Directorate General for Regulation

Letter from Carlos Hernández Rivera Director General for Gambling Regulation

The Gambling Market in Spain The Gambling Market around the World The DGOJ in the year 2012

Economic climate Introduction Legal foundation of the DGOJ

The Gambling Market Size in Spain Europe Organisational structure of the DGOJ: Competence DGOJ gambling licenses and authorisations Offer: Operators in the Gambling Market Germany France The Netherlands Austria Greece United Kingdom LAE (National and Betting Organisation) Regulation development Machines Belgium Italy Sweden ONCE Gambling Policies Council halls Online Denmark Norway Switzerland Offer evolution Finland Advertising for Gambling Gambling Demand DGOJ Inspections America

The Gambling Sector's contribution to society USA Argentina Chile Sanctions Tax Revenue Canada Brazil Costa Rica Queries and Claims Macroeconomic impact Mexico Asia and the Pacific Responsible Gambling Statistical Appendices New Zealand Australia China Various Letter from Carlos Hernández Rivera

Director General for Gambling Regulation 1 of 4

At the Directorate General for the Regulation of Gambling, we believe that to understand the analysis of the gambling market, the objectives of the regulation and the true extent of the responsibilities entrusted to us, as well as the resources needed to develop them properly, requires knowledge and awareness of the sector's activity. This is why we have been developing and presenting our Report since 2011 in order to inform the public on how we understand and execute our Carlos Hernández Rivera mission. Therefore, I am pleased to introduce the second Director General for Gambling Regulation edition.

In presenting the 2012 Gambling Report, the DGOJ strengthens its commitment and willingness to be a socially responsible regulator. In the report, in addition to presenting economic data from the sector, we report our activity from last year, new activities launched and new commitments we have made, as well as new challenges we face.

This report, although prepared, edited and published by the DGOJ, comes from many sources (regional regulators, public and private market operators, Associations, etc.). So, I would like to extend my special thanks to all these institutions, without whose cooperation its development would not possible.

I Letter from the Director General for Gambling Regulation 2 of 4

The year 2012 was decisive for the gambling sector in Spain. On 1 June, following Law 13/2011 being passed on 27 May on gambling regulation, the procedure for granting the first licenses on a national scale was completed, with the market effectively beginning its operation on 5 June under the umbrella of our regulation. This market, as it is presented in the report, has been growing steadily since then. However, this growth is not being shared by the rest of the sector which, generally speaking, has presented a clear downward trend. There are multiple factors behind the trend which are not easily identifiable. The economic crisis that took over the Spanish economy in 2012 and the popularity loss of some of the most traditional games are just some of them.

The gambling sector in Spain is basically an on-site sector, representing approximately 84% of the sector's amounts played. The evolution of the on-site gambling industry marks the evolution of the sector as a whole. New habits among the younger population and the emergence of new technologies have led to significant changes in the sector, announcing a trend that moves gambling demand to new online channels.

The main concerns of the DGOJ is to guarantee user protection, keep minors out of the sector, avoid fostering addictions, provide legal security to operators and players, prevent illegal activity and ensure compliance with the regulation. In 2012, the DGOJ guidelines were aimed at establishing the necessary mechanisms to ensure compliance with these objectives.

From a regulatory standpoint, laws and resolutions have been passed to implement a state-regulated market, and existing regulations have been completed, clarified and developed. A total of seven resolutions addressing various issues have been published, some with a technical nature relating to the approval procedure for technical gambling systems, others with more of a legal nature regarding the identification of participants in gambling

II Letter from the Director General for Gambling Regulation 3 of 4

and the control of subjective participation bans, and others that are of a procedural nature like the approval of regulatory models for communicating data to the Registry of Individuals Involved with Gambling Operators.

It has also undertaken a process to become more flexible for certain types of games, including bingo and gambling activities to stimulate the market.

Also, the possible regulation of new online gambling games was considered in late 2012, and more specifically, cross betting and slot machines. The decision was finally taken, after a thorough process of reflection and consultation with those involved, to address this issue in 2013, where we now currently find ourselves engaged in the task.

Moreover, in the second half of 2012 the DGOJ, subject to preliminary assessment and certification of operator technical systems in the context of the procedure for granting gambling licenses, launched the definitive approval process in October which was successfully completed in March of this year.

Over the past year, it began to lay the foundation for a Responsible Gambling strategy for the sector as a whole. Gambling addiction problems occur in almost all games, and the solution to this problem, in the opinion of the DGOJ, is to consider using a common approach and lines of action aimed at the entire sector. The regulation of the gambling sector, its full integration in society and the realisation of its full potential and dynamism without doubt demand the establishment of the appropriate mechanisms to allow us to prevent and, if necessary, alleviate the inherent public health risks it carries. The hard work that we at the DGOJ have done in this regard, with the necessary and close cooperation of other Administrations, operators, users and the scientific community, has culminated in establishing the Responsible Gambling Advisory Council earlier this year, where we are developing

III. Letter from the Director General for Gambling Regulation 4 of 4

the Responsible Gambling Strategy that will hopefully allow us to achieve our regulation's major objectives.

We expect and hope that once these tasks are completed, the gambling industry can develop in the right direction for the benefit of the Administrations, operators and especially the public.

The Directorate General for the Regulation of Gambling, with the help of all of you, will continue to work in achieving these ends.

Carlos Hernández Rivera Director General for Gambling Regulation

IV Letter from the Director

The Online Gambling The Gambling Market in Spain of Gambling in Spain

Economic climate Economic climate 1 of 2 Market Size of Gambling in Spain

By amounts played By net revenue In 2012, the Spanish economy experienced a slowdown in terms by 2.2% in 2012, accelerating its decline compared growth, activity and demand, starting in the second half of to the previous year (-0.8%) due to high unemployment, Offer: Operators of the Gambling Market last year. This decline in activity is attributable to a reduction accelerating public and private sector de-leveraging, and the LAE (National Lottery and Betting Organisation) in all components of domestic demand: residential and non- fall of household disposable income, which fell by 3.8% in ONCE residential investment, private consumption and public real terms in 2012. Similarly, retail sales fell by -8.1% in real Casinos spending, which was not offset by export growth or a positive terms (-6.1% in 2011), representing an accelerated decline Bingo halls contribution to growth from external demand. and a decrease for the fifth consecutive year. Slot machines Online games

Therefore, 2012 has shown a weakness in domestic demand, Therefore, macro variables determining income availability Offer evolution caused by the high leverage of the private sector, high and private purchasing power, which directly affect the size Gambling Demand unemployment and the decline in credit, combined with fiscal of the Spanish gambling market, intensified the negative The gambling sector's consolidation and new instances of instability in the financial trend in 2012 from the previous year. of the Gambling Sector and capital markets of the Eurozone during 2012. Thus, the Tax Revenue Macroeconomic impact Spanish economy contracted by -1.4% in 2012, compared of the Gambling Sector on employ- ment with a 0.4% rebound in 2011 and a decline in GDP of -0.3% Statistical Appendices in 2010. Meanwhile, private consumption declined in real Chart The Online Gambling of Gambling around the world

The DGOJ in the year 2012 1 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Economic climate 2 of 2 Economic climate

Market Size of Gambling in Spain

By amounts played Spain: private consumption and GDP By net revenue Offer: Operators of the Gambling Market GDP LAE (National Lottery and Betting Private consumption Organisation) Retail sales ONCE Casinos Year-on-year growth % Source: developed from INE (National Statistics Institute) data Bingo halls

Slot machines 6 6 Online games

4 4 Offer evolution

Gambling Demand 2 2 The gambling sector's of the Gambling Sector 0 0 Tax Revenue

-2 -2 Macroeconomic impact of the Gambling Sector on employ- ment -4 -4 Statistical Appendices

-6 -6 The Online Gambling -8 -8 of Gambling around the world

The DGOJ in the year Jun. 12 Jun. 11 Jun. 10 Jun. 09 Jun. 08 Jun. 07 Sep. 12 Sep. 11 Sep. 10 Sep. 09 Sep. 08 Sep. 07 Dec. 12 Dec. 11 Dec. 10 Dec. 09 Dec. 08 Dec. 07 Dec. 06 Mar. 12 Mar. Mar. 11 Mar. Mar. 10 Mar. Mar. 09 Mar. Mar. 08 Mar. Mar. 07 Mar. 2012 2 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain The Gambling Market Size in Spain by amounts played 1 of 2 Economic climate

Market Size of Gambling in Spain

In 2012, the size of the gambling market in Spain in terms By amounts played of amounts played was 25,988 million euros, 1.1% less than By net revenue Gambling Market in Spain 2012 by operator: 2011. As for gambling operator distribution, the amounts % of amounts played Offer: Operators played in 2012 were distributed as follows: 36% from the of the Gambling Market LAE (National Lottery and Betting National Lottery and Betting Organisation, 7% from ONCE, 33% Online games* Organisation) Betting shops 2.728 ONCE from type B machines, 7% from bingo halls, 6% from casinos, 245 10% 1% Casinos 1% from betting shops and 11% from online games1. Bingo halls Therefore, we can see that in 2012 the on-site gambling sector LAE Slot machines Online games continues to dominate the Gambling Market in Spain led by the Type B ma- 9.253 36% Offer evolution National Lottery and Betting Organisation's official games, chines 8.515 Gambling Demand and consolidates an upward trend in the growth of the online 33% gambling sector starting from modest amounts, especially The gambling sector's of the Gambling Sector Bingo halls highlighting the decline in the on-site gambling sector. ONCE Tax Revenue 1.842 Casinos 1.914 7% 7% Macroeconomic impact 1.490 of the Gambling Sector on employ- 6% ment * Includes data from June-December 2012 Statistical Appendices

1. In terms of online gambling and the effects of the for the purposes of homogeneity in the 2012 data, sports DGOJ). Also for the purposes of homogeneity in the data, The Online Gambling series' homogeneity for 2011 and 2012, the data for June pools are not considered in the calculation of 2012 (and given the different breakdown by online gambling games of Gambling around the to December has been available (i.e. for 2011: since the were not considered in 2011), as they are not actually available until 2012 and what was offered subsequently world gambling law was passed on 27 May, 2011; and for 2012: online gambling, although they were affected by the tax with the regulation of online gambling in 2012, some of from June 2012, the month when regulated operations imposed by that law (and they were included as part the items are grouped by type of game for the 2011 data. began in the online gambling market in Spain). Moreover, of the online market in the 2011 Annual Report of the The DGOJ in the year 2012 3 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain The Gambling Market Size in Spain by amounts played 2 of 2 Economic climate

Market Size of Gambling in Spain

Both in terms of amounts played and gross gaming revenue, Meanwhile, the boost in the emergence of online operators over By amounts played the gambling market size in Spain decreased in 2012, as it has the last year, with growing numbers in the volume of amounts By net revenue done since 2008. As in the previous year, this is primarily due to played at about 70%, has helped to partially cushion the fall in Offer: Operators the impact of the duration and intensity of the economic crisis demand for other gambling operators. of the Gambling Market LAE (National Lottery and Betting on disposable income and the level of household consumption. Organisation)

ONCE

Casinos

Bingo halls Spain: gambling market and macro evolution Amounts played (on-site) Slot machines Online games % of variation 1997-2012 Disposable income in real terms Retail sales in real terms Offer evolution Rate of variation % including online in 2011 and 2012 Amounts played Gambling Demand 10 10 The gambling sector's of the Gambling Sector 5 5 Tax Revenue

Macroeconomic impact 0 0 of the Gambling Sector on employ- ment -5 -5 Statistical Appendices

-10 -10 The Online Gambling of Gambling around the -15 -15 world 97 98 99 2000 01 02 03 04 05 06 07 08 09 2010 11 12 Source: developed from INE (National Statistics Institute) and DGOJ data The DGOJ in the year 2012 4 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain The Gambling Market Size in Spain by net revenue 1 of 4 Economic climate

Market Size of Gambling in Spain

In terms of net gaming revenue (defined as the amounts was distributed as follows: 44% from the National Lottery and By amounts played played minus the amount of the prizes awarded by operators), Betting Organisation (LAE), 12% from ONCE, 32% from type By net revenue the size of the gambling market in Spain in 2012 was at B machines, 7% from bingo halls, 4% from casinos, 0.6% from Offer: Operators 8,674 million euros, -4.5% lower than the previous year. As betting shops and 1.4% from online games. of the Gambling Market LAE (National Lottery and Betting for gambling operator distribution, gaming revenue in 2012 Organisation)

ONCE

Casinos

Bingo halls

Slot machines

Gambling Market in Spain 2012 by operator: Online games % of gaming revenue Offer evolution

Betting shops Online games* Gambling Demand 48 117 0.6% 1.4% The gambling sector's of the Gambling Sector Tax Revenue Type B machines Macroeconomic impact LAE of the Gambling Sector on employ- 2.753 3.793 ment 31.7% 43.7% Statistical Appendices ONCE 1.018 Bingo halls The Online Gambling 11.7% of Gambling around the 637 Casinos 7.3% 307 world 3.5% The DGOJ in the year * Includes data from June-December 2012 2012 5 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain The Gambling Market Size in Spain by net revenue 2 of 4 Economic climate

Market Size of Gambling in Spain

By type of game in 2012, and on-site betting in casinos) at 33%; table games at 2%; bingo halls and By amounts played (including LAE and ONCE) represented 56% of the net gaming betting shops at 8%; and online gambling at about 1.4%. By net revenue

2 revenue; with type B and type C machines (the latter located Offer: Operators of the Gambling Market

LAE (National Lottery and Betting Organisation)

ONCE Gambling Market in Spain 2012 by game type: Casinos Bingo halls % of gaming revenue Slot machines Online gambling* 117 Online games 1.4% Offer evolution

Gambling Demand Machines Lottery winnings 2.858 The gambling sector's on-site of the Gambling Sector 33.0% 4.811 Tax Revenue 55.5% Macroeconomic impact of the Gambling Sector on employ- Bingo and ment Betting shops 685 Casino gambling Statistical Appendices 7.9% (table) 202 The Online Gambling 2.3% * Includes data from June-December 2012 of Gambling around the world

2. Type B machines are those that, in exchange for the price of the game, give the user playing time, and eventually, as set in the game programme, a cash prize, according to Art. 5 of Royal Decree 2110/1998, of 2 October, being adapted where appropriate to the provisions of specific regulations of each Autonomous Region The DGOJ in the year 2012 6 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain The Gambling Market Size in Spain by net revenue 3 of 4 Economic climate

Market Size of Gambling in Spain

If online gambling is not considered, declines in terms of decline in net revenue, as has been happening since 2008: By amounts played aggregate amounts played in Spain in 2012 would be close to falling by 12.4%, 9.6% and 9.0% respectively, while net revenue By net revenue

6%, where this drop is reduced to 1.1% with the inclusion of for type B machines experienced no setbacks in 2012, despite Offer: Operators online gambling. Therefore, privately managed on-site games the decline in amounts played. of the Gambling Market LAE (National Lottery and Betting like bingo, casinos and machines have been affected by the Organisation)

ONCE

Casinos

Bingo halls Evolution of the gambling market in Spain by operator Slot machines Online games in terms of net revenue 1997-2012 Offer evolution Million euros Gambling Demand 10,000 10,000 The gambling sector's of the Gambling Sector 8,000 8,000 Online games Tax Revenue

Type B machines Macroeconomic impact 6,000 6,000 of the Gambling Sector on employ- Bingo and ment 4,000 4,000 Betting shops Statistical Appendices Casinos 2,000 2,000 ONCE The Online Gambling of Gambling around the 0 0 Lottery winnings world 97 98 99 2000 01 02 03 04 05 06 07 08 09 2010 11 12 The DGOJ in the year 2012 7 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain The Gambling Market Size in Spain by net revenue 4 of 4 Economic climate

Market Size of Gambling in Spain

On the other hand, the net revenue of lotteries and betting By amounts played games also experienced a decline in 2012, as was the case By net revenue with LAE and ONCE betting games where net revenue Offer: Operators decreased by 0.7% and 3.9%, respectively. of the Gambling Market LAE (National Lottery and Betting Organisation)

ONCE

Casinos

Bingo halls Evolution of the gambling market in Spain by game type: Slot machines Online games in terms of net revenue 1997-2012 Offer evolution Million euros Gambling Demand 10,000 10,000 The gambling sector's of the Gambling Sector 8,000 8,000 Tax Revenue

Online games Macroeconomic impact 6,000 6,000 of the Gambling Sector on employ- Casinos (table games) ment 4,000 4,000 Statistical Appendices Machines 2,000 2,000 Bingo and The Online Gambling betting shops of Gambling around the 0 0 Lottery winnings world 97 98 99 2000 01 02 03 04 05 06 07 08 09 2010 11 12 The DGOJ in the year 2012 8 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 7 Market Size LAE, National Lottery and Betting Organisation 1 of Gambling in Spain

By amounts played By net revenue

The operator LAE (National Lottery and Betting Organisation) while net gaming revenue decreased by 0.7% to 3,793 million Offer: Operators of the Gambling Market had sales (amounts played) of 9,253 million euros in 2012, euros, and claimed prizes decreased by 7.5% to 5,460 million LAE (National Lottery and Betting 4.8% less than the amount registered from the previous year, euros. Organisation) ONCE

Casinos

Bingo halls

Slot machines

Online games LAE: evolution of net sales and revenue 1997-2012 Offer evolution Million euros Gambling Demand 10,000 9,253 10,000 The gambling sector's of the Gambling Sector 8,000 8,000 Tax Revenue

Macroeconomic impact 6,000 6,000 of the Gambling Sector on employ- 3,793 ment Amounts played 4,000 4,000 Statistical Appendices Net revenue 2,000 2,000 Amounts played The Online Gambling minus prizes of Gambling around the 0 5,460 0 Claimed prizes world 97 98 99 2000 01 02 03 04 05 06 07 08 09 2010 11 12 The DGOJ in the year 2012 9 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 7 Market Size LAE (National Lottery and Betting Organisation) 2 of Gambling in Spain

By amounts played By net revenue

Furthermore, the production and marketing costs for LAE year), which, when taking LAE sales into account, resulted in Offer: Operators of the Gambling Market (including claimed prizes) in 2012 stood at 5,596 million a gross profit of 3,598 million euros during the period, 5.8% LAE (National Lottery and Betting euros (down -5.4% from 2011), with advertising and less than in 2011. Organisation) ONCE sponsorship costs of 60 million euros (2.9% higher than last Casinos

Bingo halls

LAE: evolution of gross sales and revenue 2010-2012 Slot machines Million euros Online games Offer evolution

Gambling Demand 10,000 9,592 9,722 9,235 10,000 The gambling sector's of the Gambling Sector 8,000 8,000 Sales. Amounts played Tax Revenue 3,601 3,747 Macroeconomic impact 6,000 58 58 3,598 6,000 of the Gambling Sector on employ- 60 ment Gross profit during the period 4,000 4,000 Statistical Appendices Advertising and sponsorship costs 2,000 2,000 The Online Gambling of Gambling around the 0 5,933 5,917 5,596 0 Production and marketing costs world 2010 2011 2012 The DGOJ in the year 2012 10 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 7 Market Size LAE (National Lottery and Betting Organisation) 3 of Gambling in Spain

By amounts played By net revenue

By type of game, LAE's net revenue was 3,793 million euros, Bonoloto, 249.2 million euros (7.0%); Euromillones, 801.8 Offer: Operators of the Gambling Market distributed in: National Lottery, 1,695.2 million euros (45% million euros (21%); and Pools, 166.8 million euros (5%). LAE (National Lottery and Betting of the total); Primitiva Lottery, 874.9 million euros (23%); Organisation) ONCE

Casinos

Bingo halls

LAE: net revenue 2011-2012 Slot machines Million euros Online games Offer evolution

Gambling Demand 2,000 2,000 1,743.3 The gambling sector's 1,695.2 of the Gambling Sector 1,600 1,600 Tax Revenue

Macroeconomic impact 1,200 1,200 of the Gambling Sector on employ- ment 895.8 874.9 800 801.8 800 734.8 Statistical Appendices

400 400 2011 266.7 249.2 The Online Gambling 169.3 166.8 of Gambling around the 0 0 2012 world National Primitiva Bonoloto Euromillones Pools Lottery Lottery The DGOJ in the year 2012 11 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 7 Market Size LAE (National Lottery and Betting Organisation) 4 of Gambling in Spain

By amounts played By net revenue

A similar distribution to game type can be seen in amounts played. Offer: Operators of the Gambling Market

LAE (National Lottery and Betting Organisation)

ONCE

Casinos

Bingo halls

LAE: evolution of amounts played by game type 2011-2012 Slot machines Million euros Online games Offer evolution

Gambling Demand 6,000 6,000 5,268 The gambling sector's 5,000 5,016 5,000 of the Gambling Sector Tax Revenue

4,000 4,000 Macroeconomic impact of the Gambling Sector on employ- 3,000 3,000 ment

Statistical Appendices 2,000 1,991 1,847 2,000 1,470 1,457 2011 1,000 1,000 The Online Gambling 593 554 391 371 of Gambling around the 0 0 2012 world National Primitiva Bonoloto Euromillones Pools Lottery Lottery The DGOJ in the year 2012 12 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 7 Market Size LAE (National Lottery and Betting Organisation) 5 of Gambling in Spain

By amounts played By net revenue

As for the LAE sales distribution by Autonomous Region, the Offer: Operators of the Gambling Market graph below shows that the main LAE sales are concentrated LAE (National Lottery and Betting LAE: sales by Autonomous Region in Madrid, Catalonia, Andalusia and the Valencian Community, Organisation) ONCE 2011-2012 which in 2012 accounted for about 56% of LAE's total sales. Million euros Casinos Bingo halls

Slot machines 1,400 1,389 1,340 Online games 1,294 Offer evolution 1,200 1,124 Gambling Demand 2011 1,000 The gambling sector's of the Gambling Sector 800 2012 Tax Revenue 678 Macroeconomic impact 600 600 of the Gambling Sector on employ- 533 504 ment 400 411 400 377 Statistical Appendices 293 281 271 200 185 177 200 122 108 The Online Gambling 76 72 of Gambling around the 0 11 9 0 world Ceuta -Leon Galicia Melilla Castile Murcia Madrid Aragon The DGOJ in the year Castile- La Rioja Navarre Asturias Catalonia Cantabria Valencian Andalusia 2012 La Mancha Community Extremadura Canary Islands Internet Channel 13 Balearic Islands Basque Country Betting Organisation) LAE (National Lottery and Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 7 Market Size LAE (National Lottery and Betting Organisation) 6 of Gambling in Spain

By amounts played By net revenue

Regarding the LAE distribution channel, in 2012 the number than in 2011, a slight increase for the second consecutive Offer: Operators of the Gambling Market of LAE points of sale stood at 10,504, which is 5 points more year after falling between 2006 and 2010. LAE (National Lottery and Betting Organisation)

ONCE

Casinos

LAE: number of points of sale 2002-2012 Variation Bingo halls Number of establishments Slot machines Online games

Offer evolution 11,000 11,000 10,931 10,935 Gambling Demand 10,900 10,885 10,900 The gambling sector's 10,790 of the Gambling Sector 10,800 10,805 10,800 10,730 Tax Revenue Macroeconomic impact 10,700 10,700 of the Gambling Sector on employ- 10,646 ment 10,600 10,600 Statistical Appendices 10,534 10,504 10,500 10,469 10,499 10,500 The Online Gambling of Gambling around the 10,400 10,400 world 02 03 04 05 06 07 08 09 2010 11 12 The DGOJ in the year 2012 14 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 7 Market Size LAE (National Lottery and Betting Organisation) 7 of Gambling in Spain

By amounts played By net revenue

Meanwhile, net revenue from LAE sales establishments reached 361,129 euros, representing a decrease of 0.8% over the previous Offer: Operators of the Gambling Market year. LAE (National Lottery and Betting Organisation)

ONCE

Casinos

LAE: net revenue by point of sale 2002-2012 Variation Bingo halls Euros. Net gross revenue / point of sale Slot machines Online games

Offer evolution 400,000 400,000

380,000 380,000 Gambling Demand 363,979 361,129 360,000 351,292 360,000 The gambling sector's 345,190 343,301 340,000 337,015 340,000 of the Gambling Sector 321,969 314,822 Tax Revenue 320,000 310,105 320,000 Macroeconomic impact 300,000 300,000 of the Gambling Sector on employ- 277,387 ment 280,000 280,000 254,043 260,000 260,000 Statistical Appendices

240,000 240,000

220,000 220,000 The Online Gambling of Gambling around the 200,000 200,000 world 02 03 04 05 06 07 08 09 2010 11 12 The DGOJ in the year 2012 15 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 7 Market Size ONCE, Spanish National Organisation for the Blind 1 of Gambling in Spain

By amounts played By net revenue

The operator ONCE had sales (amounts played) of 1,914 and claimed prizes decreased by 1.0% to 896 million euros. Offer: Operators of the Gambling Market million euros in 2012, 2.2% less than 2011, while net LAE (National Lottery and Betting gaming revenue (NGR) fell by 3.2% to 1,018 million euros, Organisation) ONCE

Casinos

Bingo halls

Slot machines

Online games ONCE: evolution of net sales and revenue 1997-2012 Offer evolution Million euros Gambling Demand 2,500 2,500 The gambling sector's of the Gambling Sector 2,000 1,914 2,000 Tax Revenue

Macroeconomic impact 1,500 1,500 of the Gambling Sector on employ- ment Amounts played 1,000 1,000 1,018 Statistical Appendices Net revenue 500 500 Amounts played The Online Gambling minus prizes of Gambling around the 0 896 0 Claimed prizes world 97 98 99 2000 01 02 03 04 05 06 07 08 09 2010 11 12 The DGOJ in the year 2012 16 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 7 Market Size ONCE 2 of Gambling in Spain

By amounts played By net revenue

For its part, ONCE's production and marketing costs in 2012 contribution for game prize stability. Additionally, we must Offer: Operators of the Gambling Market stood at 1,521 million euros, including: claimed prizes (896 consider advertising and sponsorship costs (42 million euros) LAE (National Lottery and Betting million euros), sales staff expenses (498 million euros), and other operating expenses (121 million euros), which Organisation) ONCE other expenses attributable to games, commissions or fund resulted in a game operating margin of 230 million euros for Casinos

ONCE, 18% less than the previous year. Bingo halls ONCE: sales, costs and profitability 2011-2012 Slot machines Million euros Online games Offer evolution

Gambling Demand 2,500 2,500 Sales. Amounts played The gambling sector's of the Gambling Sector 2,000 1,956 1,914 2,000 Net game operating margin Tax Revenue 282 230 120 121 Macroeconomic impact 1,500 1,500 of the Gambling Sector on employ- 42 42 ment Other costs 1,000 1,000 Statistical Appendices Advertising and marketing 500 500 The Online Gambling of Gambling around the 0 1,512 1,521 0 Production and marketing costs world 2011 2012 The DGOJ in the year 2012 17 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 7 Market Size ONCE 3 of Gambling in Spain

By amounts played By net revenue

By game type, the net gaming revenue (NGR) of ONCE of 1,018 Coupon, 77 million euros (8%) Extraordinary Draws, 95 million Offer: Operators of the Gambling Market million euros is distributed in : Daily Coupon, 297 million euros euros (9%) and other games, 165 million euros (17%). LAE (National Lottery and Betting (29% of total), the Cuponazo, 384 million (38%), the Weekend Organisation) ONCE

Casinos

Bingo halls

ONCE: evolution of net revenue by game type 2011-2012 2011 Slot machines Million euros 2012 Online games Offer evolution

1,051 Gambling Demand 1,000 1,018 1,000 902 The gambling sector's 853 of the Gambling Sector 800 800 Tax Revenue

Macroeconomic impact 600 600 of the Gambling Sector on employ- ment 400 384 400 377 Statistical Appendices 327 297 200 200 124 129 The Online Gambling 96 77 102 95 26 36 of Gambling around the 0 0 world Daily Cuponazo Weekend Extraor- Total Active Instant Total dinary Coupon Game Lottery Gambling The DGOJ in the year draws 2012 18 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 7 Market Size ONCE 4 of Gambling in Spain

By amounts played By net revenue

A similar distribution to game type can be seen in amounts played. Offer: Operators of the Gambling Market

LAE (National Lottery and Betting Organisation)

ONCE

Casinos

Bingo halls

ONCE: evolution of sales (amounts played) 2011-2012 2011 Slot machines Million euros 2012 Online games Offer evolution

Gambling Demand 2,500 2,500 The gambling sector's of the Gambling Sector 2,000 1,956 1,914 2,000 Tax Revenue

1,612 Macroeconomic impact 1,500 1,529 1,500 of the Gambling Sector on employ- ment 1,000 1,000 Statistical Appendices 619 574 626 600 500 500 283 300 The Online Gambling 210 193 158 162 61 85 of Gambling around the 0 0 world Daily Cuponazo Weekend Extraor- Total Active Instant Total dinary Coupon Game Lottery Gambling The DGOJ in the year draws 2012 19 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 7 Market Size ONCE 5 of Gambling in Spain

By amounts played By net revenue

As for distribution of ONCE net gaming revenue (NGR) Offer: Operators of the Gambling Market by Autonomous Region, the following chart shows that LAE (National Lottery and Betting ONCE: net revenue by Autonomous Region ONCE's major sales are concentrated in Andalusia, Valencian Organisation) ONCE 2011-2012 Community, Catalonia and Madrid, which in 2012 accounted Million euros Casinos for more than 60% of ONCE's total revenue. Bingo halls

Slot machines

Online games 300 300 Offer evolution 2011 250 244 Gambling Demand

200 2012 The gambling sector's of the Gambling Sector

150 153 151 150 Tax Revenue 137 135 Macroeconomic impact of the Gambling Sector on employ- 100 100 ment 87 89 67 57 Statistical Appendices 50 52 50 46 42 39 38 44 34 35 33 32 36 31 23 28 25 28 23 16 11 11 9 0 6 6 2 1 1 0 The Online Gambling of Gambling around the world -Leon Galicia Castile Murcia Madrid Aragon Castile- La Rioja Navarre Internet Asturias Valencian Valencian Catalonia Cantabria Andalusia Community and others La Mancha The DGOJ in the year Extremadura

Canary Islands 2012 Balearic Islands Basque Country 20 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 7 Market Size ONCE 6 of Gambling in Spain

By amounts played By net revenue

Regarding ONCE's commercial side, in 2012 the number of ONCE sales agents stood at 19,818, a 1.3% decrease over the Offer: Operators of the Gambling Market previous year. LAE (National Lottery and Betting Organisation)

ONCE

Casinos

Bingo halls

ONCE: number of sales agents 2010-2012 Slot machines Number of establishments Online games Offer evolution 20,540 20,500 20,500 Gambling Demand 20,073 20,000 19,818 20,000 The gambling sector's of the Gambling Sector Tax Revenue 19,500 19,500 Macroeconomic impact of the Gambling Sector on employ- 19,000 19,000 ment

Statistical Appendices 18,500 18,500 Evolution 18,000 18,000 The Online Gambling of Gambling around the 0 0 Number of sales agents world 2010 2011 2012 The DGOJ in the year 2012 21 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 7 Market Size ONCE 7 of Gambling in Spain

By amounts played By net revenue

Meanwhile, net gaming revenue (NGR) by sales agent reached 51,352 euros, 2.0% less than in 2012. Offer: Operators of the Gambling Market

LAE (National Lottery and Betting Organisation)

ONCE

Casinos

Bingo halls

ONCE: net gaming revenue by sales agent 2010-2012 Slot machines Euros Online games Offer evolution

52,383 51,352 Gambling Demand 50,000 50,000 45,993 The gambling sector's of the Gambling Sector 40,000 40,000 Tax Revenue

Macroeconomic impact 30,000 30,000 of the Gambling Sector on employ- ment 20,000 20,000 Statistical Appendices Evolution 10,000 10,000 The Online Gambling of Gambling around the 0 0 Net revenue by agent world 2010 2011 2012 The DGOJ in the year 2012 22 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 10 Market Size Casinos 1 of Gambling in Spain

By amounts played By net revenue

Casinos had sales (amounts played) of 1,490 million euros in This reverse trend is common to other privately run on-site Offer: Operators of the Gambling Market 2012, 7.6% less than 2011, while the net gaming revenue (NGR) gambling games such as bingo and machines, and is explained, LAE (National Lottery and Betting fell by 9.6% to 307 million euros, and claimed prizes decreased as mentioned previously, by the intensity and duration of the Organisation) by 7.0% to 1,183 million euros. In 2012, the trend of the last five decline in disposable income and household consumption since ONCE years of a decline in revenue and the amounts played in casinos 2008, and by the appearance of online gambling, which to a large Casinos was confirmed. extent is a direct competitor of privately run on-site gambling Bingo halls

(casinos, bingo halls and machines). Slot machines

Online games Casinos: evolution of net sales and revenue 1997-2012 Offer evolution

Million euros Gambling Demand 2,500 2,500 The gambling sector's of the Gambling Sector 2,000 2,000 Tax Revenue

Macroeconomic impact 1,500 1,500 of the Gambling Sector on employ- ment Amounts played 1,000 1,000 Statistical Appendices Net revenue 500 500 Amounts played The Online Gambling minus prizes of Gambling around the 0 0 Claimed prizes world 97 98 99 2000 01 02 03 04 05 06 07 08 09 2010 11 12 The DGOJ in the year 2012 23 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 10 Market Size Casinos 2 of Gambling in Spain

By amounts played By net revenue

In 2012 the number stood at 39 casinos (+4 annex Offer: Operators of the Gambling Market establishments) as in the previous period (the distribution LAE (National Lottery and Betting of these casinos by Autonomous Region is provided in the Organisation) ONCE appendix). After peaking in 2008 , the number of casinos fell Casinos to the current figure. Bingo halls

Slot machines

Online games Casinos: evolution of the number of casinos 2001-2012 Offer evolution Number of casinos Gambling Demand 45 45 The gambling sector's 40 41 of the Gambling Sector 40 39 39 39 39 39 40 37 Tax Revenue Macroeconomic impact 35 35 33 of the Gambling Sector on employ- 32 32 ment 30 30 30 Statistical Appendices Evolution 25 25 The Online Gambling of Gambling around the 20 20 Number of casinos world 01 02 03 04 05 06 07 08 09 2010 11 12 The DGOJ in the year 2012 24 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 10 Market Size Casinos 3 of Gambling in Spain

By amounts played By net revenue

Meanwhile, the net gaming revenue per casino has also Offer: Operators of the Gambling Market experienced a steady decline since 2006 until today. In 2012, LAE (National Lottery and Betting net gaming revenue totalled 4.4 million euros per casino Organisation) ONCE compared to 5.1 million in 2011 and 5.8 million in 2010. Casinos

Bingo halls

Slot machines

Online games Casinos: net revenue per casino 2001-2012 Offer evolution Million euros Gambling Demand 9 8.9 9 8.6 8.5 The gambling sector's 8.1 8.2 8.3 8 7.8 8 of the Gambling Sector 7.0 Tax Revenue 7 7 Macroeconomic impact 6.3 of the Gambling Sector on employ- 6 5.8 6 ment 5.1 5 5 Statistical Appendices 4.4 Evolution 4 4 The Online Gambling of Gambling around the 3 3 Net revenue world 01 02 03 04 05 06 07 08 09 2010 11 12 The DGOJ in the year 2012 25 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 10 Market Size Casinos 4 of Gambling in Spain

By amounts played By net revenue

The downward trend of the last four years, similar to the In 2012, these revenue stood at 171 and 105 million euros, Offer: Operators of the Gambling Market overall decline in net revenue from casinos, is observed in respectively, representing a decrease from 2011 of 13.1% and LAE (National Lottery and Betting the main revenue sources: revenue and type C 1.3% respectively. Organisation) ONCE machine revenue. Casinos

Bingo halls

Slot machines

Online games Casinos: evolution by type of average revenue 1998-2012 Offer evolution Million euros Gambling Demand 600 600 The gambling sector's 500 500 of the Gambling Sector Type C machines Tax Revenue 400 400 Macroeconomic impact of the Gambling Sector on employ- ment 300 300 Admission

200 200 Statistical Appendices Tips 100 100 The Online Gambling of Gambling around the 0 0 Table games world 98 99 2000 01 02 03 04 05 06 07 08 09 2010 11 12 The DGOJ in the year 2012 26 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 10 Market Size Casinos 5 of Gambling in Spain

By amounts played By net revenue

These declines are explained by both a decrease in the the 78 euros of previous years. Also, table game revenue Offer: Operators of the Gambling Market number of casino visitors and revenue per visitor, which per visitor and tip revenue per visitor saw declines in 2012 LAE (National Lottery and Betting in 2012 fell to yearly average rates of around 5.6% and compared to the increase in revenue per visitor for type C Organisation) ONCE 13.1%, so that the number of casino visits in 2012 stood at machines. Casinos

4,131,144 and revenue per visitor at 74 euros compared to Bingo halls

Slot machines

Online games Casinos: evolution of net revenue per visitor 1998-2012 Offer evolution Euros Gambling Demand 200 200 The gambling sector's 180 180 of the Gambling Sector 160 160 Tax Revenue 140 140 Total revenue per visitor Macroeconomic impact 120 120 of the Gambling Sector on employ- ment 100 100 Type C machine revenue 80 80 Statistical Appendices 60 60 Tip revenue 40 40 The Online Gambling 20 20 of Gambling around the 0 0 Gaming revenue world 98 99 2000 01 02 03 04 05 06 07 08 09 2010 11 12 The DGOJ in the year 2012 27 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 10 Market Size Casinos 6 of Gambling in Spain

By amounts played By net revenue

In terms of the evolution of gaming revenue from casinos, (approximated by the net sales of chips for table games or Offer: Operators of the Gambling Market we can observe a sharp drop in the amounts played DROP), which decreased by 10.6% in 2012. LAE (National Lottery and Betting Organisation)

ONCE

Casinos

Bingo halls

Slot machines

Online games Casinos: evolution of net sales and revenue for type C machines 1998-2012 Offer evolution Million euros Gambling Demand 1,000 1,000 The gambling sector's 900 900 of the Gambling Sector 800 800 Tax Revenue 700 700 Macroeconomic impact 600 600 of the Gambling Sector on employ- ment 500 500 Amounts played 400 400 Statistical Appendices 300 300 Net revenue 200 200 (amounts played The Online Gambling 100 100 minus prizes) of Gambling around the 0 0 Claimed prizes world 98 99 2000 01 02 03 04 05 06 07 08 09 2010 11 12 The DGOJ in the year 2012 28 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 10 Market Size Casinos 7 of Gambling in Spain

By amounts played By net revenue

A similar situation can be observed in the case of net revenue for table games, with 13.1% less than the previous year. Offer: Operators of the Gambling Market

LAE (National Lottery and Betting Organisation)

ONCE

Casinos

Bingo halls

Slot machines

Online games Casinos: evolution of net sales and revenue for table games 1998-2012 Offer evolution Million euros Gambling Demand 2,000 2,000 The gambling sector's 1,800 1,800 of the Gambling Sector 1,600 1,600 Tax Revenue 1,400 1,400 Amounts played (DROP) Macroeconomic impact 1,200 1,200 of the Gambling Sector on employ- ment 1,000 1,000 Tip revenue 800 800 Statistical Appendices 600 600 Gaming revenue 400 400 The Online Gambling 200 200 of Gambling around the 0 0 Claimed prizes world 98 99 2000 01 02 03 04 05 06 07 08 09 2010 11 12 The DGOJ in the year 2012 29 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 10 Market Size Casinos 8 of Gambling in Spain

By amounts played By net revenue

By contrast, net revenue in type C3 machines has not seen such a sharp decline. The number of type C machines decreased to Offer: Operators of the Gambling Market 2,352 machines. LAE (National Lottery and Betting Organisation)

ONCE 3. Type C machines are slot machines that, in exchange for a particular bet, grant the user use or playing time and, eventually, a prize dependent on chance. These can only be installed in casinos according to Art. 5 of Royal Decree 2110/1998, of October 2. Casinos

Bingo halls

Slot machines

Online games Casinos: evolution of the number of type C machines, 1998-2012 Offer evolution Number of type C machines Gambling Demand

2,500 2,379 2,411 2,500 2,291 2,352 2,254 2,252 2,281 2,266 The gambling sector's of the Gambling Sector 1,956 2,000 1,901 1,902 1,843 2,000 1,879 Tax Revenue 1,712 Macroeconomic impact 1,500 1,496 1,500 of the Gambling Sector on employ- ment 1,000 1,000 Statistical Appendices Evolution 500 500 The Online Gambling of Gambling around the 0 0 Number of type C machines world 98 99 2000 01 02 03 04 05 06 07 08 09 2010 11 12 The DGOJ in the year 2012 30 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 10 Market Size Casinos 9 of Gambling in Spain

By amounts played By net revenue

In 2012, type C machine net revenue increased by 1.3% bringing type C machine net revenue in 2012 to 44,678 euros, compared Offer: Operators of the Gambling Market to 44,173 euros in 2011. LAE (National Lottery and Betting Organisation)

ONCE

Casinos

Bingo halls

Slot machines

Online games Casinos: evolution of type C machine net revenue, 2001-2012 Offer evolution Euros Gambling Demand 80,000 80,000 The gambling sector's 70,000 66,016 66,765 70,000 of the Gambling Sector 64,177 62,641 61,413 59,549 58,067 60,000 55,426 60,000 Tax Revenue 50,615 50,000 50,000 Macroeconomic impact 45,279 44,173 44,678 of the Gambling Sector on employ- 40,000 39,458 40,000 ment 32,587 30,624 30,000 30,000 Statistical Appendices 20,000 20,000 Evolution 10,000 10,000 The Online Gambling of Gambling around the 0 0 Euros / type C machine world 98 99 2000 01 02 03 04 05 06 07 08 09 2010 11 12 The DGOJ in the year 2012 31 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 10 Market Size Casinos 10 of Gambling in Spain

By amounts played By net revenue

As for geographical distribution, casino revenue fell in all Offer: Operators of the Gambling Market Autonomous Regions. The regions of Catalonia, Madrid, LAE (National Lottery and Betting Casinos: net revenue Valencia, Andalusia and Canary Islands concentrated 77% of Organisation) ONCE by Autonomous Region 2011-2012 total revenue. Million euros Casinos Bingo halls

Slot machines

92 Online games 90 84 Offer evolution 80 2011 Gambling Demand 70 63 60 2012 The gambling sector's 55 of the Gambling Sector 50 Tax Revenue 44 40 Macroeconomic impact 36 37 34 of the Gambling Sector on employ- 30 28 28 30 ment 22 20 20 17 Statistical Appendices 15 13 10 8 10 7 7 6 7 6 5 4 5 4 4 3 3 3 0 2 2 1 1 1 1 0 The Online Gambling of Gambling around the world Ceuta -Leon Galicia Melilla Castile Murcia Madrid Aragon Valencia Valencia La Rioja Asturias Region of Region Catalonia Cantabria Andalusia The DGOJ in the year Extremadura 2012 Canary Islands Balearic Islands Basque Country 32 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 4 Market Size Bingo halls 1 of Gambling in Spain

By amounts played By net revenue

Like other privately run on-site gambling games, the revenue have been declining at rates of over 8%. The drop in Offer: Operators of the Gambling Market gross gaming revenue and amounts played in bingo revenue, however, has become sharper since 2008 with the LAE (National Lottery and Betting halls decreased by 8.8% and 12.4% respectively in 2012. onset of the economic crisis and the decline in household Organisation) ONCE However, this decline in bingo gaming revenue continues disposable income. Casinos down the path set almost a decade ago; since 2003, its Bingo halls

Slot machines

Online games Bingo halls: evolution of net sales and revenue 1997-2012 Offer evolution Million euros Gambling Demand 4,000 4,000 The gambling sector's of the Gambling Sector 3,000 3,000 Tax Revenue Macroeconomic impact of the Gambling Sector on employ- ment 2,000 2,000 Amounts played Statistical Appendices 1,000 1,000 Net revenue Amounts played The Online Gambling minus prizes of Gambling around the 0 0 Claimed prizes world 97 98 99 2000 01 02 03 04 05 06 07 08 09 2010 11 12 The DGOJ in the year 2012 33 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 4 Market Size Bingo halls 2 of Gambling in Spain

By amounts played By net revenue

The trending decline in bingo revenue over the last decade years, with a total of 372 halls in 2012. Offer: Operators of the Gambling Market has resulted in a decline in bingo halls over the last 15 LAE (National Lottery and Betting Organisation)

ONCE

Casinos

Bingo halls

Slot machines

Online games Bingo halls: evolution of the number of bingo halls 1997-2012 Offer evolution Number of halls Gambling Demand 550 539 550 532 The gambling sector's 513 of the Gambling Sector 500 492 489 500 Tax Revenue 483 468 Macroeconomic impact 463 of the Gambling Sector on employ- 450 447 443 450 ment 425 419 Statistical Appendices 401 400 399 388 400 Evolution 372 The Online Gambling of Gambling around the 350 350 Number of halls world 97 98 99 2000 01 02 03 04 05 06 07 08 09 2010 11 12 The DGOJ in the year 2012 34 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 4 Market Size Bingo halls 3 of Gambling in Spain

By amounts played By net revenue

Net revenue per hall decreased to 1.7 million euros in 2012 in 2007. Offer: Operators of the Gambling Market from 1.9 million in 2011, and from the peak of 3.2 million LAE (National Lottery and Betting Organisation)

ONCE

Casinos

Bingo halls

Slot machines

Online games Bingo halls: net revenue per hall 1997-2012 Offer evolution Million euros Gambling Demand 3.5 3.5 3.2 3.2 3.0 The gambling sector's 3.0 2.9 2.9 3.0 3.0 of the Gambling Sector 2.7 2.7 2.5 Tax Revenue 2.5 2.3 2.3 2.5 2.1 2.2 Macroeconomic impact 2.0 2.0 1.9 2.0 of the Gambling Sector on employ- 1.7 ment 1.5 1.5 Statistical Appendices 1.0 1.0 Evolution 0.5 0.5 The Online Gambling of Gambling around the 0 0 Net revenue world 97 98 99 2000 01 02 03 04 05 06 07 08 09 2010 11 12 The DGOJ in the year 2012 35 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 4 Market Size Bingo halls 4 of Gambling in Spain

By amounts played By net revenue

In terms of geographical distribution, bingo revenue declined Offer: Operators of the Gambling Market in all the Autonomous Regions except Madrid and Valencia. LAE (National Lottery and Betting Bingo halls: net revenue Organisation) The regions of Catalonia, Madrid, Valencia, Andalusia and by Autonomous Region 2011-2012 ONCE Canary Islands concentrated over 70% of total revenue. Million euros Casinos Bingo halls

Slot machines

120 Online games 114 Offer evolution 110 110 110 2011 100 99 98 99 Gambling Demand 95 94 90 85 The gambling sector's 80 2012 of the Gambling Sector 70 66 Tax Revenue 60 Macroeconomic impact 50 of the Gambling Sector on employ- ment 40 37 32 34 32 30 30 30 25 25 Statistical Appendices 20 20 18 20 14 12 13 10 11 10 9 9 10 8 9 10 7 7 5 4 4 0 0 The Online Gambling of Gambling around the world Ceuta -Leon Galicia Castile Murcia Madrid Aragon Castile- Navarre Asturias Valencian Valencian Catalonia Cantabria Andalusia Community

La Mancha The DGOJ in the year

Extremadura 2012 Canary Islands Balearic Islands Basque Country 36 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 4 Market Size Type A and B machines 1 of Gambling in Spain

By amounts played By net revenue

Type A machines are all those machines for leisure or recreation which game, give the user playing time, and eventually, as set in the Offer: Operators grant the user a limited use or game time in exchange for the price of game programme, a cash prize, according to Art. 5 of Royal Decree of the Gambling Market the game, but may not grant any prize money in any form or in objects 2110/1998, of 2 October, being adapted where appropriate to the LAE (National Lottery and Betting Organisation) or points redeemable for cash, according to Art. 5 of Royal Decree provisions of specific regulations of each Autonomous Region. ONCE 2110/1998, of 2 October, being adapted where appropriate to the The number of type A and B machine establishments decreased to Casinos provisions of specific regulations of each Autonomous Region. 2,590 in 2012. Bingo halls Type B machines are those that, in exchange for the price of the Slot machines

Online games Evolution of the number of type A and B machine establishments 2001-2012 Offer evolution Number of halls Gambling Demand 4,500 4,500 The gambling sector's of the Gambling Sector 4,000 3,994 4,000 3,816 Tax Revenue 3,604 Macroeconomic impact 3,500 3,500 of the Gambling Sector on employ- 3,204 ment 3,099 3,118 3,082 3,012 3,066 2,995 3,000 3,000 Statistical Appendices 2,696 2,590 Evolution 2,500 2,500 The Online Gambling of Gambling around the 2,000 2,000 Number of halls world 01 02 03 04 05 06 07 08 09 2010 11 12 The DGOJ in the year 2012 37 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 4 Market Size Type A and B machines 2 of Gambling in Spain

By amounts played By net revenue

The number of type A machines and establishments decreased to Autonomous Regions. Offer: Operators 38,429 machines in 2012 from over 150,000 in the early 2000s. Meanwhile, the total number of type B machines fell in 2012 by 6.4%, of the Gambling Market This decrease continues the decline that machine and establishment which was accompanied by a decline in the number of casinos, meaning LAE (National Lottery and Betting Organisation) numbers have been experiencing for more than a decade, due to the that after the number of type B machines reached its series peak in ONCE boom in household computer games. It should be noted that type A 2008, it began a decline that continues through today. Casinos machines do not legally constitute gambling, and in most cases they Bingo halls are not under the supervision of the regulatory gambling bodies of the Slot machines

Online games Evolution of the number of type A and B machine establishments 2001-2012 Offer evolution Number of type A and B machines Gambling Demand 252,021 252,422 245,966 248,796 246,651 250,000 245,076 245,324 241,907 243,206 239,992 4,500 228,434 The gambling sector's 213,908 of the Gambling Sector 200,000 4,000 Evolution no. of type B ma- Tax Revenue 155,451 chines Macroeconomic impact 150,000 141,852 3,500 of the Gambling Sector on employ- 130,912 119,031 ment 115,159 Number of type B machines 100,019 100,000 92,236 3,000 81,915 Statistical Appendices 77,642 50,302 Evolution no. of type A ma- 50,000 41,412 2,500 38,429 chines The Online Gambling of Gambling around the 0 0 Number of type A machines world 01 02 03 04 05 06 07 08 09 2010 11 12 The DGOJ in the year 2012 38 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 4 Market Size Type A and B machines 3 of Gambling in Spain

By amounts played By net revenue

The amounts played on type B machines also decreased revenue fell 9.0% to 2,753 million euros. Offer: Operators of the Gambling Market by 9.3% to 8,515 million euros in 2012, while net gaming LAE (National Lottery and Betting Organisation)

ONCE

Casinos

Bingo halls

Slot machines

Online games Type B machines: evolution of net sales and revenue 1997-2012 Offer evolution Million euros Gambling Demand 16,000 16,000 The gambling sector's of the Gambling Sector 12,000 12,000 Tax Revenue Macroeconomic impact of the Gambling Sector on employ- ment 8,000 8,000 Amounts played Statistical Appendices 4,000 4,000 Net revenue Amounts played The Online Gambling minus prizes of Gambling around the 0 0 Claimed prizes world 97 98 99 2000 01 02 03 04 05 06 07 08 09 2010 11 12 The DGOJ in the year 2012 39 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 4 Market Size Type A and B machines 4 of Gambling in Spain

By amounts played By net revenue

Meanwhile, net gaming revenue in type B machines decreased in Offer: Operators of the Gambling Market all the Autonomous Regions with the exception of Andalusia, LAE (National Lottery and Betting Type B machines: net revenue Balearic Islands and Galicia. The Autonomous Regions of Organisation) ONCE by Autonomous Region 2011-2012 Madrid, Catalonia, Andalusia and the Valencian Community Million euros Casinos represented almost 60% of all type B machine revenue. Bingo halls

Slot machines

600 Online games Offer evolution 550 2011 500 478 Gambling Demand 460 450 413 The gambling sector's 400 2012 of the Gambling Sector 350 Tax Revenue 300 281 Macroeconomic impact 250 of the Gambling Sector on employ- 200 ment 188 178 150 136 150 122 Statistical Appendices 101 100 92 85 100 65 60 50 31 50 30 17 14 0 0 0 0 The Online Gambling of Gambling around the world Ceuta -Leon Galicia Melilla Castile Murcia Madrid Aragon Castile- La Rioja Navarre Asturias Catalonia Cantabria Valencian Andalusia La Mancha

Community The DGOJ in the year Extremadura

Canary Islands 2012 Balearic Islands Basque Country 40 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 4 Market Size Online gambling 1 of Gambling in Spain

By amounts played By net revenue

As for online gambling, for the purposes of homogeneity in they were included as part of the online market in the 2011 Annual Offer: Operators of the Gambling Market the series for 2011 and 2012, the data is available for June to Report of the DGOJ). LAE (National Lottery and Betting December. Meaning, for 2011 (since the passage of the gambling In 2012 the overall amounts played in online gambling Organisation) ONCE law of 27 May, 2011) until the end of the year; and 2012, from increased by more than 70% from the 1,575 million euros Casinos

June 2012 (the month in which regulated operations began in the between June and December 2011 to 2,727 million euros over Bingo halls online gambling market in Spain) until end of the year. Moreover, the same period in 2012. However, the net gaming revenue (or Slot machines for the purposes of homogeneity in the 2011 data, sports-charity NGR) of online gambling has remained virtually unchanged at Online games Offer evolution pools are not considered in the calculation of 2012 (and were around 117 million euros between January and June 2012, with not considered in 2011) as they are not actually online gambling, 116 million in the same period last year. Gambling Demand although they were affected by the tax imposed by that law (and The gambling sector's of the Gambling Sector

Tax Revenue Macroeconomic impact of the Gambling Sector on employ- ment

Statistical Appendices

The Online Gambling of Gambling around the world

The DGOJ in the year 2012 41 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 4 Market Size Online gambling 2 of Gambling in Spain

By amounts played By net revenue

The number of online gambling players registered in the regulated market, with growth in the fourth quarter of Offer: Operators of the Gambling Market Identity Verification System of the DGOJ (regardless of 2012, reaching 1,010,086 registered players in December LAE (National Lottery and Betting the number of operators in which the player is registered) 2012. Organisation) ONCE has also steadily increased since the beginning of the Casinos

Bingo halls

Slot machines

Online games Evolution of online gambling players February-December 2012 Offer evolution Number of players

1,010,086 Gambling Demand 1,000,000 948,608 1,000,000 879,286 The gambling sector's 792,727 of the Gambling Sector 800,000 800,000 648,464 Tax Revenue Macroeconomic impact 600,000 566,094 600,000 of the Gambling Sector on employ- 470,668 ment 400,000 400,000 Statistical Appendices 193,752 Total number 200,000 168,196 200,000 147,731 of registered players The Online Gambling 51,537 of Gambling around the 0 0 Monthly average world of active players 2012 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec The DGOJ in the year 2012 42 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 4 Market Size Online gambling 3 of Gambling in Spain

By amounts played By net revenue

By game type, straight , as from the beginning of the played. Contests saw a 7.4% of net gaming revenue but only 0.4% of Offer: Operators of the Gambling Market regulated market, held the greatest weight in 2012 in both online net amounts played in 2012. Lastly, online bingo games had 4.0% of net LAE (National Lottery and Betting gaming revenue (44.9%) and amounts played (36.7%). Second were gaming revenue and 1.1% of amounts played in 2012. Organisation) ONCE online games (poker cash, with 21.5% of net gaming revenue Casinos and poker tournament with 9.5%) due to their weight in the online Bingo halls market. In 2012, casino games and other games (black jack, Slot machines and others) saw 11% of net gaming revenue with 18.7% of amounts Online games Offer evolution

Online gambling distribution in Spain 2012 by game type Gambling Demand in terms of amounts played The gambling sector's of the Gambling Sector Tax Revenue Black Jack 5.8% Poker Tournament Bingo 1.1% Macroeconomic impact 8.5% Roulette Contests 0.4% of the Gambling Sector on employ- 12.9% ment Straight horse race betting 0.3% Statistical Appendices Sports Poker Cash The Online Gambling 34.2% sports of Gambling around the sports betting world 36.7% 0.0% Baccarat 0.0% Complementary games The DGOJ in the year 2012 43 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 4 Market Size Online gambling 3 of Gambling in Spain

By amounts played By net revenue

The discrepancies observed between weight in terms of net The figure for amounts played online in the full year (from 1 Offer: Operators of the Gambling Market gaming revenue and amounts played are due to the different January to 31 December) is estimated at 4,200 million euros. LAE (National Lottery and Betting ratios of NGR/Amounts played depending on the type of Organisation) ONCE game. Casinos

Bingo halls

Slot machines

Online games

Offer evolution

Online gambling distribution in Spain 2012 by game type: Gambling Demand in terms of GGR The gambling sector's of the Gambling Sector Bingo Tax Revenue Black Jack 4.0% Contests Macroeconomic impact 3.9% Roulette 7.4% Poker Tournament of the Gambling Sector on employ- 8.1% Horse race betting ment 9.5% sports betting Statistical Appendices 0.6%

Sports The Online Gambling Poker Cash sports 21.5% of Gambling around the sports betting world 44.9% 0.0% Baccarat 0.0% Complementary games The DGOJ in the year 2012 44 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 2 Market Size Offer evolution: competitors and market shares 1 of Gambling in Spain

By amounts played By net revenue

In the gambling market, we can observe that in 2012 a affected the revenue of the various operators in the market, Offer: Operators of the Gambling Market process of reconfiguring offer and operators has continued, and one structural related to the emergence of online LAE (National Lottery and Betting motivated by two reasons: one cyclic and linked to the steady gambling in recent years. Organisation) ONCE fall in household disposable income since 2008, which has Casinos

Bingo halls Evolution of operator market shares Slot machines Online games in terms of net revenue 1997-2012 Offer evolution % Gambling Demand 100% 100% Online games The gambling sector's of the Gambling Sector 80% 80% Type B machines Tax Revenue Macroeconomic impact 60% 60% Bingo Halls and Betting of the Gambling Sector on employ- Shops ment 40% 40% Casinos Statistical Appendices

20% 20% ONCE The Online Gambling of Gambling around the 0% 0% LAE (National Lottery and world Betting Organisation) 97 98 99 2000 01 02 03 04 05 06 07 08 09 2010 11 12 The DGOJ in the year 2012 45 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Offer: Operators in the Gambling Market

Economic climate

of 2 Market Size Offer evolution: competitors and market shares 2 of Gambling in Spain

By amounts played By net revenue

Although we only have partial data for 2012 (between June and 11% of the total amounts played in Spain, significantly higher than Offer: Operators of the Gambling Market December 2012) on revenue related to online games, we can say other on-site private operators such as bingo halls or casinos). LAE (National Lottery and Betting that it is a segment seeing strong growth (as it already represents Organisation) ONCE

Casinos

Bingo halls

Slot machines

Online games Operator net revenue and disposable income 1998-2012 Offer evolution Rate of Variation % Gambling Demand 10 10 The gambling sector's 8 8 of the Gambling Sector 6 6 Tax Revenue 4 4 Macroeconomic impact 2 2 of the Gambling Sector on employ- ment 0 0 Amounts played -2 -2 Statistical Appendices -4 -4 Net revenue -6 -6 of gambling operators The Online Gambling -8 -8 of Gambling around the -10 -10 Disposable income world in nominal terms 98 99 2000 01 02 03 04 05 06 07 08 09 2010 11 12 Source: developed from OECD and DGOJ data The DGOJ in the year 2012 46 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Gambling Demand 1 of 8 Economic climate

Market Size of Gambling in Spain

Gambling demand in Spain had a major presence in terms of of the total, followed by machines (types B and C) with 35%, By amounts played amounts played, reaching 25,988 million euros in 2012, but bingo halls and betting shops with about 8%, casino table By net revenue on-site gambling has decreased over the last year, with more games with 4% and online gambling with 11% of amounts Offer: Operators than 89% of the total. Standing out in on-site gambling is a played (compared to 6% representing online gambling in of the Gambling Market LAE (National Lottery and Betting demand for lotteries and betting (LAE and ONCE) with 43% 2011). Organisation)

ONCE

Casinos

Bingo halls

Slot machines

Online games Gambling Market in Spain in 2012 by game type Offer evolution % of amounts played Gambling Demand Bingo Halls and Betting Shops Online gambling* 2,728 2,088 8.0% The gambling sector's 10.5% of the Gambling Sector Casino gambling Tax Revenue 965 Macroeconomic impact 3.7% of the Gambling Sector on employ- Lottery winnings ment on-site Statistical Appendices Machines 11.167 9.041 43.0% The Online Gambling 34.8% of Gambling around the world

The DGOJ in the year Includes data between June-December 2012 * 2012 47 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Gambling Demand 2 of 8 Economic climate

Market Size of Gambling in Spain

To analyse demand, it is interesting to look at amounts played euros per inhabitant, while the per capita net revenue fell by By amounts played and actual spending on gambling per capita. The evolution of 4.7% to 184 euros per inhabitant. Since 2008, both quantities By net revenue both actual spending (equivalent to GGR) as well as amounts have been reduced to a rate of 5.8% and 4.4% respectively. Offer: Operators played in 2012 continue the decline begun in 2008. In terms of of the Gambling Market LAE (National Lottery and Betting amounts played in 2012, there was a reduction of 1.2% to 550 Organisation)

ONCE

Casinos

Bingo halls

Slot machines

Online games Evolution of gambling demand per capita in Spain 1998-2012 Offer evolution Euros per inhabitant Gambling Demand 800 800 The gambling sector's 700 700 of the Gambling Sector 600 550 600 Tax Revenue 500 500 Macroeconomic impact of the Gambling Sector on employ- 400 400 ment

300 300 Statistical Appendices 200 184 200 Amounts played per capita 100 100 The Online Gambling of Gambling around the 0% 0% Net gaming revenue world 98 99 2000 01 02 03 04 05 06 07 08 09 2010 11 12 per capita

Source: developed from INE (National Statistics Institute) data The DGOJ in the year 2012 48 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Gambling Demand 3 of 8 Economic climate

Market Size of Gambling in Spain

This suggests that the impact of the recession and economic By amounts played crisis that began in 2008 on disposable income and private By net revenue consumption is negatively affecting the evolution of gambling Offer: Operators demand in Spain. of the Gambling Market LAE (National Lottery and Betting Organisation)

ONCE

Casinos

Bingo halls

Slot machines

Online games Amounts played by inhabitant and type of game 2011-2012 Offer evolution Euros Gambling Demand 250 247 250 236 The gambling sector's 210 of the Gambling Sector 200 200 151 Tax Revenue

Macroeconomic impact 150 150 of the Gambling Sector on employ- ment 100 100 Statistical Appendices 58 50 43 44 50 33 2011 The Online Gambling 23 20 of Gambling around the 0 0 2012 world Instant Gambling Bingo and Machines Gambling on-site casino betting online The DGOJ in the year shops 2012 49 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Gambling Demand 4 of 8 Economic climate

Market Size of Gambling in Spain

However, demand behaviour is not homogeneous between halls, and machines), and to a lesser extent lottery games; By amounts played segments. So, in terms of amounts played and actual but, demand has risen considerably per inhabitant in the By net revenue spending per inhabitant, demand has weakened, especially case of online gambling. Offer: Operators the demand for privately managed gambling (casinos, bingo of the Gambling Market LAE (National Lottery and Betting Organisation)

ONCE

Casinos

Bingo halls Gambling demand by operator per capita in Spain Slot machines Online games Amounts played per inhabitant 1998-2012 Offer evolution Euros Gambling Demand 800 800 The gambling sector's of the Gambling Sector Online gambling 600 600 Tax Revenue Type B machines Macroeconomic impact of the Gambling Sector on employ- 400 400 Bingo halls ment

Statistical Appendices Casinos 200 200 ONCE The Online Gambling of Gambling around the 0 0 LAE (National Lottery and world Betting Organisation) 98 99 2000 01 02 03 04 05 06 07 08 09 2010 11 12 The DGOJ in the year 2012 50 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Gambling Demand 5 of 8 Economic climate

Market Size of Gambling in Spain

As for demand by Autonomous Region, both in terms of actual is concentrated in four regions (Andalusia, Madrid, Valencian By amounts played spending and amounts played, 54% of the gambling demand Community and Catalonia). By net revenue

Offer: Operators of the Gambling Market

LAE (National Lottery and Betting Organisation) AutonomousAutonomous REGIREGIONON MiMill.. € % Gambling Market by Autonomous Region in 2012 ONCE Madrid 4,5204.520 19.5% % of amounts played Casinos Andalusia 3,7383.738 16.1% Bingo halls Catalonia 3,2883.288 14.2% Basque C.Valencian Valencia Community 2,4952.495 10.8% Slot machines Canary Country Online games Castilla-LeónCastile-Leon 1,4951.495 6.4% 911 Islands Offer evolution Galicia 1,2321.232 5.3% 953 3.9% Castile-La Mancha 909 / 3.9% Canary Islands 953 4.1% Galicia 4.1% Aragon 692 / 3.0% Gambling Demand Basque Country 911 3.9% 1,232 / 5.3% Balearic Islands 675 / 2.9% Castilla-LaCastille-La Mancha 909 3.9% Castile-Leon The gambling sector's Aragon 692 3.0% 1,495 / 6.4% Murcia 643 / 2.8% of the Gambling Sector Balearic Islands 675 2.9% Tax Revenue Murcia 643 2,8% Others 1,632 / 7.0% Macroeconomic impact C. Valencia of the Gambling Sector on employ- Others 2,495 / 10.8% ment Extremadura 448 1.9% Madrid Statistical Appendices Asturias 418 1.8% Catalonia 4,520 / 19.5% Cantabria 308 1.3% 3,288 / 14.2% The Online Gambling Navarre 271 1.2% Andalusia 3,738 / 16.1% of Gambling around the La Rioja 145 0.6% world Ceuta 21 0.1% Melilla 21 0.1% The DGOJ in the year 2012 51 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Gambling Demand 6 of 8 Economic climate

Market Size of Gambling in Spain

By amounts played By net revenue

Amounts played per inhabitant by Autonomous Region Offer: Operators of the Gambling Market Euros LAE (National Lottery and Betting Organisation)

ONCE

Casinos 700 696 700 Bingo halls

Slot machines 603 600 587 600 Online games 550 518 513 Offer evolution 500 486 500 450 448 443 442 436 434 429 Gambling Demand 420 415 405 400 388 400 The gambling sector's of the Gambling Sector 300 300 260 Tax Revenue 248 Macroeconomic impact 200 200 of the Gambling Sector on employ- ment 100 100 Statistical Appendices

0 0 The Online Gambling of Gambling around the Ceuta

SPAIN world Galicia Melilla Murcia Madrid Aragon La Rioja Navarre Asturias Catalonia Cantabria Valencian Andalusia Community Castile-Leon

Extremadura The DGOJ in the year Canary Islands Balearic Islands Basque Country 2012

Castile-La Mancha 52 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Gambling Demand 7 of 8 Economic climate

Market Size of Gambling in Spain

Those Autonomous Regions with a higher gambling demand Murcia, Extremadura and Castile-Leon. Meanwhile, demand for By amounts played compared to their demographic size are Madrid and the Region gambling in the Autonomous Regions of Navarra, By net revenue of Valencia. In comparing gambling demand on a per capita Basque Country, Catalonia and Galicia compared to their Offer: Operators income level, the communities with a higher propensity for slot disposable income is lower than the national average. of the Gambling Market LAE (National Lottery and Betting machine gambling are the Region of Valencia, Canary Islands, Organisation)

ONCE

Casinos

Bingo halls

Slot machines Relationship between amounts played per capita and income per capita in 2012 Online games Offer evolution Euros. Amounts played per capita / Income per capita in 2012 Gambling Demand 800 800 The gambling sector's Gambling per capita above average of the Gambling Sector 700 700 Tax Revenue Madrid Macroeconomic impact 600 600 of the Gambling Sector on employ- Balearic Islands Castille-Leon ment 500 500 Community Statistical Appendices Canary Valencia Aragon Cantabria Islands La Rioja Basque Andalusia Catalonia Navarre 400 Galicia Country 400 Above average Murcia Castile- The Online Gambling Extremadura La Mancha Asturias Gambling per capita below average of Gambling around the 300 300 Below average world 14.000 16.000 18.000 20.000 22.000 24.000 26.000 28.000 30.000 32.000 Source: developed from INE (National Statistics Institute) and DGOJ data The DGOJ in the year 2012 53 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain Gambling Demand 8 of 8 Economic climate

Market Size of Gambling in Spain

Disposable income is the main variable determining the than 85%. However, gambling demand (understood to By amounts played cyclical evolution of gambling demand, and the impact be amounts played) has less elasticity than disposable By net revenue of the economic crisis on a decline in disposable income income, meaning gambling demand is relatively inelastic Offer: Operators since 2009 has resulted a significant drop in gambling as it has a less variability than income, at least with the of the Gambling Market LAE (National Lottery and Betting demand in 2012, as in previous years. In this sense, data from the last two decades. Organisation) growth in gambling demand and disposable income have ONCE Casinos maintained a high correlation over the last decade, more Bingo halls

Slot machines

Online games Evolution of revenue of gambling operators 1995-2012 Offer evolution Rate of Variation % Gambling Demand 15% 15% The gambling sector's 10% 10% of the Gambling Sector Tax Revenue

5% 5% Macroeconomic impact of the Gambling Sector on employ- 0% 0% ment

-5% -5% Statistical Appendices Amounts played -10% -10% The Online Gambling of Gambling around the -15% -15% Disposable income world in nominal terms 95 96 97 98 99 2000 01 02 03 04 05 06 07 08 09 2010 11 12 Elasticity of gambling demand compared to disposable income = 0.40 The DGOJ in the year Correlation in the last decade between gambling demand growth and disposable income growth = 0.85 2012 54 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain 1 Contribution to society: tax revenue 1 of 4 Economic climate

Market Size of Gambling in Spain

Gambling tax revenue fell by 34.9% to 2,259 million euros in By amounts played 2012 due to reduced tax collection from all types of on-site By net revenue gambling, while online gambling tax collection saw a strong Offer: Operators increase. of the Gambling Market LAE (National Lottery and Betting Organisation)

ONCE

Casinos

Bingo halls

Slot machines

Online games Evolution of gambling tax revenue 2008-2012 Offer evolution Million euros Gambling Demand 5,000 5,000 The gambling sector's of the Gambling Sector 4,000 4,000 Tax Revenue

Macroeconomic impact 3,000 3,000 of the Gambling Sector on employ- ment 2,000 2,000 Statistical Appendices

1,000 1,000 The Online Gambling of Gambling around the 0 0 Variation world 2008 2009 2010 2011 2012

1. Included in this concept are amounts corresponding to the Gambling Activities Tax and the Gambling Fee The DGOJ in the year 2012 55 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain 1 Contribution to society: tax revenue 2 of 4 Economic climate

Market Size of Gambling in Spain

By game operator type, gambling tax collection in 2012 for euros, and lastly, online gambling tax revenue increased by By amounts played LAE decreased by 46.5% to 1,689 million euros, for casinos it 90.9% up to 133 million. By net revenue fell by -9.4% to 69 million euros, bingo decreased by 17.1% to Offer: Operators 346 million euros, type B machines fell by 10.8% to 722 million of the Gambling Market LAE (National Lottery and Betting Organisation)

ONCE

Casinos Tax revenue by gambling operator 2011-2012 2011 Bingo halls Slot machines Million euros 2012 Online games 5,000 5,000 Offer evolution 4,548 Gambling Demand 4,000 4,000

3,156 The gambling sector's 3,000 2,960 3,000 of the Gambling Sector Tax Revenue

2,000 2,000 Macroeconomic impact 1,689 of the Gambling Sector on employ- ment 1,000 810 1,000 722 417 346 Statistical Appendices 95 133 0 69 70 0 TOTAL LAE* Casinos Bingo Type B ma- Online The Online Gambling halls chines of Gambling around the * Tax revenue increases in other non-tax contributions made ​​by LAE to the Treasury. world In 2011, LAE made ​​an extraordinary contribution to the Treasury with the premium of 1,200 million euros.

1. Included in this concept are amounts corresponding to the Gambling Activities Tax and the Gambling Fee The DGOJ in the year 2012 56 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain 1 Contribution to society: tax revenue 3 of 4 Economic climate

Market Size of Gambling in Spain

Gambling tax revenue is still relatively significant in total By amounts played state revenue, but in 2012 the share in non-financial revenue By net revenue decreased to 2.4%. Offer: Operators of the Gambling Market

LAE (National Lottery and Betting Organisation)

ONCE

Casinos

Bingo halls

Slot machines

Online games Gambling tax revenue / State non-financial revenue 2008-2012 Offer evolution % Rate of variation Gambling Demand 5% 5% The gambling sector's of the Gambling Sector 4% 4% Tax Revenue

Macroeconomic impact 3% 3% of the Gambling Sector on employ- ment 2% 2% Statistical Appendices

1% 1% The Online Gambling of Gambling around the 0% 0% Rate of variation world 2008 2009 2010 2011 2012

1. Included in this concept are amounts corresponding to the Gambling Activities Tax and the Gambling Fee The DGOJ in the year 2012 57 Letter from the Director The Gambling Market in Spain The Online Gambling of Gambling in Spain 1 Contribution to society: tax revenue 4 of 4 Economic climate

Market Size of Gambling in Spain

Furthermore, the operator with the greatest contribution to By amounts played total gambling tax revenue is LAE with 57%, while the other By net revenue operators contributed to a lesser extent: type B machines, Offer: Operators the privately managed gambling segment, contributed the of the Gambling Market LAE (National Lottery and Betting most to tax revenue (24% of the total), followed by bingo Organisation) (12%), online gambling (5%) and casinos (2%). ONCE Casinos

Bingo halls

Slot machines

Gambling tax revenue Online games Millions of euros and percentages / total collection Offer evolution

Gambling Demand

Bingo halls The gambling sector's 345.7 Machines of the Gambling Sector 12% 722,1 Tax Revenue Casinos Online gambling Macroeconomic impact 24% of the Gambling Sector on employ- 69.0 133.1 ment 2% 5% Statistical Appendices LAE 1,688.8 The Online Gambling of Gambling around the 57% world

1. Included in this concept are amounts corresponding to the Gambling Activities Tax and the Gambling Fee The DGOJ in the year 2012 58 Letter from the Director The Gambling Market in Spain The Online Gambling Contribution to society: macroeconomic impact and impact on of Gambling in Spain 1 of 3 employment Economic climate

Market Size of Gambling in Spain

The gambling market in Spain in 2012 represented 0.8% of the Spanish economy from the previous year. However, the By amounts played the GDP in terms of gambling operator revenue, 1.3% of the gambling market in Spain has declined slightly in its importance By net revenue disposable income in Spain and 1.4% of private consumption, in terms of GDP over the last decade, mainly due to nominal Offer: Operators with which the gambling sector maintained its weight in GDP growth. of the Gambling Market LAE (National Lottery and Betting Organisation)

ONCE

Casinos

Bingo halls Relevance of the Gambling Market in Spain Slot machines Online games in terms of net gambling operator revenue 1997-2012 Offer evolution % Rate of variation Gambling Demand 2.5% 2.5% The gambling sector's of the Gambling Sector 2.0% 2.0% Tax Revenue

Macroeconomic impact 1.5% 1.4% 1.5% of the Gambling Sector on employ- ment 1.3% On-site gambling / 1.0% 1.0% Private consumption 0.8% Statistical Appendices On-site gambling / 0.5% 0.5% Disposable income The Online Gambling of Gambling around the 0% 0% On-site gambling / GDP world 97 98 99 2000 01 02 03 04 05 06 07 08 09 2010 11 12 Source: developed from INE (National Statistics Institute) data The DGOJ in the year 2012 59 Letter from the Director The Gambling Market in Spain The Online Gambling Contribution to society: macroeconomic impact and impact on of Gambling in Spain 2 of 3 employment Economic climate

Market Size of Gambling in Spain

As for the effect on Spanish economy income and added value, directly 0.44% of the Spanish GDP and 0.3% of the GDP indirectly. By amounts played based on input-output tables of the Spanish economy published In total, the gambling sector contributed to the Spanish economy By net revenue by the INE, and with reference to the recreational activity sector, by generating more than 7,600 million euros, approximately Offer: Operators we can estimate that in 2012 the gambling sector generated 0.73% of GDP. of the Gambling Market LAE (National Lottery and Betting Organisation)

ONCE

Casinos

Bingo halls Gambling Sector: generated added value 2011-2012 Slot machines % of Spanish GDP Online games Offer evolution

Gambling Demand 0.8% 0.8% The gambling sector's 0.7% 0.7% of the Gambling Sector 0.6% 0.6% Tax Revenue Macroeconomic impact 0.5% 0.303% 0.5% 0.289% of the Gambling Sector on employ- ment 0.4% 0.4% Evolution 0.3% 0.3% Statistical Appendices 0.2% 0.2% Indirect effect 0.1% 0.1% The Online Gambling of Gambling around the 0 0.458% 0.437% 0 Direct effect world 2011 2012 The DGOJ in the year 2012 60 Letter from the Director The Gambling Market in Spain The Online Gambling Contribution to society: macroeconomic impact and impact on of Gambling in Spain 3 of 3 employment Economic climate

Market Size of Gambling in Spain

Furthermore, the gambling sector also contributed to By amounts played employment in the Spanish economy. The gambling sector By net revenue directly generated 98,274 jobs and indirectly 69,273, bringing Offer: Operators the total number of direct and indirect jobs generated by the of the Gambling Market LAE (National Lottery and Betting gambling industry in 2012 to over 167,000. Organisation)

ONCE

Casinos

Bingo halls Gambling Sector: direct and indirect employment 2011-2012 Slot machines Number of employees Online games Offer evolution

Gambling Demand 200,000 200,000 The gambling sector's of the Gambling Sector 150,000 150,000 Tax Revenue

Macroeconomic impact of the Gambling Sector on employ- 73,241 ment 100,000 69,273 100,000 Evolution Statistical Appendices 50,000 50,000 Indirect employment The Online Gambling of Gambling around the 0 103,902 98,274 0 Direct employment world 2011 2012 The DGOJ in the year 2012 61 Letter from the Director

The Online Gambling The Gambling Market in Spain of Gambling in Spain

Statistical appendix: Table of Contents Economic climate Market Size of Gambling in Spain

By amounts played By net revenue Amounts played by operator Casinos Amounts played and net revenue Offer: Operators Net revenue of operators of the Gambling Market: Amounts played by Autonomous Region Amounts played by Autonomous Region LAE (National Lottery and Betting Revenues Organisation) Net gaming revenue by Autonomous Region ONCE Net revenue from table games Amounts played by game type Casinos Net revenue from machines Bingo halls NGR, net gaming revenue by game type Revenue from tips and admission fees Slot machines

Tax revenue by game type Number of visitors Online games Number of casinos Offer evolution

LAE. National Lottery and Betting Organisation Gambling Demand Bingo halls Amounts played Ticket sales The gambling sector's Claimed prizes of the Gambling Sector Net revenue Amounts played by Autonomous Region Tax Revenue Prizes by Autonomous Region Net revenue Macroeconomic impact of the Gambling Sector on employ- Number of halls ment ONCE, Spanish National Organisation for the Blind Machines Statistical Appendices Amounts played by Autonomous Region Type B machines. Amounts played Claimed prizes by Autonomous Region The Online Gambling Type B machines. Gaming revenue of Gambling around the Net revenue by Autonomous Region Type B machines. Prizes world Agents and points of sale Type A and B machines. Number of machines The DGOJ in the year 2012 62 The Gambling Market in Spain

Statistical appendix. Amounts played by gambling operator

Amounts played by gambling operator 1997-2012 Millions of euros*

Gambling estab- YEAR TOTAL Casinos* Bingo halls Type B machines * LAE ONCE Online gambling* lishments

1997 20,555 1,105 3,672 7,513 - 6,015 2,250 -

1998 22,367 1,229 3,709 8,836 - 6,301 2,291 -

1999 23,706 1,381 3,781 9,566 - 6,689 2,290 -

2000 25,130 1,581 3,819 10,416 - 6,881 2,432 -

2001 26,037 1,687 3,756 10,592 - 7,545 2,458 -

2002 25,957 1,854 3,716 10,368 - 7,637 2,383 -

2003 26,727 1,914 3,930 10,292 - 8,292 2,299 -

2004 27,287 2,067 3,854 10,076 - 9,027 2,263 -

2005 28,335 2,445 3,834 10,730 - 9,304 2,024 -

2006 28,882 2,460 3,694 10,939 - 9,647 2,142 -

2007 30,990 2,551 3,662 12,627 - 9,986 2,166 -

2008 32,308 2,287 3,375 14,498 - 10,048 2,101 -

2009 30,110 1,991 2,930 13,364 - 9,844 1,981 -

2010 27,339 1,857 2,688 11,338 - 9,592 1,863 -

2011*** 26,275 1,612 2,019 9,389 - 9,722 1,956 1,575

2012 25,988 1,490 1,842 8,515 245 9,253 1,914 2,728

* Includes type C machines ** Includes data June-December 2011 and June-December 2012 *** The figure for 2011 has been revised compared to the DGOJ Annual Report 2011 63 The Gambling Market in Spain

Statistical appendix. Net revenue of gambling operators

Net revenue of gambling operators 1997-2012 Millions of euros*

YEAR TOTAL Casinos* Bingo halls Type B machines * LAE ONCE Online gambling*

1997 6,586 259 1,102 1,878 2,177 1,170 -

1998 7,055 273 1,113 2,209 2,269 1,192 -

1999 7,452 320 1,134 2,391 2,416 1,190 -

2000 7,857 361 1,146 2,604 2,481 1,265 -

2001 8,190 389 1,127 2,648 2,748 1,278 -

2002 8,366 436 1,322 2,592 2,777 1,239 -

2003 8,588 431 1,368 2,573 3,019 1,196 -

2004 8,836 472 1,342 2,519 3,327 1,177 -

2005 9,017 551 1,330 2,682 3,402 1,052 -

2006 9,328 553 1,406 2,735 3,521 1,114 -

2007 9,840 557 1,365 3,157 3,636 1,126 -

2008 10,158 499 1,268 3,625 3,675 1,092 -

2009 9,499 429 1,083 3,341 3,616 1,030 -

2010 9,375 388 988 3,377 3,678 945 -

2011 9,084 340 727 3,026 3,821 1,051 118

2012 8,674 307 637 2,753 3,793 1,018 117

* Includes type C machines ** Includes data June-December 2011 and June-December 2012

64 The Gambling Market in Spain

Statistical appendix. Amounts played by Autonomous Region

Amounts played in Spain by Autonomous Region 2003-2012 Million euros

YEAR Total Andalusia Aragon Asturias Balearic Canary Cantabria Castille- Castile- Catalonia Valencian Extre- Galicia Madrid Murcia Navarre Basque La Rioja Ceuta Melilla Others y Islands Islands Leon La Mancha Community madura Country online

2003 26,727 3,824 895 686 592 1,477 356 1,618 874 4,285 3,444 501 1,206 4,181 964 254 1,328 161 50 31 ,,

2004 27,287 4,050 903 687 622 1,454 378 1,649 900 4,435 3,469 513 1,158 4,207 969 276 1,363 168 48 34 ,,

2005 28,335 4,383 929 681 802 1,463 356 1,645 931 4,540 3,530 544 1,307 4,285 1,010 279 1,384 187 45 33 ,,

2006 28,882 4,389 944 726 808 1,464 411 1,700 962 4,621 3,653 574 1,100 4,529 1,039 283 1,365 217 52 38 5

2007 30,990 4,652 1,004 717 831 1,581 392 1,843 1,056 4,897 3,949 638 1,204 5,023 1,131 317 1,418 232 55 40 9

2008 32,309 4,566 1,055 732 878 1,601 379 1,946 1,192 5,099 4,027 679 1,531 5,272 1,162 343 1,485 247 56 43 15

2009 30,111 4,342 977 693 786 1,453 361 1,867 1,132 4,754 3,730 661 1,116 5,067 1,061 330 1,394 288 42 27 31

2010 27,339 3,891 877 618 687 1,374 326 1,696 1,034 4,327 3,426 594 1,030 4,667 920 272 1,273 214 39 28 46

2011 26,275 3,980 719 522 606 1,175 283 1,655 971 3,596 2,804 501 1,022 4,474 759 267 1,070 171 37 22 1,641

2012 25,988 3,738 692 418 675 953 308 1,495 909 3,288 2,495 448 1,232 4,520 643 271 911 145 21 21 2,804

65 The Gambling Market in Spain

Statistical appendix. Net gaming revenue by Autonomous Region

Net gaming revenue by Autonomous Region 2003-2012 Millions of euros *

YEAR Total Andalusia Aragon Asturias Balearic Canary Cantabria Castile Castile- Catalonia Valencian Extre- Galicia Madrid Murcia Navarre Basque La Rioja Ceuta Melilla Others y Islands Islands -Leon La Mancha Community madura Country online*

2003 8,339 1,277 278 221 198 479 111 505 282 1,355 1,105 165 395 1,331 302 85 421 51 18 10 ,,

2004 8,836 1,356 283 223 210 477 118 520 293 1,407 1,122 171 390 1,350 308 92 434 54 17 11 ,,

2005 9,017 1,430 288 220 249 477 111 517 299 1,419 1,128 177 423 1,350 317 91 434 58 16 11 ,,

2006 9,330 1,465 299 234 254 492 127 538 311 1,462 1,188 187 372 1,439 330 94 435 69 18 12 2

2007 9,840 1,529 312 232 259 520 122 578 337 1,525 1,258 205 398 1,557 352 102 446 72 19 13 4

2008 10,158 1,505 324 237 272 524 118 602 372 1,574 1,271 215 482 1,618 357 108 463 76 19 13 7

2009 9,499 1,420 300 226 245 476 114 578 354 1,472 1,176 213 382 1,546 334 104 436 86 15 9 14

2010 9,239 1,377 292 215 231 451 110 567 353 1,436 1,157 203 371 1,528 308 95 428 71 14 10 21

2011 9,084 1,481 -16 228 260 419 118 623 389 1,494 996 220 405 1,358 338 97 424 79 15 8 148

2012 8,674 1,411 292 188 332 376 115 354 362 1,263 1,113 165 411 1,241 278 103 423 68 9 9 163

*Amounts played minus prizes

66 The Gambling Market in Spain

Statistical appendix: LAE. Amounts played 2003-2012

LAE. Amounts played by Autonomous Region 2003-2012 Million euros

YEAR Total Andalusia Aragon Asturias Balearic Canary Cantabria Castile Castile- Catalonia Valencian Extre- Galicia Madrid Murcia Navarre Basque La Rioja Ceuta Melilla LAE Islands Islands -Leon La Mancha Community madura Country Internet Channel

2003 8,292 1,107 246 222 179 344 109 573 346 1,222 1,036 151 471 1,356 262 99 490 62 10 8 ,,

2004 9,026 1,231 265 239 193 383 118 622 379 1,323 1,134 167 514 1,456 292 106 518 68 10 9 ,,

2005 9,304 1,284 271 245 195 391 122 645 396 1,385 1,181 172 517 1,470 314 107 520 72 10 9 ,,

2006 9,647 1,336 279 251 198 400 126 665 413 1,449 1,243 178 539 1,503 331 108 525 75 10 9 5

2007 9,985 1,387 288 263 202 410 129 703 436 1,489 1,281 189 555 1,563 340 111 533 78 11 9 9

2008 10,048 1,401 289 280 201 414 126 704 441 1,499 1,278 192 567 1,567 333 115 530 77 11 9 15

2009 9,845 1,367 284 282 194 397 127 710 434 1,467 1,217 193 568 1,515 320 113 527 78 12 10 30

2010 9,592 1,324 276 278 187 379 124 690 431 1,418 1,183 189 558 1,477 308 111 517 76 11 10 46

2011 9,722 1,365 281 280 189 395 126 700 432 1,430 1,184 192 556 1,485 312 111 521 76 11 10 66

2012 9,253 1,294 281 271 177 377 122 678 411 1,340 1,124 185 533 1,389 293 108 504 72 11 9 76

67 The Gambling Market in Spain

Statistical appendix: LAE. Claimed prizes 2003-2012

LAE. Claimed prizes by Autonomous Region 2003-2012 Million euros

YEAR Total Andalusia Aragon Asturias Balearic Canary Cantabria Castile Castile- Catalonia Valencian Extre- Galicia Madrid Murcia Navarre Basque La Rioja Ceuta Melilla LAE Islands Islands -Leon La Mancha Community madura Country Internet Channel

2003 5,273 698 158 140 111 212 69 366 223 777 668 94 293 866 170 63 313 40 6 5 ,,

2004 5,699 770 169 150 118 234 74 395 243 835 727 103 318 925 188 67 328 43 6 5 ,,

2005 5,902 807 174 155 121 240 77 412 254 879 759 107 321 937 203 67 330 46 6 5 ,,

2006 6,123 840 179 159 123 246 80 425 265 922 799 111 336 958 215 68 334 48 6 5 3

2007 6,349 875 186 167 125 253 82 451 280 947 825 118 347 997 221 70 340 50 6 5 5

2008 6,373 881 186 178 124 255 80 450 283 951 821 120 354 997 215 72 337 50 7 5 8

2009 6,228 857 182 180 120 243 80 454 278 928 780 121 353 961 207 71 335 50 7 6 16

2010 5,915 775 190 148 121 206 62 392 316 1,210 655 97 283 884 168 59 277 36 6 5 21

2011 5,901 736 469 160 98 266 71 380 229 752 856 95 291 882 166 66 306 34 6 5 35

2012 5,460 706 153 144 85 222 59 589 210 809 578 128 328 922 159 49 249 32 5 4 31

68 The Gambling Market in Spain

Statistical appendix: LAE. Amounts played by Autonomous Region 2011-2012

LAE, Amounts Played by Autonomous Region 2011-2012 Million euros

2011 2012 TOTAL Instant Instant Bonoloto Euromillons Pools Others TOTAL Instant Instant Bonoloto Euromillons Pools Others National Primitiva National Primitiva

Total 9,722 5,268 1,991 593 1,470 391 11 9,253 5,016 1,847 554 1,457 371 8.4

Andalusia 1,365 688 298 103 222 54 1.3 1,294 649 275 96 221 51 1.0

Aragon 281 173 50 14 33 11 0.2 281 176 48 13 34 9 0.2

Asturias 280 162 58 19 34 8 0.3 271 156 55 18 34 7 0.2

Balearic Islands 189 81 44 13 42 9 0.2 177 75 40 12 40 9 0.1

Canary Islands 395 164 89 41 82 18 0.8 377 157 82 38 82 17 0.6

Cantabria 126 68 28 8 18 5 0.2 122 65 26 7 18 4 0.1

Castille-Leon 700 413 140 38 85 24 0.6 678 401 133 35 86 22 0.5

Castille-La Mancha 432 253 84 23 55 16 0.5 411 242 78 21 53 15 0.3

Catalonia 1,430 785 297 62 208 76 0.8 1,340 736 270 57 200 75 0.6

Valencian Community 1,184 694 208 66 177 38 1.1 1,124 662 190 61 177 33 0.8

Extremadura 192 93 48 14 29 8 0.2 185 87 46 14 31 8 0.2

Galicia 556 261 143 46 85 21 0.7 533 248 134 44 86 20 0.6

Madrid 1,485 838 277 81 228 60 2.4 1,389 784 253 74 217 59 2.0

Murcia 312 192 49 17 42 11 0.3 293 181 45 15 41 10 0.2

Navarre 111 60 23 6 16 5 0.1 108 60 22 6 16 4 0.1

Basque Country 521 294 110 28 73 17 0.4 504 287 102 26 73 15 0.3

La Rioja 76 44 14 4 11 2 0.1 72 42 13 4 11 2 0.1

Ceuta 11 3 3 1 3 2 0.0 11 2 3 1 3 2 0.0

Melilla 10 2 3 1 2 1 0.0 9 2 3 1 2 1 0.0

LAE Internet Channel 66 25 9 25 5 0.7 76 - 29 10 31 6 0.6

69 The Gambling Market in Spain

Statistical appendix: LAE. Net revenue 2010-2012

LAE, Net revenue 2010-2012 Million euros

YEAR TOTAL National Lottery Primitiva Lottery Bonoloto Euromillons Pools Others

2010 3,678 1,704 950 271 524 224 5

2011 3,821 1,743 896 267 735 176 5

2012 3,793 1,695 875 249 802 167 5

70 The Gambling Market in Spain

Statistical appendix: ONCE. Amounts played by Autonomous Region

ONCE, Amounts played by Autonomous Region 2011-2012 Million euros

2011 2012 Autonomous Daily Cuponazo Weekend Extra-ordi- Total Coupon Active Game Instant Gambling Daily Cuponazo Weekend Extra-ordi- Total Coupon Active Game Instant Gambling Regions nary draws Lottery Total nary draws Lottery Total

Andalusia 186.1 161.5 60.0 33.9 441.6 13.4 61.8 516.8 175.1 155.9 56.1 33.0 420.2 19.1 67.1 506.5

Aragon 9.1 11.4 3.5 3.9 27.9 1.5 6.6 35.9 8.6 11.7 3.4 4.3 27.9 2.1 7.1 37.2

Asturias 16.6 19.2 5.9 3.9 45.6 1.7 7.2 54.5 15.4 18.3 5.4 3.8 42.9 2.2 7.5 52.7

Balearic Islands 18.9 19.9 6.7 4.8 50.3 2.4 7.9 60.5 17.4 18.8 6.0 4.5 46.7 3.2 9.2 59.1

Canary Islands 43.0 30.9 13.0 7.1 94.0 4.3 20.5 118.7 39.4 29.3 11.9 7.5 88.1 5.4 21.5 115.1

Cantabria 5.3 6.7 2.4 2.0 16.4 0.7 3.1 20.1 5.0 6.7 2.3 2.1 16.1 1.0 3.2 20.3

Castille-Leon 18.4 20.9 6.9 6.5 52.6 3.1 13.1 68.8 17.3 20.5 6.5 6.7 51.1 4.1 13.4 68.6

Castille-La Mancha 19.8 23.4 8.0 6.5 57.6 3.0 11.2 71.7 18.4 22.6 7.2 6.8 55.1 3.9 11.3 70.3

Catalonia 86.2 100.5 27.9 26.6 241.2 5.9 36.8 284.0 77.4 94.4 24.8 27.2 223.1 9.1 38.2 271.2

Extremadura 16.7 15.8 5.3 3.4 41.1 1.8 7.9 50.8 15.8 15.3 4.9 3.4 39.6 2.4 8.4 50.4

Galicia 21.7 21.3 8.6 6.0 57.6 3.4 15.0 76.0 20.2 20.5 7.9 6.2 54.7 4.7 15.9 75.3

Madrid 51.8 54.2 16.8 18.4 141.2 6.5 33.2 181.0 47.6 52.5 15.3 20.2 135.6 9.2 34.1 178.9

Murcia 26.2 24.9 8.6 5.9 65.6 2.1 12.2 79.9 24.3 23.6 7.9 5.7 61.6 2.9 12.7 77.2

Navarre 5.2 6.3 2.0 1.6 15.1 0.5 2.9 18.5 4.9 6.2 1.9 1.6 14.6 0.8 2.9 18.3

Basque Country 14.7 22.9 6.7 6.1 50.4 2.1 8.3 60.9 13.5 21.9 6.0 6.5 47.9 2.9 8.3 59.2

La Rioja 2.6 3.9 1.3 1.2 9.0 0.4 1.9 11.3 2.5 3.7 1.2 1.2 8.6 0.6 1.9 11.1 Valencian 76.3 81.5 25.7 19.8 203.5 7.5 33.5 244.4 70.4 77.9 24.1 20.6 192.9 10.3 36.1 239.4 Community Internet and others 0.4 0.4 0.4 0.3 1.5 0.5 0.6 2.6 404.0 508.0 377.0 221.0 1.5 0.8 0.5 2.8

TOTAL 618.9 625.5 209.6 157.7 1,611.9 60.8 283.6 1,956.3 573.7 600.4 193.3 161.7 1,529 84.8 299.6 1,913.9 71 The Gambling Market in Spain

Statistical appendix: ONCE. Claimed prizes by Autonomous Region

ONCE, Claimed prizes by Autonomous Region 2011-2012 Million euros

2011 2012 Autonomous Daily Cuponazo Weekend Extra-ordi- Total Coupon Active Game Instant Gambling Daily Cuponazo Weekend Extra-ordi- Total Coupon Active Game Instant Gambling Regions nary draws Lottery Total nary draws Lottery Total

Andalusia 94.5 46.1 22.2 10.8 173.6 8.3 35.1 217.0 76.6 72.3 37.8 28.0 214.7 9.5 38.5 262.7

Aragon 3.0 5.2 1.3 1.3 10.5 6.4 3.3 20.2 4.6 2.5 0.9 0.8 8.8 0.9 4.1 13.7

Asturias 5.2 12.6 2.1 2.1 22.0 0.7 3.9 26.6 9.1 3.7 1.4 0.7 14.9 1.1 4.2 20.2

Balearic Islands 9.8 3.7 2.6 3.1 19.3 0.9 4.0 24.1 9.9 3.0 8.1 0.7 21.9 1.5 4.8 28.1

Canary Islands 17.2 17.5 10.5 2.9 48.1 2.0 12.1 62.2 19.5 6.0 5.4 1.2 32.0 3.4 13.0 48.5

Cantabria 2.4 2.0 2.6 0.7 7.7 0.2 1.6 9.6 2.1 1.9 2.9 0.3 7.2 0.6 1.7 9.5

Castille-Leon 6.7 13.3 4.0 1.9 26.1 1.1 7.0 34.2 8.5 6.0 4.9 1.3 20.8 1.8 7.1 29.7

Castille-La Mancha 10.1 4.5 4.4 2.0 21.0 1.1 5.9 28.0 8.5 4.3 8.5 9.8 31.1 1.7 5.9 38.7

Catalonia 45.7 52.2 17.2 8.4 123.5 2.4 21.5 147.4 38.6 50.1 9.8 4.6 103.1 10.2 22.9 136.2

Extremadura 10.6 3.6 5.9 0.9 21.0 0.7 4.5 26.1 8.8 3.6 2.4 1.6 16.4 1.2 4.7 22.3

Galicia 9.2 15.8 4.3 3.2 32.6 1.2 8.2 42.0 8.2 4.2 4.4 1.9 18.7 2.1 8.7 29.6

Madrid 23.2 28.6 10.9 6.7 69.4 4.9 20.0 94.4 26.9 20.5 6.6 9.9 63.9 4.8 20.9 89.6

Murcia 10.1 3.4 5.0 1.8 20.3 0.8 7.1 28.2 12.0 6.9 6.2 1.0 26.2 1.5 7.3 35.1

Navarre 2.2 0.9 3.7 0.6 7.3 0.2 1.8 9.3 2.5 10.7 0.5 0.4 14.1 0.3 1.7 16.1

Basque Country 8.3 19.0 2.6 2.0 32.0 0.8 4.6 37.4 6.7 5.7 1.8 1.1 15.3 1.4 4.5 21.2

La Rioja 0.9 0.5 2.2 0.3 3.9 0.1 0.9 4.9 2.3 0.8 0.2 0.2 3.5 0.2 0.9 4.7 Valencian 32.7 19.2 11.9 6.9 70.6 3.0 18.0 91.6 31.7 14.0 14.2 3.2 63.1 5.6 19.7 88.4 Community Internet and others 0.2 0.3 0.3 0.1 0.8 0.3 0.4 1.5 0.2 0.2 0.3 0.1 0.7 0.6 0.4 1.7

TOTAL 292.0 248.4 113.5 55.7 709.7 35.2 159.9 904.8 276.7 216.5 116.5 66.9 676.6 48.5 171 896.2 72 The Gambling Market in Spain

Statistical appendix: ONCE. Net revenue by Autonomous Region

ONCE, Net revenue by Autonomous Region 2011-2012 Million euros

2011 2012 Autonomous Daily Cuponazo Weekend Extra-ordi- Total Coupon Active Game Instant Gambling Daily Cuponazo Weekend Extra-ordi- Total Coupon Active Game Instant Gambling Regions nary draws Lottery Total nary draws Lottery Total

Andalusia 92 115 38 23 268 5 27.7 299.7 98.4 83.7 18.3 5.0 205.5 9.6 28.6 243.8

Aragon 6 6 2 3 17 -5 3.3 15.8 4.1 9.2 2.4 3.5 19.1 1.3 3.1 23.4

Asturias 11 7 4 2 24 1 3.3 27.8 6.4 14.6 4.0 3.1 28.1 1.2 3.3 32.6

Balearic Islands 9 16 4 2 31 2 3.9 36.4 7.5 15.7 -2.0 3.7 24.9 1.7 4.4 31.0

Canary Islands 26 13 3 4 46 2 8.4 56.5 19.9 23.3 6.6 6.3 56.1 2 8.5 66.5

Cantabria 3 5 -0 1 9 0 1.4 10.5 2.9 4.8 -6.0 1.8 8.9 0.4 1.5 10.9

Castille-Leon 12 8 3 5 26 2 6.1 34.6 8.8 14.5 1.6 5.4 30.3 2.2 6.3 38.8

Castille-La Mancha 10 19 4 4 37 2 5.2 43.7 9.9 18.3 -1.3 -2.9 24.0 2.2 5.4 31.6

Catalonia 41 48 11 18 118 3 15.4 136.5 38.8 44.3 15.0 22.7 120.7 -1.1 15.3 135.0

Extremadura 6 12 -1 3 20 1 3.4 24.7 7.0 11.8 2.6 1.8 23.1 1.2 3.7 28.1

Galicia 12 6 4 3 25 2 6.8 33.9 12.0 16.2 3.5 4.2 36.0 2.5 7.1 45.6

Madrid 29 26 6 12 72 2 13.2 86.6 20.8 31.9 8.6 10.3 71.6 4.4 13.3 89.4

Murcia 16 21 4 4 45 1 5.1 51.7 12.2 16.7 1.8 4.7 35.4 1.4 5.4 42.2

Navarre 3 5 -2 1 8 0 1.1 9.1 2.4 -4.5 1.3 1.3 0.5 0.4 1.3 2.2

Basque Country 6 4 4 4 18 1 3.7 23.5 6.8 16.2 4.3 5.4 32.7 1.5 3.8 38.0

La Rioja 2 3 -1 1 5 0 0.9 6.3 0.1 2.9 0.9 1.0 5.0 0.3 1.0 6.4 Valencian 44 62 14 13 133 5 15.5 152.8 38.7 63.9 9.8 17.4 129.8 4.7 16.5 151.0 Community Internet and others 0 0 0 0 1 0 0.2 1.1 0.2 325.0 0.1 0.1 0.8 0.1 0.1 1.0

TOTAL 327 377 96 102 902 26 123.7 1,051.5 297.0 383.9 76.8 94.8 852.5 36.2 128.5 1,017.7

73 The Gambling Market in Spain

Statistical appendix: ONCE. Agents and points of sale

ONCE, Points of sale by Autono- ONCE, Sales agents by Autonomous Region mous Region Average number of sales agents Average number, Additional Physical Channel

2010 2011 2012 2011 2012 Andalusia 5,292 5,195 5,119 Andalusia 1,878 2,449 Aragon 381 381 383 Aragon 315 398 Asturias 616 605 589 Asturias 307 347 Balearic Islands 612 597 600 Balearic Islands 338 454 Canary Islands 1,092 1,055 1,029 Canary Islands 356 459 Cantabria 204 197 191 Cantabria 134 165 Castile-León 740 726 723 Castile-León 567 676 Castille-La Mancha 659 642 631 Castille-La Mancha 447 544 Catalonia 3,023 2,986 2,940 Catalonia 1,412 1,833 Extremadura 528 497 483 Extremadura 233 317 Galicia 731 714 694 Galicia 535 625 Madrid 2,125 2,045 2,072 Madrid 1,238 1,672 Murcia 982 961 926 Murcia 293 366 Navarre 186 184 182 Navarre 105 130 Basque Country 693 664 628 Basque Country 408 512 La Rioja 127 124 121 La Rioja 100 116 Valencia 2,551 2,498 2,507 Valencia 1,174 1,473 TOTAL 20,540 20,073 19,818 TOTAL 9,840 12,536

74 The Gambling Market in Spain

Statistical appendix: Casinos. Amounts played and net revenue 1999-2012

Casinos, Amounts played and net revenue 1999-2012 Million euros

Amounts played Net revenue

No, of type C DROP Type C machines Tips Total YEAR Total Table games Type C machines Admission machines

1999 1,082 300 1,381 196 60 60.0 3.8 320 1,956

2000 1,206 375 1,581 218 75 64.0 3.9 361 1,901

2001 1,262 425 1,687 235 85 66.0 3.4 389 1,879

2002 1,318 481 1,799 258 96 66.0 3.3 423 1,902

2003 1,404 510 1,914 263 102 66.0 2.9 434 1,712

2004 1,476 591 2,067 283 118 67.6 2.9 472 1,843

2005 1,735 710 2,445 331 141 76.0 3.2 551 2,254

2006 1,716 743 2,460 330 149 72.0 3.1 554 2,252

2007 1,759 767 2,526 331 152 72.9 3.0 559 2,281

2008 1,556 731 2,287 289 146 61.0 2.6 499 2,379

2009 1,333 658 1,991 245 132 49.4 2.3 429 2,266

2010 1,222 635 1,857 227 127 31.3 2.6 388 2,291

2011 1,080 533 1,612 197 107 34.5 2.2 340 2,411

2012 965 525 1,490 171 105 29.4 1.8 307 2,352

75 The Gambling Market in Spain

Statistical appendix: Casinos. Amounts played by Autonomous Region

Casinos, Amounts played by Autonomous Region 2003-2012 Million euros

YEAR Total Andalusia Aragon Asturias Balearic Canary Cantabria Castile Castile- Catalonia Valencian Extre- Galicia Madrid Murcia Navarre Basque La Rioja Ceuta Melilla Islands Islands -Leon La Mancha Community madura Country

2003 1,914 277 42 - 102 165 42 50 - 465 170 - 46 401 77 - 70 - 4 4

2004 2,067 305 50 - 64 158 53 51 - 536 225 - 45 423 70 - 79 - 4 5

2005 2,445 417 50 - 110 164 71 55 - 568 246 20 48 514 74 - 88 13 5 3

2006 2,460 320 53 32 130 152 77 52 - 587 233 41 46 542 79 - 87 16 7 7

2007 2,551 331 54 36 112 189 32 44 - 609 272 46 40 558 105 - 90 16 8 8

2008 2,287 278 46 36 100 171 29 40 - 564 228 46 32 512 90 - 84 14 7 8

2009 1,991 217 34 32 83 139 24 47 - 498 230 42 31 455 59 - 72 12 7 9

2010 1,857 195 34 26 79 135 20 51 - 471 223 40 29 402 55 - 70 12 6 9

2011 1,612 165 27 17 71 137 18 37 - 423 201 33 28 332 38 - 62 10 4 6

2012 1,490 161 21 15 83 132 19 31 - 398 174 29 23 300 33 - 54 9 3 6

*Includes DROP and type C machines

76 The Gambling Market in Spain

Statistical appendix: Casinos. Revenue 2003-2012

Casinos. Revenue by Autonomous Region 2003-2012 Million euros

YEAR Total Andalusia Aragon Asturias Balearic Canary Cantabria Castile Castile- Catalonia Valencian Extre- Galicia Madrid Murcia Navarre Basque La Rioja Ceuta Melilla Islands Islands -Leon La Mancha Community madura Country

2003 434 65 10 - 23 40 9 11 - 104 40 - 7 83 18 - 19 - 1 1

2004 472 70 10 - 24 39 11 10 - 118 53 - 8 89 18 - 20 - 1 1

2005 550 96 11 - 84 41 15 12 - 124 60 5 10 105 18 - 22 3 2 1

2006 554 74 12 8 26 43 15 11 - 132 59 9 10 110 18 - 22 5 2 1

2007 561 76 12 11 24 45 7 10 - 134 63 9 10 114 21 - 23 4 2 1

2008 499 61 10 8 21 39 6 9 - 121 55 10 7 108 17 - 20 3 2 1

2009 429 51 7 7 20 32 4 9 - 107 52 8 7 89 11 - 18 3 2 1

2010 388 43 7 5 18 29 4 8 - 95 50 8 6 80 12 - 17 3 2 1

2011 340 37 5 4 17 28 3 7 - 92 44 7 6 63 8 - 15 2 1 1

2012 307 34 4 3 22 28 3 5 - 84 36 6 4 55 7 - 13 2 1 1

77 The Gambling Market in Spain

Statistical appendix: Casinos. Net revenue from table games 2003-2012

Casinos. Net revenue from table games by Autonomous Region 2003-2012 Million euros

YEAR Total Andalusia Aragon Asturias Balearic Canary Cantabria Castile Castile- Catalonia Valencian Extre- Galicia Madrid Murcia Navarre Basque La Rioja Ceuta Melilla Islands Islands -Leon La Mancha Community madura Country

2003 263 40 7 - 14 20 2 8 - 53 29 6 57 15 - 11 - 1 1

2004 283 42 8 - 15 20 3 7 - 58 39 5 61 14 - 12 - 1 1

2005 331 57 8 - 52 21 4 8 - 61 43 3 6 72 14 - 11 2 1 1

2006 330 43 7 6 14 21 2 8 - 67 43 5 6 77 14 - 11 4 1 1

2007 331 44 7 6 15 22 2 7 - 64 44 5 5 78 14 - 10 3 2 1

2008 289 34 5 6 12 17 2 7 - 58 38 5 4 75 12 - 9 2 1 1

2009 245 26 4 5 12 14 1 6 - 51 36 4 4 60 8 - 9 2 1 1

2010 227 22 4 4 11 13 1 5 - 52 34 4 3 54 8 - 7 2 1 1

2011 197 20 3 3 11 12 1 5 - 47 30 2 4 44 6 - 7 1 1 1

2012 171 18 2 2 15 12 1 4 - 40 23 2 2 37 5 - 5 1 1 1

78 The Gambling Market in Spain

Statistical appendix: Casinos. Net revenue from machines 2003-2012

Casinos. Net revenue from machines by Autonomous Region 2003-2012 Million euros

YEAR Total Andalusia Aragon Asturias Balearic Canary Cantabria Castile Castile- Catalonia Valencian Extre- Galicia Madrid Murcia Navarre Basque La Rioja Ceuta Melilla Islands Islands -Leon La Mancha Community madura Country

2003 101.9 15.4 0.9 - 6.3 14.4 5.7 2.0 - 31.8 4.7 - 2.4 11.5 1.3 - 5.3 - 0.1 0.0

2004 118.3 17.2 1.1 - 6.0 13.7 7.6 2.1 - 38.7 7.5 - 2.4 13.1 1.4 - 6.7 - 0.1 0.0

2005 141.2 24.7 1.6 - 22.5 13.9 1.0 2.5 - 41.9 9.4 1.2 2.7 14.8 2.2 - 8.9 0.3 0.1 0.0

2006 148.7 20.2 2.5 0.9 10.8 16.9 12.6 2.1 - 44.4 9.8 3.0 2.6 15.6 2.4 - 9.0 0.5 0.2 0.0

2007 152.3 21.3 2.8 1.3 7.5 17.1 4.0 0.9 - 48.5 12.3 3.4 3.3 16.7 2.9 - 9.8 0.5 0.2 0.0

2008 146.1 19.3 3.4 1.5 6.5 17.8 3.6 1.4 - 46.3 10.6 4.4 2.3 15.4 2.9 - 9.6 0.6 0.3 0.2

2009 131.6 18.5 2.3 1.5 5.1 14.7 2.6 1.4 - 43.3 10.0 3.6 2.5 14.4 2.5 - 8.5 0.4 0.3 0.2

2010 127.0 16.1 2.3 1.3 5.1 13.2 2.4 2.0 - 42.1 11.0 4.1 2.5 13.5 2.4 - 8.3 0.3 0.3 0.1

2011 106.5 11.8 1.7 1.0 3.9 13.6 1.8 1.5 - 35.6 9.6 3.9 2.2 9.8 1.4 - 7.3 0.3 0.2 0.1

2012 105.1 12.2 1.4 1.0 4.9 12.7 1.8 1.3 - 36.8 9.9 3.4 1.6 9.5 1.3 - 6.7 0.3 0.2 0.1

79 The Gambling Market in Spain

Statistical appendix: Casinos. Revenue from tips and admission fees 2003-2012

Casinos. Revenue from tips and admission fees by Autonomous Region 2003-2012 Million euros

YEAR Total Andalusia Aragon Asturias Balearic Canary Cantabria Castile Castile- Catalonia Valencian Extre- Galicia Madrid Murcia Navarre Basque La Rioja Ceuta Melilla Islands Islands -Leon La Mancha Community madura Country

2003 69.1 9.9 2.2 - 2.8 5.9 0.5 1.3 - 19.6 5.4 1.7 15.2 2.2 - 3.0 - 0.8 0.1

2004 70.4 10.6 1.6 - 2.8 5.7 0.6 1.4 - 21.3 7.0 1.0 15.0 2.3 - 1.6 - 0.1 0.1

2005 78.1 13.8 1.6 - 10.2 5.8 9.9 1.3 - 20.9 7.6 0.6 1.6 17.6 2.0 - 2.0 0.3 0.2 0.1

2006 75.5 11.2 2.3 0.8 2.6 5.4 0.5 1.5 - 20.7 6.8 0.8 1.5 17.5 1.7 - 1.9 0.4 0.2 0.0

2007 78.0 10.1 2.1 3.0 1.2 6.4 1.8 1.2 - 21.5 4.9 0.8 1.7 18.7 3.8 - 2.5 0.3 0.2 0.1

2008 63.6 8.2 1.1 0.5 2.7 4.5 0.3 0.9 - 16.8 6.1 0.7 0.9 16.9 2.0 - 1.5 0.3 0.1 0.1

2009 51.7 6.0 0.9 0.4 2.2 3.6 0.3 1.1 - 13.4 5.8 - 0.7 14.6 1.2 - 1.1 0.2 0.1 0.1

2010 33.8 5.2 0.8 0.3 2.0 3.3 0.2 0.7 - 0.6 4.9 0.5 0.6 12.2 1.0 - 1.1 0.2 0.1 0.1

2011 36.7 4.4 0.6 0.2 2.0 3.3 0.2 0.6 .. 9.2 3.4 0.4 0.5 9.5 0.7 .. 1.0 0.2 0.1 0.1

2012 31.2 3.9 0.4 0.2 2.0 3.0 0.2 0.5 .. 7.3 2.9 0.3 0.5 8.3 0.7 .. 0.8 0.1 0.1 0.1

80 The Gambling Market in Spain

Statistical appendix: Casinos. Number of visitors 2003-2012

Casinos, Number of visitors by Autonomous Region 2003-2012 Number of visitors

YEAR Total Andalusia Aragon Asturias Balearic Canary Cantabria Castile Castile- Catalonia Valencian Extre- Galicia Madrid Murcia Navarre Basque La Rioja Ceuta Melilla Islands Islands -Leon La Mancha Community madura Country

2003 2,966,164 336,329 72,190 ,, 148,291 486,393 68,229 102,135 ,, 705,936 271,986 ,, 64,722 486,060 103,284 ,, 99,012 ,, 12,976 8,621

2004 3,049,984 333,414 80,027 ,, 160,395 414,811 48,372 94,713 ,, 744,931 357,334 ,, 70,531 518,404 102,602 ,, 99,719 ,, 10,223 14,508

2005 3,479,373 436,434 83,161 ,, 572,888 429,433 50,509 91,643 ,, 777,202 418,666 69,781 73,472 631,852 101,883 ,, 90,137 35,636 11,554 5,122

2006 3,634,006 421,237 70,730 108,761 172,983 465,423 68,055 81,938 ,, 709,956 395,287 99,484 70,974 674,733 119,191 ,, 94,652 62,236 12,536 5,830

2007 3,782,713 479,259 71,299 81,617 178,226 421,369 40,997 139,337 ,, 748,462 458,388 88,501 69,735 709,702 143,278 ,, 92,721 30,086 15,684 14,052

2008 3,810,665 438,261 71,678 89,421 169,597 369,539 38,792 80,541 ,, 812,644 535,221 92,537 69,597 724,849 156,640 ,, 97,325 31,871 17,317 14,835

2009 4,118,304 398,018 65,107 93,312 174,596 328,485 46,819 127,527 ,, 871,226 731,469 93,977 79,668 762,447 158,145 ,, 97,385 47,266 21,647 21,210

2010 4,344,178 417,475 73,361 88,463 186,420 344,875 52,184 143,600 ,, 948,270 719,540 78,809 84,245 747,926 187,548 ,, 176,167 50,524 23,789 20,982

2011 4,375,996 294,907 65,630 82,143 177,540 185,112 45,356 141,015 ,, 941,781 759,910 68,198 78,123 687,632 169,816 ,, 188,010 55,406 22,509 23,496

2012 4,131,044 362,803 63,059 82,078 200,485 365,439 45,044 125,357 ,, 982,168 690,512 96,787 73,970 641,162 145,722 ,, 162,453 45,666 22,814 25,525

81 The Gambling Market in Spain

Statistical appendix: Casinos. Number of casinos 2003-2012

Casinos. Number of casinos by Autonomous Region 2003-2012 Units

YEAR Total Andalusia Aragon Asturias Balearic Canary Cantabria Castile Castile- Catalonia Valencian Extre- Galicia Madrid Murcia Navarre Basque La Rioja Ceuta Melilla Islands Islands -Leon La Mancha Community madura Country

2003 32 4 1 .. 3 6 1 3 .. 3 2 .. 2 1 2 .. 2 .. 1 1

2004 33 4 2 .. 3 6 1 3 .. 3 2 .. 2 1 2 .. 2 .. 1 1

2005 37 4 2 .. 3 7 1 3 .. 3 2 1 2 2 2 .. 2 1 1 1

2006 39 5 2 1 3 7 1 3 .. 3 2 1 2 2 2 .. 2 1 1 1

2007 40 5 3 1 3 7 1 3 .. 3 2 1 2 2 2 .. 2 1 1 1

2008 41 5 3 1 3 7 1 3 .. 3 3 1 2 2 2 .. 2 1 1 1

2009 39 5 1 1 3 7 1 3 .. 3 3 1 2 2 2 .. 2 1 1 1

2010 39 4 1 1 3 7 1 3 .. 4 3 1 2 2 2 .. 2 1 1 1

2011 39 4 1 1 3 7 1 3 .. 4 3 1 2 2 2 .. 2 1 1 1

2012 43 4 1 1 3 8 1 3 - 4 6 1 2 2 2 - 2 1 1 1

82 The Gambling Market in Spain

Statistical appendix: Bingo halls. Ticket sales 2003-2012

Bingo halls, Ticket sales by Autonomous Region 2003-2012 Million euros

YEAR Total Andalusia Aragon Asturias Balearic Canary Cantabria Castile Castile- Catalonia Valencian Extre- Galicia Madrid Murcia Navarre Basque La Rioja Ceuta Melilla Islands Islands -Leon La Mancha Community madura Country

2003 3,930 521 188 58 70 322 44 184 52 581 584 62 136 832 79 36 151 6 23 3

2004 3,854 538 196 57 82 288 43 176 54 570 543 64 131 820 79 36 149 6 22 3

2005 3,833 554 203 61 72 308 42 180 55 561 517 69 135 778 87 34 148 6 21 3

2006 3,694 536 196 63 74 314 41 165 50 539 518 69 79 740 88 37 142 26 20 3

2007 3,661 517 186 63 73 322 40 175 53 524 533 71 76 719 88 34 139 24 21 3

2008 3,422 475 171 61 78 307 34 154 49 473 469 68 115 676 77 33 138 21 20 3

2009 2,930 396 144 55 61 264 30 132 40 406 422 63 98 578 62 28 117 17 18 2

2010 2,688 354 129 52 54 260 30 116 33 396 398 57 95 491 53 26 107 17 18 3

2011 2,019 254 90 21 49 256 22 102 25 298 267 34 65 365 34 19 83 12 18 5

2012 1,842 243 83 30 27 183 18 90 20 276 275 25 57 377 32 16 69 12 3 4

83 The Gambling Market in Spain

Statistical appendix: Bingo halls. Net revenue 2003-2012

Bingo, Net revenue by Autonomous Region 2003-2012 Net revenue in millions of euros

YEAR Total Andalusia Aragon Asturias Balearic Canary Cantabria Castile Castile- Catalonia Valencian Extre- Galicia Madrid Murcia Navarre Basque La Rioja Ceuta Melilla Islands Islands -Leon La Mancha Community madura Country

2003 1,368 181 66 20 24 112 15 64 18 202 203 22 47 290 27 12 53 2 8 1

2004 1,342 187 68 20 28 100 15 61 19 198 189 22 45 285 28 12 52 2 8 1

2005 1,330 192 71 21 25 107 15 62 19 195 179 24 47 270 30 12 51 2 7 1

2006 1,406 204 74 24 28 119 16 63 19 205 197 24 30 282 34 14 54 10 8 1

2007 1,365 193 69 23 27 120 15 65 20 195 199 26 28 268 33 13 52 9 8 1

2008 1,268 178 64 23 29 115 13 58 18 178 176 25 26 254 29 12 52 8 7 1

2009 1,083 146 53 20 22 97 11 49 15 150 156 23 36 214 23 11 43 6 6 1

2010 988 130 47 19 20 96 11 43 12 146 146 21 35 180 20 10 39 6 6 1

2011 727 95 34 14 18 94 9 37 10 110 98 13 25 110 11 7 30 4 6 2

2012 637 85 32 12 9 66 7 32 8 99 99 9 20 114 10 5 25 4 1 2

84 The Gambling Market in Spain

Statistical appendix: Bingo halls. Prizes by Autonomous Region

Bingo halls, Prizes by Autonomous Region 2003-2012 Million euros

YEAR Total Andalusia Aragon Asturias Balearic Canary Cantabria Castile Castile- Catalonia Valencian Extre- Galicia Madrid Murcia Navarre Basque La Rioja Ceuta Melilla Islands Islands -Leon La Mancha Community madura Country

2003 2,561 339 123 37,5 45 210 29 120 34 379 380 40 88 542 51 23 99 4 15 2

2004 2,513 350 128 37,2 53 188 28 115 35 371 354 41 85 534 52 23 97 4 14 2

2005 2,504 362 133 40 47 201 28 117 36 366 338 45 88 508 57 22 97 4 14 2

2006 2,289 332 121 39 46 194 26 102 31 334 321 45 49 459 55 23 88 16 13 2

2007 2,297 325 117 40 46 202 25 110 33 329 334 44 48 451 55 21 87 15 13 2

2008 2,154 297 107 38 49 192 21 96 30 295 293 42 89 422 48 20 86 13 12 2

2009 1,847 249 91 34 38 166 19 83 25 256 266 40 62 364 39 18 73 11 11 1

2010 1,700 224 82 33 34 164 19 73 21 251 252 36 60 310 34 16 68 11 11 2

2011 1,292 159 56 7 31 162 13 65 15 189 169 21 40 256 23 12 53 8 11 3

2012 1,202 158 52 18 15 117 11 58 13 177 176 16 38 263 23 11 44 9 2 3

85 The Gambling Market in Spain

Statistical appendix: Bingo halls. Number of halls 2003-2012

Bingo halls. Number of bingo halls by Autonomous Region 2003-2012 Number of bingo halls

YEAR Total Andalusia Aragon Asturias Balearic Canary Cantabria Castile Castile- Catalonia Valencian Extre- Galicia Madrid Murcia Navarre Basque La Rioja Ceuta Melilla Islands Islands -Leon La Mancha Community madura Country

2003 468 65 24 6 15 33 6 22 9 71 78 8 16 77 5 3 21 4 4 1

2004 463 63 23 7 15 35 6 21 9 68 75 8 18 74 8 4 21 4 3 1

2005 447 65 23 7 9 36 6 21 9 57 75 8 18 71 8 4 21 5 3 1

2006 443 66 23 7 10 36 6 22 9 56 69 8 18 71 9 4 20 5 3 1

2007 425 65 23 7 9 36 6 21 9 52 67 8 18 67 7 3 19 4 3 1

2008 419 67 23 7 9 37 5 21 9 50 66 8 17 61 8 3 20 4 3 1

2009 401 58 23 8 9 36 5 21 9 50 65 8 16 56 6 3 19 4 3 2

2010 399 57 23 8 9 36 5 21 9 50 65 8 15 56 6 3 20 4 3 1

2011 388 57 23 8 9 36 5 21 10 49 57 8 15 54 5 3 20 4 3 1

2012 372 58 18 8 6 36 5 21 10 48 58 8 14 49 5 3 17 4 3 1

86 The Gambling Market in Spain

Statistical appendix: Type B machines. Amounts played 2003-2012

Type B machines, Amounts played by Autonomous Region 2003-2012 Million euros

YEAR Total Andalusia Aragon Asturias Balearic Canary Cantabria Castile Castile- Catalonia Valencian Extre- Galicia Madrid Murcia Navarre Basque La Rioja Ceuta Melilla Islands Islands -Leon La Mancha Community madura Country

2003 10,292 1,387 381 342 159 510 138 738 394 1,652 1,351 234 473 1,359 440 95 539 80 8 12

2004 10,076 1,442 356 330 204 494 142 724 391 1,649 1,262 229 390 1,286 420 112 543 81 7 14

2005 10,729 1,630 374 320 354 482 101 698 411 1,715 1,309 235 540 1,335 439 119 565 84 6 15

2006 10,939 1,662 383 321 333 469 146 745 426 1,726 1,366 241 363 1,542 438 118 545 87 11 15

2007 12,627 1,871 441 296 372 526 170 847 494 1,955 1,575 278 459 1,976 496 152 591 101 12 17

2008 14,499 1,878 514 296 429 579 169 976 631 2,253 1,774 320 789 2,319 568 177 671 122 15 19

2009 13,364 1,893 481 267 382 533 158 909 591 2,087 1,609 301 347 2,332 509 170 619 169 3 3

2010 11,339 1,530 405 210 307 489 132 774 503 1,769 1,384 259 278 2,129 427 118 522 99 2 3

2011 9,389 1,679 285 149 237 267 97 747 442 1,160 907 191 297 2,109 295 119 342 62 1 2

2012 8,515 1,534 245 49 330 146 130 628 408 1,003 683 159 544 2,083 207 99 225 41 1 1

87 The Gambling Market in Spain

Statistical appendix: Type B machines. Gaming revenue 2003-2012

Type B machines, Gaming revenue by Autonomous Region 2003-2012 Million euros

YEAR Total Andalusia Aragon Asturias Balearic Canary Cantabria Castile Castile- Catalonia Valencian Extre- Galicia Madrid Murcia Navarre Basque La Rioja Ceuta Melilla Islands Islands -Leon La Mancha Community madura Country

2003 2,573 347 95 85.5 40 128 35 184 99 413 338 59 118 340 110 24 135 20 2 3

2004 2,519 361 89 82.4 51 123 35 181 98 412 316 57 97 322 105 28 136 20 2 3

2005 2,682 408 93 80 88 120 25 174 103 429 327 59 135 334 110 30 141 21 1 4

2006 2,735 416 96 80 83 117 37 186 107 431 342 60 91 386 109 29 136 22 3 4

2007 3,157 468 110 74 93 131 42 212 124 489 394 69 115 494 124 38 148 25 3 4

2008 3,625 470 129 74 107 145 42 244 158 563 443 80 197 580 142 44 168 30 4 5

2009 3,341 473 120 67 96 133 40 227 148 522 402 75 87 583 127 43 155 42 1 1

2010 3,377 459 122 63 92 122 40 232 151 531 415 78 84 639 128 35 157 30 1 1

2011 3,026 420 117 61 97 110 40 224 133 478 374 79 74 495 121 36 141 26 1 1

2012 2,753 460 101 14 178 60 31 188 122 413 281 65 136 478 85 30 92 17 0 0

88 The Gambling Market in Spain

Statistical appendix: Type B machines. Prizes 2003-2012

Type B machines, Prizes by Autonomous Region 2003-2012 Prizes in millions of euros

YEAR Total Andalusia Aragon Asturias Balearic Canary Cantabria Castile Castile- Catalonia Valencian Extre- Galicia Madrid Murcia Navarre Basque La Rioja Ceuta Melilla Islands Islands -Leon La Mancha Community madura Country

2003 7,719 1,040 286 256 119 383 104 553 296 1,239 1,013 176 355 1,019 330 71 404 60 6 9

2004 7,557 1,082 267 247 153 370 106 543 293 1,237 947 172 292 965 315 84 407 61 6 10

2005 8,047 1,223 280 240 265 361 76 523 308 1,286 982 176 405 1,001 329 89 424 63 4 11

2006 8,204 1,247 287 241 250 352 110 559 320 1,294 1,025 181 273 1,157 328 88 409 65 8 11

2007 9,470 1,403 331 222 279 394 127 635 371 1,466 1,181 208 344 1,482 372 114 443 76 9 12

2008 10,874 1,409 386 222 322 434 127 732 473 1,690 1,330 240 592 1,739 426 133 503 91 11 14

2009 10,023 1,420 361 200 287 400 119 682 443 1,565 1,207 226 260 1,749 382 128 464 127 2 3

2010 7,962 1,071 284 147 215 366 92 542 352 1,239 969 181 195 1,490 299 83 366 69 1 2

2011 6,363 1,259 168 88 139 157 57 523 310 683 534 112 222 1,615 173 83 201 37 1 1

2012 5,762 1,074 144 35 152 86 98 440 286 590 402 94 408 1,606 122 69 132 24 0 1

89 The Gambling Market in Spain

Statistical appendix: Type A and B machines. Number of machines by Autonomous Region

Type A and B machines, Number of machines by Autonomous Region 2009-2012 Units

Type A machines Type B machines Type A and B machines 2009 2010 2011 2012 2009 2010 2011 2012 2009 2010 2011 2012

TOTAL 77,462 50,302 41,412 38,429 246,651 239,992 228,434 213,908 3,082 2,995 2,696 2,589

Andalusia 16,442 16,072 15,660 15,244 40,572 39,526 36,305 32,235 1,032 997 851 865

Aragon 3,092 2,898 2,736 2,609 8,635 8,635 8,308 7,778 127 128 127 123

Asturias 1,352 1,223 947 949 6,890 6,730 6,292 6,033 24 25 25 24

Balearic Islands 5,559 5,370 7,709 6,250 6,624 4,976 169 159 169 105

Canary Islands 5,283 4,973 4,929 4,837 8,910 8,440 7,975 7,579 262 250 246 236

Cantabria 1,026 926 935 822 4,080 3,950 4,128 3,401 30 27 23 23

Castille-Leon 8,014 16,945 16,638 15,717 15,659 71 50 47 47

Castille-La Mancha 5,739 - 11,010 10,758 9,638 9,207 65 48 45 46

Catalonia 4,224 3,693 3,219 2,557 38,726 38,047 37,374 35,039 198 195 126 125

Valencian Community 3,960 3,734 3,502 3,304 30,281 29,153 26,347 25,618 288 279 267 253

Extremadura 4,464 5,872 5,655 5,724 5,057 45 45 46 15

Galicia 3,319 2,906 2,266 3,631 11,850 11,882 11,619 11,055 102 106 94 88

Madrid 3,678 - 30,464 28,949 29,077 27,054 258 267 252 264

Murcia 1,057 1,033 1,020 932 9,335 9,043 8,320 7,481 167 165 168 171

Navarre 3,152 2,198 2,080 2,221 2,233 2,149 2,011 85 82 27 27

Basque Country 5,659 5,276 4,118 3,316 11,429 11,493 10,624 11,678 125 141 156 150

La Rioja 438 228 2,159 2,095 1,750 1,743 30 17 15 15

Ceuta 4 225 208 187 123 4 4 4 3.6

Melilla 308 307 276 181 10 10 9 9

90 The Gambling Market in Spain

Statistical appendix: Amounts played by game type

Amounts played by game type Euros

Straight sports Straight horse Poker Complementary Contests Poker Cash Black Jack Baccarat Roulette Bingo TOTAL betting race betting Tournament games

June 2012 107,543,223 1,193,053 1,514,462 85,173,213 26,939,991 23,607,765 55,127 79,983 23,296,679 2,493,474 271,896,971

July 2012 133,803,297 1,298,355 1,044,901 120,837,514 27,392,514 18,319,934 99,021 203,695 38,959,530 4,141,517 346,100,279

August 2012 121,685,456 1,295,708 1,406,343 128,117,195 28,683,225 18,277,354 93,346 89,902 39,255,860 4,400,379 343,304,768

September 2012 158,203,475 1,292,481 1,386,408 136,374,730 33,002,582 20,461,317 213,517 252,139 50,780,646 5,023,295 406,990,590

October 2012 192,142,231 1,372,776 1,441,883 158,336,391 37,482,240 24,013,043 162,888 249,324 63,917,038 4,966,642 484,084,456

November 2012 152,359,101 1,122,216 1,456,998 151,308,067 37,529,170 25,181,403 123,412 214,565 61,462,250 4,431,209 435,188,391

December 2012 135,073,607 1,290,073 2,502,581 152,188,789 41,764,233 28,197,122 94,264 269,470 73,901,596 4,935,411 440,217,145

TOTAL 2012 1,000,810,390 8,864,663 10,753,577 932,335,900 232,793,956 158,057,937 841,575 1,359,078 351,573,599 30,391,927 2,727,782,599 (June-December)

TOTAL 2011 710,668,867 9,149,410 8,514,426 847,015,669 1,575,348,372 (June-December)

91 The Gambling Market in Spain

Statistical appendix: NGR, net gaming revenue by game type

NGR (Net gaming revenue) Euros

Straight sports Straight horse Poker Complementary Contests Poker Cash Black Jack Baccarat Roulette Bingo TOTAL betting race betting Tournament games

June 2012 5,295,733 49,555 1,227,612 2,760,646 1,286,037 612,164 4,627 13,921 780,502 332,265 12,363,063

July 2012 5,826,022 127,184 851,970 3,357,943 1,438,420 654,544 -1,055 4,478 946,483 588,184 13,794,171

August 2012 7,755,940 122,649 1,170,491 3,383,666 1,446,908 558,894 5,836 6,013 1,031,377 755,546 16,237,319

September 2012 4,151,592 97,605 1,202,428 3,652,977 1,567,297 631,061 10,762 7,561 1,390,706 842,928 13,554,916

October 2012 8,774,609 73,502 1,090,560 4,081,172 1,724,507 771,379 356 9,791 1,742,660 779,097 19,047,633

November 2012 12,344,751 126,617 1,183,760 3,940,159 1,774,942 550,974 5,346 4,049 1,634,417 694,213 22,259,228

December 2012 8,617,380 85,187 1,967,179 4,011,654 1,901,538 768,368 3,916 3,803 2,031,352 750,681 20,141,057

TOTAL 2012 52,766,027 682,299 8,694,001 25,188,216 11,139,650 4,547,383 29,788 49,614 9,557,497 4,742,913 117,397,388 (June-December)

TOTAL 2011 54,061,552 724,273 6,879,656* 54,420,299 116,085,780 (June-December)

* The net revenue figure (NGR) of contests is not available for 2011, so it has been estimated by applying the percentage of NGR in 2012 to the amounts played in 2011

92 The Gambling Market in Spain

Statistical appendix: Tax revenue* by game type 2004-2012

Tax revenue* by game type 2004-2012 Million euros

YEAR LAE1 Casinos2 Bingo halls Machines3 Online gambling Total

2004 2,403.5 2,404

2005 2,290.7 2,291

2006 2,369.2 2,369

2007 2,718.6 2,719

2008 2,893.2 127.8 793.8 887.2 4,702

2009 2,919.7 93.9 677.8 887.9 4,579

2010 2,938.6 104.5 609.2 874.7 4,527

2011 3,156.4 94.7 416.7 809.5 69.7 4,547

2012 1,688.8 69.0 345.7 722.1 133.1 2,959

1, Only LAE contributions to the public treasury and taxes associated with gambling are included - not other taxes, In 2011. LAE made ​​an extraordinary contribution to the Treasury with the premium of 1.200 million euros 2, Includes type C machines 3, Includes tax revenue from type E and D machines

* This concept includes amounts corresponding to the Gambling Activities Tax and the Gambling Fee

93 The gambling market Letter from the Director around the world 1 of 3

The Online Gambling of Gambling in Spain

The Online Gambling of Gambling around the world Mankind has been drawn to gambling since its beginnings, which addressed regulation, are leading many countries that prohibited online has been expressed in various forms over the course of time. gambling, or did not regulate this activity, to develop legislation to protect Gambling and betting games are part of its history. It is to its citizens and allow for the development and taxation of this activity. Europe human beings to seek entertainment, and gambling has fulfilled This regulation can minimise the harmful effects of gambling and protect Germany Italy the most vulnerable citizens, while generating significant revenue for the this role since the beginning of time. Austria Norway Treasury and providing a stable legal environment for players and gambling Advances in technology, especially the Internet, promote new ways Belgium The Netherlands operators. of marketing that transcends borders, with novel offers and ways to Denmark United Kingdom participate in gambling that were previously unavailable. In 2012 there are still many countries where gambling, and more Finland Sweden specifically online gambling, is prohibited or under the control of a France Switzerland IT and telecommunications play a fundamental role in the current public or semi-public monopoly. However, the number of countries Greece and future evolution of gambling, which today offers possibilities that have decided to legalise and regulate this activity continues to undreamed of even a few years ago, making the sector a significant grow. There are many ways to establish such regulation and the market America and growing aspect of the international economy. liberalisation that usually entails, ranging from countries that maintain USA Online gambling still represents a relatively small percentage of some state control through a public company, to countries where the Canada the international gambling market. It is, however, one of the most existence of the former monopoly coexists with the presence of one Argentina dynamic segments due to its growth, and everything seems to or several private operators and to countries where the market is fully Brazil indicate that it will play a major role in the gambling industry. liberated, including the privatisation of these former monopolists. Chile On a global level, there is a clear trend to regulate online gambling On the other hand, there are still quite a few countries that maintain a Costa Rica which initially started in Europe and is expanding internationally. More total ban on gambling, including those practising the Islamic religion. Mexico and more countries have addressed or are in the process of addressing Some allow certain types of traditional gambling, but not online Asia and the Pacific online gambling regulation. gambling.

The inability to enforce the prohibition of internet gambling, coupled with The evolution of the international gambling sector, and from the New Zealand the relatively successful experience of those countries that have already perspective of what is offered, is leading to the development of major Australia China

The DGOJ in 2012 94 The Gambling Market around the World 2 of 3 Letter from the Director

The Online Gambling of Gambling in Spain

The Online Gambling of Gambling around the world gambling multinational companies operating in domestic markets in most countries of the region. According to sector estimates, through local licensing and leveraging platforms and IT developments online gambling and on-site casinos in the Asia-Pacific region are serving different national or regional markets, therefore maximising gradually progressing to reach and likely exceed the financial figures Europe economies of scale and acquiring a certain comparative advantage of the European sector, despite the fact that online gambling is Germany Italy over local operators. Also, there are worldwide integrated gambling banned for now throughout Asia (except in the Philippines where it Austria Norway consortia specialising in one, several or multiple games who have was legalised in 2000). This regional growth is promoted by the its Belgium The Netherlands gained great expertise and an internationally advantageous position population's great love of gambling, its extraordinary demographics Denmark United Kingdom in certain games. This is motivating traditional operators on a local and the fact that it is enjoying certain economic prosperity. The Finland Sweden and national scale who see difficulty in competing to maintain an casinos of Macao and Singapore, annexes attached to resorts, have France Switzerland offer of attractive and competitive games. contributed significantly to the rise of gambling in the region. The Greece Macao gambling market represents 50% of Asia's entire market, It is a fact that as casinos and gambling centres are losing prominence, making up 80% of tax revenue and 40% of GDP of the city in 2012. America online games (roulette, bingo and poker) are winning over fans worldwide. The sector is undergoing a clear process of transformation The crisis in Europe has slowed sector growth, and although it has USA and adaptation to new circumstances. In many cases, international not seemed to cause a decrease in the number of players, it has in Canada online gambling operators are coming to agreements or arrangements terms of the money they spend on gambling. Gambling winnings Argentina with local operators who have usually dominated traditional on- are tax free in Germany, France, Sweden and the UK; in Italy they Brazil site gambling for joint gambling operations, in which sometimes are not taxed if the operator has an Italian license; in Denmark, Chile the classification of online or on-site gambling is not so clear. The winnings are taxed as income unless the operators are licensed in Costa Rica divisions and lines of separation between the different classifications a European country, in which case they are tax free. Mexico of games becomes more diffuse with frequently overlaps, and this Gambling in Africa is insignificant, except for the emerging industry trend is expected to continue and may increase in the near future. Asia and the Pacific in South Africa in the resorts where there are casinos, although some In terms of geographical distribution, the gambling market in Asia countries have adopted a Gambling Law: Kenya in 1966, Cape Verde New Zealand continues to grow in importance, despite the ban still maintained in 2010 and South Africa in 1994, a country that is in the process of Australia China

The DGOJ in 2012 95 The Gambling Market around the World 3 of 3 Letter from the Director

The Online Gambling of Gambling in Spain

The Online Gambling of Gambling around the world legalising online gambling. the trend each is following.

This chapter aims to briefly show the situation and developments The European region has made an​​ effort to standardise gambling Europe in the gambling sector in the major world markets, particularly in data between national regulators in France, Italy, Portugal and Spain, online gambling. Analysing of the evolution of the gambling market but each market has characteristics that make it unique. Germany Italy in countries that have legislation similar to ours, such as Italy and Austria Norway France, can teach us important lessons and give us clues to predict Belgium The Netherlands the evolution of our market and avoid some of the mistakes made in Denmark United Kingdom these markets. Finland Sweden

It is impossible to establish comparative data between countries as France Switzerland the figures referring to each country correspond to their particular Greece games which are not necessarily the same, and even the concepts America and how they generate gambling statistics and figures are different, as well as how to integrate them. They are useful, however, because USA the figures allow us to see the evolution of the different markets and Canada Argentina Brazil Chile Costa Rica Mexico

Asia and the Pacific

New Zealand Australia China

The DGOJ in 2012 96 The Gambling Market around the World Letter from the Director

Europe 1 of 5 The Online Gambling of Gambling in Spain

The Online Gambling of Gambling around the world Internet and the growth of online gambling services have made the for a licence in practically every country in which they wish to coexistence of different national regulatory models more difficult. operate. In fact, even those countries where this condition was not There are multiple challenges in the coexistence of different necessary have announced a change in their legislation to require Europe

European regulatory markets: ensuring compliance with national it, as in the case of the UK. In some countries, on-site gambling Germany Italy regulations and more cooperation between States. licences are issued by sub-national bodies which have their own Austria Norway legislative powers, making the sector a complex legal framework, According to the Green Paper on online gambling in the domestic Belgium The Netherlands hardly accessible for companies of a global nature. market prepared by the European Commission on 24 March 2012, Denmark United Kingdom the situation between countries is varied, with different models More than 9 million Europeans play online per month, 18% more than Finland Sweden and national laws prohibiting online gambling, which restrict in previous years. 18.4% are between 21 and 34 years old, almost France Switzerland the number of gambling operator licences subjecting them to 21% are over 45 and 4% over 65. Of these, 58.4% are male and 41.5% Greece state control or leaving them in the private sector's hands under are female. America the supervision and control of a public regulator. The European Germany and the Netherlands maintain bans on online gambling at Commission has left sector regulation to member countries. It USA state level, although some German Länder permit it. justifies its submission to national regulations by considering Canada the characteristics of the sector and the potential damage that Finland, Portugal and Sweden's online services are controlled by a Argentina it could do. The Commission, however, has taken some action single operator, while in Spain, Denmark, Estonia, France and Italy Brazil against countries imposing unjustified restrictions on competition such games may be offered by operators with the appropriate Chile from gambling companies from other member countries, and has licence. Costa Rica announced actions to reach a degree of coordination in national The European Gaming and Betting Association (EGBA) has brought Mexico gambling laws and protection levels for citizens, in particular a Manifesto for a European policy for online gambling to the vulnerable groups, comparable in all countries of the European Asia and the Pacific European Commission, in which it states that "to regulate and region. ensure responsible online gambling, it must be based on five New Zealand Currently, both online and on-site gambling operators must apply priority actions: If the European Commission is to fulfil its role as Australia China

The DGOJ in 2012 97 The Gambling Market around the World Letter from the Director

Europe 2 of 5 The Online Gambling of Gambling in Spain

The Online Gambling of Gambling around the world guardian of this Treaty, it needs structured cooperation between European regulations. national regulatory authorities and a legal framework in the EU for The applicable directives are: online gambling where preventive gambling measures based on Europe • The Directive for online sales which applies to any online contract evidence must be taken, and the EU must develop a Plan of Action Germany Italy to combat sports fraud". of sale with the consumer. It offers a number of fundamental Austria Norway legal rights for consumers in order to ensure a high level of Approval of the Creutzmann report by the European Parliament Belgium The Netherlands consumer protection across the EU. in November 2011 demonstrated significant support for greater Denmark United Kingdom coordination in managing the gambling sector at national authority • The Unfair Commercial Practices Directive includes a general Finland Sweden level and throughout Europe. The report also recommended prohibition of unfair commercial practices and also details France Switzerland establishing a European directive on consumer protection and betting a number of specific practices banned in the EU, such as Greece fraud, setting common standards for granting gambling licences. misleading and aggressive advertising. America The Commission's 2012 policy was based on this report, which • The Data Protection Directive coordinates data protection aims to achieve greater coordination in national gambling laws, legislation in the EU, eliminating potential obstacles in the flow USA coordination between national regulators, and uniform standards of of personal data and ensuring a high level of protection within Canada protection for gambling users in the European region. the EU. Argentina Brazil Despite its economic importance and the cross-border nature of • The Anti-Money Laundering Directive has been adopted to help Chile gambling, there is no European legislation bringing together the protect the financial system and other vulnerable activities in Costa Rica gambling market yet, although a number of directives supported order to prevent money laundering and terrorist financing. Mexico by consumer protection organisations cover specific aspects of The main concerns of gambling users are taxation, liquidity, gambling gambling activity, like fair trade practises and data protection integrity and the control of their funds. Asia and the Pacific policies. Furthermore, all European licensed operators and regulated operators (including members of the European Gaming and Betting One area of ​​particular attention that has been monitored by the New Zealand Association) are subject to common regulations and general European Council is cleaning up sports and the fight against match- Australia China

The DGOJ in 2012 98 The Gambling Market around the World Letter from the Director

Europe 3 of 5 The Online Gambling of Gambling in Spain

The Online Gambling of Gambling around the world fixing, where the European Council is working to establish an International Convention against fixing sporting events, a subject Europe logically related to sports betting and fraud.

In online gambling, betting leads business (40.6%), followed by Germany Italy casinos (19.6%), poker (16.8%), national lotteries (13.3%), bingo (6.5%) Austria Norway and others. Europe, considered to be a single market, is the main Belgium The Netherlands international market but it is doubtful that it can be considered a single Denmark United Kingdom Finland Sweden market when national laws are so different, if not radically opposite. France Switzerland Greece

America Comparison of the European legislative situation between 2009 and 2012 USA Canada Argentina Brazil Chile Costa Rica Mexico

Asia and the Pacific

New Zealand Australia China

The DGOJ in 2012 99 The Gambling Market around the World Letter from the Director

Europe: comparison of the legislative situation 2009-2012 4 of 5 The Online Gambling of Gambling in Spain

The Online Gambling of Gambling around the world European legislative situation in 2009

Europe

Open market Germany Italy Austria Norway Open market Belgium The Netherlands but considering changes Denmark United Kingdom Finland Sweden Local licensing market France Switzerland Greece Local licensing market but considering changes America

Monopoly 2012 USA Canada Monopoly but considering changes Argentina Brazil Monopoly in certain sectors / Chile Mix of local licences and monopoly Costa Rica Lawlessness Mexico

Asia and the Pacific Ban on entering but considering changes New Zealand Ban on entering Australia China

The DGOJ in 2012 100 The Gambling Market around the World Letter from the Director

Europe: comparison of the legislative situation 2009-2012 5 of 5 The Online Gambling of Gambling in Spain

The Online Gambling of Gambling around the world European legislative situation in 2012

Europe

Open market Germany Italy Austria Norway Open market Belgium The Netherlands but considering changes Denmark United Kingdom Finland Sweden Local licensing market France Switzerland Greece Local licensing market but considering changes America

Monopoly 2009 USA Canada Monopoly but considering changes Argentina Brazil Monopoly in certain sectors / Chile Mix of local licences and monopoly Costa Rica Lawlessness Mexico

Asia and the Pacific Ban on entering but considering changes New Zealand Ban on entering Australia China

The DGOJ in 2012 101 The Gambling Market around the World Letter from the Director

Europe The Online Gambling of Gambling in Spain

Germany 1 of 1 The Online Gambling of Gambling around the world

Europe In Germany, the regulation of gambling and lotteries is basically handed system of restricted gambling licences and permits to private operators. Germany Italy over to all 16 federal states known as Länders. Additionally, there is The reform was implemented on 1 July 2012 after being ratified by the a joint agreement at federal level that controls the gambling market. Austria Norway states, with 20 licences granted to private operators. However, this Under this agreement, lotteries and cash games are organised by a state Belgium The Netherlands authorisation was not extended to online gambling. monopoly, while allowing licensed private operators to offer casino Denmark United Kingdom games and horse betting. Only the state of Schleswig-Holstein has liberalised its online gambling Finland Sweden Online gambling in all forms is prohibited by a federal law that took market in mid-2012, with no restrictions on the number of licences France Switzerland effect on 1 January 2008. The ban affects all games and Greece granted and authorising the online gaming offer (casino games, lotteries sports betting, online bingo and online lotteries. Under this legislation, and poker), all logically restricted to its territory. Certain international the government can order German Internet service providers to block America customer access to gambling sites and prevent German banks from doing operators argue that the federal ban on Internet gambling is a direct USA business with gambling companies. violation of existing legislation in the European Union and have initiated Canada legal action to demand its repeal. In October, a German court ruled that These laws are specifically established to protect German citizens from Argentina the dangers of online gambling, but some international operators also Totto-Lotto, the Saxony state lottery, could not operate or advertise on Brazil point to the protection they offer to the gambling industry controlled by the Internet under current legislation. Chile the German government. In fact, the European Commission has criticised Costa Rica the German monopoly system for its inconsistency for supposedly Several private companies have already begun to legally challenge Mexico being based on consumer protection when state monopolies spend this law, and it seems that an amendment to the legislation for online large sums to promote gambling. gambling regulation is being considered, although it is probably not Asia and the Pacific This criticism by the Commission has generated some debate about the something that will happen in the immediate future. New Zealand future of gambling regulation in Germany and its possible reform. In the spring of 2011, fifteen of the sixteen federal states decided to introduce a Australia China

The DGOJ in 2012 102 The Gambling Market around the World Letter from the Director

Europe The Online Gambling of Gambling in Spain

Austria 1 of 1 The Online Gambling of Gambling around the world

Europe Austrian Lotteries have seen an important victory as they are able to Several private European operators questioned the licence request maintain an exclusive monopoly in the gambling market. The Austrian process, complaining about the large amount of minimum capital Germany Italy Superior Court has sided exclusively with the lottery for 15 years, as required to operate (a restriction for smaller operators) and a Austria Norway well as the online gambling licence granted to the subsidiary Casinos number of provisions in the Gambling Act favouring the existence Belgium The Netherlands Austria, thus rejecting the claims of three gambling operators. of a monopoly. However, the Constitutional Court of Vienna has Denmark United Kingdom rejected these claims to date, and has maintained the legality of Finland Sweden Austrian Lotteries has been granted an exclusive licence for online online gambling organisation in the country. France Switzerland gambling by the Ministry of Finance to offer products such as slot Greece machines and poker. The online gambling licence came into force on 1 October 2012 and has caused anger among competing operators, America who ended up going to the Constitutional Court. USA Canada Argentina Brazil Chile Costa Rica Mexico

Asia and the Pacific

New Zealand Australia China

The DGOJ in 2012 103 The Gambling Market around the World Letter from the Director

Europe The Online Gambling of Gambling in Spain

Belgium 1 of 1 The Online Gambling of Gambling around the world

Europe The supervising body of the gambling industry, the Belgian Gaming Belgian authorities' plan, but since then it has gradually become Commission (BGC), developed its Online Gambling Law which came convinced of the validity of the approach. The new legislation prohibits Germany Italy into force on 1 January 2011. The law authorises online gambling for Belgians to play on unauthorised sites, and establishes significant Austria Norway those operators that have a special licence, but stipulates that they penalties for operating without a licence in Belgium, in addition to Belgium The Netherlands should have a licence "for on-site gambling or be in partnership with mechanisms for blocking websites. It also provides a mechanism Denmark United Kingdom an 'offline' company in order to apply for the special licence to offer for self-exclusion from gambling, and the possibility to set limits by Finland Sweden online games". According to this law, a licensed operator can only player taste that operators must comply with. The Belgian authorities France Switzerland offer games that are authorised and must have computer servers have created a blacklist of illegal gambling pages. Greece based in the country. America The European Commission initially expressed concern about the USA Canada Argentina Brazil Chile Costa Rica Mexico

Asia and the Pacific

New Zealand Australia China

The DGOJ in 2012 104 The Gambling Market around the World Letter from the Director

Europe The Online Gambling of Gambling in Spain

Denmark 1 of 1 The Online Gambling of Gambling around the world

Europe Until mid-2010, all regulated online gambling was through the are granted for five years. In terms of betting, Danske Spil is the only gambling monopoly of Danske Spil. The country embarked on a process operator to offer betting on horse, dog and pigeon racing and other Germany Italy of legislative development which culminated in the opening of the events. Austria Norway market on 1 January 2012, with the granting of new licences for online Belgium The Netherlands Any company that is authorised by a recognised jurisdiction or gambling. Denmark United Kingdom approved by the Danish Gambling Authority can participate offering Finland Sweden Active operators are not allowed to offer bingo, lotteries or draws; online gambling by paying 28% of their profits in taxes, plus an France Switzerland only Danske Spil and Det Danske Klasselotteri can offer them. Licences additional 20% surcharge on revenue. Greece

America

USA Canada Argentina Brazil Chile Costa Rica Mexico

Asia and the Pacific

New Zealand Australia China

The DGOJ in 2012 105 The Gambling Market around the World Letter from the Director

Europe The Online Gambling of Gambling in Spain

Finland 1 of 1 The Online Gambling of Gambling around the world

Europe The gambling market throughout Finland (both online and on-site) is small autonomous region of 30,000), has a licence to run a website Germany Italy monopolised by the government and divided into three main entities: offering casino games, a poker room, bingo and sports and online RAY, Veikkaus Oy and Fintoto. Austria Norway betting. All revenue from regulated activities are used to support the Belgium The Netherlands The main peculiarity of the industry is its charitable nature, as the social sector and sports. Denmark United Kingdom money earned from betting on gambling games is used to fund non- Finland Sweden profit organisations and social action programmes. PAF's website can be accessed by all Finns, prompting a protest France Switzerland by RAY. The Finnish government replied that PAF should remain as RAY is an on-site gambling monopoly, responsible for casino games, Greece slot machines and table games. the only authorised online gambling service provider in the country. However, in 2010 RAY received permission to enter the online America Veikkaus Oy controls the National Lottery of Finland and ensures that any money earned supports the development of the arts, science, market, and was soon followed by Veikkaus Oy and Fintoto, who USA sports and culture. are also permitted to offer their services on the Internet. Canada Despite pressure from the European Commission aimed at enabling Argentina Fintoto Oy focuses on betting, primarily horse racing, and ensures that Brazil any revenue generated is reinvested in the development of sports and operators in other member states to operate in the Finnish market, Chile horse breeding. Online gambling has been legal in Finland since 1996. Finland does not allow it and even contemplated blocking websites and Costa Rica financial transactions with foreign operators. Alands Penningautomatförening (PAF), another governmental Mexico monopoly that regulates gambling in the Finnish Aland Islands (a Asia and the Pacific

New Zealand Australia China

The DGOJ in 2012 106 The Gambling Market around the World Letter from the Director

Europe The Online Gambling of Gambling in Spain

France 1 of 3 The Online Gambling of Gambling around the world

Europe The Regulatory Authority of Online Gambling (ARJEL) is an All companies are required to submit a certificate issued by an independent administrative authority. Based in Paris, ARJEL is a ARJEL-accredited third party once a year. Germany Italy governmental body that regulates online gambling in the country. It Austria Norway France presents a particular situation concerning the betting was created on 12 May 2010 in order to achieve the open competition Belgium The Netherlands modality in which you can participate: there are a number of activities and sector regulation in gambling online, to protect online gambling Denmark United Kingdom that are controlled and supervised by ARJEL, while the monopoly Finland Sweden users and to ensure that the gambling industry is not a safe haven firm Française des Jeux controls lotteries, bingo and scratch cards, France Switzerland for various types of criminal activity. of which no data is available except for the total betting amount or Greece The annual fee increases depending on the number of licences fees, which for 2012 reached 10,706 million euros, considering both possessed. The French tax system is often criticised because it is on-site and online gambling. America burdensome for gambling operators. Operators granted a licence Additionally, horse race betting totalled 9,970 million euros in USA have to adopt a computer system known as frontal, which ensures all amounts played, of which 8,846 million (89%) were on-site bets and Canada game information is controlled by the French regulator. All customer 1,124 million were online bets (11%). Argentina data and gambling information goes through the system and is Online games controlled by ARJEL reached 9,407 million euros of Brazil stored in the regulator's computer systems. amounts played of which 6,181 million corresponded to poker cash Chile Every 5 years, the licence must be renewed and the licensed operator (68%) and 1,397 million to poker tournaments (15%), while online Costa Rica must agree to undergo an audit conducted by a third party to ensure horse race betting accounted for 1,124 million euros (12%) and 705 Mexico that established standards are being followed. million euros for sports betting (7%). Asia and the Pacific The licence fee varies depending on the number of licences issued: A special case is seen with casino games, where the French €20,000 for one licence, €30,000 for two and €40,000 for three with government does not authorise publishing data, and thus it can not New Zealand a duration of 5 years. be compared other states. In terms of games controlled by ARJEL, Australia China

The DGOJ in 2012 107 The Gambling Market around the World Letter from the Director

Europe The Online Gambling of Gambling in Spain

France 2 of 3 The Online Gambling of Gambling around the world

Europe net gaming revenue (NGR) for different licensed operators grew in 135 million euros in bets (19% of total sports betting), with the absolute terms by 4%, reaching 698 million euros. A breakdown of Roland Garros Open, Wimbledon, and the U.S. and Australian Opens Germany Italy the data shows that in France poker cash games generated a figure garnering the greatest amounts. Austria Norway of 188 million euros of net revenue (NGR) in 2012, representing a Belgium The Netherlands The French, to a lesser extent, also invest in other sports such as decrease of 13% over the previous year. Denmark United Kingdom basketball, rugby, volleyball, handball and other sports betting Finland Sweden However, this decline was offset with 12% growth in poker (representing 8, 4, 3, 2 ​​and 6% of bets, respectively). France Switzerland tournaments (109 million euros), maintaining the overall numbers Horse race betting in France, unlike in most of the European countries Greece for poker virtually unchanged. Online horse race betting generated where it is losing popularity, remains to be of great importance, 263 million euros in net gaming revenue (NGR), and sports betting America growing by 8.5% last year to 263 million euros, the highest figure of all was at 138 million euros. bets regulated by ARJEL. USA A special case that should be considered is that of sports betting, Canada A recent survey of players in France indicated the following: which grew 19% in the past year compared to last: the French bet Argentina larger amounts on football, representing 59% of total bets, with 417 • The average player is a 36 year old male with a medium-high Brazil million euros. The most is bet on the French League 1st division (63.2 level of education. Chile million euros), followed by the UEFA Champions League (28.8 million Costa Rica • Spending on online gambling represents 10% of the salary of the euros), with the English Premier League following closely behind Mexico youngest players. (27.2 million euros). The total amounts bet, however, are lower in the case of the Spanish League (24.4 million euros) and the French • Most have no children and live as tenants in rental homes. Asia and the Pacific League 2nd division (19.7 million euros). • 50% spend less than 50 euros per month on online games, and New Zealand Besides football, the French also place bets on tennis, reaching 70% less than 100 euros per month. Australia China

The DGOJ in 2012 108 The Gambling Market around the World Letter from the Director

Europe The Online Gambling of Gambling in Spain

France 3 of 3 The Online Gambling of Gambling around the world

Europe • 64% of players earn more than 1,500 euros in net monthly income and 22% between 1,500 and 2,000. Germany Italy Austria Norway • They are aware of the activity they take part in and see it as a Belgium The Netherlands hobby. Denmark United Kingdom • In 8 of 10 cases, a maximum amount of money to be spent is set Finland Sweden and they do not exceed it. France Switzerland

• They play several times a week, at night and at home. 4% were Greece already playing before regulation, relying on physical games like America lotteries. USA • They look at the offers on the market before playing. Canada • Most open an account with more than one website/ Argentina gambling operator. Brazil • 61% have participated at least once in sports betting, 53% in Chile poker and 32% in horse racing. Costa Rica Mexico

Asia and the Pacific

New Zealand Australia China

The DGOJ in 2012 109 The Gambling Market around the World Letter from the Director

Europe The Online Gambling of Gambling in Spain

Greece 1 of 1 The Online Gambling of Gambling around the world

Europe In Greece, OPAP has a gambling monopoly. The government holds Online companies have asked the EU to take action against what a 21% share in this company. This monopoly was declared illegal they consider unjustified national restrictions on online gambling. Germany Italy by the European Court of Justice, and is currently in the process of Austria Norway In 2012, the European Court of Justice ruled that Greece could privatisation. Belgium The Netherlands preserve the monopoly by subjecting it to stricter controls to ensure Denmark United Kingdom The EU's highest court has examined a number of cases submitted consumer protection. If unsuccessful, the country would have to Finland Sweden by international betting companies against the existence of these open the gambling sector to competition from other EU companies. France Switzerland state monopolies to see whether they can operate freely in all 27 Greece countries. America

USA Canada Argentina Brazil Chile Costa Rica Mexico

Asia and the Pacific

New Zealand Australia China

The DGOJ in 2012 110 The Gambling Market around the World Letter from the Director

Europe The Online Gambling of Gambling in Spain

Italy 1 of 2 The Online Gambling of Gambling around the world

Europe It is a country with a great gambling tradition, although it was followed by online casino games with 4,069 million (26.3%), online banned online until 2006, the year in which it began to make a series sports betting with 1,236 million (8%), poker tournaments with 1,155 Germany Italy of decisions that would gradually open the market to gambling million (7.4%), and further behind was bingo with 147 million euros, Austria Norway operators. This slow opening up of the market culminated in March online slot machines (125 million euros despite having only one month Belgium The Netherlands 2010 with the approval of the law regulating online gambling and of development), skill games with 101 million, horse race betting with Denmark United Kingdom the granting of 200 online gambling licences. The Amministrazione 75 million and online lotteries with 35 million euros, all with less than Finland Sweden Autonoma dei Monopoli di Stato (AMMS) is responsible for monitoring 1% of the market. France Switzerland the national gambling market, which merged with the Customs Greece In 2012, spending on online games (equivalent to operator net Division in June 2012 in order to reduce their operating costs. revenue or NGR) remained relatively stable compared to the previous America There are a number of requirements for operators, including that year, reaching 745 million euros, an increase of 10.5 million or 1.4%. USA hardware and software must be located in an EU country and the Of these 745 million euros, 209 million correspond to poker cash, Canada operator must have a minimum turnover of at least 1.5 million euros 168 million to sports betting, 141 million to casino games, 131 biannually. A licence for 12 months, the duration for which licences are Argentina million to poker tournaments, 43 million to bingo, 17 million to horse currently being granted, requires the payment of a €350,000 + VAT fee. Brazil betting, 16 million to skill games, 14 million to online lotteries and 6 Chile The amounts played in Italy's gambling market in 2012 stood at million to online slot machines. Costa Rica 87,149 million euros, of which 48,734 million were for amounts Considering skill games together with new games of chance, poker Mexico played in type B machines, or slot machines. Scratch cards tournaments, poker cash and casino games, spending in 2012 grew represented 9,706 million euros of amounts played. Asia and the Pacific by 17.1% compared to the previous year. In Italy, online gambling reached a figure of 15,465 million euros of Spending on sports betting, however, fell by 20.1% compared to the New Zealand amounts played in 2012, with a forecasted turnover of 18,000 million previous year, mainly due to a comparatively high payout (86.5%). Australia euros in 2013. Of these, poker cash is the main game, with 7,982 China million euros of amounts played (51.6% of all amounts played online), This suggests that even though the amounts played were similar The DGOJ in 2012 111 The Gambling Market around the World Letter from the Director

Europe The Online Gambling of Gambling in Spain

Italy 2 of 2 The Online Gambling of Gambling around the world

Europe compared to 2011, betters won much more consistently. It has even 6 months of very significant decline (over 50%), has reversed the come to be the case in September that payout exceeded 100%, which trend and has recorded a sustained increase since July. Despite this, Germany Italy tells us that amounts won are even greater than the amounts bet, it closed the year with a drop of 23.8% compared to 2011. Austria Norway representing a negative NGR for gambling operators. Belgium The Netherlands In general, it has been confirmed that the two most popular Denmark United Kingdom 31.3% of sports betting in Italy was done online in 2012. Spending categories (skill games/poker/casino and sports betting) represent Finland Sweden on online bingo has suffered a decline of 22.1% compared to 2011, 90% of spending on remote gambling. If we add bingo to this group, France Switzerland equivalent to 10.1 million euros, presumably due to the introduction the percentage rises to 95.7%, the best possible figure presented Greece of new casino games, whose spending grew by 97.7 million. Bingo for online operations. For the remaining categories, customers still has fallen to third place in spending in the categories of remote prefer to participate in a more physical way. America gambling as compared to more popular online games. USA Spending on horse race betting, after 4 months of a sharp decline, Canada managed to regain ground and close with very similar values ​​to Argentina those of 2011 (+0.2%), thanks to a new horse racing operator. Brazil Spending has also remained fairly consistent on the "Superenalotto", Chile "Superstar", "Win for life" and "Eurojackpot" games compared to Costa Rica 2011 (+0.3%), but they have actually decreased substantially in Mexico amounts played compared the same games in their on-site forms. Asia and the Pacific Spending on scratch cards decreased by 41.4% (4.6 million) due to the opening of new casino games. New Zealand

Online spending on national, international and V7 horse racing, after Australia China

The DGOJ in 2012 112 The Gambling Market around the World Letter from the Director

Europe The Online Gambling of Gambling in Spain

Norway 1 of 1 The Online Gambling of Gambling around the world

Europe Remote gambling, which includes sports betting, is possible through which it can offer betting services and online bingo, online scratch the state-run operators, Norsk Tipping and Rikstoto Norsk, who hold a cards, casino games and social games. Germany Italy monopoly on gambling and horse race betting, respectively. Austria Norway The charitable foundation Norsk Rikstoto has exclusive rights for Belgium The Netherlands The Gaming and Foundation Authority monitors and controls these bets in which the prizes accumulate according to the prizes awarded Denmark United Kingdom monopolies, which have a charitable status because their revenue in previous draws. Finland Sweden goes towards social work. Norsk Tipping and Norsk Rikstoto are entitled by law to offer games France Switzerland "Interactive online gambling", as it is known in the country, is in accordance with the gambling law and the government set the Greece prohibited if it is not carried out by one of these two state-run game portfolio on which bets are allowed. companies. Norsk Tipping received a licence on 1 June 2012 with America

USA Canada Argentina Brazil Chile Costa Rica Mexico

Asia and the Pacific

New Zealand Australia China

The DGOJ in 2012 113 The Gambling Market around the World Letter from the Director

Europe The Online Gambling of Gambling in Spain

The Netherlands 1 of 1 The Online Gambling of Gambling around the world

Europe The Netherlands only partially allows online gambling because only on-site gambling, to encourage foreign operators to legalise their state-run operators are authorised to offer online gambling. operations in the country. Germany Italy Austria Norway Legislation prohibiting foreign operators from offering gambling In terms of the requirements to be met by operators wishing to obtain Belgium The Netherlands services to Dutch citizens has not been applied very strictly, so an a Dutch licence, there are still many issues to be clarified, which Denmark United Kingdom important part of this market is made up of illegal online gambling. will happen as the development of new legislation to allow online Finland Sweden gambling progresses. In 2012, the Dutch government submitted a plan to open up the France Switzerland gambling market, with the possible privatisation of Holland Casinos, Legislation is expected to be developed during 2013 and 2014, and to Greece the public state-run company, which has 14 branches spread across be approved by the end of this last year. the Dutch territory. It also announced the granting of online gambling America licences for private operators, with a somewhat lower tax rate than USA Canada Argentina Brazil Chile Costa Rica Mexico

Asia and the Pacific

New Zealand Australia China

The DGOJ in 2012 114 The Gambling Market around the World Letter from the Director

Europe The Online Gambling of Gambling in Spain

United Kingdom 1 of 1 The Online Gambling of Gambling around the world

Europe It is one of the countries with the greatest tradition in the gambling some 5,800 million pounds sterling, of which 4,856 million represent sector. Both foreign companies and British operators were able on-site gambling, about 717 million online gambling and 227 million Germany Italy to legally offer gambling services in the UK during 2012. The UK the lottery. As for games, sports betting accounts for 52% of the total Austria Norway Gambling Commission is the body responsible for monitoring and market, followed by casinos with 15%, online gambling with 12%, Belgium The Netherlands developing legislation in the sector. The different laws governing the bingo with 11%, gambling halls ("arcades") with 6%, and lotteries with Denmark United Kingdom sector are set out in the Gambling Act passed by Parliament in 2005. 4%, despite having experienced a growth of over 30% in 2012. Finland Sweden France Switzerland The UK Gambling Commission issues gambling statistics in the UK, In online gambling, sports betting accounts for 38% of the online Greece but the annual periods considered are from April to March of the market and ranks first in importance among online games while following year. Additionally, a portion of the market is outside the casino games are second with a market share of 32%. Poker ranks America control of the UK Gambling Commission, as many operators are third, with 15.5% of the market, closely followed by bingo, with based in tax havens such as the Channel Islands, Gibraltar and Malta virtually the same percentage. USA in order to avoid paying gambling taxes in the UK. Canada There are 293 operating licences for online gaming held by 216 different Argentina However, an important amendment is currently being debated operators. Online gambling increased by 8% in 2012 in terms of GGR, Brazil concerning taxation according to the place of residence of the primarily attributable to the increased growth in existing operators Chile player, not the tax residence of the operator. This amendment has rather than by the emergence of new players in the market. Costa Rica already been announced by the Queen at the opening of Parliament in May 2013 during the presentation of her government's legislative Mexico programme. Asia and the Pacific The total gambling market in the UK generates net revenue (NGR) of New Zealand Australia China

The DGOJ in 2012 115 The Gambling Market around the World Letter from the Director

Europe The Online Gambling of Gambling in Spain

Sweden 1 of 1 The Online Gambling of Gambling around the world

Europe Sweden does not grant licences or permits for online gambling or for various breaches against the spirit of European legislation lotteries, although Swedish law gives exclusive rights for online for non-discrimination towards companies from other member Germany Italy gambling to some specific companies. The Swedish government countries. Austria Norway has given the state-run company Svenska Spel permission to offer Belgium The Netherlands The European Gaming and Betting Association has also determined internet gambling, including poker, betting and scratch games. Denmark United Kingdom that the Swedish gambling regulation has many flaws and has not Finland Sweden The state-run company ATG has also obtained a licence to offer been enough developed according to the requirements set by the France Switzerland online horse race betting, and additionally the Government often European Commission. Greece authorises Internet lotteries to non-profit charity organisations. It has proposed a change in the structure and regulation of gambling The gambling profits are for social causes or the Government. It in Sweden, which is being discussed in the Swedish Parliament, America is illegal to offer online gambling without a licence issued by the although its outcome remains to be seen. USA Swedish government, and advertising companies without a licence is Canada prohibited. Sweden has been notified repeatedly by the Commission Argentina Brazil Chile Costa Rica Mexico

Asia and the Pacific

New Zealand Australia China

The DGOJ in 2012 116 The Gambling Market around the World Letter from the Director

Europe The Online Gambling of Gambling in Spain

Switzerland 1 of 1 The Online Gambling of Gambling around the world

Europe Switzerland has undergone major changes in its gambling sector in for the two Swiss state lotteries. the last decade. On the one hand, it has opened a dozen new casinos Germany Italy These lotteries are the Loterie Romande (this company pertains to since being authorised in 2000, and on the other hand it has broken Austria Norway the cantons of Vaud, Fribourg, Valais, Neuchatel, Jura and Geneva) into the phenomenon of online gambling, which while not legal, has Belgium The Netherlands and Swisslos (previously Interkantonale Landeslotterie, distributed in been a significant force in the increase in competition for public Denmark United Kingdom the German cantons and Ticino). In 2012, the Loterie Romande had lottery companies owned by the cantons, which have recently been Finland Sweden net revenue of 368 million Swiss francs, while its net profit was 205 picked up by the Swiss government in order to grant access to online France Switzerland million Swiss francs. On the other hand, Swisslos saw 532 million gambling to the Swiss public under conditions that allow them to Greece Swiss francs in net revenue and a net profit of 353 million Swiss compete with illegal operators. francs. America The Government announced in November 2012 that it would proceed with the launch of new gambling regulations allowing The details of the new legislation will not be made known until the USA the development of online gambling, and would prevent foreign end of 2013 and there are still many issues that remain to be defined, Canada operators from reaping the benefits of online gambling, as is although it has been announced that one of the aspects to be reinforced Argentina happening to date. is the responsible gambling policy and the prevention of pathological Brazil gambling. Switzerland does not belong to the European Union and has Chile The Swiss government has presented plans to the Federal Council no obligation to allow foreign companies to operate in the market, so Costa Rica for a new gambling law, including its wish to introduce a new regime it could maintain the current public duopoly and expand it to online Mexico for the taxation of gambling winnings (currently, casino games, gambling, provided that state lotteries maintain sufficiently attractive protected by the 1998 Federal Law of Gambling and Casinos are and competitive games with international operators, or it can prevent Asia and the Pacific tax exempt, whereas winnings from lotteries and gambling are its citizens from accessing international gambling websites. taxed which is why the Federal Council intends to make all gambling New Zealand winnings exempt from taxes) and legalise online gambling, at least Australia China

The DGOJ in 2012 117 The Gambling Market around the World Letter from the Director

America The Online Gambling of Gambling in Spain

United States of America 1 of 2 The Online Gambling of Gambling around the world

Europe The market in the United States has reached a magnitude still higher services offered by international companies. than that of 2011, widely surpassing 60,000 million dollars in 2012, Germany Italy New Jersey, Nevada and Delaware are the three American states as it continues to become the largest national gambling market in Austria Norway that have legalised online gambling. Legalisation opens a new huge the world. Belgium The Netherlands market for gambling companies. Other states, especially states Denmark United Kingdom Online betting has been specifically prohibited in the US since neighbouring those who have authorised online gambling, are Finland Sweden 2006, but in late 2011, after a clarification from the Department of considering regulating gambling in order to take advantage of the France Switzerland Justice, the possibility that the different States might be unilaterally additional tax revenue that online gambling provides, which could Greece authorised to operate was opened up through a form of online produce a domino effect. gambling limited to the State territory. First was Delaware, which passed a law in June 2012 to regulate America United States law gives each State the power to regulate gambling online gambling services within its borders, and next was the state USA within its territory, limiting the federal law to addressing interstate of New Jersey in February 2013. A few days later, Nevada approved Canada gambling. Many States still maintain legal restrictions or even bans its online gambling regulation. New Jersey is considered a key state Argentina on the game, and in many only gambling or lotteries of a charitable given its size, and the fact that it allows casino games and poker. Brazil nature or those controlled by the State are permitted. However, not all the same games are allowed in all states. For Chile Gambling is prohibited at a federal level by the Unlawful Internet example, in New Jersey you can play poker online and play in casinos. Costa Rica Gambling Enforcement Act of 2006. Although it is not illegal for We must also emphasise the unique nature of the tribal areas Mexico Americans to participate in online gambling services offered by foreign assigned to Native Americans. They are allowed to set up casinos in operators, banks and other financial institutions are prohibited from Asia and the Pacific those states where gambling is legal. conducting transactions and international payments resulting from New Zealand gambling, which prevents US citizens from participating in gambling This is how they have gone on to become the biggest gambling market Australia China

The DGOJ in 2012 118 The Gambling Market around the World Letter from the Director

America The Online Gambling of Gambling in Spain

United States of America 2 of 2 The Online Gambling of Gambling around the world

Europe in the United States, reaching up to 50% of the market, well above proposals for consideration of legislation to allow online gambling. such notable states like Nevada. Germany Italy The changing trend in the gambling industry in the US has been great Austria Norway Massachusetts, California, Hawaii, Illinois, Iowa and Mississippi are news for European operators who have recently announced a series Belgium The Netherlands studying similar legislative measures. Of these, the most advanced of agreements between them and various American associations. Denmark United Kingdom is probably Iowa which is looking to legalise online poker. Finland Sweden California is probably the most important state to watch in the France Switzerland medium-term, although the regulation is not expected to be Greece approved until the end of 2014. America However, prohibition laws of online gambling at federal level are not expected to change in the foreseeable future, despite repeated USA Canada Argentina Brazil Chile Costa Rica Mexico

Asia and the Pacific

New Zealand Australia China

The DGOJ in 2012 119 The Gambling Market around the World Letter from the Director

America The Online Gambling of Gambling in Spain

Canada 1 of 1 The Online Gambling of Gambling around the world

Europe In Canada, gambling is also regulated and controlled by the states, that Canadian players often participate in gambling services offered which maintain state lotteries and casinos. Since 2009, the Canadian by international operators, sometimes in Canadian dollars. To date, Germany Italy government has been considering creating an attractive market for authorities have not acted to enforce the ban on online gambling. Austria Norway foreign gambling operators. However, except for online gambling Belgium The Netherlands According to the data available, the gambling industry in Canada services provided through provincial governments, Internet gambling Denmark United Kingdom surpassed 15,000 million US dollars in 2012, which it managed to reach remains illegal. Finland Sweden in 2011, employing about 135,000 people. However, online gambling France Switzerland Canadian law does not allow online gambling within its territory (except remains a very low share of total gambling, estimated at about 3%. Greece for online gambling offered by state casinos within their state), but does not prohibit Canadians from playing on foreign sites, meaning America

USA Canada Argentina Brazil Chile Costa Rica Mexico

Asia and the Pacific

New Zealand Australia China

The DGOJ in 2012 120 The Gambling Market around the World Letter from the Director

America The Online Gambling of Gambling in Spain

Argentina 1 of 1 The Online Gambling of Gambling around the world

Europe The Provincial Institute of Lotteries and Casinos of the Province of each of the 23 Argentine provinces and the City of Buenos Aires are Misiones focuses on the organisation, management, administration, each different. Germany Italy operation, coordination and control of all gambling and parimutuel Austria Norway Officially, online casinos must be licensed in each province to provide betting, raffles, tombolas, bingo halls, casinos, horse races and Belgium The Netherlands services to players in that area but due to regional peculiarities, other related activities, exercising a monopoly in the province of Denmark United Kingdom many online casinos take advantage of the law's weakness, using Misiones. Finland Sweden a loophole to offer gambling services across the country with a France Switzerland In 2002 the first casino appeared on the Internet, and in 2006 the foreign or a particular provincial licence. Greece first online gambling operator emerged. As long as online gambling is not regulated more strictly and it The gambling industry in Argentina is the second largest in Latin is not passed on to the Federal Government, players can enjoy America America after Mexico, followed by Brazil and Costa Rica. Argentina, online casinos and gambling sites without any legal problem. It is USA may just be the sleeping giant for online gambling in Latin America. estimated that online gambling generates more than 4,000 million Canada US dollars per year in profits. Today online gambling is regulated in Argentina, where users Argentina can enjoy online casinos. In Argentina regulation of gambling It is expected that in coming years the online gambling industry will be Brazil establishments and casinos (both online and on-site) corresponds regulated in a clearer way so that everyone will quickly and concisely Chile to the provinces, so there may be establishments that can offer their know the legal situation when playing in online casinos. Costa Rica services in some provinces and not in others; the legal situation in Mexico

Asia and the Pacific

New Zealand Australia China

The DGOJ in 2012 121 The Gambling Market around the World Letter from the Director

America The Online Gambling of Gambling in Spain

Brazil 1 of 1 The Online Gambling of Gambling around the world

Europe Brazil, with 192 million inhabitants, is the most populous country However, at present it is prohibited and there is no legislation for in Latin America and considered to be the future of the gambling online gambling, although the authorities are concerned about the Germany Italy market, and as it has a solid base of regular Internet users and a proliferation of foreign websites that appear offering gambling Austria Norway cultural history of gambling, it can also become a main player in services in Brazil. Belgium The Netherlands online gambling. Denmark United Kingdom To try to avoid this situation, it is trying to reach agreements with Finland Sweden Different types of lotteries currently operate in Brazil, all controlled various major international regulatory bodies, enabling cooperation France Switzerland by the federal government. Bingo is also very popular, as well as to prevent offers by operators licensed in other countries, while Greece sports betting, particularly football, which Brazil has a large potential considering establishing more permissive legislation for online market for. gambling in the future. America

USA Canada Argentina Brazil Chile Costa Rica Mexico

Asia and the Pacific

New Zealand Australia China

The DGOJ in 2012 122 The Gambling Market around the World Letter from the Director

America The Online Gambling of Gambling in Spain

Chile 1 of 1 The Online Gambling of Gambling around the world

Europe New regulations for online gambling were proposed in June 2012 In such as video lotteries and online gambling casinos, which are in the the past five years illegal gambling in Chile grew by 44%. category of gaming entertainment. Germany Italy Austria Norway The state-run company "La Polla Chilena de Beneficiencia", along Chile has 24 casinos, 17 with state licences and the rest municipal, with Belgium The Netherlands with the Concepción Lottery, has a monopoly in the country on the about 200,000 slot machines. The Supervising Body of Gambling Casinos Denmark United Kingdom organisation of lotteries and other gambling. (SCJ) controls gambling activity. Finland Sweden Since 2005, all number lotteries and sport prediction competitions In 2012, casinos reached revenue of 594.8 million dollars. The France Switzerland must be licensed by the state, and can be on-site or online; in 2012, government plans to expand casino taxation in 2013. Greece 18 new casinos were authorised. America It has been proposed to authorise interactive gambling with betters, USA Canada Argentina Brazil Chile Costa Rica Mexico

Asia and the Pacific

New Zealand Australia China

The DGOJ in 2012 123 The Gambling Market around the World Letter from the Director

America The Online Gambling of Gambling in Spain

Costa Rica 1 of 1 The Online Gambling of Gambling around the world

Europe Costa Rica has more than 200 online gambling companies, despite work under a "data processing licence" which can be obtained in the not having legislation that specifically addresses online gambling. Municipality. Germany Italy Austria Norway There is legislation in place to restrict on-site gambling, but according To obtain a licence in Costa Rica, the company must have a physical Belgium The Netherlands to the legal system in Costa Rica, these laws do not apply to online establishment in Costa Rica. Denmark United Kingdom gambling. Since no specific licence is required, all gambling companies Finland Sweden France Switzerland Greece

America

USA Canada Argentina Brazil Chile Costa Rica Mexico

Asia and the Pacific

New Zealand Australia China

The DGOJ in 2012 124 The Gambling Market around the World Letter from the Director

America The Online Gambling of Gambling in Spain

Mexico 1 of 1 The Online Gambling of Gambling around the world

Europe Another potentially important market is Mexico. The federal establishments. Of the 681 establishments with operating permits, gambling law of 1947 regulates gambling and raffles and, since 349 are establishments with plans to open or already operating. On Germany Italy 2004, the legislation has allowed online gambling. In Mexico, the the other hand, there are also 361 establishments with no opening Austria Norway Interior Ministry, through the Directorate General for Gambling and planned. The latter can not be opened without state and municipal Belgium The Netherlands Raffles, has granted 31 general gambling permits. Similarly, there permits. Card games or roulette are not permitted in any form, Denmark United Kingdom are 661 establishments with permits to operate through the so- including electronic, except in the case of regional fairs, according Finland Sweden called specific or limited licences. to the applicable Rules of the Law. France Switzerland Greece There are two operators with unlimited licences: Espectáculos In general terms, games and raffles that can be carried out in a Deportivos Frontón México, S.A. which is allowed to organise casino and are duly authorised by the SEGOB, are: online and on-site America betting for Basque pelota games in Mexican Fronton, and a second sports betting and bingo (traditional and electronic form), as long as known as Comercial de Juegos de la Frontera, S.A. which manages it does not involve slot machines. USA 18 bingo halls and a remote betting centre. Apart from these two Canada operators with unlimited licences, the racetrack Agua Caliente, S.A. Argentina has a licence term of 25 years with the possibility of opening limited Brazil Chile Costa Rica Mexico

Asia and the Pacific

New Zealand Australia China

The DGOJ in 2012 125 The Gambling Market around the World Letter from the Director

Asia and the Pacific 1 of 1 The Online Gambling of Gambling in Spain

The Online Gambling of Gambling around the world Asia is currently one of the fastest growing areas in the world, and granted domestic licences for online gambling through the state above all, the has the greatest potential for the gambling industry. monopoly PAGCOR. And, despite the great gambling tradition and culture of the different Europe The Pacific is primarily made up of the Australia and New Zealand countries, gambling is prohibited in most of them. markets where gambling is allowed, although in most cases it is Germany Italy Only Singapore, Macao and the Philippines allow gambling (although subject to strict state control, when not in the hands of a public Austria Norway the latter has many restrictions), and only the Philippines has operator. Belgium The Netherlands Denmark United Kingdom Finland Sweden France Switzerland Greece

America

USA Canada Argentina Brazil Chile Costa Rica Mexico

Asia and the Pacific

New Zealand Australia China

The DGOJ in 2012 126 The Gambling Market around the World Letter from the Director

Asia and the Pacific The Online Gambling of Gambling in Spain

New Zealand 1 of 1 The Online Gambling of Gambling around the world

Europe In New Zealand the gaming market makes around 2,000 million TAB and the New Zealand Lottery Commission, which are the only dollars annually, and there is a strong culture and tradition of bodies authorised to organise Internet gambling. However, New Germany Italy betting and casino games. Although there are only seven licensed Zealanders are not forbidden from playing on foreign gambling Austria Norway casinos in the country, there are dozens of bingo halls and hundreds websites, although advertising by foreign operators and offering Belgium The Netherlands of betting shops. Online gambling is in the hands of New Zealand online is prohibited. Denmark United Kingdom Finland Sweden France Switzerland Greece

America

USA Canada Argentina Brazil Chile Costa Rica Mexico

Asia and the Pacific

New Zealand Australia China

The DGOJ in 2012 127 The Gambling Market around the World Letter from the Director

Asia and the Pacific The Online Gambling of Gambling in Spain

Australia 1 of 1 The Online Gambling of Gambling around the world

Europe Australia has a small gambling market. Is mostly made up of state- initiated legal action to date against foreign operators regularly run companies that offer lottery games, 13 casinos and sports offering online gambling to its Australian customers. When online Germany Italy betting establishments. Turnover in 2012 surpassed 4,000 million gambling stormed onto the world stage in the mid-90s, Australia Austria Norway dollars. The various operators in the market hold state licences. The was one of the first to respond to the challenge. In 2001, the Belgium The Netherlands sector is regulated by the Interactive Gambling Act of 2001, which Australian interactive gambling law was approved, prohibiting Denmark United Kingdom banned the opening of new online casinos but allowed established offering online gambling services to customers who initiated Finland Sweden casinos to continue their operation. Only one of them, Lasseters sessions from Australia. This law applies to casino operators both France Switzerland Online, enjoyed the opportunity to offer online gambling, but ceased within and outside Australia. Greece operations in 2010. America In practise, the government has not interfered much in the different possibilities that online gambling offers nor has it USA Canada Argentina Brazil Chile Costa Rica Mexico

Asia and the Pacific

New Zealand Australia China

The DGOJ in 2012 128 The Gambling Market around the World Letter from the Director

Asia and the Pacific The Online Gambling of Gambling in Spain

China 1 of 1 The Online Gambling of Gambling around the world

Europe As China's industry continues to boom, the average Chinese citizen capitals. Gambling turnover quadrupled that of Las Vegas in 2012, increasingly has a higher income, and considering the country's exceeding 38,000 million dollars and making up 40% of the city's GDP. Germany Italy long tradition of gambling, China could become one of the biggest Austria Norway In Macau, as in the rest of China, online gambling is prohibited and it gambling markets worldwide. Belgium The Netherlands seems that the Chinese government has no plans to change this. Denmark United Kingdom Gambling, however, is banned in China except in the city of Macao, Finland Sweden which, with its thirty casinos, is traditionally one of the gambling world France Switzerland Greece

America

USA Canada Argentina Brazil Chile Costa Rica Mexico

Asia and the Pacific

New Zealand Australia China

The DGOJ in 2012 129 The Directorate General for the Regulation of Gambling in 2012

Legal basis, mission and objectives, scope of activity 1 of 3 Letter from the Director

The Online Gambling of Gambling in Spain The Directorate General for the Regulation of Gambling was created the Regulation of Gambling and its serving as a foundation for the by Royal Decree 352/2011 of 11 March, amending the Royal Decree National Gambling Committee was even expressed in the fact that The Online Gambling 1127/2008 of 4 July, which developed the basic organisational the Law states fees should be collected by the Committee, although of Gambling around the structure of the Ministry of Economy and Finance. With this, the deposited into the Public Treasury under the State Revenue Budget, world new Article 6 bis was introduced in Royal Decree 1127/2008 and affecting the financing of expenses of the Directorate General while the Directorate General for Gambling was created in response to the the National Gambling Committee is being created. extinction of the Public Company of the National Lottery and Betting The DGOJ in 2012 The National Gambling Committee was actually set up; it was Organisation (set out in the fortieth additional provision of Law then suspended and the Directorate General for the Regulation of 39/2010 of 22 December on the State Budget for 2011) and the need Gambling was consolidated as the sector regulator. In this sense, Legal basis for to the Central Government to take over the duties and powers of of the DGOJ and pending the confirmation of the regulatory decision mentioned gambling regulation that were being exercised by the public entity. above, the Directorate General for the Regulation of Gambling is Organisational structure The Directorate General was originally created with a clear provisional empowered (currently with an indefinite nature, and probably of the DGOJ: Competence nature and from the preamble of the Royal Decree establishing it as definitively) with the powers and duties that Law 13/2011 Gambling licences and author- basis on which the future National Gambling Committee would be attributed to the National Gambling Commission, and with them isations developed, laid out in the Gambling Regulation Act which was then assumes the aims and objectives attributed to the latter by the of the DGOJ being processed. Its provisional nature was precisely confirmed by Law. Law 13/2011 of 27 May on gambling regulation, with number 17 of Regulation development Accordingly, the objectives of the Directorate General are set out in article 21 stating its duties as "any other capacity of a public nature Article 20 of Law 13/2011: to ensure proper operation of the gambling Gambling Policies Council and administrative powers in gambling matters currently held by the industry and guarantee effective availability and provision of Central Government and its Public Bodies" and the first transitional Advertising for Gambling competitive services to benefit users. And its purpose is to: authorise, Provision of the quoted Law stating "until the constitution of the supervise, control and, if necessary, sanction the development, Inspections National Gambling Committee is in effect, its powers shall be operation and marketing of gambling and other activities within the exercised by the Directorate General for the Regulation of Gambling Procedures scope of the Law. of the Ministry of Economy and Finance, including those concerning Sanctions the management and collection of fees to which Article 49 of this The Directorate General for the Regulation of Gambling should Queries and Claims Law refers". The provisional nature of the Directorate General for ensure the integrity, security, reliability and transparency of gambling Responsible Gambling

Various 130 The Directorate General for the Regulation of Gambling in 2012

Legal basis, mission and objectives, scope of activity 2 of 3 Letter from the Director

The Online Gambling of Gambling in Spain operations as well as compliance with regulations and conditions for approving them. gambling activities. 2. Propose the terms for granting general licences to the Ministry The Online Gambling It is also responsible for channelling demand, measuring the offer of Finance and Public Administration and grant the necessary of Gambling around the of gambling activities, preventing their exploitation for fraudulent authorisation certificates for practising activities regulated by world purposes and establishing the appropriate framework to protect Law 13/2011. minors by developing or promoting specific measures, activities and 3. Report as required the authorisation of lottery activities subject to The DGOJ in 2012 programmes to prevent the development of dependency. reservation.

4. Issue general instructions to gambling operators. Legal basis of the DGOJ 5. Establish the technical and functional requirements of gambling, technological operational standards and quality certificates, Organisational structure processes, procedures, disaster recovery plans, business of the DGOJ: Competence continuity plans and information security, all in accordance with Gambling licences and author- the provisions set out in the relevant regulations and the criteria isations set by the Gambling Policy Board. of the DGOJ

6. Standardise software and technical, computer or telematic systems Regulation development for gambling activities as well as the standards thereof, including the mechanisms or systems to identify gambling participants. Gambling Policies Council

7. Monitor, control, inspect and, if necessary, sanction activities related Advertising for Gambling to gambling. The duties of the Directorate General for Gambling are those Inspections 8. Prosecute unauthorised gambling in Spanish territory, outside attributed to the National Gambling Committee laid out in 13/2011 of Spain and those activities directed at Spain, requesting Procedures and, in particular, established in article 21: Sanctions information concerning operations by different operators or 1. Develop the basic regulation of gambling and the general basis organisations lacking authorisation from any payment service Queries and Claims of sporadic games when so determined by a Ministerial Order provider, bodies providing audiovisual media services and Responsible Gambling

Various 131 The Directorate General for the Regulation of Gambling in 2012

Legal basis, mission and objectives, scope of activity 3 of 3 Letter from the Director

The Online Gambling of Gambling in Spain company information and electronic communications services duties corresponding to the Security Forces, without prejudice or the suspension of the services they were providing. The Online Gambling to the powers attributed to the fair competition authorities. 9. Ensure that the interests of participants and vulnerable groups of Gambling around the are protected, as well as compliance with laws and regulations world 18. Any other duty that it is granted by law. and the principles governing them; preserve public order and prevent unauthorised gambling. The DGOJ in 2012 10. Establish appropriate channels to provide accurate and adequate In addition to the above duties, it must assume those set out in

information to the participant on gambling activities and the Legal basis Articles 23 and 24 of Law 13/2011, among others: regulatory powers effective procedures for making claims. of the DGOJ

11. Settle claims that may be brought against operators by and powers of inspection and control. Regulatory powers grants the Organisational structure participants. of the DGOJ: Competence Directorate General for the Regulation of Gambling the capacity to 12. Manage registers set out in Law 13/2011. Gambling licences and author- isations 13. Promote and conduct studies and research in the field of gambling, dictate provisions to develop and implement gambling regulations of the DGOJ as well as its influence and impact on society. when the regulations developed expressly allow it to do so. Regulation development 14. Assist in the enforcement of legislation to prevent money laundering and terrorist financing, and to monitor compliance. Gambling Policies Council The powers of inspection and control authorise the Directorate 15. Exercise arbitral duties in terms of Article 25 of Law 13/2011. Advertising for Gambling General to exercise police duties, ensuring compliance with gambling 16. Manage and collect fees for gambling administration. Inspections regulations. 17. Any other capacity of a public nature and administrative Procedures powers concerning gambling currently held by the Central State Sanctions Administration and its Public Bodies, with the exception of police Queries and Claims

Responsible Gambling

Various 132 The Directorate General for the Regulation of Gambling in 2012

Organisational Structure and Powers of the DGOJ 1 of 2 Letter from the Director

The Online Gambling of Gambling in Spain In accordance with Article 6 of Royal Decree 256/2012 of 27 January, • Information, as required, on the authorisation of lottery which develops the basic organisational structure of the Ministry activities subject to reservation. The Online Gambling of Finance and Public Administration, the Directorate General for • Administrative sanction proceedings for breaches according to of Gambling around the the Regulation of Gambling exercises the duties of regulation, Law 13/2011 of 27 May, regulating gambling. world authorisation, supervision, coordination, monitoring and, where applicable, sanctioning of gambling activities state-wide through the • Require the suspension of services by any payment service General Division bodies within it. provider, bodies providing audiovisual media services or The DGOJ in 2012 information society and electronic communications services. These bodies are: Legal basis A) General Division of Gambling Regulation, exercising B) General Division of Gambling Inspection, exercising of the DGOJ the following duties: the following duties: Organisational structure of the DGOJ: Competence • Authorisation of the organisation and holding of raffles • Inspect gambling activities and the technical systems they use.

and any betting or gambling whose scope of development • Prosecute unauthorised illegal gambling taking place in Spanish Gambling licences and author- isations or application exceeds the territorial limits of a particular territory, outside of Spain and those activities directed at Spain. Autonomous Region, and charitable-sports betting, whatever of the DGOJ its territorial scope. • Require information concerning operations from different operators Regulation development or organisations lacking authorisation from any payment service • Propose the regulations that govern gambling. provider, bodies providing audiovisual media services and company Gambling Policies Council • Deal with application procedures for authorisation to conduct information and electronic communications services. Advertising for Gambling gambling activities. • Standardisation of technical gambling systems and the • Institutional relations with other bodies and entities of the establishment of technical and functional requirements for Inspections General State Government, Autonomous Regions and Cities, gambling. Procedures local governments, international bodies and any other public C) General Division of Management and Institutional Sanctions or private institution, Spanish or foreign, with regulatory Relations, exercising the following duties: duties in the area of gambling. Queries and Claims • Institutional relations with any public or private entities in relation Responsible Gambling

Various 133 The Directorate General for the Regulation of Gambling in 2012

Organisational Structure and Powers of the DGOJ 2 of 2 Letter from the Director

The Online Gambling of Gambling in Spain to the social and economic aspect of gambling.

• Manage and settle the taxes derived from gambling The Online Gambling administration, as well as manage the budget of the governing of Gambling around the body. world

• Manage the human and material resources of the governing body. The DGOJ in 2012 • Establish appropriate channels to provide accurate and adequate information to the participant on gambling activities Legal basis and the effective procedures for making claims. of the DGOJ

• Promote and conduct studies and research in the field of Organisational structure gambling, as well as its influence and impact on society. of the DGOJ: Competence

• Process claims that may be brought against operators by Gambling licences and author- participants. isations of the DGOJ • Register Management in the gambling industry on a state level. Regulation development

Gambling Policies Council

Advertising for Gambling

Inspections

Procedures Sanctions

Queries and Claims

Responsible Gambling

Various 134 The Directorate General for the Regulation of Gambling in 2012

DGOJ gambling licences and authorisations 1 of 2 Letter from the Director

The Online Gambling of Gambling in Spain Licences date of the regulated online gambling market's opening) many operators authorised to develop and operate gambling activities renounced some The process of granting online gambling licences adopted in the The Online Gambling or all of the licences. In total, four operators renounced a total of 9 framework of Law 13/2011 of 27 May on gambling regulation of Gambling around the licences: 7 general and 2 specific. Of those 4 operators, 2 renounced all and Royal Decrees 1613/2011 and 1614/2011 of 14 November world the licences that they were granted, so that from the date on which the which, respectively, develop the mentioned Law in terms of the relevant resolutions accepting these renunciations were issued, they technical requirements for gambling establishments and licences, completely suspended any activity as a gambling operator. The DGOJ in 2012 authorisations and gambling registers, and developed under the Order EHA/3124/2011, was concluded on 1 June, 2012 with the granting of For all the above, as of 31 December 2012, there were 53 online the first licence (authorisation certificates) for the development and gaming operators in the regulated market, with a total of 86 general Legal basis of the DGOJ operation of online gambling activities at a state level. licences for the gambling modalities of Betting (26), Contests (17) and Other Games (43), and 204 specific licences for different types of Organisational structure The result of this procedure was the licensing of a total of 55 operators, regulated gambling. of the DGOJ: Competence which included 93 general licences for the gambling modalities of By 31 December 2012, there were 32 active operators offering online Betting (30), Contests (18) and Other Games (45), and 189 specific Gambling licences and author- gambling in Spain. licences for different types of regulated gambling. isations of the DGOJ Authorisations Afterwards, the Directorate General for the Regulation of Gambling Regulation development processed the requests of 24 specific licences as provided in the As for the state-run National Lottery and Betting Organisation, on

Resolution of 16 November 2011, which set out the procedure for 27 July the Minister of Finance and Public Administrations dictated, Gambling Policies Council applying for and granting specific licences. Also, from 1 June 2012 (the based on the report of the Directorate General for Gambling, an Advertising for Gambling

Authorisations Inspections

Procedures Sanctions

Queries and Claims

Responsible Gambling

Various 135 The Directorate General for the Regulation of Gambling in 2012

DGOJ gambling licences and authorisations 2 of 2 Letter from the Director

The Online Gambling of Gambling in Spain Order authorising the mentioned operator the right to market the develop, manage and market the lottery called "Golden Draw 2013", lottery game called "El Gordo de la Primitiva" through the National The Online Gambling Lottery of the Dominican Republic within the territory of the held in Badajoz on the next day, 18 July 2013. of Gambling around the Republic. Furthermore, on 30 July the Minister for Finance and Public world Administrations dictated, also based on the report of the Directorate As for the operator National Organisation of the Blind (ONCE), the General for Gambling, an Order authorising the same operator the right to market the lottery game called "Joker". The DGOJ in 2012 mandatory report was issued on behalf of the Ministry of Finance and Also, the Order dictated by the Minister of Finance and Public Administrations dated 14 March 2012, and based on the report of the Public Administrations, dated 4 June 2012, which favourably reported Legal basis of the DGOJ Directorate General for Gambling, granted an exceptional authorisation to the Spanish Red Cross organisation to develop, manage and market simultaneous marketing with other European operators for the lottery Organisational structure the lottery called "Golden Draw 2012", held in Valencia on 19 July of the DGOJ: Competence 2012. project called "Eurojackpot". The first draw took place on 6 July 2012. Gambling licences and author- Also, by the same procedure dated 5 December 2012, an exceptional isations of the DGOJ authorisation was granted to the Spanish Red Cross organisation to Regulation development

Gambling Policies Council

Advertising for Gambling

Inspections

Procedures Sanctions

Queries and Claims

Responsible Gambling

Various 136 The Directorate General for the Regulation of Gambling in 2012

Regulation Development 2012 1 of 2 Letter from the Director

The Online Gambling of Gambling in Spain Regulation development led by the DGOJ has laid out the following for communicating data to the Register of Persons Related to resolutions in the Official State Gazette: Gambling Operators. The Online Gambling • Resolution of 12 July 2012 of the Directorate General for the • Resolution of 30 May 2012 of the Directorate General for the of Gambling around the Regulation of Gambling, which approves the provision establishing Regulation of Gambling, which approves the catalogue of horse world the model and content of the definitive certification report of the competitions and events that may be included by operators in technical gambling systems used by gambling operators and their gambling programmes. The DGOJ in 2012 which develops the change management procedure. • Resolution of 30 May 2012 of the Directorate General for the • Resolution of 12 July 2012 of the Directorate General for the Regulation of Gambling, which modifies the catalogue of sports, Legal basis Regulation of Gambling, which approves the provision establishing competitions and sporting events that may be included by of the DGOJ articles 26 and 27 of Royal Decree 1613/2011 of 14 November, operators in their gambling programmes. concerning the identification of gambling activity participants Organisational structure of the DGOJ: Competence and the monitoring of subjective bans on participation. In addition to these resolutions, projects started in 2012 should be noted: Publication on the website of the Directorate General for the Gambling licences and author- isations Regulation of Gambling of the following resolutions: • Development of the Ministerial Order project amending various of the DGOJ Ministerial Orders relating to different types of gambling. • Resolution of 24 July 2012 of the Directorate General for the Regulation development Regulation of Gambling in which it is agreed not to publish certain Object of the regulation: personal information contained in appendix 11 of the resolutions Modify Order EHA 3087/2011 of 8 November to approve the basic Gambling Policies Council on granting licences. rules of the game of bingo, as to liberalise the offer of this type Advertising for Gambling • Resolution of 25 July 2012 of the Directorate General for the of game, expanding the possibility of developing improvements Regulation of Gambling, which amends the catalogue of horse in the offer of games. Inspections competitions and events that may be included by operators in Amend Article 14 of the basic regulation of the various Ministerial Procedures their gambling programmes. Orders concerning straight sports betting, parimutuel sports Sanctions • Resolution of 7 June 2012 of the Directorate General for the betting, straight horse race betting, and parimutuel horse race Queries and Claims Regulation of Gambling, which approves the standardised models betting by eliminating the obligation corresponding to the Responsible Gambling

Various 137 The Directorate General for the Regulation of Gambling in 2012

Regulation Development 2012 2 of 2 Letter from the Director

The Online Gambling of Gambling in Spain National Gambling Commission to approve, publish and modify both catalogues for competitions and horse and sporting events, The Online Gambling as well as the list of betting objects included in operators' of Gambling around the programmes. world Expand, in relation to "Other straight betting", the definition of event, taking bets on specific animal speed into consideration. The DGOJ in 2012 Status: regulation currently being processed.

• Analysis of the possibility of regulating two new games: Online Legal basis of the DGOJ cross betting and slot machines.

On 19 November 2012 a consultation process began with the Organisational structure of the DGOJ: Competence aim of gathering information and data as a preliminary phase of a possible regulation of these types of games. Gambling licences and author- isations Status: currently in the decision phase. of the DGOJ

Regulation development

Gambling Policies Council

Advertising for Gambling

Inspections

Procedures Sanctions

Queries and Claims

Responsible Gambling

Various 138 The Directorate General for the Regulation of Gambling in 2012

Gambling Policies Council 1 of 1 Letter from the Director

The Online Gambling of Gambling in Spain In accordance with Article 34 of Law 13/2011 of 27 May regulating Gambling was presented before the Council. The Director General for the gambling, the Gambling Policies Council serves as the participation and Regulation of Gambling reported on the regulation strategy and activity The Online Gambling coordination body of the Autonomous Regions and the State in matters plan for the Directorate General for the Regulation of Gambling in 2012. of Gambling around the concerning gambling. In particular, Autonomous Regions and the State, Moreover, and in order to encourage the participation and coordination of world through the Gambling Policies Council, will promote relevant actions, Autonomous Regions and Cities and the State in gambling matters, the including the possibility of formulating policy proposals in accordance organisation of three working groups within the Council was proposed: one with their respective powers to promote the convergence of the legal and on regulatory issues, another on registers, studies and reports, and a third The DGOJ in 2012 taxation system, as well as the regulation of advertising, sponsorship and on technical issues. promotion applicable to any form of gambling, game type and operator throughout the national territory. The Working Groups, in addition to working virtually, met in person Legal basis twice throughout 2012, on 25 June and 6 November, with the regulatory of the DGOJ The Council is composed of Council members who carry out responsibilities Working Group meeting again on 17 December. concerning gambling in all Autonomous Regions and Cities, and of an Organisational structure equal number of representatives from the General State Administration. At the Working Group meeting held on 6 November in the Territorial of the DGOJ: Competence The Council Chairmanship lies with the head of the Ministry of Finance Delegation of the local government of Castile-Leon in Valladolid, the Gambling licences and author- and Public Administrations, although by Order HAP/588/2012 of 22 Directorate General for the Regulation of Gambling proposed coordinating isations March, all duties, attendance and votes are delegated to the Secretary the gambling industry with a need for convergence of sector regulation of the DGOJ of State for Finance. The permanent Secretary lies with the Directorate given the new situation created by Law 13/2011 of 27 May on gambling General for the Regulation of Gambling as established in the constituent Regulation development regulation, and with the intention to approve such a proposal at the next session of the Council held on 27 June 2011. meeting of the Gambling Policies Council. Gambling Policies Council The Gambling Policies Council is therefore a joint non-decision making The Gambling Policies Council most recently met on 17 December 2012 body that proposes and studies basic regulations of gambling and any Advertising for Gambling where a vote on the coordination proposed by the Directorate General for aspect of gambling activities, which given its nature requires coordinated Inspections action by the State and the Autonomous Regions. the Regulation of Gambling was taken with the addition of suggestions made by the Autonomous Regions. An agreement could not be reached The first meeting of the Gambling Policies Council in 2012 took place on Procedures at that meeting on the proposal submitted by the Directorate General for 27 March. In this session, which was chaired by the Secretary of State for Sanctions coordination between the State and Autonomous Regions in gambling Finance, the Council member responsible for gambling in the Autonomous matters. Queries and Claims Region of La Rioja was appointed as Vice-chairman of the Council and the new management team of the Directorate General for the Regulation of Responsible Gambling

Various 139 The Directorate General for the Regulation of Gambling in 2012

Advertising for gambling: Self-monitoring and Code of Conduct 1 of 1 Letter from the Director

The Online Gambling of Gambling in Spain On 7 June 2012, the Directorate General for the Regulation of Gambling, issue to settle claims submitted in relation to the Code. Between January the General Division of Information Society Content (Secretary of and November 2012 eight claims were presented to the Advertising Jury The Online Gambling State for Communications and the Information Society) and the for breaches of the Code of Conduct. of Gambling around the Association for the Self-monitoring of Commercial Communication On 18 December 2012 the Joint Committee for Compliance with world (AUTOCONTROL) signed an agreement to establish a Code of Conduct the Code of Conduct on Commercial Communications for Gambling on Commercial Communications for Gambling Activities with the basic Activities was formed by the Director General for the Regulation of objective of consumer protection, especially for minors and other Gambling (Chairman), a representative of the Ministry of Industry, The DGOJ in 2012 vulnerable persons or groups, within the framework of the policies of Tourism and Trade, a representative of the Ministry of Finance and responsible gambling. Public Administrations, two representatives from each of the sectors Legal basis Appendix I of the Agreement states the "representatives of companies following the Code (gambling operators, television audiovisual of the DGOJ adhering to the Code of Conduct on Commercial Communications for communication service providers, radio audiovisual communication Gambling Activities" and Appendix II includes the "Code of Conduct on service providers, information society service providers and newspaper Organisational structure of the DGOJ: Competence Commercial Communications for Gambling Activities". publishers), and a representative of Autocontrol, with a voice but without a vote, who serves as the Secretary of the Committee. Adopting the Code of Conduct on Commercial Communications for Gambling licences and author- Gambling Activities has been a success with 69 entities signing to This Committee's duties include periodically assessing the isations of the DGOJ follow it. These include associations, television channels, radio stations, implementation of the Code of Conduct in relation to its objectives, and newspaper publishers, advertising agencies, digital service providers proposing improvements and revisions of the Code where appropriate. Regulation development and gambling operators. There are currently 66 entities involved as It can be concluded that to date the Code of Conduct on Commercial three of them are no longer gambling operators. Specifically, 58% of Gambling Policies Council Communications for Gambling Activities is being implemented gambling operators are following the Code of Conduct and it must be effectively and there have been no major breaches thereof. Advertising for Gambling noted that most of the operators that are not yet following the Code do not operate in the gambling market. Inspections The signatories of the Code will expressly follow and respect its Procedures stipulations in their communications regarding gambling activities. Sanctions They also commit to respect the Code's stipulations in their advertising activities, as well as to abide by and immediately comply with the Queries and Claims content of the resolutions that the AUTOCONTROL Advertising Jury may Responsible Gambling

Various 140 The Directorate General for the Regulation of Gambling in 2012

DGOJ Inspections 1 of 4 Letter from the Director

The Online Gambling of Gambling in Spain Inspection activities for the Directorate General for the Regulation of users for issues and material of the Division. Gambling are organised into the following groups: The Online Gambling The first semester, prior to granting licences: A. Defining the technical requirements of technical gambling of Gambling around the systems, ensuring integrity, security, reliability and transparency A. Defining technical requirements. world in gambling activities. The bulk of establishing technical requirements was conducted in 2011, B. Approval of technical gambling systems. culminating with the publication of the task at the end of the same year in The DGOJ in 2012 C. Monitoring activities of online gambling operators who have Royal Decree 1613/2011 developing gambling regulation, relative to the technical requirements and Resolutions of technical specifications and the obtained authorisation in the gambling regulation. Legal basis data model for the system of internal monitoring. During the first half of of the DGOJ D. Monitoring activities of reserved games of the state-run entity 2012, technical requirements remained stable. National Lottery and Betting Organisation. Organisational structure of the DGOJ: Competence E. Prosecuting illegal gambling. B. Initial approval of technical gambling systems. Gambling licences and author- In terms of granting the first general and specific licences on 1 June isations As part of the framework of the call to request general and specific 2012 and the entry into force of the sanctions system set out in of the DGOJ licences, the preliminary approval of technical gambling systems Law 13/2011 of 27 May regulating gambling, given its relevance, was carried out, which is concluded with the provisional granting of Regulation development the analysis of Inspection activities carried out by the DGOJ is made licences. Preliminary approval has a primarily documentary nature clearer when dividing the year into two distinct time periods. Gambling Policies Council and is based on the evaluation of technical projects and preliminary Until licences are granted, the focus is on the assessment procedure certification reports issued by one of the entities designated by the Advertising for Gambling for licences and preparatory inspection and control. Once licences are DGOJ to this effect. During 2012, reports for 98 general licences and granted, inspection activity moves on to the final approval, monitoring 220 specific licences requested by 55 entities were evaluated. Inspections legal operators and prosecuting illegal gambling. Although the Procedures technical requirements and control procedures have not undergone C. Monitoring activities of online gambling Sanctions significant updates for 2012, they carry out intensive work concerning operators with a licence. queries, operators, certification entities of technical systems and Queries and Claims

Responsible Gambling

Various 141 The Directorate General for the Regulation of Gambling in 2012

DGOJ Inspections 2 of 4 Letter from the Director

The Online Gambling of Gambling in Spain During this period internal preparatory tasks for monitoring gambling On 12 July, a Resolution was published that developed articles 26 activities are carried out after the granting of the first licences. In and 27 of Royal Decree 1613/2011, specifying the requirements for The Online Gambling this context, several technical notes are published concerning putting the correct identification of gambling participants and the control of of Gambling around the activity monitoring mechanisms into production. subjective participation bans. world B. Approval of technical gambling systems. D. SELAE supervising. Operator technical gambling systems must be approved. To do this, The DGOJ in 2012 Studies and advancing collaboration with SELAE for the supervision operators must present their request for approval within a period of and control of reserve gambling have been carried out. four months from the notification of being granted a licence. Legal basis E. Prosecuting illegal gambling. During the last quarter of 2012, operators whose received notification of the DGOJ of their licence in June can request approval of technical systems The first study of the Spanish online gambling market has been Organisational structure by presenting definitive certification reports issued by an entity completed with the objective of identifying the "blacklist" of illegal of the DGOJ: Competence previously approved by the DGOJ. At the end of 2012, the definitive operators. Currently it is a potential list, since classification may approval procedures are pending a resolution as a result of the periods Gambling licences and author- vary depending on the continuity or not of the activity aimed at the for managing approval requirements and periods for receiving reports isations domestic market beyond the entry into force of disciplinary rules of the DGOJ from the Spanish Data Protection Agency. provided by the gambling regulation. Of the 285 licences granted in June, 271 approval requests were Regulation development presented. Operators renouncing or not presenting certification reports Gambling Policies Council corresponded to 19 licences. Additionally and less significant in terms of the reduced number of specific licences requested in the second half Advertising for Gambling of the year, these specific licences are undergoing preliminary approval Inspections evaluation.

Procedures C. Monitoring activities of online gambling Sanctions The second semester and after granting licences: operators with a licence. Queries and Claims A. Defining technical requirements. Operators who have obtained a licence are monitored as of when the Responsible Gambling

Various 142 The Directorate General for the Regulation of Gambling in 2012

DGOJ Inspections 3 of 4 Letter from the Director

The Online Gambling of Gambling in Spain licence is granted. • Blacklist, potential operators of illegal gambling.

To monitor the market launch, a specific go-live revision plan focusing • Whitelist, websites of operators who had applied for licences. A The Online Gambling on the most significant external technical characteristics of each site Greylist is also included. These are websites that could be linked of Gambling around the is carried out and the monitoring system is put into place by first to licensed operators, but have not been declared by them. world establishing a connection with the "storage" for the internal control Using the study in the previous phase (the go-live study) as a starting system that has been implemented by operators, and then a systematic point, and in the context of activities carried out since then, the list The DGOJ in 2012 review of the data reported is carried out. Through this system of of possible illegal operators is developed. internal control, operators fulfil the obligations to provide a detailed control of their activities, allowing for continuous supervision. Since the entry into force of the sanctions system on 15 June 2012, Legal basis the prosecution of illegal gambling is particularly relevant. Since 31 of the DGOJ Additionally, and through information requests from operators, how May 2012, three main tasks have been undertaken: Organisational structure operators manage the deposits of the players is analysed. From the of the DGOJ: Competence information obtained, a model of periodic economic contribution 1. On 31 May 2012, an e-mail was sent to 73 operators that are of information and activity is designed as a tool for collaboration included in the blacklist, indicating the new gambling situation Gambling licences and author- between DGOJ and licensed operators. in Spain as of 1 June. This text was drafted in both Spanish and isations English and e-mailed to the addresses obtained from the visual of the DGOJ inspection of each website. D. SELAE supervising. Regulation development SELAE monitoring regarding reserve gambling through regular 2. Websites found on the greylist were reviewed to make sure they Gambling Policies Council cooperation protocol is initiated. are not endorsed by operators authorised by the Directorate General for the Regulation of Gambling. Seven websites were Advertising for Gambling E. Prosecuting illegal gambling. reviewed. These websites closed or were redirected to an .es site. Inspections In May 2012, a study (go-live) was conducted for a preliminary list of websites that could be marketing gambling activity without the 3. Inspection of the blacklist as a whole to first determine whether Procedures Sanctions relevant certification. the websites direct their activity to the Spanish market.

As a result of this study the following lists were obtained: In the first phase, and to determine whether an operator is Queries and Claims

Responsible Gambling

Various 143 The Directorate General for the Regulation of Gambling in 2012

DGOJ Inspections 4 of 4 Letter from the Director

The Online Gambling of Gambling in Spain directing its activities toward the Spanish market, the following criteria is considered: the website allows registration from the The Online Gambling Spanish territory as a Spanish resident. of Gambling around the After these checks, the result of this first phase was as follows: world

- Yes, they allow registration from Spain: 16 websites

- No, they do not allow registration from Spain: 57 websites The DGOJ in 2012

Sanction proceedings were initiated in 16 cases. Legal basis 4. Afterwards, the blacklist is maintained with new additions of the DGOJ based on claims or internal reviews, and the verification process is initiated. Organisational structure of the DGOJ: Competence

Gambling licences and author- isations of the DGOJ

Regulation development

Gambling Policies Council

Advertising for Gambling

Inspections

Procedures Sanctions

Queries and Claims

Responsible Gambling

Various 144 The Directorate General for the Regulation of Gambling in 2012

Sanction Proceedings 1 of 1 Letter from the Director

The Online Gambling of Gambling in Spain The General Division of Gambling Regulation is responsible for the marketing illegal gambling in Spain. It has also agreed to file processing administrative sanction proceedings for the offences two procedures for insufficient evidence and declared the expiry The Online Gambling referred to in the Gambling Regulation Law. The Directorate of five procedures due to complications in generating notifications. of Gambling around the General for the Regulation of Gambling and, in the case of offences Therefore, of the 16 sanction proceedings initiated against world classified as very serious, the head of the Ministry of Finance unauthorised online gambling operators, 11 of those operators have and Public Administrations, attributing power to the Secretary of ceased marketing illegal gambling in Spain. State for Finance, exercise sanctioning powers pursuant to Order The DGOJ in 2012 Moreover, in relation to the powers attributed to this Directorate HAP/1335/2012 of 14 June. General concerning sanctioning matters applicable to SELAE points of Consequently, in 2012, 16 disciplinary proceedings against sale, note that the sanction proceedings initiated in 2012 against six Legal basis unauthorised online gambling operators were initiated as a result SELAE points of sale have been completed; proceedings in 2011 against of the DGOJ of proposals made by the General Division of Gambling Inspection. two SELAE points of sale; three proceedings initiated in 2009 were Organisational structure Of these 16 sanction proceedings, nine sanctioning decisions have paralysed by judicial stay as well as three proceedings for dismissal of of the DGOJ: Competence been brought about for very serious offences, and in seven of them a the appeal for review. reduction in the sanction amount has been applied in the resolution, Gambling licences and author- isations as set out in Article 42.6 of the gambling regulation for suspending of the DGOJ

Regulation development

Gambling Policies Council

Advertising for Gambling

Inspections

Procedures Sanctions

Queries and Claims

Responsible Gambling

Various 145 The Directorate General for the Regulation of Gambling in 2012

Queries, Suggestions and Claims 1 of 1 Letter from the Director

The Online Gambling of Gambling in Spain In 2012, coinciding with the start of operations of the regulated Furthermore, the DGOJ received 29 complaints from gambling users market, a Queries and Suggestions Service was established, and against operators regarding practises or unilateral decisions made The Online Gambling subsequently a Claims Service was established to meet the tasks set by operators that were challenged by the player: of Gambling around the out in Art. 21 of Law 13/2011 on gambling regulation. • 15 of them did not lead to initiating claim proceedings, although world In 2012, it received 1,046 queries and suggestions broken down as five of these were forwarded to the General Inspection Division follows: for investigation to see if sanction proceedings were indeed The DGOJ in 2012 necessary. Eight of these claims were concerning the marketing • 266 general information queries of the National Lottery and Betting Organisation. Legal basis • 181 operator complaints and claims • Of the remaining 14, nine were related to the cancellation of of the DGOJ • 169 information briefs about gambling activity bets by the operator, three for unjustified user account charges, Organisational structure two referred to the limitation of the allowed betting amounts by • 114 queries on the identity verification system and Register of of the DGOJ: Competence users and one for not respecting deposit limits. Bans Gambling licences and author- • Four of the claims were resolved by the operator before being isations • 108 queries about occasional gambling resolved by the DGOJ, prompting the claim be filed and the of the DGOJ • 89 queries on financial matters proceedings to be closed. Regulation development • 18 concerning the marketing of the National Lottery and Betting • One of the decisions not to initiate proceedings for a claim has Gambling Policies Council Organisation been contested in 2013. Advertising for Gambling • 101 referring to various other topics Inspections

Procedures Sanctions

Queries and Claims

Responsible Gambling

Various 146 The Directorate General for the Regulation of Gambling in 2012

Responsible Gambling 1 of 3 Letter from the Director

The Online Gambling of Gambling in Spain Law 13/2011 of 27 May on the regulation of gambling set out the protection of public order, prevention of addictive behaviours, The Online Gambling protection of the rights of minors, and the safeguarding of the rights of Gambling around the of participants as its main objectives. Law 11/2013 also included world allowing and facilitating gambling market development and providing up a computerised system to check for non-registration in the RGIAJ to be legal security to operators and users, while respecting the protection used by operators on a mandatory basis before allowing gambling access of public property entrusted to it among its objectives. to a user. The DGOJ in 2012

From the Directorate General for the Regulation of Gambling, with At the end of 2012 about 31,000 people were registered in the RGIAJ. This the idea of achieving these objectives and in line with the guidelines mechanism allows all players with gambling problems to exclude themselves, Legal basis of the DGOJ established by the laws for gambling for online games, an Identity and is effective protection against risk and for vulnerable groups. Users can not Verification System was established for gambling operators who deregister from the RGIAJ before six months from the date of registration, and Organisational structure are responsible for verifying the identity of its users, ensuring the a user will permanently stay in the system if they do not request deregistration. of the DGOJ: Competence verification of customer identification data electronically, contrasting In addition to these mechanisms, gambling legislation sets out it to the databases of the Directorate General of the National Police Gambling licences and author- mechanisms to prevent gambling addiction which operators must isations and the Civil Guard in real time, 24 hours a day, 365 days a year. This comply with. These include setting limits on deposits, the possibility of the DGOJ facilitates the exclusion of minors. In June 2012, this service began of reducing these limits if a user requests it, time indications for how operating to coincide with the granting of gambling licences and the Regulation development long a game is being played, the possibility to exclude oneself, links to start of the regulated market. In 2012, more than 1,700,000 positive the RGIAJ website allowing players to register, links to websites with Gambling Policies Council checks were made of a total of about 4 million verification attempts. guidance and assistance for those affected by a gambling addiction, The number of registered individual players was 1,010,000 by 31 etc. These are overseen by the DGOJ and it monitors their compliance. Advertising for Gambling December 31 2012. Article 8 of Law 13/2011 lays out the obligation of gambling operators Inspections In addition to identity verification, before allowing gambling access to a to establish "a policy of responsible gambling, which means that player, online operators are required to check that they are not registered in Procedures exercising gambling activities is to be addressed in a comprehensive the General Register of Gambling Access Bans (RGIAJ). This register, in which Sanctions policy of corporate social responsibility that includes gambling as a anyone can register, allows exclusion from all gambling requiring this check complex phenomenon which must combine preventive actions with Queries and Claims (both online and on-site) throughout the country. To this end, the DGOJ set Responsible Gambling

Various 147 The Directorate General for the Regulation of Gambling in 2012

Responsible Gambling 2 of 3 Letter from the Director

The Online Gambling of Gambling in Spain raising awareness, intervention and control, as well as repairing the negative effects produced". The Online Gambling In view of the different interpretations of this article by different of Gambling around the world operators, the belief that a common and coordinated action across 2. An area of ​​raising awareness in society about the dangers of the gambling sector is the only way to solve the problem, and would gambling, and the support mechanisms available to those who be primarily beneficial for society as a whole and for the sector and may have problems with gambling. The DGOJ in 2012 the gambling industry, and after multiple contact with all involved, the 3. An area for prevention,​​ which would promote preventive actions DGOJ, in coordination with the Ministry of Health, Social Services and Equality through the Government Delegation for the National Plan on and mechanisms established by operators, and could in the Legal basis of the DGOJ Drugs, launched in November 2012 an initiative aiming to establish future give way to the establishment of a code of good practice for operators, which would be voluntarily accepted and taken a common strategy for Responsible Gambling with the participation Organisational structure of the gambling industry, both on-site and online, including reserve on by them. of the DGOJ: Competence operators, associations helping those affected by problem gambling, 4. An area for treatment and to repair any damage gambling has on Gambling licences and author- treatment centres and experts in problem gambling as a pathological society. Although treatment for those affected by gambling addiction isations process and a sociological phenomenon, regional leaders and the falls entirely under the area of the Ministry of Health, Social Services of the DGOJ Central Government. and Equality and the public health network, it is considered to be Regulation development As a result of this initiative, the Responsible Gambling Advisory Council was of high interest that these four areas are coordinated, and that established in early 2013 whose main function is to advise on the design they focus on coordinated treatment with the areas of prevention, Gambling Policies Council and subsequent implementation of a strategy to address the phenomenon awareness and research. Advertising for Gambling of gambling from very different perspectives, establishing effective lines Currently (May 2013), the Responsible Gambling Advisory Council is of action and preventive mechanisms. The Strategy proposes addressing Inspections considering adopting this strategy, which would include a series of responsible gambling from four main areas: actions to begin immediately. Initially, it is proposed that it will be Procedures 1. An area of ​​research and study, in order to determine the true the operators who will voluntarily fund the costs of implementing Sanctions situation of gambling addiction, the factors that influence it, the actions set out in this responsible gambling strategy for both on- Queries and Claims effective protection mechanisms, etc. site and online gambling. The composition of the Advisory Council for Responsible Gambling

Various 148 The Directorate General for the Regulation of Gambling in 2012

Responsible Gambling 3 of 3 Letter from the Director

The Online Gambling of Gambling in Spain

The Online Gambling of Gambling around the world Responsible Gambling is as follows:

The DGOJ in 2012 Responsible Gambling Advisory Council Council of Legal basis of the DGOJ Operators Civil Society Spanish Gambling Administration Organisational structure Policies International operators D. Máximo E. Gutiérrez D. Fernando Prats Ms. Mercedes Jaraba of the DGOJ: Competence FEJAR Autonomous Community Ministry of Health, D. Eduardo Antoja D. Bradley Tosso of Madrid Social Services and Equality Gambling licences and author- CIRSA BETFAIR D. Francisco Abad isations FAJER D. Aitor Uriarte D. Francisco de Asís Babín D. Juan Junquera D. Isaac Mayolas of the DGOJ Autonomous Community Ms. Elena Martín CODERE POKERSTARS D. Mariano Chóliz of the Basque Country Government Delegation University of Valencia. Dpt. for the National Plan Regulation development Ms. Cristina García D. Andrew Towills Psychology on Drugs ZITRO Spread your wings/ Gambling Policies Council Sportingbet D. José A. Gómez Yáñez Secretary of the Council Carlos III University. Institute Dirección General Reserve operators: of Politics and Governance Advertising for Gambling Contest Operators (Directorate General) Ms. Carmen García-Ramal of Gambling Regulation Dr. Jerónimo Saiz Inspections SELAE Ms. Mariola del Río Ramón y Cajal Hospital. Dean Premiere Megaplex D. Luis Natalio Royo of Psychiatry Procedures of Alcalá University ONCE Sanctions

All members of the Advisory Council for Responsible Gambling participate "pro bono", without any remuneration or reimbursement for their Queries and Claims attendance expenses. Gambling operator members are expected to rotate every 12 months. Responsible Gambling

Various 149 The Directorate General for the Regulation of Gambling in 2012

Various 1 of 1 Letter from the Director

The Online Gambling of Gambling in Spain Directorate General for Gambling Regulation and Relationships with other European Regulators the European Commission The Online Gambling On 14 May 2012, the Directorate General for the Regulation of The meeting with regulators from France (ARJE), Italy (AAMS) and of Gambling around the Gambling attended the meeting in Brussels organised by the Portugal (Santa Casa da Misericordia), held in Barcelona on 12 and world European Commission, which was also attended by the gambling 13 June 2012, marked the beginning of cooperation among gambling regulatory authorities of the European Union and European Economic Regulators. The purpose of the meeting was to discuss in depth a The DGOJ in 2012 Area. The purpose of the meeting was to discuss the protection of common strategy for the regulation of online gambling, promote consumers, the problems of gambling addiction, the prevention of operational cooperation in regulation and strengthen the exchange of fraud and money laundering and integrity in sports. The Commission information. Legal basis of the DGOJ also announced at this meeting that it intended to create an Expert Another meeting in was held in Paris on 11 and 12 December 2012, Group in the gambling field for the end of the year. which discussed in depth the issues addressed at the meeting in Organisational structure of the DGOJ: Competence On 5 December 2012, the first meeting of the Expert Group for Barcelona, ​​and where, in addition to market analysis, issues such as gambling in the European Union and the European Economic Area was the exchange of information between regulators, the periodic sending Gambling licences and author- held. At this meeting the European Commission presented its Action of market development data, international liquidity and consumer isations Plan and the Communication "Towards a comprehensive European protection were addressed. A future meeting of European regulators of the DGOJ framework for online gambling" to the Expert Group. (European is planned for July 2013 in Lisbon, organised by the Santa Casa da Regulation development Commission decision of 5/12/201 Misericordia, this time with the attendance of new participants. Gambling Policies Council

Advertising for Gambling

Inspections

Procedures Sanctions

Queries and Claims

Responsible Gambling

Various 150 Directorate General for Gambling Regulation

BACK HOME

EXIT

Directorate General Secretary of State Ministry of Finance Atocha, 3 Telephone: 915 714 080 of Gambling Regulation for Finance and Public Administrations 28012 Madrid E-mail: [email protected] www.ordenacionjuego.es