inthe Nordics will continue to performstrongly. The number of Internet usersand people who prefer gaming onlineinstead of offline are growing rapidly,which is a significant driving force in theindustry.Source: H2 Gambling Capital– 09 –