June-December 2012 ANALYSIS OF THE ONLINE GAME TYPE (TABLE) (CHARTS) OF OPERATORS

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1 OF THE ONLINE GAMBLING 2 AND 3 4 REPORT The Online Gambling Market In Spain Developed by Directorate General for Gambling Regulation The Directorate General for the Regulation of Gambling (DGOJ) has reported on the evolution of the online gambling market in Spain on a quarterly basis since June (the month in which online gambling regulating operations began in the Spanish market) until December, ANALYSIS OF THE ONLINE GAMBLING OF ONLINE GAMBLING BY GAME TYPE

2 The size of the online gambling market in Spain has been expanding since the beginning of its regulation in June, In terms of amounts played, in the first quarter of online gambling represented 1,359,4 million euros (up 24% from the previous quarter), and 61,4 million euros in (Gross Gaming Revenue), representing a quarterly increase of 41%, In terms of a monthly average, the amounts played in Online gambling market: amounts played and Amounts in millions of euros Amounts played the fourth quarter of stood at 443 million euros compared to the 365 million euros from the third quarter, while the stood at 20,5 million euros per month in the fourth quarter, compared to 14,5 million in the third quarter of, Amounts in millions of euros June July August September October November December 2 AND ANALYSIS OF THE

3 The registered for online gambling in the Identity Verification System of the DGOJ (regardless of the number of operators in which the player is registered) has also steadily increased since the beginning of the regulated market, with growth of the number of registered players in the fourth quarter of at 27,4%, reaching 1,010,086 registered players in December, Meanwhile, the monthly average of new registered players in online gambling was at 72,543 in the fourth quarter of compared to 107,353 players in the third quarter of, Evolution of the number of online gambling players in Figures in units Number of registered players Monthly average of active players Without more information to assess the possible seasonality of the values of the series, we can conclude that, following strong growth in the online gambling market (both in terms of amounts played, and players) in the first months after the beginning of regulation in June, a more moderate expansion of the online gambling market can be observed in the last quarter of, 1,200,000 1,200,000 1,000,000 1,000, , , , , , , , , February March April May June July August Sep, October Nov, December 3 AND ANALYSIS OF THE

4 Regarding the degree of of online gambling operators in the Spanish market, a moderate can be noted which has not undergone significant changes since the start of gambling market regulation, as measured by the Herfindahl-Hirschman 1 (HHI) index from the market shares of the total of different online gambling operators, The of the online gambling market according to the HHI stands in a range between 12% and 14% since the beginning of the market regulation, reaching its lowest point in December since the beginning of online gambling regulation, 1, The industrial index H, where si is the market share of the agent i, where a value close to 0 on the index indicates perfect competition in the sector or market, and a value close to 1 indicates a monopoly, Concentration of the online gambling market Herfindahl-Hirschman Index for market shares % 12,72% June 13,85% 13,24% 13,22% 12,66% 13,88% 12,17% July August September October November December 4 AND ANALYSIS OF THE

5 ANALYSIS By game type, straight sports, as from the beginning of the regulated market, held the greatest weight in both online gross gaming revenue (48,4%) and amounts played (35,3%) in the fourth quarter, Second were online poker games (poker cash, with 15,6% of gross gaming revenue and poker tournament with 8,8%) due to their weight in the online market, In the fourth quarter of, casino games and other games (black jack, roulette and others) saw 12,4% of gross gaming revenue with 20,4% of amounts played, saw 6,9% of gross gaming revenue but only 0,4% of amounts played in the fourth quarter of Online gambling market: distribution in terms of 19,6% Fourth quarter of Roulette 8,8% 48,4% 8,8% Straight sports 6,9% Poker Tournament 3,6% Bingo 3,4% 0,5% Straight horse race 0,0% Baccarat 0,0% Complementary games, Lastly, online bingo games had 3,6% of gross gaming revenue and 1,1% of amounts played in the last quarter of, The discrepancies observed between weight in terms of gross gaming revenue and amounts played are due to (as shown in the table below) the different ratios of /amounts played, Online gambling market: distribution by amounts played 14,7% Roulette 34,0% Fourth quarter of Poker Tournament 8,6% 0,4% 1,1% Bingo 0,3% Straight horse race 5,7% Sports 35,3% 0,1% Baccarat 0,0% Games games 5 AND ANALYSIS OF THE

6 ANALYSIS With regard to the evolution of the fourth quarter of, the online gambling market in terms of and amounts played : 1. In the fourth quarter straight sports experienced the highest growth of from among all online game types, although in terms of amounts played it was less dynamic than the market average, Meanwhile, horse race decreased in the fourth quarter in terms of and amounts played, 2. Poker games, poker cash and poker tournament experienced a growth in in the fourth quarter but amounts played were below the market average, although poker tournament was above the online market average in terms of amounts played, Evolution of the online gambling market 3. As for online casino games, black jack saw an increase in below the market average in the fourth quarter of, but higher than the average in amounts played, while roulette was significantly more dynamic than the online market average, 4. Online contests, although experiencing above-average growth in terms of amounts played, saw lower growth than the average gross gaming revenue in terms of in the fourth quarter, 5. Lastly, online bingo games experienced moderate growth, significantly below the sector average, (euros) (euros) / YEAR TOTAL 2011 Jun-Dec 3 rd QUARTER 4 th QUARTER % Total Jun-Dec TOTAL 2011 Jun-Dec 3 rd QUARTER 4 th QUARTER % Total Jun-Dec A, played 4 th QUARTER Straight sports 710,668, ,692, ,574,939 16% 1,000,810,390 54,061,552 17,733,554 29,736,740 68% 52,766,027 6% Straight horse race 9,149,410 3,886,545 3,785,065-3% 8,864, , , ,306-18% 682,299 8% 8,514,426 3,837,652 5,401,463 41% 10,753,577 8,514,426 3,224,889 4,241,499 32% 8,694,001 79% 385,329, ,833,247 20% 932,335,900 10,394,585 12,032,984 16% 25,188,216 3% Poker Tournament 89,078, ,775,643 31% 232,793,956 4,452,625 5,400,988 21% 11,139,650 5% 57,058,604 77,391,568 36% 158,057,937 1,844,499 2,090,720 13% 4,547,383 3% Complementary games 847,015, , ,564-6% 841,575 54,420,299 15,542 9,618-38% 29,788 3% Baccarat 545, ,359 34% 1,359,078 18,051 17,643-2% 49,614 2% Roulette 128,996, ,280,883 54% 351,573,599 3,368,566 5,408,429 61% 9,557,497 3% Bingo 13,565,191 14,333,262 6% 30,391,927 2,186,657 2,223,990 2% 4,742,913 16% TOTAL 1,575,348,372 1,096,395,637 1,359,489,992 24% 2,727,782, ,720,550 43,586,407 61,447,918 41% 117,397,388 5% A more detailed breakdown, amounts and for the different months are offered in the tables of the appendix 6 AND ANALYSIS OF THE

7 ANALYSIS Compared to the same period in (June-December), in the overall amounts played in online gambling increased by more than 70% from 1,575 million euros between June and December 2011 to more than 2,727 million euros in the same period of, However, the gross gaming revenue (or ) of online gambling has remained virtually unchanged at around 117 million euros between January and June, as in the same period last year, Online gambling market: amounts played and Amounts played Amounts in millions of euros June July August September October November December 2, Data collected from between June and December 2011 is available (i,e, since the gambling law was passed on 27 May 2011) from the end of the second quarter of 2011, Moreover, for the purposes of homogeneity in the data, sports-charity pools are not considered in the calculation of 2011 (and were not considered in 2011), as they are not actually online gambling, although they were affected by the tax imposed by that law (and they were included as part of the online market in the 2011 Annual Report of the DGOJ), Also for the purposes of homogeneity in the data, given the different breakdown by online gambling games available until and what was offered subsequently with the regulation of online gambling in, some of the items are grouped by Amounts in millions of euros game type for the 2011 data, Bingo Roulette Poker Tournament Straight sports 7 AND ANALYSIS OF THE

8 ANALYSIS By game type, the market of operators shows great differences, indicating a degree of operator specialisation, Meanwhile, the main online casino games such as black jack and roulette have a moderate-low market (with a Herfindahl index below 15%); straight sports and online bingo exhibit a moderate-high Straight sports Straight horse race Poker Tournament Complementary games Baccarat Roulette Bingo Concentration by online game type Herfindahl-Hirschman Index for market shares % 13,5% 9,6% 27,5% 29,6% 27,5% 24,9% of operators (with a Herfindahl index above 25%); online poker games and contests have a high of operators; and finally straight horse race has a very high or extreme, 43,9% 41,6% 73,0% 69,9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 8 AND ANALYSIS OF THE

9 2102 REPORT Appendix Amounts played () Straight sports Straight horse race Poker Tournament Complementary games Amounts in euros Baccarat Roulette Bingo TOTAL June 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, ,896,971 July 133,803,297 1,298,355 1,044, ,837,514 27,392,514 18,319,934 99, ,695 38,959,530 4,141, ,100,279 August 121,685,456 1,295,708 1,406, ,117,195 28,683,225 18,277,354 93,346 89,902 39,255,860 4,400, ,304,768 September 158,203,475 1,292,481 1,386, ,374,730 33,002,582 20,461, , ,139 50,780,646 5,023, ,990,590 October 192,142,231 1,372,776 1,441, ,336,391 37,482,240 24,013, , ,324 63,917,038 4,966, ,084,456 November 152,359,101 1,122,216 1,456, ,308,067 37,529,170 25,181, , ,565 61,462,250 4,431, ,188,391 December 135,073,607 1,290,073 2,502, ,188,789 41,764,233 28,197,122 94, ,470 73,901,596 4,935, ,217,145 TOTAL JUN-DEC 1,000,810,390 8,864,663 10,753, ,335, ,793, ,057, ,575 1,359, ,573,599 30,391,927 2,727,782,599 TOTAL 2011 JUN-DEC 710,668,867 9,149,410 8,514, ,015,669 1,575,348, , gross gaming revenue () Straight sports Sports horse race Poker Tournament Complementary games Amounts in euros 9 Baccarat Roulette Bingo TOTAL June 5,295,733 49,555 1,227,612 2,760,646 1,286, ,164 4,627 13, , ,265 12,363,063 July 5,826, , ,970 3,357,943 1,438, ,544-1,055 4, , ,184 13,794,171 August 7,755, ,649 1,170,491 3,383,666 1,446, ,894 5,836 6,013 1,031, ,546 16,237,319 September 4,151,592 97,605 1,202,428 3,652,977 1,567, ,061 10,762 7,561 1,390, ,928 13,554,916 October 8,774,609 73,502 1,090,560 4,081,172 1,724, , ,791 1,742, ,097 19,047,633 November 12,344, ,617 1,183,760 3,940,159 1,774, ,974 5,346 4,049 1,634, ,213 22,259,228 December 8,617,380 85,187 1,967,179 4,011,654 1,901, ,368 3,916 3,803 2,031, ,681 20,141,057 TOTAL JUN-DEC 52,766, ,299 8,694,001 25,188,216 11,139,650 4,547,383 29,788 49,614 9,557,497 4,742, ,397,388 TOTAL 2011 JUN-DEC 54,061, ,273 8,514,426 54,420, ,720,550