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WE TAKE CARE OF YOUR ENTERTAINMENT SOCIAL REPORT 2016 2016 SOCIAL REPORT LETTER FROM THE PRESIDENT IDENTITY AND LEGALITY 08 Group Profile 14 Governance 20 Quality and Certifications 01.24 The Gaming Market SOCIAL PERFORMANCE 56 HBG Gaming and its Stakeholders 60 Legal and Responsible Gaming 67 Dialogue with Consumers 73 Collaboration with Associations 78 Dialogue with Institutions 82 Community Initiatives 02. 90 HBG Gaming Research TABLE OF CONTENTS RELATIONAL PERFORMANCE 94 Men and Women in HBG Gaming 106 The Network 108 Relationship with Suppliers 110 Environmental Commitment 03. ECONOMIC DIMENSION 116 Economic Performance 117 Contribution to the Exchequer 118 Creation of Wealth and its Distribution 120 How to Read this Report 122 GRI G4 Correlation Table 04. 124 Letter of Assurance 2016 SOCIAL REPORT LETTER FROM THE PRESIDENT 5 LETTER FROM THE PRESIDENT For HBG Gaming, “responsibility” means supporting a and Municipalities, in finding effective solutions that ensure maximum transparency and regularity for the culture of gaming intended as entertainment, where end user, while respecting all operators within the playing is a form of pleasure, heeded with awareness sector. and balance. Responsible gaming means playing should be, and remain, a form of fun and enjoyable leisure. The Social Responsibility enacted by the entire company his is the fourth year that we’ve publish provides HBG Gaming with the awareness that the Social Report, the internal document there remain, nevertheless, critical features related within which we outline our commitment, to excessive gambling by vulnerable parts of the Tas well as the many initiatives we promote in favour population. It is therefore the will of the company to of stakeholders and the entire community, in protect and support Consumers through a variety of collaboration with qualified and reliable partners. initiatives in order to encourage responsible gaming. Ours is a young, dynamic company focused on Gaming is in its very essence a fun, enjoyable pastime, contemporaneity with an aim towards the future and and should remain such. key values of transparency, respect, teamwork and action. We strongly believe in safe, legal and responsible gaming and have made the concept of leisure a pillar HBG Gaming, as an authorised dealer, has always in our strategic policies. offered legal, secure and responsible gaming and encouraged and implemented strong cooperation In fact, our strategy is based on sustainability, a strong with all institutions, particularly with the Italian focus on value systems, product innovation, business Ministry of Finance, the Italian Customs and development in an increasingly entertainment-focused Monopoly Agency, Law Enforcement, and Regions sense, as well as continuous improvement of the reporting system, as evidenced by the adoption of the GRI G4 International Guidelines (Global Reporting Initiative) to further highlight the economic, social and environmental dimension of our work. The Report focuses on the centrality of dialogue with all stakeholders, our true relational capital consistently at the core of our business model. Passion, enthusiasm, professionalism, and quality of service characterise our operation. My thanks go to the men and women of the HBG Gaming Group that make this possible. ANTONIO PORSIA President, HBG Gaming 6 2016 SOCIAL REPORT IDENTITY AND LEGALITY chapter 01. IDENTITY AND LEGALITY 2016 SOCIAL REPORT IDENTITY AND LEGALITY 7 HBG GAMING: A COMPANY FOR LEGAL AND SUSTAINABLE ENTERTAINMENT The mission of HBG Gaming is “To create safe, regulated and responsible entertainment with a positive impact on society”. The term “entertainment” means “to spend time in a pleasant manner”, a pastime, a leisure, and is related to the concept of fun and free time. This tendency to seek out forms of The modern concept of entertainment, entertainment, also initiating a closely linked to the evolution of distinction between work periods and the concept of free time, changed rest periods, has consistently been course with the industrial revolution present in man throughout his history and the emergence of wage and factory of evolution. labour. Business no longer solely followed the rhythms of agricultural For the ancient Romans, the otium and artisanal work, but rather a and negotium were two key concepts clear boundary between working time that distinguished two precise and non-working time was marked: moments of life: the Latins, in fact, working time was established and referred to otium (idleness) as the workers were “legally entitled” to time they managed to take away from a portion of time in order to engage business and commitments in order in gatherings, social integration or to dedicate it to leisure and fun cultural growth. (but also the hours they managed to devote to literature and studies - Most forms of entertainment have otia litterata), while the opposite undergone transformation throughout of fun, leisure and entertainment was the years due to numerous cultural, represented by negotium (nec-otium), social and technological changes, in other words, not idle, therefore whereas music, sports, theatre, characterised by activity, work, and dance, games (to name a few), though employment. evolved, have continued to represent the most common practises of leisure The otium itself had no negative and entertainment. connotation, in fact, particularly for the highest social classes, In the twentieth century, it signified an art, a space of entertainment became affiliated with freedom regarding work obligations, the television show, through the indispensable to attaining balance development of radio, cinema and and cultivating one’s intellect. television, which has been, for decades, one of the greatest forms In this respect, we recall that of mass amusement and entertainment, the term “School” derives from the at least in Europe and the USA. Greek σχολή (scholé), meaning rest or leisure, precisely. In fact, in Among the many forms and evolutions antiquity, this idleness applied of entertainment and leisure, gaming to those free from public affairs, has always played a prominent role political life, or war, and for this in history. reason they devoted themselves to home life or study. Gaming is in its very essence an entertainment and enjoyable pastime, Among the various forms of relaxation responding to multiple needs; and leisure, the most common was the moreover, the recreational aspect custom of attending spas, circuses or of human activity correlates to the amphitheatres, but also challenging time of rest and relaxation, which others in games of skill or gambling represents one of the most important and betting on races. needs of man. 8 2016 SOCIAL REPORT IDENTITY AND LEGALITY GROUP PROFILE 01 1 Bingo Halls at 30/06/2017 02 3,41 New Slot machines linked to its Computer Network 03 4,9 VLT installation permits 04 Casino, Poker, Skill Games, Horse-Racing and Virtual Betting through the channel www.quigioco.it 595 Million in revenue 05 to the Exchequer Permits to activate and operate the physical network of gaming establishments for horse-racing and sporting event fixed-rate and totalisator betting 6 and simulated event betting 06 15 Employees 07 2016 SOCIAL REPORT IDENTITY AND LEGALITY 9 OUR STORY HBG Gaming is a young and dynamic company that has achieved substantial goals in its sixteen years of market presence: 2000 HBG Gaming emerges on the gaming market, becoming, in a short time, a 2003 major player in the management of Bingo halls. Significantly increases its market position in the Bingo sector with the acquisition of Bingo Plus SpA. 2004 Continues its successful trajectory by being awarded the New Slot telematic network activation and 2009 management licence. Launches the SmartGames.it portal, which distributes distance gaming, including Skill Games, Poker and 2013 Online Casino Games. In 2009, HBG Gaming acquires licences to Acquires 42 licences to open install and distribute 4,798 Video establishments for sporting, horse- Lottery terminals on the Italian racing, and virtual betting. market. 2015 2016 Acquires 10 additional betting By the end of 2016, there are 54 licences. open establishments. The QuiGioco brand name emerges with an important role in the betting sector In addition to the traditional entertainment-based game offering, HBG Gaming has developed the HBG Pay product to market payment services. 10 2016 SOCIAL REPORT IDENTITY AND LEGALITY THE GROUP HBG Gaming is one of the largest Italian “To create safe, regulated and responsible entertainment with a positive impact on society”: companies in the arena of legal and safe that is the Mission chosen by HBG Gaming, a gaming, regulated by the Italian Customs and company able to contribute to society, generate value and employment, and comply with the tax revenue Monopoly Agency. earned by legal gaming. HBG Gaming is a modern and innovative company, constantly evolving, capable of handling the TTransparency in communication complexity of contemporary reality by investing in and governance, customer focus and product quality and focusing on sustainability and social responsibility. business partners, participation, sharing Human capital and technological expertise are and teamwork, proactive, timely, and the driving forces behind HBG Gaming, able to provide products to satisfy a high demand for immediate action to ensure effective and security and control as well as to ensure ultimate efficient solutions: these are the Values consumer protection and transparency of the applied regulations.