1. Together we are strong Friedrich Stickler Lottery Expo, 24 th october 2012, Miami

2. Overview The Global Market and forecasts The European Lotteries Legal certainty Fight against illegal operators Tasks for the future

3. The Global Market

4. GGR Global Market 2011 Source: gbgc Interactive Gambling Report, Jan. 2011

5. Turnover Global Market 2011 Source: gbgc Interactive Gambling Report, Jan. 2011

6. GGR Online Market Source: gbgc Interactive Gambling Report, Jan. 2011

7. Turnover Online Market Source: gbgc Interactive Gambling Report, Jan. 2011

8. The European Lotteries

10. Key figures Turnover 99.1 billion EUR Gross gaming revenue 37.3 billion EUR Average full-time employees 24.800 Indirect employment 373.000

11. Legal certainty

12. Principles for a gambling policy Sustainable policy for gambling Law enforcement against illegal operators Precaution: consumer protection Coordinated solidarity aproach Common measures for sport integrity state economic area global

13. The role of state lotteries and licensed operators Benefit for society Consumer protection (Age) Verification Exclusion Monitoring Responsible Advertising Preventing crime and fraud

14. Benefit for Society 67% of the European Lotteries Members GGR: € 25.1 billion: € 2.5 billion to Sport € 4.8 billion to Other Good Causes € 17.8 billion to Treasury

15. Money from state lotteries to society Charity (social projects) 27.47 % Culture / cultural heritage 14.82 % Sport 36.31 % Education / youth 2.44 % Environment / climate change 2.17 % Development 1.96 % Others 7.69 % Science / health / research 7.14 %

16. Policy proposals Licences for gambling products are issued only at national level Principle of mutual recognition does not apply You are either legal or you are not – no grey market

17. Policy proposals Responsibility for the protection of consumers lies with the Member States Internal consistency of a Member States’ gambling policy is a national competence

18. Legal certainty - threats Trend towards liberalization Offshore operators lobby increasingly

19. Fight against illegal operators

20. 15.000 existing websites Annual revenues exceeding €12 billion in 2013 12.500 without a license = unauthorised 500 licensed operators in Malta Source: greenpaper on online gambling, european commission 2011 5 times more operators without a license than licensed operators illega l

21. US Offshore Interactive Gambling GGR Source: H2 Gambling Capital

22. Fight against illegal operators Competitive disadvantage for authorised operators Offshore operators without license offer a wide range of products: Lottery Casino Poker Sports Betting No limits for wagers and age Higher payout percentage No taxes

23. Portfolio Provider SPORTS- BETTING ROULETTE CARD GAMES VIDEO POKER SLOT MACHINES POKER SKILL GAMES LOTTO SRATCH TICKETS BINGOKENO Bwin xxxxxxxxxx Bet-at-home xxxxxxx PartyGaming xxxxxxxxx Interwetten xxxxxxxxx 888 xxxxxxxxxxx

24. Fight against illegal operators IP/DNS blocking mechanisms Defining payment solutions and blocking measures for transactions Banning illegal advertising Setting up of black lists Adopting law enforcement measures global state economic area

25. Fight against illegal operators Explore solutions for coordination between National Regulatory Authorities Implement the “unfair operator principle” Implementation of an Anti-Money Laundering Directive global state economic area

26. Preservation of Sport integrity Common definition of sports fraud as a criminal offense Definition of sports fraud as a criminal offense under national legislation International platform for exchange of information and management of cross border aspects International Agency for Sports integrity global state economic area

27. Matchfixing – Known cases 308 cases in 2011 (open sources/monitoring FDJ)

28. Tasks for the future

29. Joint lobbying Common games International monitoring system International cooperations: e.g. corporate purchasing

30. Joint lobbying European Lotteries Office in Brussels Development of position papers Submissions to EU papers Image Folders

31. Common games Powerball – highest jackpot 364 million $ Mega Millions – highest jackpot 656 million $ Euromillionen – highest jackpot 190 million €

32. Trend for the future Intensify cooperation amongst Lotteries in their continents

33. Powerball and Mega Millions Both Powerball Mega Millions

34. Euromillionen Austria Belgium UK France Ireland Luxembourg Portugal Spain Switzerland

35. Eurojackpot and Viking Loto