1. Gambling market Briefing notes and sales support for news media sales teams

2. This deck is split into two sections: Section 1 An overview of the Australian gambling market (casinos, horse racing and sports betting) The 2015 Media i Industry Survey asked agencies “what are the most important factors when dealing with media owners”. The most common factor (52% agreed ) was “understanding of your client’s business and category”. Section one provides some key industry insights on the gambling sector. The information contained in this section won’t make you an instant expert but it will help get you up to speed on some important facts about each category. Section 2 Support slides for sales presentations Every great sales presentation is tailored for each client, but there are certain points that fit most clients within a category. Section two contains research about how news media can help brands reach consumers and drive sales. What’s in this deck?

3. Section 1 Gambling market: an overview

4. Gambling: a good bet 616,000 placed a bet online. Slightly fewer placed a bet at the TAB (575,000). 196,000 went to a casino, while 1 million played a poker machine, indicating most pokies are played at alternative gambling venues. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016. More than 1.7 million Australians visited a casino and/or placed a bet in the last month.

5. Gambling industry: revenue Estimated value of gambling industry * : $7.8 billion (2015-16) *Figure includes Casino and Horse and Sports gambling only. Sources: IBISWorld, Casinos in Australia, August 2015; IBISWorld, Horse and Sports Betting in Australia, March 2016. Horse & Sports sector $3.5bn Estimated annual growth 2015-16: 2.2% Annualised growth 2011-16: 2.2% Forecast annual growth 2016-21: 1.2% Casino sector $4.4bn Estimated annual growth 2015-16: 1.3% Annualised growth 2011-16: 3.1% Forecast annual growth 2016-21: 1.9%

6. Best bet: loyal clientele People who visited a casino in the last month visited an average 2.3 times, while those who placed an online bet did so an average of 3.9 times. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016. Gambling consumers are high-value, loyal customers

7. Gambling industry: major players Market Share CasinosHorse and Sports betting RankCompanyMarket shareRankCompanyMarket share 1Crown Resorts Ltd 53.0%1Tabcorp Holdings Ltd49.8% 2The Star Entertainment Group Ltd35.5%2Tatts Group Ltd18.6% 3SKYCITY Entertainment Group Ltd5.2%3Paddy Power Australia Pty Ltd11.4% 4Other6.3%4Other20.2% Sources: IBISWorld, Casinos in Australia, August 2015. IBISWorld, Horse and Sports Betting in Australia, March 2016.

8. Overall decline in TAB betting (-8% YoY). Consumers aged 50 and over is the largest segment (43%) and are more loyal to traditional forms of betting. Those aged 18 to 29 are the second largest demographic for TAB betting (23%) and the only segment to experience YoY growth (+2%). Men are 49 per cent more likely to place a TAB bet than women. Men aged 50 and over are most likely to place a bet at a TAB (63% above the population norm). TAB: major markets Figures refer to people who placed a TAB bet in the last three months. Sources: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016.

9. Online betting: major markets Figures refer to people who placed an online bet in the last three months. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016. People aged 50 and over make up the largest segment in the online sector (37%). Increased participation exists among people aged 18 to 29 (+3% YoY). Men are 61 per cent more likely to place an online bet. Men aged 50 and over are most likely bet online (61% above the population norm). YoY growth across all male gambling segments, except men aged 50+.

10. Casinos: major markets Figures refer to people who visited a casino in the last three months. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016. The group aged 18 to 29 and those aged 50+ make up the largest segments in the casino sector. Increase in female patronage (+10.7% YoY), particularly among those aged 18 to 29 (+12.6% YoY) and 30 to 39 (+20.0% YoY). Those aged 30 to 39 represent the fastest growing segment (+5.1% YoY).

11. Gambling landscape is changing Sources: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016; Gambling Research Australia, Interactive Gambling, 2014; IBISWorld, Casinos in Australia, August 2015; IBISWorld, Horse and Sports Betting in Australia, March 2016; Australian Gambling Research Centre, The growth of sports betting in Australia, November 2014. Participation Remote gambling participation in general Sports betting (particularly among 18 to 39) New liquor licensing laws in some states are likely to drive new clientele to casinos Participant profile AB social grade participation in online betting (+3% YoY) Younger age group participation (18 to 29) Female participation (particularly 18 to 39) VIP players Frequency High frequency online gamblers (18-29) Participation Traditional TAB outlets Revenue Electronic gaming Men aged 50+ share of revenue due to slower adoption rate of online betting services Participant profile Gambling participation of individuals aged 40 to 49

12. Section 2 Support slides for sales presentations

13. The following slides provide general supporting arguments to assist sales teams when building client-specific presentations. The purpose is to open discussion, to demonstrate a basic understanding of factors that drive gambling participation, and to show how news media can help to influence the marketing process. These slides are intended to be used in a presentation after recapping the brief, and before presenting analysis and recommendations tailored to the specific client. Needless to say, they can and be should be adapted to suit your particular presentation requirements. About these slides Recap client/agency brief Live sport industry support slides Client specific analysis Recommendations

14. News media reaches punters 1 million+ Australians visited a casino or placed an online bet or TAB wager in the last 4 weeks. Advertisers can reach 96 per cent of punters with news media – making it a powerful platform for advertisers. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016.

15. Casinos are odds on to reach regular consumers 633,000 punters visited a casino in the past three months. o 96% of these visitors are news media readers. o One in five casino patrons is a heavy newspaper readers (7+ issues per week). o Heavy newspaper readers are 25 per cent more likely to visit a casino than non-readers. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016; Nielsen DRM March 2016, People 14+ only.

16. Newspaper media reaches key growth markets Women aged 18 to 39: This group is 17% more likely to have visited a casino than the general population. They are also 6% more likely to read digital news media than the average Australian. Social Grade A: This group is 8% more likely to place a bet online than others. They are also 28% more likely to be heavy newspaper readers and 18% more likely to access digital news media content than others. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016; Nielsen DRM March 2016, People 14+ only. emma data shows key growth consumer segments for casino and online betting are also strong markets for news media.

17. News media hits key gambling segments Males aged 50 and over: This group is 92% more likely to have placed a bet at a TAB and 51% more likely to have played a poker machine than the general population. They are also 69% more likely to read 7+ newspapers a week than others. Young males aged 18 to 29: This group is 51% more likely to have placed an online bet and 44% more likely to have visited a casino than the general population. News media reaches 92% of males aged 18 to 29 every month. Males aged 30 to 39: This group is 80% more likely to have placed a online bet and 40% more likely to have placed a bet at a TAB than the general population. They are also big consumers of online news, with 97% of them engaging with digital news media in the last month. emma data shows consumer segments most likely to attend a casino or place an online bet. The three biggest of these markets are frequent news media readers. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016; Nielsen DRM March 2016, People 14+ only.

18. Readers are better prospects than non-readers News media readers bet more often than non-readers The digital news media audience is 10% more likely to have visited a casino in the last month than non- readers. Readers of print newspapers are 10% more likely to be online punters than non-readers. Community newspaper readers are 11% more likely to have placed a bet at a TAB in the last month than non- readers. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016; Nielsen DRM March 2016, People 14+ only.

19. Get the best from news media platforms 86 per cent of those who placed a wager at a TAB in the last month read a newspaper. Heavy newspaper readers (7+ issues per week) are 65 per cent more likely to place a wager at a TAB compared with the average Australian. Some forms of news media are more efficient than others at reaching specific betting segments Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016.

20. Online punters are engaged with digital news 600,000 Australians placed an online bet in the last month. Seven in 10 of these online gamblers read news on a digital platform. Digital news media delivers an audience of active online gamblers Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016; Nielsen DRM March 2016, People 14+ only.

21. Sports fans are news media fans People who went to a horse race or professional sports match are : 310% more likely to place a bet at the TAB 303% more likely to place an online bet 297% more likely to visit a casino. 88% more likely to play a poker machine The are also 40% more likely to be heavy newspaper readers (7+ issues per week) and 26% more likely to be community newspaper readers. By comparison, people who do not read news media are 38% less likely to attend a horse race or professional sports event, and are significantly less likely to place a bet across all categories compared with the average Australian. Figures indicate activity undertaken in the last month. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016; Nielsen DRM March 2016, People 14+ only. emma data shows a strong relationship between sports spectators and gambling habits. Sporting spectators also over-index as frequent readers of news media.

22. Sports sections connect with fans Almost 5 million Australians read a sports section of a newspaper every week. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016. This is a huge pool of highly engaged readers, and prime advertising territory. This is especially true for sports betting sponsors who understand that gaining the maximum benefit from their sponsorship requires creating relevant ads that put their brand in front of fans.

23. 85% 71% Combine and conquer The combined reach of print and digital news media: 96% of punters Print Digital Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016. Nielsen DRM March 2016, People 14+ only.

24. Client specific analysis & recommendations This is the point to bridge to a client specific discussion. Each presentation will need to be individually tailored to suit the client and their objectives, but the logical flow from here is to move on to Analyses that address the client’s specific situation, challenges and opportunities. Solutions using your inventory, giving clear reasons why they are appropriate to the client’s specific needs, and suggestions on how they can be used most effectively.

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