MarketReview11 12 Yudu

THE BUSINESS FOR GAMES
www.G3imagazine.com
GLOBAL GAMES AND GAMING MAGAZINE I SPECIAL ISSUE
Market review
EUROPEAN GAMING STATISTICS 2011-2012
DOWIPAND,LIPHOONAE ORD
TO YOUR
W
IPOD TOUCH TO VIE
UE
ISS
ST
TE
THIS LA
EIGHTY YEARS
OF
1932 2012
INNOVATION
celebrating 80 years
of Innovation
Contents
ANNUAL MARKET REVIEW
Today, players are becoming more and more tech savvy
and embracing mobile, online, and social media at a
faster pace than non-casino gamblers. That means
exciting things for gaming operators, who can create
captivating technology experiences in their casinos and
leverage mobile, Internet, and social media to bring the
casino to players.
Marco Herrera, VP and MD Bally Europe and EMEA - Pg 6
DIVIDE AND GAMBLE - THE CYPRUS MARKET - Page 34
euroPean Market statistics

The G3 summary of gaming markets in Europe, including:
Austria, Belgium, Bulgaria, Czech Republic, Denmark,
Finland, Germany, Greece, Hungary, Ireland, Italy,
Netherlands, Norway, Poland, Slovakia, Slovenia, Sweden,
Spain, Switzerland and the United Kingdom.
Page 10
A TOWERING SUCCESS - ITALIAN VLTS - Page 44
in the headlights
the Malteeze squeeze
Maltas land-based gaming industry

reveals a vibrant business sector
The online gaming industry in Malta

faces a series of challenges in 2012
Page 74
Page 84
GEORGIA ON MY GRIND - THE FASCINATING GEORGIAN MARKET - Page 68
pro curve
the industry's first curved LCD display
SELF-IMPOSED STATE OF EMERGENCY - Page 52
EPIC GREEK STRUGGLE - GREECE UPDATE - Page 60
Your
Viewpoint
ANNUAL MARKET REVIEW
a gaMing
PilgriMage
The G3 annual Market Review is the

result of our annual pilgrimage into the
deep dark depths of statistics and
figures bringing you the most up-to-date
information on the European market.
Some of this legislation makes sense,

some is just wafer-thin fancy. Policing
gaming while attempting to unshackle it
is proving more than a little taxing for
the already stressed-out politicians.
We begin compiling the Annual Review

in October and across a three
month period we conduct a
hard-target search of every
Policing gaMing
Gaming Board, Gaming
Association, operator,
while
distributor, gas station,
atteMPting to
residence, warehouse,
farmhouse, henhouse,
unshackle it is
outhouse and doghouse
across the continent. Were
Proving More
really that thorough.
To help unravel exactly whats

happening in each market, while
backing up analysis with statistics, for
the fifth year running we have compiled
and updated data covering 20 European
countries. The statistical information in
this report includes figures on locations,
various products from slots to video
games to gaming tables, revenues and a
general overview of each countrys
legislative developments.
than a little
taxing for
already
stressed-out
Politicians
Many of the markets we

covered over the course of
2011 changed markedly as
the economic crisis in Europe
deepened. Governments have
hastily reconfigured their
legislative and taxation
structures accordingly with
gaming promoted as the
saviour of gaming across a host of EU
markets all desperate for revenue.
Online gaming has also had a bigger
impact on the land-based sector than
ever before as governments have
merged once separate legislative policies
to cover all in branching gaming acts
that control, and tax, both sectors.
The central idea driving this review is to

provide the global gaming industry with
indispensable data for each European
country in one easy reference guide.
This years review further contains a
series of in-depth market reports
published in G3 magazine and the G3i
App during 2011, which includes:
Cyprus, Greece, Malta part, Italy and
Georgia.
Wed like to thank all those that have
helped to contribute to this report,
either overtly or anonymously (only you
know who you are). As always the
input from the various associations,
government bodies and helpful souls
out there is very much appreciated as is
the sponsorship of Bally Technologies.
Karen Southall Market Review - Editor, Email: karensouthall@gmail.com

Lewis Pek Managing Editor - Tel: +44 (0) 1942 879 291, Email: lewis@gamingpublishing.co.uk
John Slattery Commercial Director - Tel: +44 (0)7917 166471, Email: john@gamingpublishing.co.uk
John Carroll G3 Germany, Email: carroll@carrollconsulting.de
Lisa Nichols Sub Editor, Gareth Irwin Senior Designer, Paul Jolleys Production Manager,
John Malin, David Addison, Bepi Mottes, Alexandre Rotenberg Contributors, Jennifer Pek Subscriptions Manager
John Pek Commercial Administrator, Cover Image Gareth Irwin (Ninja Theory - Enslaved)
For sales enquiries contact: John Slattery, Tel: +44 (0)7917 166471 - Email: john@gamingpublishing.co.uk
For editorial enquiries contact: Lewis Pek, Tel: +44 (0)1942 879 291 - Email: lewis@gamingpublishing.co.uk
Gaming Publishing Limited, Samson House, 457 Manchester Road, Manchester M29 7BR, UK
Your
cross-platform
solutions
for your casino
Insight
BALLY TECHNOLOGIES
eight decades at the

toP of its gaMe
Bally Technologies celebrates its 80th anniversary in 2012, a year in which it has
big plans for the European market with a range of licensed games, system
solutions and stunning interactive gaming developments
As Bally Technologies enters calendar
2012, the important partnerships the
Company has established with customers,
vendors, suppliers, and others in the
gaming industry remains the biggest key
to success. This is especially important in
the European market, where Bally
continues to grow.
In the coming year, Bally will introduce
numerous innovations in gaming, from
exciting systems products to mobile
applications to thrilling games featuring
world-class brands like Michael Jackson
King of Pop, GREASE, and Betty Boops
Fortune Teller.
Additionally, Bally celebrates its 80th
anniversary this year. Since its founding
in Chicago, Illinois in 1932, Bally
Technologies has consistently been a
leader in providing trailblazing games and
systems technology for the global gaming
industry.
Your
Today, players are becoming more and

more tech savvy and embracing mobile,
online, and social media at a faster pace
than non-casino gamblers. That means
exciting things for gaming operators, who
can create captivating technology
experiences in their casinos and leverage
mobile, Internet, and social media to
bring the casino to players.
Marco Herrera,
Vice President and
Managing Director
of Bally Europe,
Middle East and
Africa.
Bally naMes new euroPe

sales director
Bally Technologies has offices in the
United Kingdom, France, Italy, and The
Netherlands. Marco Herrera remains Vice
President and Managing Director of Bally
Europe, Middle East, and Africa,
overseeing games and systems sales,
service, and support in those regions.
Herrera has been a valuable member of
the Bally team since 2006, when he was
appointed as Vice President and Managing
Director of Ballys MCC system division in
Nice, France. Due to his leadership and
knowledge of the European marketplace

he assumed his current, additional
responsibilities in late 2010 and relocated
to Ballys European Headquarters located
in Amsterdam, The Netherlands.
Ballys Amsterdam headquarters
encompasses the Companys sales,
customer support, financial, and human
resources functions for the European
region. From this location, Bally
manages all of the product assembly,
warehousing, distribution, and logistics.
taking
t
a
your casino mobile
le
bringing the casino to the players
and the players to the casino
Insight
BALLY TECHNOLOGIES
Bally Technologies
is celebrating its
80-year
anniversary this
year. The company,
which was founded
on January 10, 1932
in Chicago, Ill.,
commemorated
eight decades of
delivering
innovative gaming
technology to the
global casino
industry by ringing
The Closing Bell at
the New York Stock
Exchange.
Bally
representatives in
attendance
included Chairman
of the Board Kevin
Verner; Chief
Executive Officer
and Director
Richard M.
Haddrill; Director
David Robbins; and
Chief Financial
Officer Neil
Davidson.
aMong the
first gaMes
Being released
in italy is the
worldrenowned
PlayBoy
PlatinuM gaMe.
oversee all gaming equipment sales
throughout Europe and northern Africa.
Among Stelios objectives will be to lead
Ballys product proliferation in both
western and eastern Europe and further
establish Ballys presence and leadership
in these important gaming markets.
Stelios Tsapatos,
Director of Game
Sales for the
European and
Northern African
regoins, Bally
Europe.
Betty Boop - 2012 King
Features Syndicate, Inc.
Hearst Holdings, Inc.
www.BettyBoop.com
Field service operations and customerrelationship services are also supervised

from this central location. Currently the
Amsterdam office has 31 full-time
employees dedicated to serving our
customers.
Bally Europe recently welcomed a new
member to the team. Stelios Tsapatos is
the new Director of Game Sales for the
European and Northern Africa regions.
Stelios is based in Amsterdam as well. He
will manage the regional sales force and
Michael Jackson 2012

Triumph International, Inc.
under license from Bravado
Merchandising. All rights
reserved. GREASE 2012
Paramount Pictures. All
Rights Reserved. Playboy
2012 Playboy. PLAYBOY,
BUNNIES, Rabbit Head
Design, and PLAYMATE, are
marks of Playboy and
under license by Bally
Gaming, Inc. SKEE-BALL
2012 SKEE-BALL, Inc. &
All Rights Reserved. Used
Under Authorization.
Most recently, Stelios served as Sales

Manager of Europe for International Game
Technology (IGT). In this capacity, he
was responsible for developing and
executing the sales strategy in several
European countries and maintaining
relationships with key accounts. While at
IGT, Stelios was vital in the achievement
of exponential market growth in Europe,
the Middle East, and Africa over a period
of six years. He also exceeded sales targets
consistently, meeting both personal and
business goals.
Bally is completing the approval cycle in
Italy where it has secured contracts to
provide approximately 5,000 games for
Italys new video-lottery (VLT) program.
Bally is bringing a new level of technology
to Italys VLT space. The Companys
cutting-edge innovations include the only
mechanical-reel games for video lottery
and exciting features for players such as
progressive jackpots, mystery bonuses,
and game-in-game bonuses.
Ballys VLT games for Italy are presented

in distinctive-looking cabinets and are
composed of interactive features and
impactful graphic animation. Among the
first VLT games being released in Italy
are the world-renowned Playboy
Platinum game, the imposing Fireball,
and the electrifying Vegas Hits with its
unique double-wheel top-box
configuration and U-Spin gesture-control
technology. Bally also sees positive new
opportunities in Greece as they seriously
consider implementing a video-lottery
program similar to Italy, and in Hungary,
which is expanding gaming as a way to
generate additional tax revenues.
world-class licensed
Brands excite
This year Bally will introduce a host of
exciting new games. One of the
highlights is Michael Jackson King of
Pop, which features one of the most
widely beloved and influential artists of
all time in an exciting, music-filled game
on Ballys new Pro Series V22/32
cabinet with the new custom,
professional Pro Series surround-sound
chair. Offering everything from mystery
wilds bonuses and free games bonus
events and featuring hit songs Bad, Beat
It, Billie Jean, Dirty Diana, and Smooth
Criminal, this game is highlighted by a
U-Spin Platinum Record Bonus and
video clips showcasing the performer.
Michael Jackson is represented
exclusively for licensing by the Bravado
International Group.
Grease, inspired by the 1978 American
musical film about two love-struck teens
in a 1950s high school, is Ballys first
double-play game, featuring two, 25-line
games enabling the player to play two
games at once. And Betty Boops
Fortune Teller, the new companion game
to the hit Betty Boops Love Meter, offers
world-class brands that entertain

Your
Michael Jackson 2012 Triumph International, Inc. under license from Bravado Merchandising. All rights reserved.
Insight
BALLY TECHNOLOGIES
an unprecedented 15 bonuses at any bet

and U-Spin and U-Choose bonuses. Both
of these globally recognized new brands
are available on Ballys trailblazing
ALPHA 2 Pro Hammerhead cabinet.
Many of the latest Bally games offer
players more choices and highly
interactive bonuses and play mechanics
that add to game-play anticipation and
excitement. The newest video titles offer
new compelling play mechanics, like
Double Directional Wilds, U-Spin, UShoot, Hot Zone, Locking Hot Zone, and
Big Bang Free Games, that will keep
players more entertained than ever.
The new Pro Curve cabinet, with play
mechanics like Breakthrough Free Games
and Rolling Wilds, looks just like a
traditional spinning-reel machine, but is
actually a curved high-definition LCD
screen. This offers players a bit of the
best of both worlds traditional stepper
and video slots.
Like Ballys landbased games, its

interactive versions
offer enhanced
bonusing, proven
play mechanics,
progressives, and
other outstanding
features that only a
company with
more than eight
decades in the
gaming industry
can provide.
Top: Ballys Virtual
Horse-Racing.
the newest
video titles
offer new
coMPelling
Play
Mechanics,
u-sPin, u-shoot
and hot zone.
The award-winning Fishn for Loot and
Total Blast both feature the iDeck as an
arcade-like player input device. These
dramatically exciting new games introduce
Ballys new U-Shoot virtual shooting
gallery bonus-game play mechanic in
which the player touches the iDeck to
create weapons for shooting at targets on
the main game screens.
Bally takes the arcade favourite SKEE-
BALL game to a new level on the Pro

V32 cabinet, with a bonus feature in
which players touch and slide to bowl
the SKEE-BALL, winning tickets that
enable them to Pick a Prize on the
game that reveals credit awards. All That
Jazz features a revolutionary iDeck
feature called U-Play, in which players
touch and spin virtual piano keys.
On the systems side, iVIEW Display
Manager (DM), an interactive
communication tool used by players and
controlled by the gaming operator, was
recently chosen for enterprise-wide
implementation by the worlds largest
casino operator Caesars Entertainment.
This picture-in-picture-style player-userinterface is backward compatible on
gaming devices with a touch-screen
display, and provides a way for casino
operators to present self-service playeraccount access, marketing messages,
and secondary bonus games on the main
game screen without interrupting play.
new compelling content for pro series cabinets
Your
Insight
BALLY TECHNOLOGIES
The last 80 years
have been an
incredible journey
for Bally
Technologies.
Throughout those
eight decades, the
Company has
transformed itself
several times while
never losing focus
on its promise to
pioneer innovation
that entertains and
helps casinos
operate more
efficiently and
increase revenue.
Left: Ballys SkeeBall Pro V32. Right:
Michael Jackson
Pro V22-32. Far
right: Grease
featuring Ballys
Sound Chair.
Ballys Elite Bonusing Suite (EBS), when

combined with the iVIEW and iVIEW DM
player-user-interface, adds dramatic new
levels of excitement and anticipation to
the slot-play experience. The EBS
applications deliver floor-wide,
personalized promotions, second-chanceto-win events, and the ability for players
to earn valuable rewards, all without
interrupting play on the base game.
These interactive solutions enable players
to spin wheels, select and root for their
favourite contest-driven car or horse, get
already More
than two
Million casino
Patrons are
using MoBile
aPPlications
develoPed By
Bally.
instant rewards on their birthday, and
participate in instant floor-wide slot
tournaments.
The Bally Systems sales team focused
heavily on increasing the penetration of
iVIEW DM in 2011, and as a result
announced a series of some major
contracts for this technology, including
Caesars Entertainment, the Seminole
Tribe of Florida, Peermont Group Africa,
Mohegan Sun, Casino Miami Jai-Alai,
Dynamic bonusing at the point-of-play
British Columbia Lottery Corporation,

Foxwoods, the Navajo Nation, and several
others.
Last year the

Company formed
the new Bally
Interactive division.
This new business
unit encompasses
mobile, Internet,
and social
initiatives,
complementing
Ballys traditional
games and
systems business
lines. Bally
Interactive offers
casino operators
the ability to
augment their
land-based casino
gaming with
mobile and online
play-for-free and
wager-based
games.
Bally interactive takes

casino MoBile and viral
Last year the Company formed the new
Bally Interactive division. This new
business unit encompasses mobile,
Internet, and social initiatives,
complementing Ballys traditional games
and systems business lines. Bally
Interactive offers casino operators the
ability to augment their land-based casino
gaming with mobile and online play-forfree and wager-based games. Bally will
integrate these solutions with its core
casino patron, slot-management, and
business-intelligence systems to give
gaming operators a single view of the
player and enable casinos to deliver a
powerful experience to their patrons
whether they are on the casino floor, at
home, or on the move.
A lot of Ballys casino partners want to
have personal interactions with patrons
through their mobile devices. So Bally
acquired Macroview Labs, the gaming
industrys top provider of custom casino
apps and mobile websites. Already more
than two million casino patrons are using
mobile applications developed by Bally.
This platform enables unbelievable mobile
marketing. It also enhances the ability of
casinos to create applications across a
variety of mobile devices.
In terms of online marking and gaming
opportunities, the Bally Interactive
delivering the
floor-wide experience
Division is getting ready to create the

kind of play-for-free and wager-based
game content that is needed today in
jurisdictions where i-Gaming is legal,
and needed for future i-Gaming
programs across the globe. Bally
Interactive offers a deep library of
proven casino-gaming content, including
popular licensed brands. With a
continuous flow of new game titles,
users always have a fresh array of
choices and a reason to return.
Like Ballys land-based games, its
interactive versions offer enhanced
bonusing, proven play mechanics,
progressives, and other outstanding
features that only a company with more
than eight decades in the gaming
industry can provide. Delivered via
Ballys Remote Gaming Server, access to
Bally entire library of content and onetime integration is easily achieved.
Additionally, a growing library of playfor-fun mobile versions of Ballys
exciting games are available on the
iTunes store. There mobile games feature
the same kind of interactive excitement
that their land-based partners do,
including U-Spin.
The last 80 years have been an
incredible journey for Bally
Technologies. Throughout those eight
decades, the Company has transformed
itself several times while never losing
focus on its promise to pioneer
innovation that entertains and helps
casinos operate more efficiently and
increase revenue.
Your
Statistics
MARKET REVIEW
austria
NUMBER OF:
CASINO SLOTS:
CASINO TABLES:
AWPS:
VLTS:
AMUSEMENTS (TOTAL):
PINBALL:
VIDEO:
TOUCHSCREENS:
SPORTS GAMES:
AMUSEMENT ARCADES (FECS):
OPERATORS:
NUMBER OF:
CASINOS:
GAMING ARCADES:
SINGLE SITES:
BETTING SHOPS:
MAIN OPERATORS:
TOTAL GGR:
CASINO GGR
Your
230
1,885
8,000 approx
754 in WINWIN locations
8,000
2,000
2,000
4,000
2,000
40
1,000
12
12 WINWIN locations
3,000
500 approx
Casinos Austria
22.9BN
162M
Overview
Austria saw four amendments to its
gaming act in 2010, which created a
number of licences change for casinos,
lotteries and slots machines. There are
now 15 casino licences instead of 12
and a 16th licence for poker. Meanwhile
the small slot halls outside of casinos
will be forced to close in 2014. The
Austrian government reduced the
casino tax from 48 per cent to 20 per
cent in 2010. Casino Austria holds a 68
per cent interest in the Austrian lottery.
WINWIN was launched in 2004 and is
a cooperation between Casinos Austria
and Austrian Lotteries and offers VLTs
at the 12 WINWIN locations. The
outlets are open 364 days a year and
each location can have between 46 and
150 terminals each offering up to 60
games. The VLTs play with a maximum
stake of 10 and maximum prize is
25,000. Austrian Lotteries saw total
sales in 2010 of 2.6bn of which
WINWIN took 399m which is a 10 per
cent increase on the previous year.
Meanwhile GGR for casinos was 162m
an 11 per cent drop on the previous
year.
Capital:
Vienna
Population:
8,217,280
Land Area:
82,445 sq.km
Median age:
43 years
Currency:
Euro
Government:
Federal Republic
Head of Government:
Chancellor Werner
Faymann (SPOe)
Elections:
President elected by direct
popular vote for six year
term. Last election 2010,
next due in April 2016.
Chancellor is formally
chosen by president but
determined by coalition
parties forming a
parliamentary majority.
is the one you want
Statistics
MARKET REVIEW
Belgium
NUMBER OF:
CASINO SLOTS:
1,390
CASINO TABLES:
150
AWPS:
Category A (street operations): 9,704 in Flemish region;
7,601 in Walloon and 2,014 in Brussels. Category B (in arcades): 3,566
in Flemish region; 1,406 in Walloon and 130 in Brussels.
AMUSEMENTS (TOTAL):
26,000
CATEGORY C: (Cranes, pinball and bowling games) 4,570 in Flemish
region; 467 in Walloon and 25 in Brussels.
CATEGORY D: (Jukeboxes, shooting and sport games) 660 in Flemish
region; 430 in Walloon and 22 in Brussels.
CATEGORY E:(Video games) 12,763 in Flemish region; 5,467 in Walloon
and 982 in Brussels.
NUMBER OF:
CASINOS:
GAMING ARCADES:
SINGLE SITES:
BETTING SHOPS:
MAIN OPERATORS:
TOTAL GGR:
CASINO GGR:
Your
9
180
10,300
1,000 plus 34 mobile betting shops.
Casinos Austria, Circus, Rank and Partouche
3.3bn
122m
Overview
There are nine casinos permitted in
Belgium which are Knokke,
Ostende, Middelkerke, Namur,
Blankenberge, Spa, Chaudfontaine,
Dinant and Brussels. In 2010 they
saw total sales of 122m, compared
to 127m in 2009. Meanwhile B
Licence revenue amounted to
180m in 2009 whilst E Licences
saw revenues of 340m.
The Belgian Gaming Act of 1999
was amended in January 2010 and
amongst other changes online
gaming was permitted in Belgium in
2011. The law required all online
gambling operators to be granted a
Belgian licence before they could
accept wagers from their own
customers. Operators however must
first obtain a land based licence
which many claimed was against
EU regulations.
Licences will cost 250,000 for a
Class A licence (casino) or 75,000
for Class B (poker)
Capital:
Brussels
Population:
10,431,477
Land Area:
30,278 sq.km
Median age:
42.3 years
Currency:
Euro
Government:
Federal parliamentary
democracy under a
constitutional monarchy.
Head of Government:
Caretaker Prime Minister
Yves Leterme.
Elections:
Monarchy is hereditary and
constitutional and following
legislative elections the
leader of the majority party
of majority coalition is
appointed Prime Minister.
Performing at
Casinos Everywhere
C
Statistics
MARKET REVIEW
Bulgaria
Capital:
Sofia
Population:
7,093,635
Land Area:
108,489 sq.km
Median age:
41.9 years
Currency:
Lev
Government:
Parliamentary
democracy
Head of
Government:
Prime Minister
Boyko Borissov
Elections:
President and vice
president elected
on the same ticket
by popular vote for
a five year term.
Next to be held in
2016.
Overview
The gaming act of Bulgaria stipulates that the
minimum number of gaming machines per
gaming arcade is 20 units in a population of
more than 50,000 and 10 units for other
areas (including tourist areas). The minimum
floor space for installation per slot machine is
2sq.m. There is no maximum limit. Licence
fees range from BGN35,000 for casinos,
BGN7,500 for slot machines and BGN20,000
for lotteries. Gaming arcades pay stamp
duties and fees on the following: BGN10,000
for the first 20 machines plus BGN100 for
each machine thereafter.
On average the gross revenue of a gaming
machine is around 600 per month. Total
fiscal revenue in 2010 was BGN124m. No
changes in legislation are expected although
it is thought the Gaming Act does need
revising and the industry has made several
proposals.
Meanwhile casinos have existed in Bulgaria
since 1979 although at the time were only
permitted for foreign visitors or organised
junkets. In 1993 the gaming act became
officially regulated and was adopted in 1999
and has since been amended most recently
in 2006.
NUMBER OF:
CASINO SLOTS:
CASINO TABLES:
AWPS:
AMUSEMENTS (TOTAL):
VIDEO:
TOUCHSCREENS:
SPORTS GAMES:
OPERATORS:
NUMBER OF:
CASINOS:
GAMING ARCADES:
BINGO HALLS:
BETTING SHOPS:
MAIN OPERATORS:
TOTAL GGR:
CASINO GGR:
1,447
136
13,981
8,000
2,000
600
2,000
100
511
20
834
17
2,037
Viva, Merkur, independents
7.7BN
N/A
cutting-edge play mechanics keep players engaged
Your
Statistics
MARKET REVIEW
czech republic
NUMBER OF:
CASINO SLOTS:
CASINO TABLES:
AWPS:
VLTS:
AMUSEMENTS (TOTAL):
ELECTRONIC ROULETTE:
VIDEO:
TOUCHSCREENS:
SPORTS GAMES:
NUMBER OF:
CASINOS:
GAMING ARCADES:
SINGLE SITES:
BETTING SHOPS:
OPERATORS:
MAIN OPERATORS:
TOTAL GGR:
CASINO GGR:
Your
Approx 4,000
Approx 500
42,216
60,000
10,000
2,000
1,000
1,500
7,500
100
Approx 200
5,000
4,000
2,950
490
Czech Casinos, ACE, Ingo Casino,
Ritzio, Merkur, Casino 777, American
Chance Casino, Casino Millennium, Casino Admiral
CZK31.8BN
CZK1.5BN
Overview
Czech is regulated by the Lotteries Act of 1990
and is a very liberal market permitting AWPs and
VLTs in the country. In 2010 the total amounted
players gambled was CzK125.6bn of this
CzK45bn came from VLTs and CzK37.8bn came
from slot machines (casino and AWPs) a
considerable drop of 30 per cent from the
previous year. Casinos saw CzK8.9bn gambled
which has remained fairly steady although a
slight drop from the previous years. The gross
gaming revenue amounted to a total of
CzK31.8bn (1.2bn) of which VLTs took
Czk12.5bn, Casino slots took CzK1.5bn, other
slots took CzK7.1bn, electronic roulette
CzK1.1bn. CzK3.5bn was given to good causes.
The Czech gaming industry is governed by the
Act No. 201/1990 which covers lotteries and
other games. Sazka is the biggest market share
holder and more than 80 per cent of its revenues
come from the lottery. The second is Synot with
the bulk of its revenue coming from VLTs and
the third is Bonver WIN Inc which deals in
technical games and is the third largest operator
of VLTs. Sazka went up for sale in September last
year after declaring bankruptcy and the highest
bidder was Sazkova Kancelar with a purchase
bid of CzK3.810bn, which now owns the
company.
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Capital:
Prague
Population:
10,190,213
Land Area:
78,867 sq.km
Median age:
40.8 years
Currency:
Czech Koruny (CzK)
Government:
Parliamentary
Democracy
Head of
Government:
Prime Minister Petr
Mecas
Elections:
President is elected
by parliament for
five year term. Last
election held in
2008. Prime
Minister is
appointed by the
President.
Statistics
MARKET REVIEW
denmark
Capital:
Copenhagen
Population:
5,529,888
Land Area:
42,434 sq.km
Median age:
40.9 years
Currency:
Danish Krone (DKK)
Government:
Constitutional
Monarchy
Head of Government:
Prime Minister Lars
Loekke Rasmussen
(Liberal Party)
Elections:
Monarch is hereditary.
Following legislative
elections, the leader of
majority or majority
coalition party is
usually appointed
Prime Minister by
Monarch.
Overview
AWPs are permitted in alcohol licensed
premises and approved arcades and all
machines must be linked to a Central
Monitoring System. Licensed restaurants can
have up to three AWPs and a gaming licence
fee is DKr750 per machine per year. Taxes
for arcades are 40 per cent of cash box up to
DK250,000 per month or 70 per cent of cash
box for over DK250,000. Restaurants pay 40
per cent of cash box up to DK30,000 per
month or 70 per cent over DK30,000. Stakes
are 50 ore and payout is DK300 maximum.
In 2010 the Danish AWP industry saw a cash
box of 251m a drop of almost eight per
cent on the previous year. The state received
88.4m in taxes and 16.8m was paid to
charities. Last year the DAB fought against
VAT which was to be imposed on the
industry and won the battle.
Meanwhile, October 2011 was the deadline
that the Danish Gambling Authority set for
operators to apply for online gaming
licences and left them with less than a
month to prepare their documents after the
EC ratified Denmarks new gambling
legislation. The market will open on January
1st 2012.
NUMBER OF:
CASINO SLOTS:
459
CASINO TABLES:
90
AWPS:
27,100 (20,250 in arcades/6,900 in restaurants)
AMUSEMENTS (TOTAL):
7,000
VIDEO:
4,000
TOUCHSCREENS:
2,000
SPORTS GAMES:
1,000
OPERATORS:
Approx 500
NUMBER OF:
CASINOS:
6
GAMING ARCADES:
1,200
SINGLE SITES:
2,500
BETTING SHOPS: 3,800 Danske Spil retailers (60 per cent of market)
MAIN OPERATORS:
Casinos Austria and independents
TOTAL GGR:
DKK7.7bn
CASINO GGR:
DKK425m
award-winning
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Statistics
MARKET REVIEW
finland
NUMBER OF:
CASINO SLOTS:
CASINO TABLES:
AWPS:
AMUSEMENTS (TOTAL):
VIDEO:
TOUCHSCREENS:
NUMBER OF:
CASINOS:
GAMING ARCADES:
SINGLE SITES:
BETTING SHOPS:
MAIN OPERATORS:
TOTAL GGR:
CASINO GGR:
Your
298
23 (plus 72 in the arcades)
19,385 (gaming arcades and single sites)
4,000
300
1,800
1
74 arcades (45 Potti, 24 Tayspotti,
2 Club Ray, 3 Pelikioski)
8,060
3,200 POS (Veikkaus)
RAY
2,557M
26.8M
Overview
Gaming operations are run by three monopoly
organisations in Finland RAY, Veikkaus Oy
and Fintoto Oy. RAY was established in 1938
to raise funds through gaming and today still
has the monopoly in this sector and supports a
number of health and welfare institutes.
Amendments to the Lotteries Act in 2010 mean
the three operators will have exclusivity to
operations and no longer have to apply for
their licence whilst the age limit was increased
from 15 years to 18 years last year and
marketing for foreign companies is banned.
The Finnish market now waits to hear about
the Green Paper on cross border online
gaming. At the moment this market is
controlled by RAY and Veikkaus.
Finland has just one casino operated by RAY
called Casino Helsinki. RAYs gaming revenue
in 2010 was 674.5m and of this 537.7m was
produced by slot machines, 92.1m came from
RAYs own arcades and other establishments,
15.5m from casino games in restaurants and
26.8m from the casino (18.9m from slots
and 7.8m from table gaming) and 2.4m from
online gaming. Pelika Net Oy is the leading
amusement games and jukebox distributor and
operator in Finland and operates machines
across some 2,000 locations.
taking
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Capital:
Helsinki
Population:
5,259,250
Land Area:
303,815 sq.km
Median age:
42.5 years
Currency:
Euro
Government:
Republic
Head of
Government:
Prime Minister
Jyrki Katainen
(National Coalition
Party)
Elections:
President elected
by popular vote for
six year term.
President appoints
the Prime Minister
and deputy prime
minister.
Statistics
MARKET REVIEW
germany
Capital:
Berlin
Population:
81,471,834
Land Area:
348,672 sq.km
Median age:
44.9 years
Currency:
Euro
Government:
Federal Republic
Head of Government:
Chancellor Angela Merkel
(CDU)
Elections:
President elected for five
year term by a Federal
Assembly and next
election due by 2015.
Chancellor elected by an
absolute majority of the
federal assembly for a four
year term. Last elections
held in 2009 and next due
no later than 2013.
Overview
Germany is made up of four main
products groups AWPs, amusements,
sports machines and internet terminals
and operates under the AWP Gaming
Regulation of 2006 which since it was
installed in the market has set the
conditions for commercial gaming which
included the removal of some 80,000 fun
games. The market is a difficult one and
the casinos have seen tough competition
over recent years with the new private
gaming halls opening up in the country.
There is now a tendency to open larger
premises on multiple concessions.
However a new law proposed which is
due to come into effect in January 2012
could now see some 10,000 arcades
closed and the removal of up to 100,000
AWPs. Some 16 Lander state heads want
to ban multi-concession halls with a five
year operating time for existing halls if
the regulation is approved. There is also
a suggestion to reduce the number of
AWPs from three to two in food and
drink establishments. Total GGR for the
gaming sector last year was 9.5bn of
which 5.12bn came from the gaming
and amusement sector.
NUMBER OF:
CASINO SLOTS:
Approx 7,000
CASINO TABLES:
Approx 450
AWPS: 235,750 (175,000 in arcades and 60,000 in bars/restaurants)
AMUSEMENTS (TOTAL):
38,200 (not including sports games)
PINBALL:
2,250
VIDEO:
10,300
SCORE GAMES:
3,650 (touchscreens, jukeboxes etc)
INTERNET TERMINALS:
22,000
SPORTS GAMES:
22,300
8,000
OPERATORS:
6,000
NUMBER OF:
CASINOS:
80
GAMING ARCADES:
9,000
SINGLE SITES:
60,000
MAIN OPERATORS:
Westspiel Casinos, Spielbanken Bayern,
Spielbanken Niedersachsen, Spielbank Schleswig Holstein.
TOTAL GGR:
9.5bn
CASINO GGR:
557m
pro curve
Your
Statistics
MARKET REVIEW
greece
NUMBER OF:
CASINO SLOTS:
CASINO TABLES:
AMUSEMENTS (TOTAL):
VIDEO:
TOUCHSCREENS:
PINBALL:
SPORTS GAMES:
OPERATORS:
VLTS:
NUMBER OF:
CASINOS:
GAMING ARCADES:
SINGLE SITES:
BETTING SHOPS:
MAIN OPERATORS:
TOTAL GGR:
CASINO GGR:
4,410
414
10,000
8,000
1,800
800
3,000
1,000
35,000 VLT licences to be issued.
9
0
18,000
5,000 OPAP
Hyatt Regency, Club Loutraki, Technical
Olympic, Theros, Queenco.
8.5bn
513.4m
Overview
At the moment Greeces gaming market
consists of nine casinos, a state lottery, a
horse racing operator and OPAP.
Operation of gambling machines is
prohibited with the exception of slots in
casinos and OPAP machines. In August
the new Regulating the Gaming Market
law was introduced which sees several
changes including introducing a VLT
market and opening the market to
providers of sports betting, internet poker
and online casinos. The bill was part of
the privatisation programme which aims
to raise 7bn through the sales of its state
owned companies.
The new law also sets up the Gaming
Supervision and Control Commission
which will now regulate matters
concerning the operation of gaming and
licensing including the set up of a
monitoring and control IT system to
oversee all data and transactions. The
minimum amount for play would be
0,10 and the maximum 5. There are
several issues over the online gaming
licences and the EGBA and RGA are
currently conversing with the European
Commission about their issues.
Capital:
Athens
Population:
10,760,136
Land Area:
130,647 sq.km
Median age:
42.5 years
Currency:
Euro
Government:
Parliamentary Republic
Head of Government:
Interim Prime Minister
Lukas Papandemos
Elections:
President elected by
parliament for five year
term. Next due in 2015.
President appoints
leader of the party
securing plurality of vote
in election to become
Prime Minister and form
a government
Your
Statistics
MARKET REVIEW
hungary
NUMBER OF:
CASINO SLOTS:
150
CASINO TABLES:
69
AWPS:
7,392 (category I) and 16,614 (category II)
AMUSEMENTS (TOTAL):
5,000
PINBALL:
2,000
VIDEO:
1,000
TOUCHSCREENS:
1,000
SPORTS GAMES:
3,000
1,200
OPERATORS:
1 state gaming operator (Szerencsejatek Zrt),
3 casino operators, 1 horse race betting operator, 19 card
room operators and approximately 1100 slot machine operators
NUMBER OF:
CASINOS:
3
GAMING ARCADES: 831 (category I) and 12,870 (category II locations)
SINGLE SITES:
16,000
BETTING SHOPS:
4,437 (including betting terminals)
MAIN OPERATORS:
Las Vegas Casino Kft, Belvarosi Kaszino Kft,
Casino Sopron Kft.
TOTAL GGR:
HUF252bn
CASINO GGR:
HUF5.9bn
Your
Overview
In total there are just over 24,000 category I and
II machines in Hungary. In Category I locations
(arcades) at least 2sq.m is required per machine
whilst Category II locations (bars and
restaurants) there is a maximum of two
machines. In Category I gaming and
amusements can be operated and in Category II
only gaming machines are permitted. A licence
for Category I machines is HUF125,000 (500)
per year and Category II costs HUF75,000
(300) per year. A licence for a gaming hall is
HUF20,000 (80). The gaming tax paid by
gaming machine operators amounted to 264m
last year. The Hungarian gaming market has
been in decline over the last few years. The
decrease reached 10 per cent in 2009 and
decreased by a further 10 per cent in 2010. A
large number of gaming halls have closed and
the number of slots in the market has dropped
by 6,700 over the last five years. The main
reason is the rise in gaming tax and operation
costs. In 2010 a new regulation was passed for
card games/clubs. At the time there were 150
card clubs of which only 19 had a licence. The
act stated that operators of card clubs must
have a share capital of 90,000, the number of
tables is between five and 10 and no more than
10 players per table. The maximum bet is 370
and maximum entry fee is 185.
Capital:
Budapest
Population:
9,976,062
Land Area:
89,608 sq.km
Median age:
40.2 years
Currency:
Forint (HUF)
Government:
Parliamentary
democracy
Head of
Government:
Prime Minister
Viktor Orban
(Hungarian Civic
Alliance/Fides)
Elections:
President elected
by national
assembly for five
year term. Last
election held in
2010.
is the one you want
Statistics
MARKET REVIEW
ireland
Capital:
Dublin
Population:
4,670,976
Land Area:
70,273 sq.km
Median age:
34.8 years
Currency:
Euro
Government:
Republic, Parliamentary
democracy
Head of Government:
Edna Kenny (Fine Gael
Party)
Elections:
popular vote for seven
year term. Last elections
held in 2011. Prime
Minister is nominated
by the House of
Representatives and
appointed by the
President.
Overview
Sports, horse and dog racing are by far
the biggest part of the land based
gambling business in Ireland and
accounted for 1.1bn of the GGR in 2010.
Lottery revenue was around 400m and
gaming machines saw 200m revenues.
Bingo and casino gambling each
accounted for less than 100m each.
The total GGR in Ireland amounted to
3.6bn which has doubled over the last
four years whilst the number of betting
shops has also doubled from 700 to
1,200. The total GGR does not include
online gaming which is estimated to be
around 8bn.
However despite the growth the
regulators have still not changed the very
archaic legislation and Ireland operates
under the old laws of 1956 despite a
long over due review being promised.
One major question is whether the
country will legalise FOBTs. If the
country was to also legalise casinos it is
thought the industry could reach 157m
in GGR annually and double this by
2020. It would also increase employment
and open up the market extensively.
NUMBER OF:
CASINO SLOTS:
CASINO TABLES:
AWPS:
AMUSEMENTS (TOTAL):
REDEMPTION:
JUKEBOXES:
POOL TABLES:
OPERATORS:
150 approx
10,105
6,586
500
4,000
6,000
300 plus around 300 bowling
and pool halls
300
NUMBER OF:
CASINOS:
GAMING ARCADES:
SINGLE SITES:
BETTING SHOPS:
MAIN OPERATORS:
TOTAL GGR:
CASINO GGR:
Approx 50 (private clubs)

92
10,000
1,200
Independents
3.6bn
100m

Your
Statistics
MARKET REVIEW
italy
NUMBER OF:
CASINO SLOTS:
1,500
CASINO TABLES:
250
AWPS:
330,000 installed (360,000 authorised)
VLTS:
31,500 installed as of November 2011 (56,697 authorised)
AMUSEMENTS (TOTAL):
80,000
POOL TABLES:
10,000
VIDEO/TOUCHSCREENS
38,000 (7C)
CRANE MACHINES:
30,000 (7A)
SPORTS GAMES:
3,000
OPERATORS:
3,500
1,000
NUMBER OF:
CASINOS:
GAMING ARCADES:
SINGLE SITES:
BETTING SHOPS:
MAIN OPERATORS:
TOTAL GGR:
CASINO GGR:
Your
4
1,000
100,000
12,120
Run by the municipalities.
61.4bn
470m
Overview
The latest legislation for the Italian market
was in 2010 when the country opened its
doors to VLTs and changed the market. There
is a provision for a total of 56,000 VLTs and
to date there is around 16,000 currently
operating in the market. The revenue made
from VLTs in 2009 was 850m from the
network providers. The number of machines
permitted per coffee shop, bar and restaurant
is between one and four depending on
surface space. Betting shops can have a
maximum of 24 units, bingo halls 75 units
maximum and arcades are permitted one
AWP per 5sq.m. Meanwhile VLT halls are
allowed 30 VLTs per 50-100sq.m, 70 VLTs for
101-300sq.m and 150 VLTs for 301sq.m and
above. Licensing fees are 15,000 for VLTs
whilst AWP tax is 12.6 per cent of income.
Tax for VLTs is 2% of total bets rising to 3%
in 2012 and 4% in 2013.
Gaming machines represent some 52 per cent
of the market share followed by lotteries at 15
per cent and casinos with 3 per cent. In 2010
the state collected more than 61.4bn in the
public games sector, an increase of 13 per
cent on the previous year and almost 4% of
GDP. During the first eight months of 2011 the
state saw a total of 55.2bn collected.
Capital:
Rome
Population:
61,016,804
Land Area:
294,140 sq.km
Median age:
43.5 years
Currency:
Euro
Government:
Republic
Head of
Government:
Mario Monti,
Prime Minister
Elections:
an electoral college
consisting of both
houses of
parliament and 58
regional
representatives.
Mario Monti was
appointed Nov, 11.
Performing at
C
Casinos Everywhere
Statistics
MARKET REVIEW
netherlands
Capital:
Amsterdam
Population:
16,847,007
Land Area:
33,893 sq.km
Median age:
41.1 years
Currency:
Euro
Government:
Constitutional
Monarchy
Head of
Government: Prime
Minister Mark Rutte
Elections:
Following Second
Chamber elections,
the leader of majority
party or leader of
majority coalition is
appointed Prime
Minister by the
Monarch.
Overview
Two machines are permitted per single site
whilst arcades are regulated on individual
licences but on average there are 56 machines
per location. Operators of gaming machines
pay 29 per cent gambling tax over the
cashbox and sometimes also have to pay 19
per cent VAT. This tax rate replaced the 16
per cent VAT on the cashbox and the industry
has been reeling since. And despite promises
to the industry from the government that they
would be compensated, to date nothing has
happened. The new gambling law and no
smoking ban has also affected business badly.
In 2011 the rules for slot machines were
adjusted and they are no longer allowed
payment of bills in arcades and restaurants
and only permitted coin payout. Cashless is
permitted at Holland Casinos only.
Meanwhile new slots were permitted higher
speed play, higher payouts and higher payout
ratio and a lower hourly loss. Holland
Casinos operates the 14 casinos in the
Netherlands and of the 545m gross income
some 42 per cent was from table gaming and
47 per cent from the slots. Total visits to all
the casinos amounted to 5,624,000. Of the
474 tables in the casinos 141 are roulette and
135 are blackjack.
NUMBER OF:
CASINO SLOTS:
6,747
CASINO TABLES:
474
AWPS:
20,815 (single sites) and 15,230 (arcades)
AMUSEMENTS (TOTAL):
8,500
PINBALL:
2,000
VIDEO:
5,000
SPORTS GAMES:
20,000
270
OPERATORS:
822
NUMBER OF:
CASINOS:
GAMING ARCADES:
SINGLE SITES:
BETTING SHOPS:
MAIN OPERATORS:
TOTAL GGR:
CASINO GGR:
delivering the
14
270
14,714
2,037
Holland Casino (monopoly)
1.5bn
546m
Your
Statistics
MARKET REVIEW
norway
NUMBER OF:
CASINO SLOTS:
CASINO TABLES:
VLTS:
AMUSEMENTS (TOTAL):
VIDEO:
TOUCHSCREENS:
SPORTS GAMES:
OPERATORS:
NUMBER OF:
CASINOS:
GAMING ARCADES:
SINGLE SITES:
BETTING SHOPS:
MAIN OPERATORS:
TOTAL GGR:
CASINO GGR:
Your
0
0
3,000 IVT Multix
3,000
500
500
1,000
225 bingo halls and a handful of
amusement arcades
60
0
0
10,000
4,000 Norsk Tipping retailers and 1,4000
Norsk Rikstoto
Norsk Tipping
NOK25bn
0
Overview
Norsk Tipping is wholly owned by the
Norwegian state and was set up in 1946 as the
countrys gaming company. The group operates
lottery games, scratch cards and sports betting.
Norsk Tipping began operating VLTs (IVTs) in
August 2008 and they are operated by the Norsk
Tipping Playing Card available to over 18s. The
maximum loss per day is set at NK400 or
maximum NOK2,200 per month.
There are currently 3,000 Multix VLTs currently
in the Norwegian market of which 2,505 are
located in 1,073 kiosk venues (convenience
stores and petrol stations); 218 machines in 114
pubs and bars and 803 Belgago machines which
are located in 120 bingo hall venues. These are
expected to increase to a maximum of 8,000.
Multix VLTs saw a turnover of NOK3.5bn last
year and there are now almost 100,000 players.
Meanwhile Internet turnover was NOK1.5bn
and there are some 292,000 players. Total
gaming turnover in Norway in 2010 was
NOK25bn of which Norsk Tipping has a 59 per
cent share, Norsk Rikstoto has a 15 per cent
share, bingo has a 22 per cent share and
lotteries and gaming on ships have a two per
cent share each. Total revenue for Norsk
Tipping in 2010 was NOK14bn and NOK4bn
went to good causes last year.
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Capital:
Oslo
Population:
4,691,849
Land Area:
323,802 sq.km
Median age:
40 years
Currency:
Norwegian Kroner
(NOK)
Government:
Constitutional
Monarchy
Head of
Government:
Jens Stoltenberg
Elections:
Leader of the
majority party or
majority coalition
is appointed by
the Prime Minister
after elections with
the approval of
parliament.
Statistics
MARKET REVIEW
Poland
Capital:
Warsaw
Population:
38,441,588
Land Area:
304,255 sq.km
Median age:
38.5 years
Currency:
Euro
Government:
Republic
Head of
Government: Prime
Minister Donald
Tusk.
Elections:
popular vote for five
year term. Next
election is in 2015.
Prime Minister and
Deputy Ministers
appointed by
President and
confirmed by Sejm.
Overview
Today the Polish market is made up of six
entities including the lottery (Totalizator
Sportowy and PML), casinos, gaming halls,
bingo halls, sports betting and AWPs (street
gaming). Since the gambling act came into
play in November 2010 there have been a
number of inspections of AWPs by government
agencies. According to statistics by the third
quarter of 2009 there were 55,000 AWPs. By
January 2010 only half of these were in
operation and today half again. Revenue from
the gambling and amusement licences amount
to 1.6bn and the industry in general has
declined by 38 per cent over the last year.
Poland suffers from very strict regulations and
new licences have been banned whilst old
licences are not being renewed and the
industry is shrinking.
Taxation in Poland is 400 per machine per
month. The 15,000 or so AWPs is just one
third of the amount back in 2009. There are
271 gaming arcades which saw revenues of
PLN597m in 2010. Meanwhile Casino revenues
amounted to PLN260m (58m) and for the
first two quarters of 2011 it came to PLN122m,
a drop of seven per cent compared to the same
period in 2010. Some casinos like the one in
Kielce have closed due to decreasing revenues.
NUMBER OF:
CASINO SLOTS:
CASINO TABLES:
AWPS:
AMUSEMENTS (TOTAL):
REDEMPTION:
VIDEO:
DEDICATED GAMES:
SPORTS GAMES:
OPERATORS:
NUMBER OF:
CASINOS:
GAMING ARCADES:
SINGLE SITES:
BETTING SHOPS:
MAIN OPERATORS:
TOTAL GGR:
CASINO GGR:
700
130
15,831 (end June 2011)
50,000
150
8,000
5,000
17,000
160
1,000
24 licenced (22 by December 2011)

271
20,000
2,450
Casino Poland, Orbis, ZPR,
Olympic Entertainment Group
3.5bn
58m
Your
Statistics
MARKET REVIEW
slovakia
NUMBER OF:
CASINO SLOTS:
CASINO TABLES:
AWPS:
VLTS:
AMUSEMENTS (TOTAL):
PINBALL:
VIDEO:
TOUCHSCREENS:
SPORTS GAMES:
NUMBER OF:
CASINOS:
GAMING ARCADES:
SINGLE SITES:
BETTING SHOPS:
OPERATORS:
MAIN OPERATORS:
TOTAL GGR:
CASINO GGR:
Your
165
99
15,000
6,000
5,000
100
2,500
1,000
3,000
8
1,000
10,994
2,000
200
Casino Slovakia, Regency Casino, Olympic
Entertainment Group
N/A
55m
Overview
Slovakia saw the amendment 478/2009
added to its 2005 Gambling Act which
come into force in 2010 and saw several
changes in taxes.
Meanwhile AWPs had to change from
Slovakian currency to the Euro last year
and now offer a winning ratio of not less
than 70 per cent and play with 10c stake
and 15 payout (AWPs). The licence fees
paid for each sector include 150 per
gaming machine and at least 60,000 per
operator of gaming machines, 500,000
for casinos and 5m for large scale casino
complexes. VLTs saw a tax increase from
a percentage rate of 29 per cent on
gaming revenue to a standard 4,000 fee
per calendar year, irrespective of how
many days the machine is in operation.
Previously AWPs operated with a SKK2
stake and SKK300 prize.
There are eight casinos operated by three
companies - Casinos Slovakia with five
casinos, Regency Casino with one and
Olympic Entertainment Group with two
casinos. In October last year Sabinov
became the first Slovak town to introduce
a blanket ban on gambling.
Capital:
Bratislava
Population:
5,477,038
Land Area:
48,105 sq.km
Median age:
37.6 years
Currency:
Euros
Government:
Parliamentary
democracy
Head of Government:
Prime Minister Iveta
Radicova (Democratic
Party)
Elections:
popular vote for five year
term. Next election to be
held in 2014. Following
election the leader of
majority, or of majority
coalition, is appointed
Prime Minister.
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Statistics
MARKET REVIEW
slovenia
Capital:
Ljubljana
Population:
2,000,092
Land Area:
20,151 sq.km
Median age:
42.4 years
Currency:
Euro
Government:
Head of Government:
Prime Minister Borut
Pahor
Elections:
popular vote for five
year term. Next to be
held in 2012. Following
elections leader of
majority party or leader
of majority coalition is
usually nominated to
become Prime Minister
by the President.
Overview
Slovenia is a small market and fairly
limited in terms of growth. Slots and
multiplayers can only be operated in
casinos and gaming halls and gaming
tables can only be operated solely in
casinos. There are limits on the number of
operations permitted and also restrictions
as to where such operations can be
opened. Casinos can be operated only in
local tourist communities where there are
over 40,000 inhabitants and foreign tourist
visitors expected. According to the gaming
act the government can award up to 15
concessions for casinos and up to 45
concessions for gaming halls.
GGR for the gaming industry was as
follows - 177.2m for casinos compared to
213.5m in 2009 and 132.1m for gaming
halls compared to 136.5m in 2009. The
highest growth for the casino industry was
between 2004 and 2008 whilst growth
halted in 2009 and 2010. Casinos have 47
per cent of the market in Slovenia followed
by gaming halls with 35 per cent and
lottery with 17 per cent. The gaming sector
paid a total of 57.2m in taxes in 2010. The
nine casinos are operated by HIT and saw
a total of 2.1 million visitors last year.
NUMBER OF:
CASINO SLOTS:
CASINO TABLES:
AWPS:
AMUSEMENTS (TOTAL):
PINBALL:
VIDEO:
TOUCHSCREENS:
POOL TABLES:
OPERATORS:
NUMBER OF:
CASINOS:
GAMING ARCADES:
SINGLE SITES:
MAIN OPERATORS:
TOTAL GGR:
CASINO GGR:
award-winning
Innovation
3,957
260
4,691 (in slot halls)
6,000
500
2,000
800
2,000
20
30
9 (15 permitted)
32 (45 permitted)
1,000
HIT Casinos
309.3m
177.2m
Your
Statistics
MARKET REVIEW
sweden
NUMBER OF:
CASINO SLOTS:
CASINO TABLES:
VLTS:
1,102
125
6,563 in total - 6,251 Vegas VLTs in restaurants and
312 in bingo halls. Max permitted 7,500.
AMUSEMENTS (TOTAL):
3,000 of which Svenska operates 900
PINBALL:
100
VIDEO:
2,000
TOUCHSCREENS:
300
SPORTS GAMES:
100
5-10
OPERATORS:
50
NUMBER OF:
CASINOS:
GAMING ARCADES:
SINGLE SITES:
BETTING SHOPS:
MAIN OPERATORS:
TOTAL GGR:
CASINO GGR:
4
2,148 restaurants and 82 bingo halls.
1,000
Around 6,000 total retailers.
Casino Cosmopol (Svenska Spel)
SEK16.8m
SEK1.2m net gaming revenue
Overview
Sweden is governed by state owned
companies. Svenska Spel is the state run
gaming operator in Sweden which has a net
market share of 51 per cent. It operates
gaming and lotteries, VLTs and Casinos. ATG
runs the horse racing and has 20 per cent of
the gaming market, NGO games and lotteries
has 17 per cent whilst foreign online
companies have 10 per cent share and
private restaurant casinos have one per cent.
Svenska operates the VLT brand Vegas
which operates with a stake of SEK5 and
payout of SEK500. The sector saw net
gaming revenues of SEK2m 21 per cent of
Svenskas total revenue.
Svenska also operates four casinos under the
brand Casino Cosmopol - Casino Sundsvall
has 146 slots and 15 tables; Casino Malmoe
has 244 slots and 32 tables; Casino
Gothenburg has 333 slots and 42 tables and
Casino Stockholm has 379 slots and 36
tables. Casinos net gaming revenues was
SEK1.2m whilst Svenskas gaming and
lottery industrys net gaming revenue
amount to SEK6.3m. Svenska contributed
SEK4.7m to the Swedish state last year. The
companys GGR was SEK21.7m whilst the
total net gaming revenue amounted to
SEK9.6m.
Capital:
Stockholm
Population:
9,088,728
Land Area:
410,934 sq.km
Median age:
42 years
Currency:
Swedish Krona
(SEK)
Government:
Constitutional
Monarchy
Head of
Government: Prime
Minister Fredrik
Reinfeldt
Elections:
Monarch is
hereditary.
elections the Prime
Minister is elected
by the parliament.
Next due 2014
Your
Statistics
MARKET REVIEW
spain
Capital:
Madrid
Population:
46,754,784
Land Area:
498,980 sq.km
Median age:
41.9 years
Currency:
Euro
Government:
Parliamentary Monarchy
Head of Government:
President Mariano Rajoy
Elections:
Monarchy is hereditary
following legislative
elections. Leader of the
majority party or leader of
the majority coalition
usually proposed president
by Monarch and elected by
National Assembly. Vice
President appointed by the
Monarch on proposal of
president.
Overview
AWPs have the biggest share of the
gaming market in Spain with almost 42
per cent compared to casinos with 6.8
per cent and bingos with 9.8 per cent.
The rest is taken up with the lotteries.
The total amount gambled in 2010 on
private (15.8bn) and public lottery
gaming (11.5bn) amounted to 27.3bn,
a significant drop from the previous year
which saw total revenues of around
31bn. With the recession the Spanish
have been spending less on leisure
activities and the average amount spent
on AWPs per inhabitant per year is 241
compare to 285 the previous year.
Meanwhile visitor figures to the casinos
reached 4.3 million last year.
The biggest loss for the market is the
huge drop in amusement machines from
77,400 in 2009 to just over 50,000 last
year whilst AWPs have dropped from
246,600 in 2009 to 240,000 last year.
The industry has been lobbying for a
change in the AWP legislation to
increase stakes to 1 (20c x five plays)
and payouts of 500 times the price of
play, plus a 70 per cent payout and
speed game of three seconds.
NUMBER OF:
CASINO SLOTS:
CASINO TABLES:
AWPS:
AMUSEMENTS (TOTAL):
OPERATORS:
NUMBER OF:
CASINOS:
GAMING ARCADES:
SINGLE SITES:
BETTING SHOPS:
BINGO HALLS:
MAIN OPERATORS:
TOTAL GGR:
CASINO GGR:
pro curve
2,291
500 approx
239,992
50,302
448
2,500
39 (plus 4 gaming rooms)

2,547
220,000
2,037
399
Unidesa, Grupo Comar, Grupo Codere,
Grupo Orenes
27.3bn (private and public gaming)
1.8BN
Your
Statistics
MARKET REVIEW
switzerland
NUMBER OF:
CASINO SLOTS:
CASINO TABLES:
VLTS:
AMUSEMENTS (TOTAL):
VIDEO:
TOUCHSCREENS:
JUKEBOXES:
OPERATORS:
NUMBER OF:
CASINOS:
GAMING ARCADES:
SINGLE SITES:
MAIN OPERATORS:
TOTAL GGR:
CASINO GGR:
Your
3,771
237
700 Tactilo in 350 locations.
5,000
1,500
500
800
350
19 (7 A casinos and 12 B casinos)

0
1,000
Swiss Casinos, Partouche, Luciene Barriere,
Casino Luzern.
CHF1.2bn (casinos and Loterie Romande)
CHF868m
Overview
Considering Switzerland prohibited gambling
between 1921 and 1993 the country is very
fond of gaming today albeit in a limited
format. At first only slot halls were permitted
but finally in 2000 casinos entered the
market although today casino revenue is
dropping due to a smoking ban and an
armed robbery in 2010 which may have put
customers off. Last year the seven A Casinos
saw a total of CHF524m whilst the B casinos
saw CHF344m a total of CHF868m
compared to CHF936m the year previously.
Tax revenues amounted to CHF450m of
which CHF387m went to the Confederation
and CHF62m was paid to the various
cantons of type B casinos.
Meanwhile two new casino licences have
been issued for the city of Zurich and region
of Neuchatel. Swiss Casinos received a
licence for an A Casino in Zurich and
Neuchatal has received a B licence for
Casino de la Rotonde. They are expected to
open in 2012 which will increase the
number of total casinos to 21. Also after
years of battling the Tactilo VLT machines
operated by Loterie Romande remain in the
market despite a push by the casinos to get
them removed. Loterie Romande saw a GGR
of CHF358m in 2010.
Capital:
Bern
Population:
7,639,961
Land Area:
39,997 sq.km
Median age:
41.7 years
Currency:
Swiss Francs (CHF)
Government:
Confederation
(structure similar to
federal republic)
Head of
Government:
Micheline Calmy-Rey.
Elections:
President and vice
Federal Assembly
from among the
members of the
Federal Council for
one year term.
is the one you want
Statistics
MARKET REVIEW
united kindgom
Capital:
London
Population:
62,698,362
Land Area:
241,930 sq.km
Median age:
41.1 years
Currency:
British pound (GBP)
Government:
Constitutional
Monarchy and
Commonwealth
realm
Head of
Government:
David Cameron
Elections:
elections the leader
of the majority or
majority coalition
party is usually
elected as the Prime
Minister.
Overview
During 2009/10 the British gambling industry
generated a gross gambling yield of 5.7bn, a
one per cent drop on the previous year. Gross
profit from slots in casinos came to 137m
which is 18 per cent of the GGY in this sector.
The non-remote betting sector represents the
largest market within the industry with a 53
per cent share followed by casinos with 14 per
cent and bingo sectors with 12 per cent.
The majority of machines, some 62,907 are
located in AGCs and gross profit from this
industry amounted to 366m. Another 26,024
are located in FECs with a profit of 82m.
Meanwhile the betting industry saw a turnover
last year of 9.2bn of which gross profit
amounted to 1.4bn. There are currently
around 32,900 gaming machines located in
betting shops of which the majority 32,000 are
B2 machines. There are 756 bingo halls in the
UK of which 72 AGCs were converted into
bingo halls last year and 112 are operated in
holiday parks. This sector saw a gross
turnover of 1.3bn last year. There are 17,987
gaming machines in the bingo halls of which
the majority (13,067) are category C machines.
Meanwhile the number of remote gaming
licences has increased from 366 to 432 in 2010
with a gross gambling yield of 634m.
NUMBER OF:
CASINO SLOTS:
CASINO TABLES:
AWPS:
FOBTS (FIXED ODDS BETTING TERMINALS):
AMUSEMENTS (TOTAL):
VIDEO:
TOUCHSCREENS:
OPERATORS:
2,440
1,200 approx
210,000
32,000
139,000
25,800
11,000
274 FECS
1,600
NUMBER OF:
CASINOS:
122
BINGO HALLS:
756
GAMING ARCADES:
612
SINGLE SITES:
62,000
BETTING SHOPS:
8,822. These are dominated by five operators
Ladbrokes, William Hill, Gala Coral, Betfred and Tote
which have 80 per cent of the shops.
MAIN OPERATORS:
Gala Coral Group (27 casinos),
Rank Group (35) and Genting UK (44) and London Clubs (10)
TOTAL GGR:
5.7bn
CASINO GGR:
782m

Your
Focus
CYPRUS MARKET REPORT
divide and
gaMBle
The division of Northern and Southern Cyprus splits not just along
political and geographic lines, but gaming too
Cyprus is a land of divisions and not
only within its political and geographical
elements but also in the world of
gaming. The Eurasian island country in
the Eastern Mediterranean is located to
the south of Turkey and west of Syria
and the Lebanon. It is the third largest
island in the Mediterranean after the
Italian islands of Sicily and Sardinia and
one of the most popular tourist
destinations in Europe. It measures 240
km from end to end and 100km wide at
its widest point.
The island is dominated by two
mountain ranges, the Troodos Mountains
and the smaller Kyrenia Range, whilst
the central plain they encompass is
called the Mesaoria. The Troodos cover
most of the southern and western
portions of the island and the highest
point is Mount Olympus at 1,952m. The
Kyrenia Range extends along the
northern coastline. The island is
subdivided into four main segments. The
Republic of Cyprus (Greek Cypriots)
occupies the southern two thirds of the
island. The Turkish Republic of Northern
Cyprus (TRNC) occupies the northern
Your
third of the island; the UN controlled

Green Line is the buffer which separates
the two whilst two bases under British
sovereignty are located in the areas of
Akrotiri and Dhekelia.
The earliest known human activity on
the island dates back to the 10th
millennium BC. As a strategic location in
the Middle East, the country has also
been occupied by numerous major
powers who have left their stamp on the
island over the centuries. Settled by
Mycenean Greeks in the 2nd millennium
BC the island also experienced long
periods of rule under the Ptolemies and
the Byzantines. The Ottomans conquered
the island in 1570 and it remained under
their control for three centuries.
Following the Russo-Turkish War,
administration, but not sovereignty of
the island, was placed under British rule
in 1878 on the basis that the island
could be used as a base to protect the
Ottoman Empire against possible Russian
aggression. The island would serve
Britain as a key military base and by
1906 it was a strategic naval outpost
overlooking the Suez Canal.
Performing at
C
Casinos Everywhere
Focus
After the outbreak of the First World War
Great Britain formally annexed the island
in 1914 and a year later offered Cyprus
to Constantine I of Greece on the
condition Greece joined the war and
supported Britain. Greece declined and
in 1925 Cyprus was declared a British
Crown Colony and it remained as such
until it was granted independence in
1960 becoming a member of the
Commonwealth the following year. In
1974 following some 11 years of violence
and to prevent an attempted coup by
Greek Cypriot nationalists (Enosis),
Turkey invaded and occupied the
northern portion of the island. This led
to the displacement of hundreds of
thousands of Cypriots of both races and
the establishment of a separate Turkish
Cypriot political entity in the north.
These events and the resulting political
situation are matters of ongoing dispute.
Cyprus is now de facto partitioned into
two main parts - the area under the
control of the Republic of Cyprus
comprising of about 59 per cent of the
area and the Turkish area in the north,
the Turkish Republic of Northern Cyprus
(TRNC) covering about 36 per cent of
the islands area and currently
recognised only by Turkey. In 2003 the
borders between north and south were
opened but are still controlled - and it
is now easy to travel between the two
parts of the island.
The accession of Cyprus as a full
member of the EU as of May 2004 was
seen as an important milestone and the
Cypriots (at least in the Republic of
Cyprus) are among the most prosperous
people in the Mediterranean region.
Membership of the EU has helped this
prosperity enormously. Internationally
Cyprus is also a bridge between three
continents and has an educated
population, good airline connections and
telecommunications. The Republic of
Cyprus adopted the Euro as its national
currency in 2008 whilst Northern Cyprus
uses the Turkish Lira currency even
though the Euro is widely accepted.
Over the last 20 years, for the whole
country, the economy has shifted from
agriculture and manufacturing to
services. Today the services sector,
including tourism, contributes to over 78
per cent to the GDP and employs 72 per
cent of the labour force. GDP fell
significantly in 2009 due to the global
economic crisis although it is expected to
return to normal growth this year.
Unemployment stands at around 7.3 per
cent. The island has few proven natural
resources although oil has recently been
discovered in the sea bed between
Cyprus and Egypt and talks are
underway to explore.
delivering the
Your
Focus
the casino Market

Gambling has always been a well
established part of Cypriot life long
before the advent of casinos. During
British rule and subsequently, various
forms of gambling were tolerated and
during the 1960s family bingo was
played during the intermission at the
Turkish language cinemas whilst the
British football pools were also popular.
Tombola and raffles were, and still
remain common features at local fairs
and fundraising events.
Today however just as the country is
divided by the Green Line there is a
similar dividing line between the
gambling sectors of the country. Today
casinos only exist in Northern Cyprus. In
the South legislation prohibits the use of
land based gambling equipment and
land based casinos and as such these
operations are illegal. Lotteries are
permitted and provided by the state
whilst bingo games are provided by nonprofit making companies or associations.
Licenses are also granted for sports
betting activities and horse racing
through licensed bet shops or other
licensed private establishments. There
are many betting shops which permit
Your
betting only plus small arcades with

terminals offering live poker games and
slots on computers. These straddle the
line between legal and illegal and many
have been closed down recently.
There have been several cases where
virtual horse racing games have been
played on computers and the case has
been dismissed in court as there was no
evidence that the machine was intended
for making profit or proving something
in exchange. But the industry is
watched. The church has a very
powerful influence over the Republic of
Cyprus and even banks have been closed
if they have been found to be connected
with gambling.
Meanwhile at the opposite end of the
scale, Northern Cyprus makes use of its
casino revenues and a large influx of
money comes from the gaming industry.
Apparently the central bank of Northern
Cyprus has resources in excess of
US$4.5bn for a state of around 200,000
inhabitants and a good deal of this is
reputed to come from the casino taxes.
Northern Cyprus is the Mediterraneans
best kept secret and is renowned for its
pace of life, value for money and laid
In 2010 the number

of tourists to Cyprus
reached 3.5 million
an increase of 4.4
per cent from the
previous year. The
majority, 76 per
cent, were from the
EU with the main
countries including
the UK, Russia,
Germany, Greece,
Sweden and
Norway. Revenue
from tourism during
the year 2010 was
1.8bn
back feel with beautiful sandy bays,

unspoilt beaches and a sunny year round
climate. This is in contrast to the coastal
areas of the south that have been more
or less concreted over.
There are five regions in Northern
Cyprus Guzelyurt and its citrus groves
in the west, the Venetian harbour town
of Kyrenia (Girne); the region of Iskele;
the eastern region of Famagusta and the
capital Nicosia. The population of
Northern Cyprus is around 264,000 and
55 per cent of these live in urban areas.
The rural population live in villages of
which there are 195 in the north.
Because of the lack of natural resources
and political embargos tourism and
incidentally gaming tourism - is seen as
the best source for increasing national
income. Turkish Cypriots are free to
travel and many cross the green line to
work in the Greek zone where salaries
are higher than in the north. In addition
many Greek Cypriots travel to the north
to spend their cash in the casinos.
Until 1975 it was illegal for casinos or
betting shops to be operated in Northern
Cyprus. Legislation was passed in 1975
which permitted the licensing of casinos
cross-platform
solutions
for your casino
Focus
although the Israeli market also plays a
small part alongside European tourists.
Today there are around 30 casinos in
Northern Cyprus. There are also a
number of new developments being built
such as the Noahs Ark Resort, in the
Bafra tourism development area, whilst
some existing casinos are currently being
refurbished.
Robert Dijkstra (formerly) of Liberty
Gaming said: Liberty Gaming has been
involved in providing the casinos with
gaming products that are in-house
manufactured and third party products
since 1994. We supply most of the
Cyprus casinos with our products and
technical support. Technology is an
important part of the casino market in
TRNC. You can find almost most casinos
supported by an online system as well as
Ticket In Ticket Out and even RFID
Cashless. If the political problems are
resolved in Cyprus, the casinos will be a
major force in the regions tourism
market. Direct international flights will
provide a bigger market to the TRNC. It
will be a destination for gamblers from
Southern Europe and the Middle East as
there is no gaming in Turkey or on the
Greek Cypriot side. It is said between
300,000 and 400,000 Greek Cypriots visit
the Northern Cyprus casinos each year,
with three just on the Turkish Cypriot
side of the border in Nicosia that cater
exclusively for the Greek Cypriot market.
In the casinos the games played are
American Roulette, Black Jack, Poker
and Punto Banco, with Roulette and the
various versions of Poker being far away
the most popular. Betting on horse
racing and football is allowed in the
casinos (in special sports betting areas)
but many prefer to go to the betting
shops which are now found throughout
the TRNC.
and betting premises in a bid to

encourage investment and diversify the
norths struggling tourism industry after
the 1974 war. However it wasnt until
the late 1990s that Northern Cyprus
casinos began to open all over the island
and over the last decade the tourist
economy here has become increasingly
dependent on the casino sector. Hotel
development slowed during the early
1990s as tourism was affected due to the
Gulf War, as in the whole region. A new
era for tourism and development began
after 1998 coupled with the closure of
casino gaming in Turkey and investment
in new hotel-casino complexes increased.
In 2007 there were a total of 130 hotel

complexes in Northern Cyprus of which
101 were located in the Kyrenia region.
Of course when Turkey closed down its
commercial casino sector in 1997 a large
part of the industry there then shifted
their operations and investments to
Northern Cyprus. Tin the early 2000s
there was a boom in the construction
sector in the northern part of the island
and the number of hotel and casinos
also then increased. Today the casino
market is overwhelmingly composed of
Turkish players (95% of the market)
from mainland Turkey and Greek Cypriot
players from the Republic of Cyprus,
There are five

regions in Northern
Cyprus Guzelyurt
and its citrus
groves in the west,
the Venetian
harbour town of
Kyrenia; the region
of Iskele; the
eastern region of
Famagusta and the
capital Nicosia.
The argument in TRNC is that casinos

should not exist due to moral and
religious grounds however they have
boosted the Northern Cypriot economy
tenfold in recent years. There is no doubt
that without the casinos, the TRNC
tourism industry would be in dire
straights because of the flight embargo to
the country. The casino market has
quadrupled since 1997 and today the
TRNC has become known as a mini Las
Vegas. With that growth however the
concerns over the possible social effects
have also increased. Turkish Cypriot
citizens and students studying in the
TRNC are banned from gambling in
casinos and from all other forms of
gambling on the island.
The casinos are licensed via the Ministry
of Tourism and are mainly run by
independents although two major
operating companies include:
Your
Focus
This
companys history dates back to the
foundation of Net Tourism A.S in 1974
which was a group of entrepreneurial
partners who opened their first shop in
Istanbul. Further shops followed and Net
Holding was founded in 1981. The
Istanbul based company began to
develop hotels, property, duty free shop
management, coffee chains and other
sectors and became a leader in the
gambling sector through its 17 casinos. It
is now Turkeys largest tourist
conglomerate. Merit Tourism Investment
and Establishments was founded in 1988
to develop the hotel sector and today
operates the Merit Hotels in Cyprus the
Merit Crystal Cove Hotel, the Mercure
Resort and the Merit Lefkosa in Nicosia.
The company is also investing in two
further projects due to be completed by
2015 the Merit Afrodit Hotel which is
located next to Crystal Cove and Merit
Mare Monte.
NET HOLDING Merit Hotels.
is a
casino and hotel group which operates
in Northern Cyprus, Uganda and
Suriname. The group has the Golden
Tulip Nicosia Hotel and Casino and
Platinum Casino in Nicosia and the
Acapulco Casino in Kyrenia. The group
also operates sports betting in Cyprus.
PASHA GROUP OF COMPANIES
casinos in northern cyPrus

from the capital,
Nicosia, this is the main town in
northern Cyprus and is the centre of the
tourism industry. It attracts thousands of
visitors each year. It is a pretty town set
around an ancient harbour and castle
and is home to some of the best hotels
on the island many of which offer
casinos.
KYRENIA (GIRNE) Apart
is located
in the Acapulco Holiday Village in
Catalkoy and is a five star resort and the
hotel has 229 rooms and was opened in
1982. The casino has 85 slots and 12
table games including Texas Hold em,
American Roulette, bingo and poker. It is
operated by Pasha Gaming.
ACAPULCO HOTEL AND CASINO
is a hotel opened in
1975 and is found to the west of
Kyrenia. The complex was built and run
by the same family and is now under
English management, but both the hotel
and the casino have seen better days. It
now mainly seems to operate as a
meeting place for the English expatriate
community. The casino is located
downstairs in the Celebrity Hotel and
offers slots and table games.
CELEBRITY CASINO
is located in the
luxurious Colony Hotel in downtown
Kyrenia which was opened in 2003.
There are 100 slots in the lobby and up
COLONY SPORTING CLUB
Your
the grand staircase there is the live game

floor with 27 tables. The Colony Hotel is
based on the colonial style and has 94
rooms and suites.
is a new casino
and is 4,000 sq.m in size and themed on
an Egyptian style amphitheatre. There
are 267 slots and 34 table games
including 11 American Roulette, 20 card
game tables, one Punto Banco and two
Texas Hold em. The hotel has a total of
258 rooms with 35 different concepts
and six accommodation options. The
hotel also offers a spa, fitness centre and
swimming pool. The hotel is operated by
the Turkish Boz Group which began
CRATOS PREMIUM CASINO
The continual
argument is that
casinos should not
exist due to the
moral and religious
grounds, however,
they have also
boosted the Cypriot
economy tenfold.
investing in the tourism sector in 2007

and the casino hotel opened in 2010. The
complex is enormous and one struggles
to see how the revenues of the casino
can generate the financing of the hotel.
is located right
next to the harbour and has been
operating with a casino for the last 23
years and is the oldest hotel in Kyrenia
opened in 1975. The hotel recently
underwent a refurbishment and has 170
rooms and various bars and restaurants.
The casino has 100 slots and 12 table
games in 700 sq.m of gaming area. This
casino has also seen better days and the
slots have not changed or been updated
DOME HOTEL AND CASINO
taking
t
a
your casino mobile
le
Focus
open to high roller players by invitation
only. It is said to be the most beautiful
gaming room in Cyprus. The Malpas
Casino is operated by the Mystral Casino
Group which is the only non Turkish
casino operator in Northern Cyprus.
is
located two miles outside of Kyrenia at
the five star Mercure Hotel which
opened in 2007. It has 200 slots and 26
live table games. The hotel offers 198
standard rooms plus suites and there are
restaurants and bars on site. The casino
is part of a larger group of casinos
owned by Grand Casino Club which is
run by Voyager Cyprus Ltd with a Net
Holding partnership.
MERCURE ACCOR HOTEL AND CASINO
MERIT CRYSTAL COVE HOTEL AND CASINO
is located in a beautiful bay to the west

of Kyrenia where it is said the God of
Wind Zephyrus was born. The five star
hotel was opened in 2000 and has 294
rooms, two suites and 35 junior suites
and is Northern Cyprus only all
inclusive hotel. There is also a congress
Centre for 1,200 people. The casino
houses 180 slots and 18 tables. It is
operated by Grand Casino Club.
is located at the Oscar
Resort Hotel and features 160 gaming
machines and eight table games. The
Oscar Resort was opened in 1998
includes a hotel with a total of 152
rooms and 55 holiday villas plus
swimming pools, water park and various
other activities.
GALAXY CASINO
is in the centre of
Kyrenia and the casino is located
adjacent to the Rocks Hotel which
features a spa, wellness centre with
Turkish bath and sauna and is open to
guests and non-guests. The hotel was
originally built in 1975 and casino was
opened in 2004 and offers 250 slots and
24 table games. It is a beautiful gaming
room in the traditional gaming style.
ROCKS HOTEL & CASINO
is located in
the town centre at the Savoy Ottoman
Palace Hotel and opened in 2008. It sits
on 12,500 sq.m area and offers
traditional Turkish hospitality. There are
111 deluxe rooms, 15 Pasha suites and
two Sultan suites. There are 160 slots
and 20 table games in total.
SAVOY HOTEL AND CASINO
for years. The casino caters mainly for

the casual tourist trade.
is located within the
Jasmine Court Hotel, owned by the
Empyrial Group, and is one of the older
hotels in the area opening in 1990. It has
recently been refurbished and is located
over 55,000 sq.m of land and has 194
rooms, nine cafes, restaurants and bars.
The casino is the biggest on the island
and covers an area of 5,000 sq.m. It has
650 slots and 22 table games, most of
the slots having come from the groups
casinos in Turkey when they were closed
in 1997.
CASINO LIMAN is attached to the Liman

Hotel and has 116 slots and five table
games. The hotel was opened in 1975.
JASMINE COURT
is situated in
Catalkoy, 5kms to the east of Kyrenia
and is a new luxurious modern resort
which opened in 2007. The hotel is a
five star, with 177 rooms and suites
offering a spa and wellness centre and a
private beach. The casino is beautifully
designed and features 120 of the latest
slots and 20 table games of Roulette,
Blackjack, Punto Banco and the various
versions of Poker. There is also the
newly opened VIP casino on the
premises the Mystral Club that is
MALPAS HOTEL AND CASINO
Liberty Gaming
has been involved
in providing the
casinos with
gaming products
that are in-house
manufactured and
third party products
since 1994. We
supply most of the
casinos with
products and
technical support.
Robert Dijkstra.
award-winning
Innovation
VIVA CASINO is
sited in the new Vuni

Palace hotel and is a five star hotel with
164 rooms. The casino is operated by the
Viva Group. The gaming room was
styled in the tropical style favoured by
Viva but was unfortunately ruined by
flood waters last year and the casino
currently operates from a conference
room in the hotel. A new gaming room
is presently being built.
Your
Focus
There are a number of smaller casinos in

the area that are of little importance. In
the Kyrenia area, the following casinos
would be among the top five; the Rocks,
Cratos, Mercure, Malpas and Merit.
nicosia (lefkosa)
This is the capital and largest city of
both Cyprus and the TRNC. It is located
on the River Pedieos and in the centre of
the island. It is the seat of the
government and the main business
centre. The casinos here are designed
purely to attract the cross border Greek
Cypriot market. Legally, they must be
sited in hotels, but the hotels are merely
the means to a casino licence.
CITY ROYAL HOTEL AND CASINO is
a four
star business and city hotel in the heart
of Nicosia which opened in 1991. The
hotel has 86 rooms, three restaurants
and bistros and cafes. The casino is open
from 3pm until 5am and includes
American Roulette tables, Blackjack,
poker and Punto Banco. This is a small
gaming operation.
MERIT LEFKOSA has
163 slots and 28

tables and was opened in 2008 and was
to become the first five star hotel in

Nicosia. The hotel cost around US$40m
and was inspired by Cyprus traditional
architecture and is now the capitals
tallest building. It is operated by Grand
Casino Club (Net Holding).
was originally opened in
1963 and the Saray Casino was later
added. It is small and of little
importance.
SARAY HOTEL
GOLDEN TULIP HOTEL AND CASINO is
located in the business and shopping

area of the city. There are a total of 139
rooms in the hotel and three meeting
lounges plus a banquet area and casino.
Operated by Pasha Gaming it was
opened in 2009. The PLATINUM CASINO
is one of the finest in northern Cyprus
and has a ground floor open to everyone
and a semi VIP lounge and a VIP
Platinum room for appointment only.
There is an open buffet and two bars. It
is operated by Pasha Gaming.
faMagusta
Famagusta is a city on the east coast of
Cyprus, is the capital of the Famagusta
District and is the deepest and most
Since 2006 a
number of draft
bills have been
prepared by the
government and
presented to the
House of
Representatives
attempting to ban
nearly all forms of
online gambling in
Cyprus. Until 2010 it
has been
unsuccessful in its
efforts because the
draft bills were
blocked by the
European
Commission
following a
complaint filed by
Magneta
Technologies, a
Cypriot gaming
software
developer.
Olga Georgiades,
Director, Lexact
Solutions Ltd
important harbour of the island.

is in the
Salamis Bay Conti resort overlooking the
Salamis Bay. The casino is open to
guests and non-guests and has 140 slots
and 17 table games. The casino features
351 five star rooms and there are also 41
bungalows on site.
SALAMIS BAY HOTEL AND CASINO
KAYA ARTEMIS CASINO is
a unique seaside
resort destination in the Bafra tourist
development area which offers 726
rooms in the hotel and a 3,000 sq.m Las
Vegas style casino which opened in
2007. The casino from the exterior is
designed to resemble an ancient Greek
temple, the design of which is a matter
of taste.
is one of
the oldest hotels and casinos, opened in
1975 and has 70 slots and six table
games whilst the resort hotel has three
restaurants and 110 rooms.
PALM BEACH HOTEL AND CASINO
online gaMing law

Although the Republic of Cyprus is no
longer an offshore jurisdiction in the
strict sense of the word, its tax regime,
Your
Focus
location, network of double tax treaties,
membership in the EU and stable
economy, means the island is an ideal
place to locate holding, trading and
intermediary companies. Its taxation
regime doesnt stand out particularly
among its offshore competitors but
changes to tax legislation in 2002 gave
the Republic of Cyprus the lowest rate of
corporate tax in the EU at 10 per cent
which applies to both onshore and
offshore companies.
There are of course no physical casinos
located in the Republic of Cyprus but
gamblers exploited a legal loophole
which resulted in online gambling via
overseas providers going virtually
unregulated. In 2004 a UK law firm
began to work with the Cypriot
government on a new internet gambling
legislative framework which was started
when it was revealed the government
was losing around 30m per year in
revenue due to untaxed gaming
activities. A bill was submitted to
parliament in 2006 and rejected. A year
later the government imposed stricter
standards and two laws were amended the Collective Bets (Regulation and
Taxes) Law and Horseracing Bets and
Lotteries Tax Law of 2007. These saw a
reduced taxation on collective bets to 10
per cent tax on net turnover and a focus
on underage gambling. However it did
not regulate online gaming.
Lawyer Olga Georgiades is Director of
Lexact Solutions LTd, a company formed
for the purpose of providing practical
seminars for professionals on legal and
tax issues. She said: Since 2006 a
number of draft bills have been prepared
by the government and presented to the
House of Representatives attempting to
ban nearly all forms of online gambling
in the Republic of Cyprus. Until 2010 it
has been unsuccessful in its efforts
because the draft bills were blocked by
the European Commission following a
complaint filed by Magneta Technologies,
a Cypriot gaming software developer.
This complaint caused the European
Commissions interference due to the
fact that the bill was considered to
constitute a restriction on the freedom of
establishment and the freedom to
provide services.
However the current situation is now
offering a sort of online gambling free
for-all. It is estimated that 95 per cent of
electronic gambling services are
currently operated illegally because they
are provided over the internet. At the
moment around 400 locations around
the south of the island currently provide
the means for online gaming under a
quasi-legal status owing to the absence
of legislation. If the authorities raid a
location and seize equipment the

operators merely replace the computers
and are back in business the following
day.
Online gambling in the Republic of
Cyprus currently has an estimated
turnover of around 2.5bn per year
yielding a gross profit of 400m. By 2012
this turnover is expected to be as high as
5bn with a gross profit of nearly 1bn.
If the ban goes ahead online gaming
operators would need to relocate from
the Republic of Cyprus thus taking away
jobs and income and some fear the
negative consequences this will have on
the economy. Reports suggest the
pro curve
Cyprus taxation
regime doesnt
stand out
particularly among
its offshore
competitors but
changes to tax
legislation in 2002
gave Cyprus the
lowest rate of
corporate tax in the
EU at 10 per cent
which applies to
both onshore and
offshore
companies.
government has already initiated action

against online gaming companies that
are currently operating from Cyprus.
These companies had opted for Cyprus
because it was convenient and taxefficient. Now the Inland Revenue could
be investigating and because of the
inefficiencies in the tax department
many companies in Cyprus, including
online gaming companies, get away with
tax evasion.
The Cypriot government however now
want to amend the law again and delete
online gambling from the permissible
betting services from this year and
enable them to deal with unlicensed and
illegal online gambling sites.
Your
Focus
cyprus: vital statistics

Capital:
Nicosia
Population:
1,102,677
Land Area:
9,251 sq.km
Median age:
35 years
Languages:
Greek and Turkish, English.
Ethnic Groups:
Greek (77%), Turkish (18%) and
other (5%)
Religions:
Greek Ortho (78%), Muslim (18%)
Currency:
Euro/Turkish Lira
Government:
Republic / Democratic Republic
Chief of State:
President Demetris Christofias/
Irsen Kucu
Head of Government:
President Demetris Christofias/
Irsen Kucu
Cabinet:
Council of Ministers appointed
jointly by the president and vicepresident.
Elections: President elected by
popular vote for a five year term.
Last election held in 2008 and next
due in 2013.
In September last year the government

presented a bill, the Betting Law of
2010, which the aim of retaining online
sports and horse betting but banning all
other forms of online gambling such as
roulette, slots and poker.
The bill suggests the following:
The implementation of a National
Betting Authority within three months of
the law being introduced which will
consist of a chairman and six members.
Term of office for the chairman and
members is four years which can be
renewed for a second period. The
position of the authority will be to
examine applications for bookmaker
licenses and carry out checks and
inspections and issue guidelines for the
license holders.
A Bookmakers License must be
granted for those wishing to provide
betting services. These will be divided
into a Class A which authorises betting
services apart from horseracing bets and
a Class B for online betting
(bookmakers license for online bets) but
does not include slot machines, online
Your
Online gambling in
Cyprus currently
has an estimated
turnover of around
2.5bn per year
yielding a gross
profit of 400m. By
2012 this turnover is
expected to be as
high as 5bn with
a gross profit of
nearly 1bn.
casino games or horseracing bets.

The Class A and B licenses will only
be submitted where the applicant is a
company registered by shares which
were incorporated in the Republic or
abroad and which has a branch in the
Republic for the exclusive purpose of
holding bets and a paid up share capital
of at least 500,000. The licensees must
also have a bank guarantee of 300,000.
For Class B licenses there is a further
requirement that the applicant must
install within Cyprus a back up server
which must be connected in parallel
with the central server and store real
data and information.
Bookmaker licenses are valid for one
or two years from the date on which it
was issued or renewed. Charges for
licenses (until regulations are enacted)
will be 3,000 for a one year license or
5,500 for a two year license.
Bookmaker premises must be at least
15 sq.m in size, not directly connected to
any other shop, office or premises
Class B bookmakers must register

players whilst no cash is accepted only
credit and debit cards and wire transfers.
No amount over 350 will be paid into a
players account until their identity and
age has been ascertained.
All Class A and B licensed
bookmakers will pay a betting tax which
shall be 10 per cent of the net receipts.
The government had hoped to
implement the new bill by January this
year however Malta and the UK have
expressed their opposition to the
Republic of Cyprus online gambling ban
considering it as being in breach of EU
rules. EU directives require that there
must be a public consultation and an
impact study on possible repercussions
before the preparation of any bill and so
the ban is now delayed until feedback
which is due by March 14.
Questions put forward include how
customers would pay for any regulated
online gaming? Why the numbers of
licensees included in the draft are so
limited? They also require clarification
on some provisions which appear to be
is the one you want
Focus
discriminatory among providers of these
internet services.
One of the contentions in the Republic of
Cyprus is that the Greek lottery and
sports betting company OPAP operates in
Cyprus and offers its games under a
monopolistic basis. OPAP was
established in 1958 in Greece. In 2003
the company OPAP (Cyprus) Ltd was set
up as a private company to operate all
the games of OPAP in Cyprus.
The companys turnover in 2009 came to
197m with a gross profit of 14m. OPAP
has been operating its existing range of
games such as numerical lottery games
like Lotto, Proto, Joker, Super and Extra
in the Republic of Cyprus since 1969. In
2003 it purchased 90 per cent of the
shares of Cypriot company Glory Leisure
Holdings and the company then began
to offer fixed odds sports betting games
and Kino in the Republic of Cyprus.
Meanwhile OPAP also acquired 20 per
cent shares of Glory Technology which
provides software technology. Today
OPAP has 165 agencies in the Republic
of Cyprus. Olga Georgiades added: The
bill is considered to affect intra
community trade and to be incompatible
with the fundamental freedoms of the EC
treaty. It violates European Competition
Law and recent decisions of the
European Court of Justice.
Furthermore it imposes certain absolute
prohibitions on online gaming which are
not reasonably and objectively justified
for the following reasons: A profit
making company (OPAP) has acquired
exclusive rights under a concession
agreement without the application of a
tender. OPAP is now engaged in
excessive advertising for the purpose of
satisfying its pure profit making
purposes. OPAP uses Sports Betting
Activities to lure online gaming players
inside it shops.
The betting bill does not justify the
objective of curbing of gambling
addiction. OPAP, the monopolist
undertaking, also offers online games,
thus creating risks of addiction. OPAP is
not subject to state supervision or
monitoring for preventing money
laundering and its games are also
prohibited by the betting bill but this is
overlooked without any justification.
As online gaming via providers licensed
from other EU member states it is
technically allowed (or rather not
disallowed) and due to an absence of
regulation in recent years a number of
gaming companies mainly from the UK
and Malta have of course provided their
online products. Meanwhile, there are a

number of bookmaking companies
operating in Cyprus including Ladbrokes
and Betfair which are some of the most
popular online gaming sites in the
Republic of Cyprus. StanleyBet
International has a big presence in
southern Cyprus and is governed under
its StanleyBet Malta Limited company.
The company has a total of 2,000 outlets
across Europe and holds licenses in the
UK, Croatia, Romania and Malta.
StanleyBet is now one of the leading
cross border retail sports betting groups
with intermediaries in Cyprus, Germany
and Italy. The first Stanleybet shop was
established in Cyprus in August 2006
and today the company has 85 shops
throughout the island offering a full
range of sportsbetting products with a
RNG product similar to that offered in
the UK licensed betting shops.
As online gaming
via providers
licensed from other
EU member states
it is technically
allowed (or rather
not disallowed) and
due to an absence
of regulation in
recent years a
number of gaming
companies mainly
from the UK and
Malta have, of
course, provided
their online
products.
Brian Wade of Stanleybet said: This

RNG product offers betting opportunities
on graphically displayed football,
horseracing, greyhounds and motor
racing events. Stanleybet welcomes the
introduction of the draft regulation the
main elements of which include the

introduction of a fit and proper test to
ensure the legality and integrity of
prospective license holders and a 10 per
cent gross profits tax which would
effectively exclude customers from tax
which would be paid by bookmakers
dependent upon the level of their profits.
It would also be an offence to possess
or operate slot machines or any
machines through which online casino
services can be provided and would
require any individual or company
wishing to offer betting services to hold
an appropriate license and also a
submission to the National Betting
Authority of annual audited accounts,
commented Mr. Wade.
MegaBet is another major based
bookmaker company in the Republic of
Cyprus which was founded in 1987 and
is now owned by the Zenon Group.
Megabet has a 40 per cent market share
with around 100 betting outlets. There
are around 250 betting shops in the
Republic of Cyprus in total and the
betting sector is controlled by the
Ministry of Finance.

Your
Update
ITALY VLT MARKET
a towering success?
European operators, suppliers, regulators and
cash-starved governments remain keenly
interested in the progress of Italys VLT sector
In 2009, Italy's gaming monopoly AAMS
admitted that its homologation and
testing institute, SOGEI, did not have the
human resources necessary to conduct
the homologation of the VLTs platforms
and systems it planned to certify in the
Italian market. The original plan had been
to certify all the platforms together in a
single phase in order to create an equal
market in which no single concessionaire
or supplier had an obvious advantage.
That plan failed.
In order to certify the link between the
concessionaires and the monopoly, the
platform had to be the element
homologated first. However, there simply
werent enough people within SOGEI to
perform the task and AAMS was reluctant
to contract out the work following its
problematic attempt to allow domestic
testing labs in Italy to perform Comma 6a
testing. Italian testing laboratories more
familiar with testing weights and
measures had been asked to conduct
highly specialised gaming tests with
dubious and often scandalous results.
The mono-networks as the current VLT
locations are being called (as there is just
a single system in operation) have seen
Novomatic's platform from Italian
subsidiary Adria Gaming secure eight of
the 10 concessionaire initial installs to
date. Lottomatica and SPIELO however,
have secured over half of the current
Your
The game and

gaming industry in
Italy continues to
chalk up truly highlevel economic
figures: in 2010,
total takings were
61.4 billion euros
(13 per cent more
than 2009), a sum
equivalent to
approximately 4
per cent of Italy's
national GDP.
Rising figures were
also confirmed by
January 2011
takings. From the
overall betting
game sector, the
government had a
revenue of 9.9
billion euros in
2010. In this
context, the lion's
share goes to new
slot machines,
which guarantee
50 per cent of the
takings. The sector
has approximately
5,000 enterprises,
with a workforce of
over 80,000.
12,000 terminals now installed in the

market, while Inspired and Sisal Slot have
3,000 terminals on site. Aristocrats ACE
Interactive system has been installed with
concessionaire COGETECH, while
Barcrest Group is the latest supplier to
receive platform homologation in Italy.
To complicate matters, however, the
homologation of these current systems
continues, which has again delayed the
second phase of system deployment.
Second phase suppliers complain of anticompetitive protectionism as they must
wait until this second test is carried out
before their homologation can commence.
Man and Machine
Having recognised that it didn't have the
manpower to conduct the platform testing
of the 14-16 suppliers seeking
homologation, SOGEI and AAMS struck
an agreement with the concessionaires.
They were asked to specify which of the
available platforms on the market they
desired to see homologated in the first
wave of the process, which could only
cope with 3-4 platform applications. As a
result, Novomatic, SPIELO and Inspired
have taken pole position in the market in
regards to machine installations. Within
Italy, this gentleman's agreement has
been seen as the most appropriate way to
resolve the lack of human resources, but
externally there remain questions as to
the anti-competitive nature of this phased
deployment and definite frustrations that
the second phase, which was promised to
have commenced in September 2010 is
still ongoing, with Barcrest Group now
only the fifth supplier on the market.
Performing at
C
Casinos Everywhere
Update
ITALY VLT MARKET
VLTs operate with a

stake of 50c - 10
and a maximum
cash payout of
5,000, a
percentage return
of not less than 85
per cent (AWPs
currently offer a 9092 per cent
payout), a venue
jackpot maximum
of 150,000 and a
system wide
progressive jackpot
of 500,000.
A tax rate is set of
two per cent up to
2011 increasing to
three per cent
(2012) then four per
cent (2013) The
operator will retain
50 per cent of the
cashbox, 15 per
cent goes to the
supplier of the
leased VLT product
and 35 per cent
goes to the
concessionaire.
CONCESSIONAIRES
COMMA 6A MACHINES
VLTS
LICENCE COST
Cirsa Italia
Sisal Slot
Lottomatica Videolot
GMatica
Codere
HBG Connex
Betplus
Gamenet
Cogetech
SNAI
Comma 6a - 16,100
Comma 6a - 33,200
Comma 6a - 69,000
Comma 6a - 14,775
Comma 6a - 8,400
Comma 6a - 32,000
Comma 6a - 77,600
Comma 6a - 50,000
Comma 6a - 35,000
Comma 6a - 35,000
VLTs - 2,583
VLTs - 4,900
VLTs - 10,700
VLTs - 2,236
VLTs - 1,359
VLTs - 4,800
VLTs - 11,953
VLTs - 7,805
VLTs - 5,200
VLTs - 5,052
19.3m
36.9m
80.7m
16.7m
10.2m
36m
89.6m
58.5m
39.2m
37.9m
TOTALS
COMMA 6A - 371,000
VLTS - 56,588
COST 425M
It's also the case that certain

concessionaires have been disadvantaged
by the phased deployment, with several
having signed supplier agreements with
second phase suppliers, but who to date
have been unable to turn their licences
into machines on the ground. The
phasing makes practical sense, as years of
the concession would have been lost had
SOGEI and AAMS decided to wait for the
certification and homologation of every
platform and system, but that's not to say
that the outcome has been fair.
The collaudo process hasn't exactly gone
smoothly either. The location testing
process, collaudo, is the joint certification
of a VLT location by AAMS and the
regional district police as part of Clause
88 of the law which has been adapted for
VLT machines. However, until a few
months ago, the majority of the police
force in Italy had no idea what a VLT
was, let alone that it was meant to
certificate them. Some of the districts as a
result have been reluctant in giving their
permission, while others have greatly
complicated and compromised the
collaudo process.
Several of the district have insisted that
delivering the
the location must be open before they'll

grant a certificate. The Catch-22 here is
that operators need a certificate in order
to open a location. It's a typically Italian
dilemma, with district police unwilling to
grant certification to 'paper' applications.
In order to resolve this stand-off,
operators have had to open locations with
Comma 6a machines under a standard
gaming hall licence before asking for the
Clause 88 licence. It's a working
compromise that has its risks, as the
district is under no obligation to grant the
VLT licence despite the considerable
investment. The problem thankfully isn't
that widespread, but in a market that is
struggling to fulfil its quota of VLT
locations, it's a headache that operators
don't need.
The larger issue is that there are not
enough prime sites in Italy that can be
adapted as VLT locations. Several of the
larger concessionaires are now being
extremely selective in picking their sites.
They are not accepting the majority of the
halls offered to them, while even
locations with 6a machines installed
(which speeds VLT certification greatly),
are having incomes studied in great detail
before decisions are made.
Your
Update
ITALY VLT MARKET
no oPerator coMPlaints
While there are undoubtedly problems,
the machine revenues currently being
generated by VLTs in Italy right now are
equivalent to US casino slot incomes,
though this is not universally the case for
every supplier. There are major
differences between suppliers, important
technical capability and stability issues, in
addition to game maths, which again is
very important in regards to the tax on
turnover as opposed to cashbox. The tax
regime influences the type of VLT game
that can be successful in the Italian
market and requires a different approach
to the maths in order to maximise the
returns to the operator.
overwhelmed by games approvals. The

effect of this measure, however, has been
to reduce the impact of the VLTs, each of
which are capable of running many
multiples of different games on their
systems via attractive menus that are
currently offering only limited choice to
players. Suppliers have also had to hedge
their bets in terms of which five games to
have approved in the initial phase, which
has not only restricted player choice, but
also clouded any real impression of the
future marketplace. The monotony of
single cabinet choices and restriction to
just five games creates a distinct lack of
variety within the locations that will
quickly need refreshing with new content.
As aforementioned, every VLT hall to date

has only a single machine supplier. The
complication of completing the collaudo
process for two systems in addition to the
lack of a cross-ticketing system, also
means that most locations are filled with
a single cabinet - each housing just five
games. Each supplier was restricted to
five games as part of the initial games
approval phase, another measure
designed to ensure that SOGEI was not
Concessionaires have quickly realised that

the player base for Comma 6a and
Comma 6b are very different. Locations in
which Comma 6a games have been
successful do not automatically align
themselves with successful VLT
operation. The different socio-economic
groups that have begun to define VLT and
Comma 6a players means that
concessionaires have had to look to
traditional casino models on which to
Your
VLTs can be
operated in bingo
halls, betting
shops, dedicated
arcades and
gaming arcades
(with a separate
accessed room)
and some predict
they may also be
permitted in bars
eventually. 30 VLTs
are permitted in a
gaming hall of 50100 sq.m and 70
VLTs in a hall of 101300 sq.m and 150
VLTs for gaming
halls over 300 sq.m
in size.
base their decisions. Sites are being

chosen in highly populated urban
locations that benefit from commuter
traffic with high footfall and disposable
income.
Italy is a market the has been underserved by thinly striated gaming products
in the past. Four casinos serving a
population of 60 million people isn't
sufficient to provide the diversity of
gaming product to satisfy the wide range
of gaming interests. Comma 6a has
proven to be resilient to the competition
from Comma 6b because it's barely
competition. The players are different.
Playing 500 in less than an hour isn't
just a different psychology, it's also a
different economic proposition. The same
players visiting regional casinos on a
regular basis have now substituted their
travel arrangements for local, domestic
mini-casino VLT gaming.
The entire spectrum of player types exist
in the Italian market, one that has a
voracious appetite for gaming, but to date
has been pre-occupied with external
markets as the domestic choice has been
amusement-only or spread too thinly
among the four principality-located
casinos. VLTs allow operators to address
different player segments not served by
the former offer. The market is no longer
looking for the killer game - the killer
application, but instead VLTs allow
operators to address all segments - high
roller slots, roulette, poker and jackpots.
cross-platform
solutions
for your casino
Update
ITALY VLT MARKET
platforms, however, details have yet to be

fully revealed.
As befits the Italian gaming market,
rumours continue to fly around regarding
a VLT Light machine, which appears to
have replaced rumours regarding the
mooted Comma 6a Plus machines. Last
year in Rimini the talk about Comma 6a
Plus was part of a discussion surrounding
the future evolution of the Comma 6a
machine's stakes and prizes in relation to
the introduction of VLTs. Comma 6a Plus
was a trial by manufacturers to push for a
new law that would ensure that AWPs
remained competitive with VLTs, with a
raising of stakes/prizes (maximum win
100) and the acceptance of bills over
coins. There were also discussions
surrounding the creation of a 'hot streak'
in which the maximum payout was made
in five steps of 100 that led to a legal
maximum payout of 500.
Backing the right solution

While the players may be different, VLTs
and Comma 6a machines have proved
more compatible. Most of the locations in
Italy now include both types of machines
installed together. The machines appear
to be complementing each other, though
in these early days of deployment, the
advantages could be ascribed to a lack of
variety in the VLT offer. None of the VLT
locations at the time of the Rimini show
in March had installed machines from
more than one supplier, with Comma 6a
machines providing a welcome source of
variety in the location. Operators have
still yet to resolve the problem of crossticketing, whereby a player can remove a
ticket from one supplier's machine and
have it recognised when they insert it into
a competitor's machine.
The AAMS is currently looking at a transticketing solution to deal with the
problem in cooperation with the
concessionaires. Right now the only
practical solution is provided by change
companies such as Italy's VNE, whose
machines are capable of accepting tickets
from each system, paying out to card,
concessionaires
The revenue share in operation in the VLT market in Italy will
see 50 per cent of the cashbox retained by the operator, 15 per
cent for the supplier of the leased VLT system/product, and
the remaining 35 per cent for the concessionaire. Instances in
which suppliers have aided concessionaires in the purchase of
VLT licences, the remit split between supplier and
concessionaire is thought to be closer to 25/25.
ticket or cash. The issue faced by AAMS
as part of a trans-ticketing solution is that
as the player withdraws their ticket, the
system must very quickly update the
system of the rival company with
information regarding the value of that
ticket before it is inserted into the next
device. The questions are: can the
systems communicate in this way, at a
speed that makes it invisible to the
player; and where is the information
stored and held - locally or remotely?
Operators and concessionaires at the
Rimini show stated that they have already
received from AAMS technical
specifications which will govern the cross
ticket system. The solution is said to solve
the problem of ticket in / ticket out
within the same room with different 'live'
The AAMS is
currently exploring
a cross-ticketing
solution to deal
with the problem of
multiple operating
systems in
cooperation with
the
concessionaires.
However, the trialling of Comma 6a Plus

coincided with a particularly tumultuous
period in Italian politics at the tail-end of
2010 (though it's hard in Italy to pick out
a baseline with which to establish what is
'normal'), and it proved impossible to
progress with the changes as laws and
regulations at that time were blocked.
Another reason for the lack of impetus
behind Comma 6a Plus has been the dual
role played by concessionaires as
operators of both types of machines.
Concessionaires on the whole have been
dis-interested in modifying the existing
400,000 Comma 6a machine estate with a
machine that will provide greater
competition with their VLT products, for
which they have paid hefty licence fees.
The spectre of an updated street machine
hasn't disappeared entirely though, with
suggestions that the proposal is being
modified to that of a mini-VLT product
that would be a bar-top single-site video
lottery terminal connected to the same
network as their larger counterparts.
Locations operators have warmed to this
idea, especially if the existing VLT licence
would be sufficient to operate VLT Light
machines, though the expectation is that
the government will want its pound of
licensing flesh one way or the other. If a
proposal was to be adopted, the speed of
adoption could follow that of the passage
for Comma 6 through to 6a, which took
three years. If Italy did decide to adopt a
mini-VLT model it would need to do so at
the EU level with a public tender likely to
take at least nine months. Whatever
happens in regards to this possible new
sector, it's unlikely that we'll see VLT
Light machines before 2014.
Your
Update
ITALY VLT MARKET
the ever lasting BulB

One of the prime reasons that operators
are reluctant to consider relinquishing
Comma 6a to the bin marked 'obsolete'
can be seen in the tax figures released by
the Italian government. More than half of
the 5bn earned in tax by the gaming
industry in Italy was contributed by
Comma 6a machines in 2010. Comma 6a
machines provide more taxation revenue
for the Italian state than its tax on cars.
One game for the Comma 6a market that
has surprised both operators and
suppliers is ATRONICs Sphinx. Adapted
for both the Comma 6b and 6a sector,
Sphinx is currently the number one game
in both categories in Italy. The success
has surprised suppliers who have thought
to concentrate solely on the VLT sector,
whereby the Comma 6a sector was
previously thought too high cost with low
return. Locations offering both Sphinx in
Comma 6a and 6b formats provide
players from different segments a similar
casino-esque experience, with the Class
III game successfully translating into both
formats. Speaking to suppliers at the
ENADA Spring show, they were either
considering supplying both markets with
their library of casino titles, or ruing their
decision to concentrate only on the VLT
sector, as their machines and systems
languish in approval limbo.
Another Comma 6a product benefiting
from the introduction of VLTs is the multiplayer roulette. In its Comma 6a guise (a
VLT equivalent would demand a
prohibitively high tax per terminal) the
automated roulette is finding a new lease
of life in the larger mini-casino locations.
Visually they're an attractive and
complementary addition to the minicasino concept and with the additional
space characterised by the new locations,
multi-players are finding new homes in
the expanding sector in Italy.
The progress of poker within the VLT
market will be an intriguing development
to follow. Poker is a game deeply
entrenched in the Italian psyche. Banned
from Comma 6 and 6a following the
enormous glut of illegal poker machines
in the market pre-legislation (an
estimated million machines) - poker still
cannot be accommodated within 6a, but
is now Comma 6b legal - allowing exactly
the same game played in the Class III
casino sector to be available in the VLT
hall.
A further recent development announced
at the Rimini show concerns prospects for
Italy's struggling bingo sector as
competition with the new gaming halls
Your
continues to negatively impact revenues

in bingo. New legislation has been drafted
that's designed to help bingo halls
compete with VLT locations. The drop in
bingo hall revenues has led to calls to
install at least 15 video lottery terminals
in each bingo site. The proposals are
currently being considered, though it is
not known at this time if these machines
would comprise part of the 56,000
allocation or would be additional pieces.
One of the laws that the AAMS is looking
to repeal is the need to site an
amusement machine with every
installation of two Comma 6a machines.
The provision was a legacy of the
government's past drive to define the
previous Comma 6 generation of
machines as 'purely for amusement,'
having followed years of illegal video
poker gambling in Italy. The siting of Sega
shooting/driving games in halls dedicated
to gaming is now seen as unnecessary
and inappropriate, wherein it's now
undesirable to attract players to locations
designed for gambling that also include
videogaming in the same space.
living in harMony
Comma 6b and 6a machines are
comfortably co-habiting not only in the
previously Comma 6a-only locations, but
in new sites as well. Machine income in
a virtuous iMPact
Of the 12,000 VLTs in the market today across all operators,
the strength of incomes has had a virtuous impact not just on
the growth of the VLT sector, but on Comma 6a revenues too.
While Comma 6a machines sales are down, incomes are
strong, as are the sales of kits and boards for existing
machines. The consensus of opinion is that VLTs are bringing
new players into venues, which is creating a halo effect that
most operators think will continue for the remainder of 2011. It
was originally thought that those in the first phase of the
56,000 VLT deployment would start to cannibalise the Comma
6a market, but that's not proved to be the case. Instead, the
concessionaires have seen different players, among them many
female players, attracted to VLT gaming as it offers the variety
of roulette, poker and jackpot players that had not be offered
in the past with Comma 6a.
Comma 6b and 6a
machines are
comfortably cohabiting not only in
the previously
Comma 6a-only
locations, but in
new sites as well.
mixed halls has seen incomes in the first

1-2 months fall for the Comma 6a
machines by around 30 per cent.
However, after three months locations
have seen a steady return to near past
performance for the Comma 6a machines
of around 90 per cent of their previous
cashboxes. The figures have ensured that
Comma 6a games continue to justify their
place in both existing and future locations
as overall 'coin-in' (a term that is
increasingly becoming defunct with the
use of notes and tickets), has increased
per location.
Operators also report that they are seeing
taking
t
a
your casino mobile
le
Update
ITALY VLT MARKET
more new players than ever before

entering their halls. Those starting to
operate VLTs for the first time had feared
a cannibalising effect on the Comma 6a
trade, but the machines are attracting
very separate audiences with players
clearly identifying themselves as either
Comma 6a or 6b players, with only a
small number of players that regularly
play both. Operators state that they're
seeing players who would normally have
travelled to Slovenia, Switzerland or
France for their slot play, are staying local
to play in what they're describing as
'adapted' locations - gaming halls that
suit the aspirations of the players with
modern attractive surroundings. This

defining characteristic of the VLT player
ties back into the drive by concessionaires
to find the right locations for their VLT
halls. Simply converting former Comma
6a locations to VLT specific environments
fail to meet the needs of the new
audience. Potential and new players need
to feel that this new product fits not only
their desire for high stake/prize play and
diverse gameplay, but that it meets their
expectations in an environment in which
they can spend time and money.
So new is the concept of VLTs in Italy that
there has yet to be any real awareness of
the product from the different lobby
So new is the
concept of VLTs in
Italy that there has
yet to be any real
awareness of the
product from the
different lobby
groups and antigaming protesters
or press. The wider
Italian public
remains largely
oblivious to the
progress of VLTs in
the country.
award-winning
Innovation
groups and anti-gaming protesters or

press. The wider Italian public remains
largely oblivious to the progress of VLTs
in the country, though this is very
different from the current 380,000 Comma
6a machines.
Right now, with around 12-15,000
machines in the marketplace, VLTs have
had a very low-key introduction by new
machine standards. It also looks as
though this will continue in 2011 as
predictions estimate that of the 56,000
VLT allocation, of which roughly a third
has currently been sited, by the end of
the year even the most optimistic view is
that we'll see 30,000 machines by 2012.
Your
Update
ITALY VLT MARKET
the italian Bottleneck

Some of the concessionaires have not yet
started their roll-out of VLTs, while the
collaudo process and machine and system
testing programme is already stretched to
capacity. A testing legacy of the Comma
6a debacle, which saw domestic testing
laboratories in Italy attempting to certify
hugely complicated gaming machines, has
left SOGEI with an unenviable task.
Under-resourced and low on skilled
manpower, the exact number of qualified
testing engineers dedicated to gaming
became something of a mantra at the
recent Rimini ENADA Spring show.
Numbers varied between one and four,
but the resultant bottle-neck of
certification and approvals showed firsthand that the paranoia of AAMS in
keeping VLT testing in-house has
compromised its integrity and poured
cold water on the expectations of a
gaming industry that has followed its
rules to the letter of the law. Frustration
pervaded every aspect of the VLT debate,
with only a handful of suppliers happy
with their current lot.
Right now, it's clear that suppliers
Lottomatica and Spielo are market
leaders, closely followed by Novomatic,
with Inspired performing remarkably, ACE
Interactive strongly interconnected with
its partner COGETECH, with new entrant
Barcrest now quickly getting up to speed.

However, the handful of suppliers
currently serving the market are predicted
to remain at the forefront, with second
wave leaders Bally Technologies and
WMS Gaming expected to make a big
impact alongside APEX gaming.
There remain question marks as to
whether other suppliers will have the
stamina and willpower to stay the
homologation course, which has proved
far lengthier and more involved than
anyone initially foresaw. AAMS had
wanted to complete the second wave of
homologation in November 2010 at the
latest, but this process as of March 2011
had yet to commence, with game content
suppliers still waiting for their
opportunity to speak to SOGEI. Those
sceptical of the delays are critical of the
Italian authorities who were quick to
licence VLTs but have shown a lack of
interest in hurrying through the
deployment process. Some blame the
continued success of Comma 6a in the
marketplace. Had revenues and therefore
taxes fallen dramatically in the face of
VLT introduction, the government may
have been incentivised to hasten the
homologation process. As it stands today,
however, SOGEI does not appears in any
great hurry to start the second phase.
The AAMS has published statistics that
greece
Greeces government has filed its draft VLT legislation with the
EU. Seeking to call an end to its daily fine of 33,000 imposed
by the EU as a result of Greece's anti-competitive 2002 gaming
ban, that account for over 12m in needless payments, Greece
has already written into its budget for 2011 700m revenues
from VLT street gaming and needs, therefore, to implement the
measures quickly. The draft proposals call for a minimum
stake of 0.10 and a maximum of 5, with a payout to players
of 80 per cent. There is a gross gaming tax of 30 per cent and
a player tax of 10 per cent. Between four and 10 licences will
be granted for a total of 25,000 machines, while it is
understood that a further 5,000 machines may be authorised
for lower-stake machines, with licences valid for 10 years.
However, there are rumours that Greece is also looking to
favour OPAP in the initial phase of VLT roll-out, with perhaps
a single operators licence granted to OPAP for up to a two year
period. However, the new rules must be approved by the EU
before they can go into force.
Comma 6a have a
max bet of 1 euro,
a maximum win of
100 euros and a
percentage payout
of at least 75 per
cent of bets placed,
and are
widespread in
public venues.
show an increase in income from Italian

gaming territories of 13 per cent in 2010.
Despite the relative lack of machine
numbers, incomes from VLTs have thrilled
both concessionaires and government. In
a country with just four casinos and a
population of 60 million, the appetite for
new gaming options has yet to be sated.
Measures in the future as to the impact of
VLTs on revenue figures will need to be
separated from boosts in revenue from
the online gaming sector, which in March
added cash games to its former limited
online offer of poker tournament play.
Your
Update
ITALY VLT MARKET
The online gaming sector is currently
tripping over itself to establish a foothold
in the Italian market after France has
turned out to be a damp squib and
opportunities in the US, which appeared
so promising, have been crushed by the
back tracking of Atlantic Citys governor.
hitting the jackPot
One of the key areas of VLT expansion in
Italy is in the area of jackpots. Just how
attractive this feature will prove to be has
yet to fully emerge, but operators believe
that jackpots will prove crucial to the
success of the sector both now and in the
future. The figure of 12-15,000 terminals
on the market means that there's
currently little real competition in the
marketplace, with smaller cities and
towns yet to feature on the VLT roadmap.
We also need to see what will be the
outcome of competition within the
locations as they install multiple systems
and a wider variety of games from
existing suppliers. For those
concessionaires that are both operators
and suppliers, the consensus of opinion is
that rivals will have to wait until their
allocation of machines is fulfilled before
competitors are likely to be able to reap
the same rewards. Conflicts of interest are
undoubtedly going to happen, if they
haven't already, but that's through no
fault of the suppliers, but rather the
flawed phased deployment forced upon
the market by AAMS and SOGEI.
Another problem for the second phase
suppliers is the lack of viable locations.
As mentioned, concessionaires are
becoming increasingly picky. As a further
15,000 machines are predicted to be
installed this year, exploiting the first
wave of VLT locations in Italy has proven
relatively straightforward. Now, however,
there are not enough interesting locations
currently available in which to install this
next tranche of machines. Location
remains the critical element of success.
For VLTs it is a matter of location,
position and size. Halls capable of
offering less than 20 machines are
thought insignificant. Operators want the
largest possible space, from 5001,000sqm. At the same time,
demographics are equally important. The
big cities of Rome and Milan have been
obvious targets, where the best Comma
6a halls have catalysed into the best
Comma 6b halls, though it's the location
that has played the crucial factor, rather
than any transition in Comma 6a play to
their VLT counterparts.
Locations are being snapped up right now
next to cinemas, within shopping malls
and prime footfall sites. Gaming is no
longer being hidden away in Italy, but

rather the mini-casinos are taking their
offer to the masses. There are worries that
once this phenomenon enters the public
consciousness the sizeable increase in
stakes and prizes will bring criticism from
the usual sources. While operators remain
pessimistic that we'll see a doubling of
the location figures this year, at the Rimini
show we were told of locations that had
not worked out and had swapped back to
their Comma 6a roots. There are also tales
of operators having wholesale swapped
their locations to VLT-only locations who
were now asking for their old machines
back, mixing their locations with Comma
6a and 6b to complement each other's
income.
the oPerators view
From an operational standpoint, Comma
6b requires far less maintenance than a 6a
machines site, with bills and tickets
instead of coins presenting much less of a
daily logistical challenge. However, there
are anomalies, as in other markets. If a
machine is inoperable in the marketplace
the operator must pay a penalty fine. If
the maintenance needed to fix the
machine isn't carried out within 60 days
then the device will need to be certified
once more with new software. If the
machines is removed during this period
from the network, the operator must
continue to pay an amount of tax
pro curve
Video Lottery
Terminals, on the
other hand, have a
maximum bet of 10
euros, a maximum
win of 5,000 euros
and a percentage
payout of at least
85 per cent of the
bets and also
features a jackpot.
up to 100,000 per
location, and up to
500,000 on behalf
of the
concessionaire.
calculated on the presumed average tax

income 'coin-in' per day. When the
machine is re-connected to the network
the average tax is then recalculated and
any difference must be repaid.
Following the second phase of
homologation and into the expansion of
VLTs beyond the initial 56,000,
predictions range from two to three years,
though no one is currently suggesting that
there will be an expansion in the number
of concessionaires in the Italian market.
The sheer scale of the investment is
daunting to say the least. Companies
must show a minimum turnover of 30m
and would be obliged to install a
minimum of 5,000 networked Comma 6a
machines in the marketplace. Such
infrastructures present enormous logistical
challenges to new entrants who would
then only be able to site VLTs as a 14 per
cent proportion of their Comma 6a estate.
Siting the minimum number of 5,000 6a
machines would enable an operate to site
just 700 VLTs, with guarantees of 1,000
per unit and 15,000 per terminal for the
licence. To start, independent operators
estimate that they'd need 3.5-5m, at
which point they would then need to
establish an infrastructure of people and
facilities to manage the network and
estate. The final tally would hit 15m all
too quickly, which is currently thought to
be prohibitive for any new entrant.
Your
Focus
GREECE MARKET REPORT
self-iMPosed
state of
eMergency
The Greek government sought to implement its gaming regulation
quickly under emergency procedural policy - which has back-fired
and actually slowed the process with the EC
As it stands today, Greeces gaming
market consists of nine casinos, a state
lottery, a horse racing operator and OPAP.
Online gaming is currently illegal in
Greece as are all gambling machines with
the exception of slots in casinos and
OPAP machines.
At the moment, of the estimated 8.5bn
gambling revenue in Greece, around
3.5bn is spent on football games (chiefly
Stihima), 3bn in the casinos and 1.5bn
of this is spent on illegal gambling
activities. The annual gambling turnover
is estimated to be 25m with around
10m of this on football betting and 13m
on casinos and 5m on illegal gaming.
The revenue expected to be brought in
from new licenses and taxation from the
online casinos is thought to go someway
in paying down the debt incurred by the
IMF. Greece suggests that it will generate
earnings of around 700m during the first
year from the new gaming licenses,
royalties and taxation and 625m in 2012.
This will be pumped back into the IMF
fund.
On March 9th the Greek parliament
approved the draft bill. This has now
been sent to the European Commission
for approvals and comments. Some say it
will not pass inspection by the European
Your
Commission as the laws may not be in

compliance with the current EU rules
regarding e-commerce fairness. If the EU
receives no objections then it could be
passed within the next three months.
The draft bill was opened up to public
consultation during the last week of
January this year and after the
submission of all views the Ministry of
Finance converted the bill which was
completed on March 9th.
However, there have been further
complications regarding the
implementation of the bill, not least
because Greece has tried to enact it
quickly using emergency measures. On
April 15 2011, the European Commission
confirmed its decision not to process the
Greek draft law on the "Regulation of the
gaming market - games of chance played
on gaming machines or online" through
what is known as an emergency
procedure.
The Greek Authorities stated that given
the level of internet penetration in Greece
and following the government's
announcement of its intention to regulate
the gaming market, an increased number
of professionals from the gaming sector
had begun operating in Greece, which has
led to public order problems. The Greek
The case put

forward by the
government to the
Euroepan
Commission, stated
it was vital to put
the relevant legal
framework in place
as soon as
possible while still
having a
Parliament vote on
the matter, which in
line with the
legislative drafting
and voting
procedures of the
Hellenic Parliament,
was expected to be
around the end of
May 2011.
governments view constituted something

that falls within the concept of urgent
reasons, occasioned by serious and
unforeseeable circumstances relating to
the protection of public safety, in
accordance with Article 9(7) of Directive
98/34/EC.
The case put forward by the government
to the Euroepan Commission, stated it
was vital to put the relevant legal
framework in place as soon as possible
while still having a Parliament vote on
the matter, which in line with the
legislative drafting and voting procedures
of the Hellenic Parliament, was expected
to be around the end of May 2011.
In accordance with the TRIS notification
procedure, the Greek Government notified
its draft gambling law to the European
is the one you want
Focus
legally operated games.
Secure and collect revenue for the state
where the illegal turnover is estimated
at more than 4bn annually.
To adapt national legislation to
Community Law as the country
currently pays a penalty of 31,536 per
day.
Meanwhile the new bill includes the
following. It does not interfere with the
existing casino legislation or any
agreements with OPAP and ODIE.
Greece will effectively auction between
15 and 50 licenses following an
international tender for online
gambling companies effective for five
years with the exception of any licenses
given to OPAP.
It will also legalise low stake gambling
machines (VLTs) permitting between
four to 10 large scale companies to
operate VLTs with up to 25,000 licenses
to be handed out for the machines
each lasting 10 years. Again this is
aside any licenses given to OPAP.
Regarding VLT licenses, each market
participant will be able to acquire only
one license. If some licenses remain
unsold during the tender process the
rest of the terminals can be evenly
distributed to those who have already
received licenses.
The committee may also grant between
1,000 and 5,000 limited licences all
with a 10 year term.
Commission on 5 April 2011 and opted to

invoke this "emergency procedure"
alleging problems of public order. If
approved by the European Commission,
the bill would have bypassed the usual
three-month standstill period and could
have then been immediately transposed
into national law. Instead, the proposed
legislation is now under scrutiny of the
European Commission and other Member
States that have until 6 July 2011 to
submit their comments.
Moreover, the proposal seems to also be
facing difficulties and further delays at
national level as a number of Members of
the Parliament, including some of the
ruling party (PASOK), have voiced their
opposition to the text, which was now
returned to Greek policymakers for
revision.
If approved by the
EC, the bill would
have bypassed the
usual three-month
standstill period
and could have
then been
immediately
transposed into
national law.
Instead, the
proposed
legislation is now
under scrutiny of
the European
Commission and
other Member
States that have
until 6 July 2011 to
submit comments.
OSHPE, the Greek Federation of Electronic

Games of Greece, is not happy with the
bill either and is calling for the free
operation of games without restrictions
and the creation of a new category of AWP
games.
The initial suggestion of six per cent tax on
turnover has also been altered to a 30 per
cent tax on gross profits plus a 10 per tax
on player gains. However this is still higher
than some jurisdictions and the Remote
Gambling Association is lobbying to have
this lowered to come into line with other
countries with licensed online gambling.
The objective of the proposed legislative
action is, as the government states:
To protect the public interest, especially
young people, integrate and monitor
The permits would be part of an

international bid conducted by the
Ministry of Finance and large scale
corporations must have a capital of
500,000 with a registered office in
Greece. A 300,000 bond deposit is
also required.
VLTs can be operated in various
locations with a maximum of 30
machines. These include so-called
Pure Rooms (gaming arcades) or
Mixed Spaces which are shops with a
minimum of 80 sq.m, where the
commercial activity is entertainment
(except nightclubs or bars). The
maximum of games here may not
exceed three.
The minimum amount for play would
be 0,10 and the maximum 5
although these figures may be adjusted
by the Committee.
Players must also have an individual

Your
Focus
player card to participate to identify
players age, tax identification number,
flow of money and any other restrictions
set.
There will be no cap on the payout rate
for online casinos however there will be
a payout floor a minimum rate that
the casinos must pay out. Online
casinos and low stake gambling
machines would both be required to
have a payout rate of at least 80 per
cent.
Tax rate would be set at 30 per cent on
gross profits of each operator and given
to the State on a quarterly basis. There
is also a 10 per cent tax on player gains
to be imposed on both VLTs and
internet betting.
It would also require the set up of a
Gambling Control Commission which
would regulate and control the sector.
Each system would be monitored and
connected to a central monitoring
system. The regulator would cooperate
with the ISPs to block unauthorised
sites and will set up live monitoring
systems.
Minors are prohibited access to any
gambling locations.
Any operators interested in tendering for
licences must abstain from operating or
advertising in Greece once the bill is
law. This is similar to the black period
proposed by the Danish authorities
where all interested parties must
effectively disappear from Greece to be
eligible for a licence.
There are currently around 250
unregulated gambling websites operating
in Greece. If the new bill is passed by the
EC, licenses will be ready to tender by the
end of 2011 at the latest.
The Greeks are embracing online gambling
with nearly a third admitting to having
had a flutter and one in 10 claiming to bet
on the web regularly. According to a study
some 31 per cent of Greeks visited one of
the 250 sites available in Greece during the
first six months of 2010. On the other side
of the coin experts say online gaming has
taken an eight per cent chunk out of the
casinos profits and seven per cent bite out
of the profits of OPAP.
Casino operators say that instead of hitting
the black market the government is merely
creating a new VLT market. It is thought
illegal gambling is currently worth 4bn
half of which comes from the gambling
websites and the other half from
underground casinos, bookmakers and
poker rooms.
Your
The casinos pay taxes of between 20 per

and 33 per cent gaming taxes on their
GGR (depending on size and location of
casino) whilst casinos revenues last year
fell from 50m to 38m. The sector has
been struggling and seen big falls in
revenues over the last year due to the
proliferation of online casinos and
competition from casinos located in
neighbouring Bulgaria and Macedonia.
Visitor figures for 2010 for the nine
Greeces market
consists of nine
casinos, a state
lottery, horse racing
operator and OPAP.
Online gaming is
illegal in Greece as
are all machines
with the exception
of casino slots and
OPAP devices.
casinos came to 2,069,892 compared to

3,307,157 the previous year. Meanwhile
total revenue for the nine casinos fell by
18 per cent (120m) in 2010 to just over
500m. The drop at gaming tables fell by
13.8 per cent to 1.1bn.
The casino sector is also querying the
governments plans to license the online
gaming companies without then
introducing any regulations or controlling
Performing at
C
Casinos Everywhere
Focus
greece: vital statistics

Capital:
Athens
Population:
10,749,943
Land Area:
131,957 sq.km
Median age:
42.2 years
Languages:
Greek 99% (official). Other includes
English and French
Ethnic Groups:
Greek (93%), other (7%)
Religions:
Greek Orthodox (98%), Muslim
(1.3%) and other (0.7%)
Currency:
Euro
Government:
Chief of State:
President Karolos Papoulias(since
2005)
Head of Government:
Prime Minister Georgios Andreas
Papandreou (since 2009)
Cabinet:
Cabinet appointed by the president
on recommendation of the Prime
Minsiter.
Elections: President elected by
parliament for a five year term. Last
election held in February 2010 next
to be held in 2015. Presdient
appoints leader of the party securing
plurality of vote in election to
become prime minister and form a
government.
greece at a glance:
CASINOS:
9
CASINO SLOTS:
4,410
CASINO TABLES:
414
CASINO REVENUE:
513.4m
and supervising the market.
without consulting the unions.
The Hellenic Federation of Casino

Employees Unions (OESIK) has
submitted a resolution asking the
government to ban the illegal operators
and also establish the gambling
supervision commission with
participation of the trade union
representatives. They say the change to
the Greek gambling law was planned
OESIK represents some 5,000 employees

in Greece and was founded in 1998.
President John Logothetis said: The
proposals create an environment of unfair
competition and will lead to the
unemployment of approximately 2,500
workers in the field. Specifically, it is not
clarified in the proposals whether the
taxation rights on the online casinos
The draft bill was

opened to public
consultation during
the last week of
January and after
the submission of
all views, the
Ministry of Finance
converted the bill
on March 9th.
delivering the
gross revenue and on VLTs will be the

same as the taxation rights on actual
casinos who presently pay 33 per cent.
Further the government has not specified
if the wagers of VLTs must be 23 years
old just like it is in force in actual casinos.
Moreover the proposals regarding online
casinos do not include any 12 entrance
fee as it does for actual casinos. Another
unspecified point within the plan regards
the offsets to the society.
The OESIK is now calling for the
immediate prohibition of unauthorised
online casinos and is proposing that the
government follows the example of the
Belgian and Estonian government to
confer to the actual casino companies the
right to extend their licenses and offer
online gambling services.
the casino Market
Greeks history in the gaming sector
stretches back to the ancient Greeks and
their favourite pastime of playing games
of chance particularly in the upper
classes. Dice, cock fighting and sporting
events were key entertainment games and
dice later became so popular even
residents created associations specifically
for gaming. The first casinos were born
via the myth of Fortune, the goddess of
chance, who loved creating games of
chance and later built locations where
they could play her games.
The earliest casino to operate in Greece
was established in 1928 in the region of
Loutraki, the popular spa and holiday
resort and gateway to the Peloponnese.
The first law concerning casinos was
released back in the 1960s. At the time
casinos were referred to as international
type of club of entertainment and games
of chance and they were founded under
a law governed by the Greek state, the
Greek Tourism Organisation and civilian
and German contractor Dr Hartmann
Freiherr von Richthoffen who had the
exclusive rights on the two casinos in
Rhodes and Corfu for 20 years.
At the time and up until 1994 the law
only permitted three state run casinos the
first of which to open was the Mont
Parnes Casino located a few kilometres
from Athens followed by Corfus
Archilleon Casino and then Rhodes.
In 1994 further licenses were granted and
12 in total were released. The Mont
Parnes casino at the time was operated by
the state run Tourism Development
Company, a real estate asset manager
acting in between the public and private
sector. In June 2001 the Hellenic Casino
Parnes SA was set up as the companys
100 per cent subsidiary with the aim of
Your
Focus
becoming the administrative arm of the

casino operations.
When privatisation plans were initiated
four months later in 2002, Hyatt Regency
was nominated as the winner acquiring a
49 per cent equity stake. Meanwhile the
Corfu casino opened in 1962 at the
historic Archilleon building which was on
a 20 year lease from a German company.
The building was restored and in 1988
the state run Tourism Development
Company (Hellenic Tourist Properties)
decided to move the casino to the Corfu
Holiday Palace Hotel in a bid to attract
higher level players.
In 1991 the casino functioned at both
locations until a year later when it was
operated exclusively at the hotel grounds.
In 2000 the administration of the casino
went to the Greek Tourist Development
Company.
Initially the law 2160/93 followed by the
Law 2206/94 governing the establishment
of casinos, was introduced in April 1994.
This saw the market open to independent
operators and also saw the transfer of
state run casinos to the private sector.
The casino sector is now controlled by
the National Tourism Organisation and
Your
Casino operators
say that instead of
hitting the black
market the
government is
merely creating a
new VLT market. It
is thought illegal
gambling is
currently worth
4bn half of
which comes from
the gambling
websites and the
other half from
underground
casinos,
bookmakers and
poker rooms.
supervised by the Casino Committee.

The legislation governing casinos is
extremely comprehensive and includes
the following points:
For a period of 12 years no other
casino operation licenses should be
granted.
The casino operation licenses were
granted by the Minister of Tourism
following an international bid
conducted by a seven member
committee.
SA and joint venture companies were
permitted to apply and the share
capital of the SA companies or total
share of the joint venture companies
had to be at least DRS2bn.
Operators also had to pay the following
fees and revenues to the state:
1. Fee of DRS2,000,000 to submit the
application.
2. Financial offer for the provision of the
operation license. Operation licence
fees vary from province to province
from the minimum amount of
DRS250m for Florina, Syros and
Doirani areas to the maximum of

DRS10bn for the Athens municipality.
3. Participation in the gross gaming
profits. The Hellenic State meanwhile
receives 30 per cent of the monthly
gross gaming revenues for the casinos
in Attika, Thessaloniki, Crete, Corfu,
Rhodes and Achaia. The remaining
regions pay 20 per cent.
4. Special annual fee for the possession of
the casino operation license. This is set
at DRS1.2bn for each of the casinos in
Athens, Thessaloniki and Crete;
DRS200m for Rhodes, Corfu and
Archaia and DRS50m for the remaining
casinos.
5. Taxes, fee and rights stipulated by the
law governing the operation.
Games which can be played at casinos
are: Blackjack or 21; French Roulette;
American Roulette; Baccarat; Punto
Banco; Dice; Poker; Chemin de Fer;
coin operated slot machine without
screen and coin operated slot machine
with screen; electronic roulette
(provided with a licence from casino
committee).
There are no limit on number of tables
cross-platform
solutions
for your casino
Focus
or slots although each table and slot

must have a minimum operational area
(for example 9sq.m for Blackjack and
1.2sq.m per slot)
Entry is only permitted to those over
the age of 23 years.
Entrance fees are charged and vary
within each casino
Under the new privatisation plans all
casinos will be privatised, which means
the Mont Parnes government stake is to
be sold. The first casino to operate in
Greece after privatisation of the sector in
1995 was Porto Carras and was opened
by American company Casino Magic in
May 1995. It was later sold to a Canadian
group and closed in September 1999. The
operation reopened in July 2003
There are currently nine casinos in
Greece. Three of the 12 licences never
completed their tender process and were
not finalised and later in 2003 when the
law changed the three licences were then
cancelled. The casinos in Greece include:
loutraki
The Casino Loutraki opened in 1995 and
is attached to the Club Hotel Loutraki in
Perahora, one of Greeces most renowned
spa resorts and about 80km from Athens.
The casino initially comprised of a twin
level gaming area of 2,650sq.m featuring
700 gaming machines ranging from video
reel, touchscreen and mechanical reel
games and 70 table games. This was
expanded in 2005 to 4,730sq.m and today
there are just over 1,000 slots (with 200

different games in 11 different
denominations) and 97 tables. The casino
also features a VIP room.
The five star Club Hotel Casino Loutraki
overlooks the largest beach in Loutraki
and has 268 rooms including 13 suites
and four restaurants. It underwent
improvements in 2008 including a 2.9m
renovation of the casino hall. It is
managed by Club Hotel Loutraki which is
a joint venture between the Municipality
of Loutraki and the multinational holding
company of Club Hotel Loutraki, which is
the administrator and chief investor of the
casino. Others involved includes Casinos
Austria International, EFG Eurobank
Ergasias and Queenco. Queenco Leisure
International currently manages two of
Greeces nine casinos under exclusive
gaming licence. Club Hotel Casino
Loutraki is a joint venture interest of
which QLI holds 38.5 per cent interest
and this casino is believed to be the
leading casino in terms of drop and win
and has around one million visitors per
year. QLI has 91.6 per cent of the shares
in Rhodes Casino. The group operates a
total of approximately 1,650 slots and 160
tables.
Parnes
The Regency Casino Mont Parnes was the
first casino in Greece which opened in the
mid 1960s and was run by state owned
Tourism Development Company. This
casino is located at the top of Mount
Parnitha and is accessible by cable
railway from the foot of the mountain a
Your
Focus
managed by Hyatt Regency Casino.
chalkidiki
Casino Porto Carras is located in the
Sithonia Thalasso and Spa Hotel in the
luxurious Porto Carras Grand Resort
which is situated in northern Greece. The
casino was originally opened by
American company Casino Magic in 1995
as the first privately owned casino in
Greece. It was later sold to a Canadian
group and closed in 1999. The operation
reopened in July 2003. There are 433
gaming machines and 17 Roulette, 13
Blackjack and five Caribbean Stud Poker
tables. There are also three Blackjack
tables, five Roulette and one Poker table
in the Privee Lounge. The casino is
designed in an authentic New Orleans
style and houses a buffet and bar. The
hotel has 458 rooms and 142 suites.
Owned by Technical Olympic SA
Porto rio
Casino Rio and Porto Rio Hotel is located
on the private beach of Rio in a nine acre
setting about 8km from the city of Patra.
The hotel is part of the Star Hotel chain
and has a total of 225 rooms. There is
also a restaurant bar and conference
centre for 350 guests. The casino is a
French type casino and opened in 1996
and offers 311 gaming machines and 40
table games including Roulettes,
Blackjack, Stud Pokers and Punto Banco.
It is managed by Theros International
Gaming SA.
includes two hotels. The casino is 12,917

sq.ft featuring almost 1,000 gaming
machines and 66 table and poker games.
It is managed by Hyatt Regency Casino
and the state.
thessaloniki
Hyatt Regency Casino opened in 1996 and
the hotel followed in 1999 and is located
only 13 kilometres from Thessaloniki city
centre and five minutes from the airport.
The five star hotel has 152 rooms and
suites and includes a fitness centre,
swimming pools and spa services. The
Your
casino 13,123 sq.ft with 929 gaming

machines and 77 table games, including
American Roulette, Blackjack, Punto
Banco and Poker. The Hyatt Regency
represents one of the largest foreign
investment projects in Greece which
stood at around US$107m. During the first
six years of operation the casino had over
seven million visitors and just more than
632m in revenue. In 2002 the Hyatt
Group with partner Hellenci
Technodomiki was awarded the tender to
purchase 49 per cent of the Hellenic
Casino of Parnes (Athens). Hyatt is
In June 2001 the

Hellenic Casino
Parnes SA was set
up as the
companys 100 per
cent subsidiary with
the aim of
becoming the
administrative arm
of the casino
operations.
xanthi
Casino Xanthi opened in 1995 and is
located in the area of Thrace in north east
of Greece. The city of Xanthi is one of the
biggest and best preserved old towns in
the country. The casino first opened in
December 1995 and represented a
DRS3.6bn investment. The casino is 100
per cent Greek owned by Greek Casino
Management (GCM) and is situated at the
edge of a forest just five minutes drive
from the town centre. The architecture of
the two storey building blends with the
grandeur of the surroundings and there is
a five star hotel adjacent to the casino.
There are 178 slot machines and 24
gaming tables including 11 American
Roulette, 10 Blackjack and three stud
poker. Managed by Casino & Zenia
Thrakis SA
corfu
Casino Achilleon is located at the Corfu
Holiday Palace Hotel in the region of
Kanoni, just four kilometres from the
Corfu town. It was first opened in 1962
and was the first after-war casino to
operate on Greek soil which was
originally located in the historic
Archilleon building but later in 1988 the
casino was moved to the Holiday Palace
Hotel. Today it has 620 sq.m of gaming
taking
t
a
your casino mobile
le
Focus
area including 50 slots and 10 Roulette

tables, four Blackjack and one Poker. It is
the only state run casino and is owned by
Greek Tourism Development Co.
rhodes
Casino Rhodes is located in the Grande
Albergo delle Rose building and it is the
only casino on the island. It was opened
in 1999 There is 1,700 sq.m of gaming
spread over two floors. The lower floor
has 310 slot machines whilst the upper
floor offers 34 gaming tables. There are
also three restaurants and hotel with 33
suites, an amphitheatre and sports bar.
The casino received 165,000 visitors in
2009. It is managed by Queenco Leisure
International.
syros
Casino Syros was opened in 1997 and is
located in Ermoupolis and housed in two
restored mansions that are connected to

each other with an underground corridor.
The casino includes 26 gaming tables
including American Roulette, Poker and
Blackjack and 180 video slot machines
over 2,100 sq.m of gaming space. There
are no multiplayer or video poker games.
It is operated by Aegean Casinos.
online gaMing
At the time of print, Greeces draft
egaming legislation had been withdrawn
for further consultation, after the ruling
Socialist party (PASOK) expressed
concerns with the law tabled by finance
minister George Papaconstantinou.
There are currently

nine casinos in
Greece. Three of
the 12 licences
never completed
their tender process
and were not
finalised and later
in 2003 when the
law changed the
three licences were
then cancelled.
A PASOK MP present at a meeting of

party members stated: There were
objections that Greece would become a
vast casino. Socialist party MP Dimitris
Papoutsis added: We should not go
award-winning
Innovation
towards full deregulation of gaming and

gambling.
The Greek government presented the bill
aimed at raising around 700m this year
from the issue of 15-55 new licences to its
parliament last month.
Greeces draft legislation has already
undergone several changes since being
introduced in January. Last month the
government voted for a 30 per cent gross
profit tax (GPT) instead of the six per
cent turnover levy originally proposed
after briefing from lobby group the
Remote Gambling Association.
The Greek government also dropped
plans in April for a black period,
requiring applicant operators to cease
activity in the market until licensed with
online gaming continuing to date.
Your
Update
GREECE GAMING MARKET
ePic greek
struggle
Italy has shown that gaming can be
properly regulated and controlled in
difficult conditions - but can Greece
show it can also save a
country from financial
meltdown?
Greece is a country which is undoubtedly

struggling. The new gaming market is one
of the key measures aimed at pulling the
region out of the debt swamp and provide
a much needed cash injection.
The last decade has seen Greece sink
lower and lower. The debt binge came
crashing to an end in late 2009 which
provoked an economic crisis that today is
threatening both Europes recovery and
the future of the Euro.
The roots of the debt go back to the
strong Euro and very low interest rates.
Not only did the Greek government
borrow heavily but for 10 years it also
went on a spending spree. Public
spending soared whilst public sector
wages doubled. Then as the government
built up a tidy debt of almost US$400bn,
the global economy began to crumble and
Greece hit the ground with a resounding
bump.
The new debt deal

means Greece
must now
undertake a new
round of austerity
measures such as
government layoffs,
wage and pension
cuts, VAT increases,
increases in fuel,
tobacco and
alcohol, public
sector layoffs and
permanent foreign
monitoring of
Greece to ensure it
completes it
requirements.
Since this time Greece has been relying

on a 110bn bail out package from its
European neighbours which was dished
out in May 2010. With it came a series of
measures aimed at cutting the countrys
bloated deficit and restore investor
confidence.
Minister Papandreou then announced he

wanted a referendum on the package and
later withdrew the request.
Papandreou and opposition leader
Antonis Samaras then agreed to create a
transitional administration to oversee the
countrys debt relief deal and hold early
elections. On November 10th Lucas
Papademos was named Prime Minister.
But Greece still managed to miss deficit

targets as its economy sank deeper into
recession and dropped by 5.5 per cent in
2011. A year after the bailout Greece
continued to sag under 340bn in debt.
Over the last two years investors have
demanded higher interest rates for Greek
borrowing whilst mass demonstrations
turned violent as the country showed
their frustration at the austerity measures
being introduced in a bid to bring cash in.
Meanwhile the new debt deal means

Greece must now undertake a new round
of austerity measures such as government
layoffs, wage and pension cuts, VAT
increases, increases in fuel, tobacco and
alcohol, public sector layoffs and
permanent foreign monitoring of Greece
to ensure it completes it requirements.
In November last year the country

received some relief as European leaders
obtained an agreement from the bank to
take a 50 per cent loss on the face value
of their Greek debt. However Prime
Having so far raised less than four per

cent of its targeted 50bn in asset sales,
Greece is now looking at selling its gas
company DEPA and 35 state buildings by
the first quarter of 2012. Asset sales have
Your
Update
The privatisation
revenue target of
9.3bn for 2012 is
supposed to be
achievable and
Greece had initially
agreed to raise
5bn from state
sales during 2011.
But delays in setting
up privatization
funds coupled with
plunging stock
market values, has
forced the
government to cut
this target to 4bn.
However it is
thought in all reality
Greece will only
raise 1.8bn.
greek casino data 2010

casino
no. of taBles
no. of slots
ggr
Club Hotel Loutraki
97
1,050
162.8m
Regency Thessaloniki
77
929
121m
Regency Mont Parnes
66
969
153.5
Casino Rio
40
311
24.2m
Casino Rodos
34
310
27.5m
Xanthi
24
178
8m
Porto Karras
35
433
8.4m
Casino Syros
26
180
4.9m
Casino Corfu
15
50
3.1m
414
4,410
513.4m
total
As well at putting DEPA on the market, a

tender for a major urban redevelopment
project at the site of Athens old airport is
also being launched and will turn the
abandoned site into a park and residential
area. Other projects in the second half of
2012 will include a concession for 12
ports and 39 regional airports alongside
sales of stakes in Athens and Thessaloniki
water utilities.
But the countrys repeated failure at
meeting budget targets is angering
international lenders. Under the terms of
the 10bn bailout Greece is supposed to
sell state assets worth 50bn by 2015.
greece Must
now undertake
a new round of
austeritry
Measures such
as governMent
layoffs, wage
and Pension
cuts.
been hindered by a decrease in market
prices even though Athens is committed
to a timetable of asset sales if it wants to
continue receiving bailout loans from its
Euro zone partners and the IMF. But a
worsening economic climate and a
plunging stock market are hindering sales
and this is now forcing the authorities to
revise initial targets.
JVH Hellas, which imported Photo Play

consoles at the time, withdrew 7,000
machines from this market and estimated
its losses at 2.9m. The company said at
the time that some 1.5 million photo play
players were affected by the decision back
in 2002.
Although the industry understood the
need to wipe out illegal gambling, the
problem was the law was drafted in such
a hurry that is wasnt able to differentiate
between a gaming machine and games
played on a computer at home. It was
also put into place without the desired
three months notice that the European
Commission requires for draft laws.
The privatisation revenue target of 9.3bn

for 2012 is supposed to be achievable and
Greece had initially agreed to raise 5bn
from state sales during 2011. But delays in
setting up privatization funds coupled
with plunging stock market values, has
forced the government to cut this target to
4bn. However it is thought in all reality
Greece will only raise 1.8bn.
Basically the Greek industry crashed and

died overnight, companies closed down
and thousands were made unemployed.
The European Commission was dragged
into the battle and for years the whole
saga has been a campaign to have the bill
amended.
greek history
Greeces gambling background is of
course well documented. Traditionally
gaming was restricted to the casino
market with amusements permitted in
arcades and in street sites. Of course
illegal slots were rife and even video
games would pay out money.
In 2006 Greece was convicted for its

failure to fulfil its obligation under EC
rulings but it still refused to take action
and thereafter the European Commission
ordered the Greek Republic to pay a
penalty of 31,798 for each day of delay
in implementing the measures necessary
to ensure full compliance with the
judgement.
In 2002 the whole thing erupted in a

political scandal and the governments
knee jerk reaction to the public outcry
was to introduce the 3037/2002 bill in
July 2002 which saw all electronic games
banned even those running on home
computers.
pro curve
Now things look set to change. The ban

combined with a complete lack of
regulation has led to the emergence of a
vast illegal market. In addition, and
perhaps of a higher priority, is that the
government now needs urgent revenues
to save it from falling deeper into
economic crisis.
Your
Update
In September 2010 the government began

its legislative initiative Regulating the
Gaming Market which was brought to an
online public consultation which saw
1,513 comments in just two weeks. Then
in January this year the Greek Minister of
Finance Giorgos Papakonstantinou
unveiled the new Greek gambling bill
which suggested several changes from
fully privatising the remaining casinos,
introducing a VLT market and opening
the market to providers of sports betting,
internet poker and online casinos. The
bill is part of a privatisation programme
which aims to raise 7bn through the
sales of its state owned companies. This
will leave the government with
Your
Those under the

privatisation plans
include Athens
Airport, state
defence contractor
EAS, gas operators
DEPA and DESFA,
state railway
operator OSE and
Hellenic Post.
Greeces remaining
part government
owned casinos will
be fully privatised.
shareholding ranging from minority stakes

of less than 34 per cent to controlling
stakes of 51 per cent or more. In some
cases it with divest fully from its holding.
Those under the privatisation plans
include Athens Airport, state defence
contractor EAS, gas operators DEPA and
DESFA, state railway operator OSE and
Hellenic Post. Greeces remaining part
government owned casinos will be fully
privatised.
Meanwhile OPAP (Greek Organisation of
Football Prognostics) is a monopoly of
which the state owns a 34.4 per cent
stake and it has exclusive rights to sports
betting and lottery. There has been talk of

privatising OPAP for some time and the
tenuous state of the Greek economy is
now making this step more imminent and
the government recently appointed an
adviser regarding the renewal of the
operating licence held by OPAP.
OPAP was founded in 1958 and is
Europes biggest betting group by market
value and operates lottery games such as
Lotto, Proto, Joker, Super3 and Kino plus
sports betting games like Propo and Pame
Stihima. The group has a 20 year
exclusive licence for all its current sports
betting and lottery games and the
exclusive right to operate new sports
is the one you want
Update
is unclear what rights these will be under
the monopoly system it holds.
the gaMing saviour?
At the moment Greeces gaming market
consists of nine casinos, a state lottery, a
horse racing operator and OPAP. The
operation of gambling machines is illegal
with the exception of slots in casinos and
OPAP machines.
In September 2010 the government began
its legislative initiative Regulating the
Gaming Market and in January 2011 the
former Greek Minister of Finance Giorgos
Papakonstantinou unveiled the new Greek
gambling bill which suggested several
changes from fully privatising the
remaining casinos, introducing a VLT
market and opening the market to
providers of sports betting, internet poker
and online casinos. The bill was part of
the privatisation programme which aims
to raise 7bn through the sales of its state
owned companies. Despite criticism of
the first draft submitted in June last year
from the European Commission the law
4002/2011 was adopted by the Greek
Government and was passed in August.
The new law sets up the Gaming
Supervision and Control Commission and
appointed its Chairman in early
December. This will now regulate matters
concerning the operation of gaming and
licensing including the set up of a
vlts can Be
oPerated in
various
locations with
a MaxiMuM of
30 Machines in
so-called Pure
rooMs or
Mixed sPaces.
betting games. This runs until 2020.
Annual revenues from games amount to
5.14bn last year, a six per cent decline
on the previous year.
The year 2010 proved difficult for OPAP as
the financial crisis hit leading to a
slowdown in game revenues particularly
in Kino combined with a new tax
structure of prize payouts to the lottery
and betting winners and the no smoking
ban in all public places including lottery
agencies. Since the new socialist
government came into power there have
also been reports of board member
resignations from OPAP.
In September 2010
the government
began its legislative
initiative Regulating
the Gaming
Market and in
January 2011 the
former Greek
Minister of Finance
Giorgos
Papakonstantinou
unveiled the new
Greek gambling
bill.
OPAP has more than 5,000 commission

agents around the country and has a 50
per cent share of the gaming market in
Greece and Cyprus and currently runs
three sports betting games Stihima,
Propo and Propo-Goal which between
them account for almost half of the
groups total revenues. It also managed to
shut down Stanleybet back in 2008 after
the UK company opened two betting
shops in Greece and was to be a major
competitor to OPAP. The company
however has said that it is well placed to
exploit the upcoming opportunities ahead
within the Greek market under the new
laws and is expected to take on VLT and
internet gaming licenses although as yet it
monitoring and control IT system to

oversee all data and transactions.
However as the gaming commission
doesnt even have an office yet there are
challenges which remain in the following
areas:
Firstly to appoint the full gaming
commission and find the right knowhow
Secondly to find a way to regulate the
market and close down illegal gaming
operations which will include some
50,000 slot machines

Your
Update
Thirdly to determine how the network

will be controlled in addition to OPAP
responsibilities
And finally to set the certification
standards in line with OPAPs RFI
requirements.
The Greek government raced against time
to have some financial reforms in place
before the next round of audits by the
IMF schedule for the end of August and
after three days of debate the Finance
Minister managed to get the online
gambling bill passed just in time. Now
however the actual implementation has
slowed whilst some are still arguing that
the law is against EU regulations.
The law includes the following:
Greece will legalise 35,000 low stake
gambling machines (VLTs). OPAP will
directly operate 16,500 machines and
sub contract the rest to other operators
through four to 10 renewable licenses.
Each market participant will be able to
acquire only one license, but in case
some of the licenses remain unsold
during a tender process, the rest of the
terminals can be evenly distributed to
those that would have already received
a license
To apply for an online gaming license
the company must have a locally
Your
incorporated company with a minimum

deposited capital of 200,000 plus a
letter of guarantee by a credit
institution for 100,000.
VLTs can be operated in various
locations with a maximum of 30
machines. These include so-called
Pure Rooms (gaming arcades) or
Mixed Spaces which are shops with a
minimum of 80 sq.m, where the
commercial activity is entertainment
(except nightclubs or bars). The
maximum of games here may not
exceed three.
The minimum amount for play would
be 0,10 and the maximum 5
although these figures may be adjusted
by the Committee.
Operators currently
operating in Greece
may also have to
pay gambling
taxes on any
revenues earned
from Greece based
customers
retroactively from
Jan 2010 until the
new licenses are
awarded. This is
equivalent to a
market entry fee
that will have to be
paid by all
operators who are
currently unable to
be licensed in
Greece.
Players must also have an individual

player card to participate to identify
players age, tax identification number,
flow of money and any other
restrictions set.
There will be no cap on the payout rate
for online casinos however there will be a
payout floor a minimum rate that the
casinos must pay out. Online casinos and
low stake gambling machines would both
be required to have a payout rate of at
least 80 per cent.
Tax rate would be set at 30 per cent on
Performing at
C
Casinos Everywhere
Update
gross profits of each operator and given to
the State on a quarterly basis. There is
also a 10 per cent tax on player gains to
be imposed on both VLTs and internet
betting.
The Gambling Control Commission will
regulate and control the sector. Each
system would be monitored and
connected to a central monitoring system.
The regulator would cooperate with the
ISPs to block unauthorised sites and will
set up live monitoring systems.
Some of the initial proposals are now
absent from the final legislation including
the six month blackout period prior to
legalisation and regulation designed to
protect state owned monopoly OPAP. The
oPerators in
the greek
online gaMing
Market would
Be required to
have a
PerManent
Base in greece.
clause which limited the number of
licenses has also been scrapped.
Instead of the black out period for private
operators applying for licenses EU
licensed operators will be allowed to
operate freely in Greece. The operators
will be allowed to advertise across all
online and offline media, including
television. Another favourable change is
that the private online gambling operators
will be able to target Greek customers
from offshore servers during the six
month transitional period. But once
licenses have been granted the licensees
may then be required to locate servers
within Greece.
OPAP (34 per cent owned by the
government of which 29 per cent has
now been placed with a governmental
privatisation fund) will now have the
exclusive license to operate all the 35,000
VLTs to be set up as part of the gaming
liberalisation plan. OPAP will directly
operate 16,500 machines and sub contract
the rest to other operators or
concessionaires as they will be called.
OPAP has already paid 12,000 per
machine in advance of the 35,000
machines to be placed with an additional
4,000 to be paid per machine by the end
of 2012. This amounts to a total of 560m
providing the government with its much
delivering the
needed cash injection. However its not

all as simple as it seems.
An industry source said: OPAP is facing
serious resistance from their network
which is well organised and not under
OPAPs control. The network has declined
to operate gaming halls of up to 25
machines each so the 16,500 machines
have to placed in the 5,500 OPAP shops
whereby only an estimated 1,000 shops
are considered to be proper gaming
machine locations.
Meanwhile additional challenges remain
in the area of the interested
concessionaires, the suppliers involved
and the money that needs to be invested
by all parties to get the 35,000 machines
operational considering the potential of
the default and return of the Drachma
plus the fact that the banks are in no
position to lend the large amounts
needed.
Despite the rush to get the law into place
the OPAP licenses will not become
effective until one year after issue so it is
thought VLTs will not enter the market
until at least the end of 2012. OPAP was
also set to be privatised by the beginning
of 2012 and this too may be delayed and
so the State will extend the firms
monopoly by 10 years taking it to 2030.
It is thought OPAP will now have to
spend as much as 925m for the
concession renewal and the VLTs of
which over 400m has already been paid.
Meanwhile the timeline for the remote
gambling licenses is also unclear and the
Greek government has not yet issued any
information.
for and against
OSIPE believe this new law to be
incompatible with the European law and
has now complained to the European
Commission as they believe this new law
will bring the same problems the old law
did. The European Gaming and Betting
Association and the Remote Gambling
Association have both filed a complaint
with the European Commission about
Greeces recently adopted online
gambling law. This has now passed the
Commissions internal assessment and
the issue will now be raised with the
Greek government.
Operators in the Greek online gaming
market would be required to have a
permanent base in Greece plus be limited
to financial transactions through Greek
banks and must also impose a higher age
limit restriction online than at terrestrial
casinos.
Your
Update
Operators currently operating in Greece

may also have to pay gambling taxes on
any revenues earned from Greece based
customers retroactively from Jan 2010
until the new licenses are awarded. This
is equivalent to a market entry fee that
will have to be paid by all operators who
are currently unable to be licensed in
Greece.
EGBA and RGA are also concerned about
the tax regime which says the
government has granted OPAP the
monopoly gambling operator for offline
games an extension of its existing
license for an additional 10 years from
2020 to 2030. OPAP currently pays no
gambling tax on its offline activities
whereas online operators would have to
pay 30 per cent GGR. Furthermore the
law imposed a 10 per cent withholding
tax on players winnings with online
operators whereas the OPAP customers of
land based services are exempt from any
tax on winnings of 100 or less.
Clive Hawkswood, Chief Executive of the
RGA said: We have welcomed the
opening of the Greek online gambling
market as a positive step. However it is
paramount that any new regime is
conducted in a fair and transparent
fashion which follows EU rules. Where a
regime is contrary to the provision of the
Your
treaties, challenges are unfortunately

necessary and unavoidable. We therefore
look to the Commission as a guardian of
the Treaties, to enforce those provisions in
relation to gambling, as the European
Parliament has recently requested.
One of the most important issues for the
operators which is yet to be resolved is
the prospect of retrospective tax which
could be claimed by the Greek
Government back to January 1 2010. This
needs to be resolved say RGA as it could
potentially have significant fiscal issues
for those considering applying for a Greek
license.
The OPAP has retaliated and claim the
RGA complaint is unfounded. OPAP
claims that through a concession
agreement from the Greek State it pays a
total price which incorporates the
anticipated future fee (and not tax) from
the conduct of VLTs. This price over the
next 20 years will reflect the 30 per cent
tax others pay they say. OPAP will also
pay an additional 5 per cent fee.
An OPAP Spokesman said: In this case
OPAP pre-pays the largest part of its tax
obligation also undertaking the
corresponding financial burden of
immediately paying the relevant price. On
the contrary, future competitors will not
OPAP claims that

through a
concession
agreement from
the Greek State it
pays a total price
which incorporates
the anticipated
future fee (and not
tax) from the
conduct of VLTs.
This price over the
next 20 years will
reflect the 30 per
cent tax others pay
they say. OPAP will
also pay an
additional 5 per
cent fee.
have to pay anything in advance but only

a minimum amount compared to what is
paid by OPAP and will pay a fee on the
games only on the basis of the income
they realise, when this happens.
OPAP considers it a real irony that while
it has contributed huge amounts to the
Greek State and Greek society for a long
time through taxation of its income, its
sponsors, its social actions and dividends
to shareholders, today it is being
reproached by those who act with no
control and illegally in Greece without
having contributed even one Euro to the
Greek economy through taxation.
The RGA meanwhile argues that before
this point there has never been the
opportunity for operators to apply for a
Greek license to operate and that the
current proposals do not satisfy
fundamental EU internal market
principals and therefore a State Aid
complaint has been launched.
Clive Hawkswood added: The RGA
believes there are strong grounds for this
State aid challenge; the taxation
framework poses a serious economic
disadvantage for private remote operators
licensed in Greece, which requires
justification and investigation by the
European Commission.
cross-platform
solutions
for your casino
Focus
REPORT: GEORGIA
georgia on
My grind
Surrounded by prohibition on all sides, Georgia presents a
geographic sweet spot for gaming operators
Due to the fact that Georgia is surrounded
by countries where gambling is
prohibited, this little country sandwiched
between Europe and Asia, should be
attracting more attention than a stripper
at a stag party. The total population of the
countries where gambling is banned
amounts to over 450 million. In theory
this means that Georgia holds all the
cards. So is Georgia about to become the
Monte Carlo of the east?
At one time, Georgia was the holiday
haunt of the privileged elite of the Soviet
Union. The combination of the
Mediterranean climate, stunning scenery,
famous mineral waters and Georgian
hospitality, created a unique destination
point for the wealthy.
During the Soviet period, however,
tourism did not accumulate much
revenue and it was confined to
development by state enterprises. Then
along came that old party pooper - civil
arrest - which in the early 1990s
hampered growth further and put a
dampener on the development of tourism.
Since independence, however, Georgias
peace has been restored and tourism has
become one of the most dynamic
economic sectors for this region. Between
2004 and 2008 a number of economic
reforms were put into place ensuring a
stronger legal system, which in turn has
resulted in economic growth and a higher
demand for tourism.
In 2010 the country saw a total of two
million foreign visitors of which the
majority came from neighbouring
Armenia, Azerbaijan, Turkey and Russia.
This was a 36 per cent increased on 2009
figures and this is expected to increase by
35 per cent in the next three to five years.
Your
To encourage tourism the government

implemented simple entry requirements
and now 50 countries such as USA,
Canada, Israel, Japan, EU countries and
UAE do not require entry visas and can
stay for up to 90 days. Citizens from other
countries are issued travel visas at the
border.
Georgia is located at the crossroads
between Western Asia and Eastern
Europe and is a sovereign state in the
Caucasus region of Eurasia. It lies next to
Russia on its northern side whilst also
bordering Armenia, Azerbaijan and
Turkey in the south and east. It also has a
330km coastline with the Black Sea in the
west.
Its a fairly discreet and unknown country
to most, but Georgia actually has a lot to
offer. There are 19 nature reserves, 860
lakes, numerous waterfalls and more than
25,000 rivers. There are 12,000 historical
monuments in Georgia, 150 museums,
103 resorts, 182 resort areas and eight
national parks.
The population of Georgia is almost 4.7
million whilst its land area of 69,700 sq.m
is threaded by two major rivers called the
Rioni and Mtkvari. The land is mainly
mountainous and the Likhi Range divides
the country into eastern and western
halves. Historically, the western portion
was known as Colchis and the east Iberia.
The Great Caucasus Mountains form the
northern border and the Lesser Caucasus
Mountains are located in the south. The
highest point is Mount Shkhara at over
5,000m.
There are nine regions Guria, Imereti,
Kakheti, Kvemo Kartli, Mtskheta-Mtianeti,
Racha-Lechkhumi and Kvemo Svaneti,
Samegrelo-Zemo Svaneti, SamtskheJavakheti and Shida Kartli. Plus two
Abkhazia is a
region bordering
Russia and the
Black Sea which
declared its
independence in
1999 whilst Adjara
is an autonomous
region in the
southwest region
bordering Turkey
and the Black Sea.
Adjara is said to be
the countrys most
picturesque region
and its unique
environmental
features make it an
attractive tourist
destination.
Because of this the
government has
invested in this
region and in 2010
handed over
US$147m, of which
49 per cent went to
the tourism sector.
The area has a
population of
around 400,000.
the georgian
casino industry
initially
BooMed after
indePendence
as neighBours
Banned or
liMited gaMing
autonomous republics Abkhazia and
Adjara and one city Tbilisi. These in turn
are subdivided into 69 districts.
Abkhazia is a region bordering Russia and
the Black Sea which declared its
independence in 1999 whilst Adjara is an
autonomous region in the southwest
region bordering Turkey and the Black
Sea. Adjara is said to be the countrys
most picturesque region and its unique
environmental features make it an
attractive tourist destination. Because of
this the government has invested in this
region and in 2010 handed over US$147m
of which 49 per cent went to the tourism
sector. The area has a population of
around 400,000.
taking
t
a
your casino mobile
le
Focus
REPORT: GEORGIA
In 2008 a military
conflict between
Georgia and
Russia/South
Ossetia and
Abkhazia began
and saw Georgian
troops attack towns
around South
Ossetia until they
were defeated and
had to retreat.
Today Russian
troops remain in
South Ossetia and
Abkhazia which
they see as
independent
countries whilst
Georgia considers
them to be
territories under
Russian
occupation.
South Ossetia meanwhile is a de facto

independent state and is officially
separate from Russias North Ossetia and
is known within Georgia as the Tskinvali
region. The capital Tbilisi stands on the
banks of the River Mtkvari in a valley
surrounded by hills. Its name is derived
from the word tbili (warm) and it is
covered with stone houses built around
vine draped courtyards and small winding
streets, which have a Mediterranean
atmosphere. The capital city is currently
undergoing a new urban development
strategy to help the citys development.
Like most Caucasian people the Georgians
do not fit into any of the main ethnic
categories of Europe or Asia. Ethnic
Georgians called themselves Kartvelebi
and their land was known as Sakartvelo
(a place for Kartvelians).
The history of Georgia can be traced back
to the ancient kingdoms of Colchis and
Iberia and it was one of the first countries
to adopt Christianity in the early 4th
century. Early kingdoms were separated
by various feudal regions by the early
Middle Ages and this made it easier for
the Arabs to conquer parts of south east
Georgia. The country reached its zenith in
the 12th and 13th centuries and this
period has been termed as Georgias
Golden Age and it left a legacy of great

cathedrals, poetry and literature. This was
cut short by the Mongol invasion in 1236
and subsequently the Ottoman and
Persian empires began to infiltrate the
region. In 1783, Russia and the eastern
Georgian kingdom of Kartli-Kakheti
signed the Treaty of Georgievsk, which
recognised the bond of orthodox
Christianity between Russian and
Georgian people and promised eastern
Georgia protection. But this failed to
happen some years later when the Turks
and Persians invaded devastating Tbilisi
and massacred its inhabitants.
After the Russian revolution in 1917
Georgia declared independence in 1918 in
the midst of the Russian Civil War, which
lasted for three years until 1921. The
Soviets once again took control in 1924
and Georgia was incorporated into the
Transcaucasian SFSR uniting Georgia,
Armenia and Azerbaijan.
World War II saw Georgians lose their
lives against the Nazi Germany after
fighting with the Red Army and a
movement to restore Georgias statehood
began in 1960 again. In 1989 a peaceful
demonstration resulted in death by Soviet
troops and finally in April 1991 the
country declared independence and Zviad
Gamsakhurdia was elected as first

President. He imposed a coup which
sparked a bitter civil war which lasted
until 1995 until Shevardnadze was
officially elected president. He was
replaced in 2004 by Mikheil Saakashvili
who was re-elected in 2008 despite
allegations of fraud within the voting
system.
In 2008 a military conflict between
Georgia and Russia/South Ossetia and
Abkhazia began and saw Georgian troops
attack towns around South Ossetia until
they were defeated and had to retreat.
Today Russian troops remain in South
Ossetia and Abkhazia which they see as
independent countries whilst Georgia
considers them to be territories under
Russian occupation.
georgias develoPMent
Back in 2006/7 Georgias economy
sustained GDP growth of more than 10
per cent, which was at the time based on
strong inflows of foreign investment and a
robust government spending policy. Not
unsurprisingly, however, the countrys
GDP slowed in 2008, following the
conflict with Russia, which turned
negative in 2009 as foreign debt and
workers remittances dropped in the wake
of the global recession.
Your
Focus
REPORT: GEORGIA
hotels in adjara region
hotel
category
city
rooms
status
casino
Sheraton
5*
Batumi
205
Completed
yes
Intourist Palace
5*
Batumi
145
Completed
Yes
Radisson
5*
Kobuleti
156
Under construction
Hyatt
5*
Batumi
166
Under construction
Hilton
5*
Batumi
n/a
Under construction
Kempinski
5*
Batumi
344
Unknown
Marina
n/a
Batumi
53
Completed
Sanapiro
n/a
Batumi
96
Completed
Hotel ERA
n/a
Batumi
40
Completed
Hotel Alik
n/a
Batumi
52
Completed
Sputnik
n/a
Batumi
54
Completed
OASIS
n/a
Batumi
90
Completed
CAMEO
n/a
Kvariati
50
Completed
Meanwhile in 2010 the economy

rebounded and GDP stood at 6.4 per cent.
Unemployment is around 16.4 per cent
and 31 per cent of the population are
below the poverty line.
Georgias main economic activities
include the cultivation of agricultural
products mainly grapes, citrus fruits and
hazelnuts, mining of copper plus a small
industrial sector. Construction, banking
and mining sectors are growing. The
country imports nearly all its supplies of
natural gas and oil products but also has
hydropower plants to overcome shortages.
Today the main problems in Georgia seem
be the dire state of the economy and
secessionist revolts in the outlying
provinces of Abkhazia and South Ossetia.
The country is also renowned for its
problems in tax collections but since the
government came into power in 2004
things have been improving. For the past
few years the Georgian government has
been undertaking several economic
reforms in a bid to create an attractive
business environment and boost the
economy. The main aim is to create new
jobs, stimulate business activities and
increase the welfare of citizens.
For one, the countrys tax system has
been overhauled since 2005 reducing the
number of taxes from 21 back in 2004 to
just six (Income tax, Corporate income
tax, VAT, Excise tax, Tax on Import and
local tax which includes property tax.).
There is no capital gains tax, inheritance
or wealth tax and Georgia has a low flat
tax rate of 20 per cent income tax which
is due to be reduced to 18 per in 2013
and to 15 per cent by 2014. Standard VAT
is 18 per cent, whilst corporate income

tax is 15 per cent. Georgia is the fourth
least taxed country among 66 countries
ranked.
Over the last five years the World Bank
and other institutions have lent around
US$101m to Georgia to finance the
rehabilitation of nearly 700km of road
infrastructure, whilst Tbilisi and Batumi
have two modern airports.
There are around 260,000 businesses
operating in Georgia of which more than
4,600 have been established with foreign
capital. Today with a pro-business
legislation, liberal tax code, solid
workforce and legal framework to protect
investors, the country is looking to
develop opportunities here. One such area
is the leisure, hotel and gaming areas.
Although the hotel sector is in the early
stages of development in Georgia there
are currently six internationally branded
hotels on the market out of 386 hotels
(around 9,300 rooms). The turnover for
the hotel industry in Georgia amounted to
GEL123.4m in 2010.
Marriott, Sheraton, Radisson Blu,
Citadines and Holiday Inn are already
operating in Georgia, whilst
Intercontinental, Kempinski and Hilton
are in the process of constructing their
facilities. There is also talk of a newcomer
from Ritz Carlton in Batumi by 2015,
whilst Trump Towers are also anticipated
to appear in Georgia.
The hotel supply is concentrated in Tbilisi
and Batumi and there are currently 120
hotels and guest houses and five luxury
Closed
hotels in Tbilisi, which between them

offer 5,000 beds. The five luxury hotels
are Courtyard Marriott, Tbilisi Marriott,
Sheraton Metekhi Palace, Radisson Blu
and Holiday Inn.
The city will see another three global
hotel brands appear over the next few
years Intercontinental, Hyatt Tbilis
Hotel and Kempinski all due for
completion this year. Meanwhile in
Batumi there are six luxury hotels.
The government introduced Free Tourism
Zone legislation in 2007 to encourage
foreign investment and develop regional
development initiatives in a bid to
encourage hotel and casino construction
in the outlying parts of the country. At
the moment there are several government
packages to boost the country and they
also offer particular investment packages
for hotel and casino developments.
After success with Kobuleti as a FTZ
project the government is also offering
investment opportunities in Mestia for the
development of the Four Season Ski
Resort, Tskaltubo for the spa and wellness
resort and Gudauri for the development of
its ski resort. In addition the government
is also focusing on the region of
Samegrelo-Zemo Svaneti and is currently
promoting Anaklia.
In 2008 the Ministry

of Finance gave out
1,290 permits in the
gambling business
and the duties paid
to the state budget
came to GEL21.5m.
This was broken
down to 935
permits for gaming
salons and
GEL7.4m paid to
the budget; 99
permits for lotteries
and GEL594,00 and
12 permits for lotto
and GEL72,000
paid.
Anaklia is a seaside resort in Western

Georgia bordering the Black Sea and
Kolkheti National park, and it is being
earmarked as a growth area for casinos
and as such investors are being offered
free casino licences. The town is just 20
km, from Tbilisi and the government via
its Invest in Georgia programme is
Your
Focus
REPORT: GEORGIA
Georgia: Vital Statistics

Capital: Tbilisi
Population: 4,585,874
Land Area: 69,700 sq.m
Median age: 39.1 years
Languages: Georgian (official) 71%,
Russian 9%, Armenian 7%, Azeri 6%
and other 7%
Currency: Laris (GEL)
Government: Republic
Chief of State: President Mikheil
Saakashvili (since 2004)
Head of Government:
Prime Minister Nikoloz Gilauri
(since 2009).
Elections: President elected by popular
vote for a five year term and eligible for
a second term. Last election held in
January 2008. Next due in 2013.
Casinos: 5
Casino Slots: 375
Casino Tables: 100
Gaming Revenue: GEL 21.5m
offering various packages for investors

from land to hotel design projects,
corporate profit tax and property tax
exemption for 15 years and casino
licences for hotels with over 80 rooms.
A new Seafront Boulevard is currently
under construction, which will run from
the northern bank of the mouth of the
river Inguri and along a 3km stretch of
the Black Sea coast. The first phase was
opened in summer 2010. The
development includes a 4km boulevard,
yacht club, two leisure hotels, two casino
hotels, restaurants, shopping centres,
concert halls and theatres.
the gaMing industry
In 2008 the Ministry of Finance gave out
1,290 permits in the gambling business
and the duties paid to the state budget
came to GEL21.5m. This was broken
down to 935 permits for gaming salons
and GEL7.4m paid to the budget; 99
permits for lotteries and GEL594,00 and
12 permits for lotto and GEL72,000 paid.
For totalisator there were 239 permits
given out and the sum paid to the budget
amounted to GEL2.8m. Meanwhile
casinos saw five permits given out and
the sum paid was GEL10.5m.
The Georgian casino industry initially

boomed after independence and whilst
neighbouring countries have banned or
limited gambling throughout the 1990s
Georgia has allowed this industry to grow
and flourish.
However back in 2005 a harsh new law
was passed which saw a GEL5m (US$3m)
annual licensing fee for all casinos in
Tbilisi which wiped out the small
operations leaving just two casinos in the
capital city.
The idea behind this was to encourage
casino development away from the city to
other resort areas as part of a wider
economic development plan.
On paper Georgia has all the boxes ticked
to be a good gambling sector. For one it is
surrounded by non-gambling countries.
Azerbaijan has permitted gambling since
1998 but only allows legalised sports
betting and lotteries, which means, many
visitors from here make the trip west to
Tbilisi or Batumi to play on the card
tables. Although many predicted that the
number of Russian visitors would
increase after casinos were banned in
Moscow back in 2009 it seems the
Legalised gaming
was first introduced
in Georgia in 1992
after
independence, and
it has always been
considered as a
benefit to the
countrys economy.
At his time a
decree was
adopted by the
government called
On Improvement of
Conduct of Lotteries
and Other Prize
Winning Games in
the Republic of
Georgia. This
lengthy title
basically opened
the door regarding
lotteries and
gaming in a bid to
boost the market
economy.
award-winning
Innovation
Russians are merely heading to the black

market casinos instead.
However, Iranian visitors are growing. In
March this year the first of a series of
groups of Iranian tourists began to arrive
in Georgian hotels for the start of the
Iranian New Year. The groups are part of
a negotiation between the two
governments to establish visa free travel
and also permitting travel agencies to
advertise the fact to Iranian tourists.
Although at the moment the potential is
limited by only two flights per week
between Tbilisi and Tehran, it does
however, offer a huge market in the near
future as things improve. Iran has a
population of 76 million.
Legalised gaming was first introduced in
Georgia in 1992 after independence, and
it has always been considered as a benefit
to the countrys economy. At his time a
decree was adopted by the government
called On Improvement of Conduct of
Lotteries and Other Prize Winning Games
in the Republic of Georgia. This lengthy
title basically opened the door regarding
lotteries and gaming in a bid to boost the
market economy.
Your
Focus
REPORT: GEORGIA
It stipulated that lotteries and other prize
winning games could be conducted by
legal entities whilst licensing was
controlled under the Ministry of Finance
and no less than 35 per cent of their
income was paid to the state budget in
the form of taxes.
It was a weak and somewhat flawed
system and in 1993 a law On Enterprise
Income Taxes determined a 70 per cent
tax rate on income from casinos, gaming
salons and other gaming business.
As the industry developed in 1996 the
Ministry added various other games to
the list. In 1997 a Tax Code became an
important step in this field and stamped
out illegal operations and set the tax rates
for the business. This has remained pretty
much unchanged and today the tax rates
are as follows:
tax rates:
1. Casinos gaming tables GEL5,00010,000 per month
2. Slot machines GEL50-200 per month
3. Totalisator/bingo/lotto cash desk
GEL300-600 per month
4. Incentive lottery 10 per cent of the
prize fund
5. Lotteries not more than 20 per cent
of proceeds from sale of tickets.
GEL5m (approx US$3m)
6. Systemic electronic game GEL2,00010,000 per month
In 1999 a decree was issued on Rules of
Conduct and Licensing of Lotteries,
Casinos, Gambling and Other Winning
Games which gave a clear definition on
such gaming games. Then in 2005 came
the Law on Lotteries, gambling and other
Winning Games which saw high licensing
fees introduced which basically saw an
end to small time casinos with many
closing down.
licensing fees:
1. Conduct of incentive lottery, lotto and
bingo GEL15,000
2. Operation of bingo GEL15,000
3. Operation of a gaming salon
GEL20,000 (Tbilisi, Rustavi, Kutaisi,
Poti and Batumi). In any other territory
the fee is GEL12,000.
6. Operation of a casino within territory

of Batumi and in municipalities of
Kobuleti and Borjomi GEL250,000.
(this was originally GEL1m but
amended in 2006). Newly built hotels
with more than 100 rooms in Batumi,
Anaklia, Kobuleti and Khelvachauri are
exempt for a 10 year period.
In respect to point number five, in
November 2009 the Georgian parliament
agreed to an amendment in legislation
which has given hotels in Batumi with
more than 100 rooms an exemption for 10
years from the annual licence fee.
This was part of a plan to boost
development in Batumi. Georgia amended
its legislation to help develop Batumi,
which several years ago underwent a
transition from a rather dishevelled port
town to an exclusive holiday resort. Today
it is a popular and thriving resort with a
population of around 200,000.
4. Operation of betting shop GEL30,000

(Tbilisi, Rustavi, Kutaisi, Poti and
Batumi). In any other territory the fee
is GEL20,000.
President Saakashvili has lavished

attention on Batumi where 35 hotels have
gone up in the last four years.
5. The operation of casinos (throughout

Georgia, with the exception of Batumi)
Konstantine Eristavi of Getsadze &

Pateishvili Law Office in Georgia said:
Your
Due to the demand

of visitors in the
past two years
three major
international hotel
operators have
entered the
Georgian market to
develop new resort
complexes. Batumi
now has over 90
gambling
businesses which
are primarily slot
machine halls or
tote shops. There
are three hotel
casinos.
The aim of these amendments was the

development of gambling as an extremely
profitable business in provincial towns.
It is true that international practice
illustrated that in the towns where a large
number of gambling houses operate other
types of business cope with considerable
problems and there is a big bankruptcy
percentage in these towns. Nonetheless in
our case, opening of gambling houses in
these types of provincial towns was
followed by the improvement of
infrastructure and social level owing to
the tourists and players coming from
other parts of the country.
Due to the demand of visitors in the past
two years three major international hotel
operators have entered the Georgian
market to develop new resort complexes.
Batumi now has over 90 gambling
businesses which are primarily slot
machine halls or tote shops. There are
three hotel casinos.
Meanwhile, with high licensing fees for
casinos, it has proved difficult for some
casinos to break into the market whilst
many have closed. Casino Grand
Sakartvelo in Tbilisi closed recently
leaving just two casinos in the city. Some
say this has left the market open to only
is the one you want
Focus
REPORT: GEORGIA
At the moment
there are around
500 slot halls in
Tbilisi and they are
opening with
speed. There are
no limitations on
slot halls and it is
thought Tbilisi hosts
over half of the total
gambling halls in
the country.
iveria casino is located at the

Radisoon Blu Iveria Hotel in Tbilisi and
was opened in 2009. The modern hotel is
in a huge glass building which rises
above the Mtkvari River and offers 249
rooms. The casino offers live
entertainment and gaming in a 3,100sq.m
area. There are two casino bars and 100
slots plus four Blackjack tables, 19 Poker
and eight Roulette.
adjaraBet casino in Batumi has
seven gaming tables including Poker,
Blackjack, Roulette, Russian Poker and
Texas Hold em plus 25 slots.
grand Palace casino is located
at the InTourist Palace Hotel in Batumi.
The hotel was originally built back in
1939 on the site of the St Alexander
Nevsky Cathedral which was demolished
in 1936. The hotel has since undergone
major overhaul and redesign although the
distinctive features of the building
remain. The casino has seven table games
including poker, Roulette and Blackjack
plus 29 slots.
Peace casino can be found at the
newly built Sheraton Batumi Hotel with is
located on the seafront of the Black Sea
coast. The five star hotel offers 202
rooms, two restaurants, health centre and
spa and swimming pool. The casino has
nine table games including poker,
Blackjack and roulette and 73 slots.
serious operators and hopefully move

casinos to other areas.
At the moment there are around 500 slot
halls in Tbilisi and they are opening with
speed. There are no limitations on slot
halls and it is thought Tbilisi hosts over
half of the total gambling halls in the
country.
Georgia is currently trying to prevent any
construction of casinos and entertainment
centres in Abkhazia for the 2014 Olympic
Winter Games. The government has sent
a letter to the National Olympic
Committee and sports ministry of Georgia
to prevent such developments. Apparently
Russia was planning to construct casinos
and an entertainment centre at Gagra in
Abkhazia as the games are due to be held
in Sochi, some 30km away from
Abkhazia. Georgias government says the
development of ice and snow facilities for
the Games are damaging the local
environment, but did not want to boycott
the games per se.
The Georgian Lottery Company was
officially opened in October 2009 and
holds a 10 year exclusive licence from the
Ministry of Finance to operate the
National Lottery. The company helps
promote and pay for culture and sports
activities via a 21.5 per cent tax rate,

which goes to the Cultural and sport
ministries. There are a total five casinos
in Georgia operating in Tbilisi and
Batumi:
adjara casino is located at the
Holiday Inn Tbilisi Hotel in Tbilisi. The
casino was opened in 1998 and as such is
the oldest casino in Caucasus and the
also said to be the largest in Eastern
Europe. It has been expanded over the
years and is now 2,500 sq.m and offers
45 table games and 147 slots plus three
restaurants and bars. The slots include
multi level mystery jackpot games and a
16 seater electronic roulette plus a huge
80 seater electronic roulette, which has an
automated and live roulette dealer
operating simultaneously.
The table games include stud poker,
American Roulette, Sic-bo, Blackjack and
Texas Hold em Poker The Poker Club has
five poker tables and four television
monitors to keep players updated with
tournament information whilst a Club
Privee has two gaming rooms. The casino
is connected to the Holiday Inn which is
a 21 storey glass building and has 126
rooms. The casino attracts around 1,000
clients a day but has a 90 per cent local
clientele.
pro curve
The Georgian
Lottery Company
was officially
opened in October
2009 and holds a
10 year exclusive
licence from the
Ministry of Finance
to operate the
National Lottery.
The company helps
promote and pay
for culture and
sports activities via
a 21.5 per cent tax
rate which goes to
the Cultural and
sport ministries.
There are several new hotel developments

in the pipeline opening over the next
couple of years such as the Kempinski
Rustaveli in Tbilisi (2013) and Radisson
Blu Batumi (2011) and Hilton Batumi
(2011). Donald Trump has also recently
signed an agreement with Georgian
President to develop two towers one in
Tbilisi and the other in Batumi which will
involve a casino project.
Projects which also include casinos are:
keMPinski BatuMi which is due
to open in 2012 and will have 250 rooms,
spa, swimming pools, ballroom, night
club, sports and wellness club and casino
complex. The complex will incorporate
hotel and residential. The contract was
signed in 2010.
Park hyatt tBilisi is one of the
biggest projects in Georgia and is being
developed by Loyal Estate LCC, a
subsidiary of the Dutch Loyal Capital
Group. The 127,000sq.m five star
complex will be located on 3.8 hectares
on the embankment of the river Mtkvari
and will consist of two 150m high
buildings. The Park Hyatt Tbilisi will
include around 70 rooms, conference hall,
office tower, spa and pool and it is due to
open in 2014.
Your
Focus
REPORT: MALTA
Malta - in the
headlights
Malta has consistently punched above its weight in the
gaming industry by recognising and exploiting the
opportunities the sector has to offer
MALTA WAS THE FIRST EUROPEAN
country to regulate remote gaming back in
2004. It is also one of a handful of
European countries which runs its landbased gaming sector side-by-side with its
remote gaming industry in a fairly
amicable marriage of convenience. Part
one of this market report will look at the
land-based sector covering the casinos and
the new street gaming market whilst part
two in the next issue will focus on the
remote gaming sector.
Size isnt everything. So they say. And
as the smallest country in Europe, Malta
is proving that these words of wisdom are
possibly quite true particularly in
reference to its overall business, financial
and gaming market.
With a proven remote gambling market
and a small but controlled casino market
the country has just introduced new
regulations to bring VLTs into the street
market which is expected to open up the
industry even further.
Malta is an archipelago made up of
several islands situated in the centre of
the Mediterranean between Europe and
North Africa and just 90 kilometres south
of Sicily. Covering just over 300 sq.m in
land area, it is one of the worlds smallest
and most densely populated countries.
However despite its tiny size fortunately
its cross roads location has given Malta
Your
great strategic importance over the years.

The name Malta is thought to derive from
a Greek world meaning honey and the
Greeks often referred to the island as
honey-sweet or land of honey. Various
powers have ruled the islands until it
gained independence in 1964 and became
a republic in 1974.
The origin of Malta dates back to around
5200BC when people from neighbouring
Sicily decided to cross the narrow waters
and investigate. They settled on the island
primarily in caves and later huts. The
Sicani were the only known tribe to have
inhabited the island at this time and they
grew cereals and raised domestic
livestock.
Around 1200BC the Phoenician traders
and mariners settled in Malta for around
320 years and it is thought this is where
the Maltese language was derived from.
Around 700BC the Ancient Greeks arrived
in Malta especially in the area where
Valletta now stands later followed by
Phoenician traders who would stop on
their trade route.
Arabs later ruled Malta for around two
centuries until the Normans invaded and
during this period Malta became part of
the newly formed Kingdom of Sicily and
the catholic church was re-instated which
continues as the main religion today.
Malta is classed as
an advanced
economy, a title
given to 32 other
countries by the
IMF. Until the 1800s
the country
depended on
cotton, tobacco and
its shipyards for
exports. The
opening of the Suez
Canal in 1869 was
a great boost to the
economy at this
time.
The French took over Malta in the late

1700s although this rule only lasted two
years and the Maltese rebelled and with
the help of the British they were ousted in
1800. The British then occupied the
island for the next 15 years whilst the fate
of the island was decided.
Malta finally asked the British to stay and
this was finally legalised in 1815 when
Malta became a part of the British Empire
as part of the Treaty of Paris and the
island was used primarily as a shipping
way-station and fleet headquarters.
Malta supported the UK through both
world wars and remained in the
Commonwealth. Finally in September
1964 Malta achieved independence and in
1971 the Malta Labour Party won the
Performing at
C
Casinos Everywhere
Focus
REPORT: MALTA
Following a 2.1 per cent contraction in
2009, GDP however grew by 1.6 per cent
in 2010 and 2011 is expected to see a 2.8
per cent rise. Unemployment rate is
around 7 per cent.
Malta is recovering. The banking sector
weathered the storm and is now in a
position to aid recovery whilst the
government is undertaking a support
package for tourism and manufacturing.
The government has recently privatised
some state owned firms in order to join
the EU and has also privatised
telecommunications, postal services,
shipyards and shipbuilding whilst public
transport is due to privatised this year.
Prior to independence Malta was a
Fortress economy and many of the
Maltese worked within the British Forces
or in related industries. Since
independence a sustainable economy has
been found in tourism, industry and
services.
Today tourism is responsible for around
25 per cent of Maltas economy. However
statistics have remained somewhat static.
The peak was some 10 or 12 years ago
when the islands received one million
visitors. Despite a slight drop in 2006 the
number has remained fairly similar.
Today Malta sees around 1.2 million
tourists each year and the infrastructure
has increased dramatically with good
quality hotels. The country also pushes
itself as a medical tourism destination
and in 2007 a number of low cost airlines
started operations to and from the islands
to mainland Europe and this is expected
to see further increases in visitors.
general elections which resulted in the

country declaring its self a republic in
December 1974. The country adopted a
policy of neutrality in 1980 and in 2004
joined the European Union and in 2008
took on the Euro currency.
Malta is classed as an advanced
economy, a title given to 32 other
countries by the IMF. Until the 1800s the
country depended on cotton, tobacco and
its shipyards for exports. The opening of
the Suez Canal in 1869 was a great boost
to the economy at this time.
Towards the end of the 19th century
however, due to less activity at the
shipyards, the economy began to decline
and by the 1940s was considered to be in
serious trouble. However between 2005
Malta only
produces 20 per
cent of its food
needs, has limited
freshwater supplies
and no domestic
energy sources.
The economy is
dependent on
foreign trade,
manufacturing and
tourism and relies
heavily on
neighbouring
countries and
therefore in 2009
the country slipped
into recession.
and 2007 Malta recorded an average GDP

growth rate of 3.7 per cent making it one
of the fastest growing economies in the
European Union.
But its not all a bed or roses. Malta only
produces 20 per cent of its food needs,
has limited freshwater supplies and no
domestic energy sources. The economy is
dependent on foreign trade,
manufacturing and tourism and relies
heavily on neighbouring countries and
therefore in 2009 the country slipped into
recession.
Although its location has proved to be a
huge advantage there is also a downside
in that it is a target for illegal immigrants,
and these have been a drain on Maltas
political and economic resources.
For the last 40 years the islands have had

to rely on the tour operator but the
government has recently adopted a new
policy for tourism and since 2006 the
Malta Tourism Authority has worked on
re-branding looking at seven niche
markets that embrace the attractions of
the islands. In addition in 2008 two five
star hotels opened their doors for the first
time on the island.
The majority of visitors come from the
UK and Italy. In 2010 almost 1.2 million
tourists visited Malta during the first 10
months of year bringing in some 1m, a
record for the period both in terms of
numbers and expenditure.
Only three of the largest islands Malta,
Gozo and Comino are inhabited and are
often described as one big open-air
museum with 7,000 years of history to
tap into. Development plans are however
being discussed for a fourth island,
Manoel Island.

Your
Focus
REPORT: MALTA
The main island of Malta is just 27
kilometres long and 14.5 kilometres at its
widest point and it takes just 45 minutes
to cross the island. The island is rocky
and is mainly made up of limestone and
is known for its good harbours which are
stretched along the numerous bays
indented into the island. The landscape
otherwise is fairly flat and is made up of
low hills and the highest point is Ta
Dmejrek which stands at 253m. There are
no permanent lakes or rivers on Malta
either.
Meanwhile Gozo is known for its
tranquillity and is a green and rural island
with Baroque churches and old stone
farmhouses and prehistoric temples. Gozo
is just 67 sq.km and home to around
25,000 of the 400,000 Maltese inhabitants.
Comino lies between Malta and is a
haven for water activities and walkers.
The islands Blue Lagoon offers safe
bathing in turquoise waters.
Malta is made up of many small towns
which together form one Larger Urban
Zone (LUZ) with a population of around
368,000. There are 68 local councils of
which 54 are in Malta and 14 in Gozo.
the gaMing Market
Despite its size Malta has a very
successful gaming market. During 2009
the total gaming revenue amounted to
43.4m of which 40.5 was paid to the
Maltese government in terms of taxes.
In 2009 there were a total of 10 land
based gaming licenses whilst the number
of remote licenses reached 330. Of these
10, six operate bingo halls whilst four
operate casinos. The six licensed bingo
hall operators are: Deluxe Club in
Bugibba, Embassy Entertainment in
Valetta, Fair Play in Qawra, Fair Play in St
Julians, Main Street in Paola and Preluna
Bingo in Silema.
The bingo sector saw revenues of
642,220 in 2009, a 13 per cent decrease.
Commercial bingo, or tombola as it is
known locally, is very popular in Malta
and is based on the Spanish game of
bingo with number from one to 90 and
prizes in cash for a line, house or
progressive.
The land based and remote gaming
sectors generated over 5,000 direct
employees.
The year 2009 saw 43.4m generated
from the lotteries and gaming sector
from gaming duty, application fees and
licenses fees.
The National lottery amounted to
11.96m by the end of 2009.
Your
The land based casino industry

generated 9.5m by the end of 2009.
The five bingo halls saw total revenues
of 642,220 in 2009.
Prior to 2009 amusement and gaming
machines could be found in most places
dotted around Malta and were accessible
to minors and often operated illegally.
The Maltese street and arcade gaming
Despite its size

Malta has a very
successful gaming
market. During
2009 the total
gaming revenue
amounted to
43.4m of which
40.5 was paid to
the government in
terms of taxes.
sector has been like a bad apple in the

Maltese gaming cart.
Back in 2007 gaming halls began to
spring up like weeds around Malta in a
relatively free-for-all market which lacked
licensing.
The Lotteries and Gaming Authority had
not issued licenses to these operators and
it was reported up to 100 gaming halls
cross-platform
solutions
for your casino
Focus
REPORT: MALTA
which put the whole thing on hold.
Then, finally, two years ago in the
summer of 2009 the police organised a
massive swoop and closed down all the
gaming halls. This essentially shifted
some 30 per cent of business back into
the casinos which at the time complained
heavily about the illegal operation of such
gaming machines.
However, rather than ban the street
gaming machine sector and force it
underground, the LGA then took a good
look at Maltas prolific online gaming
sector to help them draft new regulations
for the gaming industry.
The remote gambling industry has existed
since 2004 in Malta and is renowned
across Europe as having one of the most
regulated industries in Europe which has
become the hallmark of the countrys
success in this industry.
The gaming authority has since issued
two new regulations for the land based
sector which came into force over the last
few months and will tighten up the
gaming hall sector and introduce more
control. With all this in place the Maltese
industry could now expect to earn a
additional 12m in taxes.
The Lotteries and Other Games Act
(LOGA) was approved in December 2009
which saw two amendments:
1. The Amusement Machines Regulation
2011 came into force on March 15 2011
and covers only pure amusement
machines (non-payout).
Licenses are valid for one year but
automatically renewable. All machines
must be CE certified.
Class 1 license is for the suppliers of
amusement machines and applicants
shall pay a one off application fee and
annual license fee.
Class 2 is for the operation of
amusement machines and applicants
shall pay a one off application fee and
annual license fee.
opened up all over the island around this

time. All that was needed was a change
of use permit to convert shops into
gaming parlours. The shops operated
VLTs without paying taxes or indeed
obtaining any form of gaming license.
Traditionally amusement machines were
operated in bars and clubs on a revenueshare basis. In 2005 the LGA began a
public consultation process. But despite
the LGAs power to issue a license with

rigorous conditions the initial applications
were never processed.
In 2007 the Lotteries and Gaming
Authority began a roll out plan which
began with the registration of machines
against a 1,000 fee per machine and
additional 250 fee per machine per
month. But no processing of this actually
happened due to elections at the time
The remote
gambling industry
has existed since
2004 in Malta and
is renowned across
Europe as having
one of the most
regulated industries
which has become
the hallmark of the
countrys success.
delivering the
Amusement machines cannot payout

any prize, reward or benefits of a
monetary value. No soft toys will be
allowed and as such crane machines
are not permitted.
They cannot be located in a Class 3 or
Class 4 gaming hall.
Maximum price to play shall not be
more than 2. Other amusement
machines (pool, kiddie rides etc) shall
not be more than 1.
Your
Focus
REPORT: MALTA
Previously machines were licensed by

the police and these operators had a
two month period from March 15 to
apply for a new license from the LGA.
2. The Gaming Devices Regulations 2011
came into force May 16 2011 to license
and regulate gaming devices. This act
includes the following points:
There are four licenses available which
are valid for one year and must be
approved each year.
Class 1 is for the manufacturer,
assembly and repair or service of
gaming devices. Machines must pay
out on average at least 85 per cent.
Maximum stake is 5 whilst payouts
should not exceed 1,000 whilst
progressive jackpots shall not exceed
2,000.
All gaming devices must be connected
to a central monitoring system operated
by the authority.
They must also provide certain
information to the player such as rules,
warnings, game information, odds of
winning, average winnings, duration of
play etc.
Your
license fees
arcades can only be open from 11am

until 11pm.
License
Application fee
License fee
Registration fee
Class 1
2,000
1,000
80 per machine
Class 2
1,000
1,000
80 per machine
Other*
100
70 per machine
*amusement machines such as billiards, pool, table soccer and kiddie rides
The Lotteries and
Gaming Authority is
a regulatory body
responsible for all
gaming activities in
Malta from
amusement
machines, casinos,
bingo hall, gaming
machines, sports
betting, horse
racing, lottery and
remote gaming. It
is headed by
Chairman Nicholas
Xuereb and four
board members.
Class 2 is for marketing, distribution,

sale or lease of gaming device. These
require a one-off application fee plus
an annual license fee. Licenses are
issued for a one year term.
Class 3 is for the operation of gaming
hall. Again a one off application fee
plus a monthly license fee per gaming
device in each premises plus a monthly
placement tax of either 400 per
gaming device or 20 per cent of the
gross monthly profits (whichever is
higher). Licenses are issued for one
year.
Class 3 gaming premises must be
approved and cannot be within 75m of
various locations such as schools,
places of worship, playgrounds etc and
must be solely gaming arcades. Gaming
Transactions over 2,000 must be

recorded by operators to avoid money
laundering.
Each arcade can site no more than one
gaming device per 2sq.m of area and a
maximum of 10 machines. Each arcade
must be equipped with CCTV on 24/7.
Players over the age of 18 are permitted
and must be registered and self barring
can apply.
Class 3 license holders must take a
bank guarantee for securing payment
of prizes etc and must not be less than
500 x the number of gaming machines
in the approved premises. The
guarantee must remain valid for a
period of one year.
Class 4 license is for the operation of
the central monitoring system and is
valid for one year.
Class 4 licensees must locate all the
equipment in a secure facility and have
total access to the equipment and data.
Fines for anyone contravening the
regulations are from 3,000 up to
taking
t
a
your casino mobile
le
Focus
REPORT: MALTA
235,000 whilst inspectors can examine

machines and venues.
license fees and taxes

License or
authorisation
Application fee
License fee
Placement tax
One time
approval fee.
Class 1
2,000
2,000 per year
Class 2
2,000
2,000 per year
Class 3
500
125 per machine
400 per machine per

month or 20% of GGR
per month per machine
(whichever is higher)
Class 4
2,000
Approval of
gaming devices
175 per
machine
Approval of
premises
500 per premises

per year
2,500 per
premises
The authority was set up in 2001

although official launched in 2004 and
falls under the control of the Ministry of
Finance.
Approval of
employees
25 per
employee
It is the guardian of the Gaming Act of

1998 which controls the casino sector and
The Lotteries and Other Games Act 2001
which governs all other sectors of the
gaming industry. The Lotteries and Other
Games Act 2001 was amended in 2008 by
the European Union Act.
Meanwhile the National Lottery was set

up as a government monopoly in 1934
and was later privatised in 2004. During
the same year Maltco Lotteries Ltd was
given an exclusive license to operate the
National Lottery which is valid for seven
years. Intralot holds a 73 per cent share
whilst the remaining is owned by Maltese
businessmen.
Two directives to support these

regulations have been published The
Locations for Gaming Parlours Directive
and the Gaming Parlours No Objection
Certificate Directive.
Applications were received as from
May 16.
The Lotteries and Gaming Authority is a
regulatory body responsible for all gaming
activities in Malta from amusement
machines, casinos, bingo hall, gaming
machines, sports betting, horse racing,
lottery and remote gaming. It is headed
by Chairman Nicholas Xuereb and four
board members.
The Maltese gaming sector has seen

extraordinary growth of the last few years
most particularly within its remote
gaming sector (part II). However one of
the key successes for the land based
sector is the strong regulatory framework.
Maltco operates several games such as

Super 5 lottery, Lotto, instant lotteries,
U*BET Fixed Odds Betting and
Horseracing, Quick Keno and Bingo 75.
Gaming duty from the lottery amounted
to 11.96m by the end of 2009.

The Maltese
gaming sector has
seen extraordinary
growth of the last
few years most
particularly within
its remote gaming
sector (part II).
However one of the
key successes for
the land based
sector is the strong
regulatory
framework.
the casino industry

There are four land based casinos which
are operated by three companies. The first
casino was opened in Malta in 1964 as
the Dragonara Casino which was
originally owned by the government but
sold to a private operator in 1999 and
then in 2010 a new concession took over
the operation.
The second casino to open was the Oracle
Casino in Bugibba in September 1998
followed by the Casino di Venezia in
Your
Focus
REPORT: MALTA
which can only be granted by the
government. The casino sector saw a total
of 9.5m in revenue in 2009, a five per
cent drop on the previous year attributed
to the financial crisis.
The main points of the Gaming Act 1998
include:
Operating companies must have a
company registered in Malta
Casino licenses are issued for 10 years
and subject to an annual license fee
Citizens of Malta must be over the age
of 25 years to enter a casino. Any other
foreign citizens must by over the age of
18 years.
Any offence against the act is subject
to fines of between 6,000 and
232,000 or up to two years
imprisonment.
Taxation on table games is 36 per cent
of the gross takings
Taxation on gross takings generated by
junkets on table games is 7.5 per cent.
Taxation on slots is 40 per cent of the
gross takings.
Taxation on gross takings generated by
junkets on slots is 12.5 per cent.
In 2008 there was a drop of 9.2 per cent
in revenue for the government from slot
machines in casinos compared to the
previous year. The loss was attributed to
the influx of illegal gaming halls which
began to spring up around the island.
The Tumas Group which operates the
Oracle and Portomaso casinos reported a
gradual but persistent decline in
turnover of its casino business activity
during this period and say their losses
were around 9.2 per cent in 2008.
August 2001. In June 2006 the Portomaso

Casino opened its doors.
The Orcale and Portomaso are owned by
The Tumas Groups casino company
Tomino which currently has around 52
per cent of the casino business via the
two casinos (governed by a single
license); The Dragonara which has 42 per
cent of the market share whilst the Venice
municipality Casino di Venezia in
Vittoriosa has just a six per cent market
share in terms of slots and tables.
In 2006 Tomino increased its dominance

of the market with the Portomoso casino
for which it was granted a special
concession in the form of a split license
(ie: two for one). Meanwhile an
additional change in policy enabled the
casinos to increase their ratio of 10
gaming machines for each gaming table
to 15. This enabled Tomino to spread out
its gaming assets across both casinos.
Although the casinos are licensed by the
LGA, under the Gaming Act 1998, the
license is conditional to a concession
The new gaming

law is expected to
have an affect on
the casino market.
One of the main
issues is the 25
year old age limit
for players in
casinos compared
to the 18 year age
limit for the new
gaming halls.
A spokesman said: The gaming industry

continued to suffer from the unregulated
VLT operations until the latter part of
2009 when concrete action by the
authorities forced these outlets to close
down. Overall there was an improvement
in business over last year, mainly coming
from returned slots business and through
cost cutting.
The new gaming law is expected to have
an affect on the casino market. One of the
main issues is the 25 year old age limit
for players in casinos compared to the 18
year age limit for the new gaming halls.
Yorgen Fenech, CEO of Tumas Gaming
Ltd said: The new street gaming market
has a very particular legislation. We
Your
Focus
REPORT: MALTA
anticipate a slight decrease in slot

machine turnover obviously. Whats
abnormal is that an 18 year old Maltese
national can visit these parlours whereas
they cannot visit local casinos. Foreign
visitors of course have the same 18 year
old age restrictions.
However with the restrictions imposed
on these shops we believe that the casino
industry will hold its position. We are
confident that through our international
campaigns offering immense value to
junket players and the worlds top poker
events we will keep sustaining the huge
growth we have experienced in the past
three years.
dragonara casino
Dragonara is located in a magnificent
1870 Summer Palace which is located on
the edge of the coast at St Julians and
still retains much of its original

architecture and interior design features.
The site was converted into a casino in
1964 and at the time operated table
games only and was run by the Kursaal
Company. When Kursaal gave up its
interest in the 1980s the casino was
operated under a concession from the
Maltese government operated by
Dragonara Casino Ltd and French group
Accor Lucien Barriere.
In May 2009 the government offered the
tender for a new 10 years concession.
There were three bidders the current
operators Dragonara Ltd, Tomino Ltd and
Novomatic Peninsula Consortium (later
called Dragonara Gaming Ltd)
Dragonara Gaming was awarded the
concession with a 12m offer in July 2010
and the company is made up of 60 per
The new street

gaming market has
a very particular
legislation. We
anticipate a slight
decrease in slot
machine turnover
obviously. Whats
abnormal is that an
18 year old Maltese
national can visit
these parlours
whereas they
cannot visit local
casinos. Foreign
visitors of course
have the same 18
year .
Yorgen Fenech,
CEO Tumas
Gaming.
award-winning
Innovation
cent shares held by Pinnacle Gaming

Group and Bianchi Group and 40 per cent
by Austrias Novomatic. Pinnacle was set
up by Johann Schembri, Joseph Vella and
Joseph Scicluna and is a large operator of
the Fairplay gaming halls and has been
active in Malta since the late 1990s. The
Fairplay outlets, (except the bingo halls)
were closed down in August 2009 just a
week before the company submitted its
bid for the Dragonara casino concession.
The casino was quite run down and had
its last renovation in 1999. The new
owners have since refurbished the casino
and it has been restored to its former
glory and today offers 18 tables and 250
slots, the majority of which are AGIs
Novostar SL2 and Super-V+ Gaminator
machines. All machines are equipped
with TITO. In addition there is a Novo
Multi Roulette and Novo Flying Blackjack
Your
Focus
REPORT: MALTA
with two wheels and 28 terminals. The

second phase of the refurbishment will
take place in the Slots Palace area with
the aim of adding more gaming positions,
international poker tournaments and
further entertainment facilities.
Complex, a four star resort in Malta. The

resort has 380 guest rooms, eight superior
rooms and 23 newly built suites. There
are 184 slot machines and eight gaming
tables, the casino is famous for its 1c slot.
There is also a 10 player Organic Roulette
machine.
PortoMaso casino
This casino was opened in June 2006
with a grand gala night located in the
elegant marina development of Portomaso
in the district of St Julians on the north
eastern coast. The casino has a five star
Hilton Hotel adjacent which provides
guests with 406 hotel rooms, 420 luxury
apartments, a yacht marina, conference
centre, 23 storey business tower and bars
and restaurants. The casino is situated on
1,100 sq.m area and offers 140 slots, 90
poker tables and 14 gaming tables. The
yearly attendance is around 200,000.
Both the Oracle Casino and Portomaso
are owned by Tumas Gaming Ltd
(subsidiary of Tumas Group). Tumas
Group was founded in the late 1960s and
has interests in real estate, retail,
hospitality and leisure and property
development. In the 1980s the group
introduced the concept of Timeshare to
Malta and later Cyprus.
Tumas Developments is responsible for
the Portomaso Marina development and it
is their flagship project. The companys
Your
casino di venezia
This casino was opened in August 2001
and is located in the Captains Palace
situated along the Vittoriosa Waterfront
facing the harbour. The casino is based
on the Grand Canale of Venice with
decorative chandeliers and vintage
tapestries. It was at the forefront of
technology and in 2006 it launched an
online portal enabling customers to play
directly with the croupiers at the casino in
real time over the web.
The casino is
privately owned
and managed by
Vittoriosa Gaming
Ltd which is 60 per
cent owed by
Betlive and 40 per
cent by the Casino
Municipale di
Venezia.
group turnover reached 91.63 in 2008

the companys highest ever revenue level.
The hospitality and leisure sector
represented 62.2 per cent of this.
oracle casino
The Oracle is located on the shores of the
northern coast of the Mediterranean in St
Pauls Bay. The casino was opened in
1998 and forms part of the Dolmen Resort
The ground floor of the casino is

dedicated to poker and the first floor
offers traditional table games. Four other
first floor rooms house 100 slots in total.
There is no hotel attached but the casino
is partnered with four or five nearby
hotels and offers a shuttle service.
The casino is privately owned and
managed by Vittoriosa Gaming Ltd which
is 60 per cent owed by Betlive and 40 per
cent by the Casino Municipale di Venezia.
CEO Fernando Orlandi is one of the
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Analysis
MALTA - PART II
the Maltese
squeeze
Maltas position as the choice destination for online gaming
licensing is curently under threat across the EU as member
countries seek to restrict and licence their own markets
During the 1990s, prior to Maltas entry
into the EU, the country was, to all
intents and purposes, an offshore
jurisdiction which relied primarily on
tourism to fuel its economy.
ticks all the boxes when it comes to a

prime destination for setting up and
running a business and has become home
to 250 remote gaming companies holding
over 350 licenses.
And although Maltas traditional

reputation as a holiday destination still
continues, since the country joined the
European Union in 2004 and adopted the
Euro in 2008 it has managed to turn itself
into a highly attractive investment
location.
The countrys online gaming revenues

reached 19m in 2009, an increase of 53.3
per cent from the previous year. The
sector employs some 5,200 people who
are estimated to contribute some 10 per
cent of the internet gambling industry
globally.
It has become known as a region of IT

and financial services and together with
legislative systems which have been
implemented over the last 15 or so years,
the country has managed to create a very
solid and steady business structure.
It is currently the most popular

jurisdiction for remote gaming operators
to base their business and provide their
services across Europe. This is mainly due
to the fact it has always had a solid and
serious regulatory regime in place which
is relatively free from crime and money
laundering.
It has established itself as one of the most

attractive and reputable business centres
in Europe and is today white listed by the
Organisation for Economic Co-operation &
Development.
Meanwhile Malta has embraced the
online gaming revolution openly and
today hundreds of licensed operators and
service providers now base themselves on
this small island thanks to the tight
regulations and stringent supervision on
offer.
One of the key factors in luring business

to the island is its legal tax and general
infrastructural advantages. Malta offers
various levels of tax refunds on
dividends, coupled with a network of
double taxation treaties with over 40
countries. There are also reduced tax
liabilities for shareholders whilst no
Maltese withholding tax is applied on the
distribution of dividends to shareholders
of Maltese companies.
Within the remote gaming sector Malta
Companies incorporated in Malta and
Your
Companies
incorporated in
Malta and
considered resident
only pay a flat rate
taxation of 35 per
cent on their
worldwide income.
However
shareholders of
Malta registered
companies are
entitled to benefits
from a tax refund
when the profits are
distributed by way of
dividend amounting
to 6/7ths of the tax
paid by the
company.
considered resident only pay a flat rate

taxation of 35 per cent on their
worldwide income. However shareholders
of Malta registered companies are entitled
to benefits from a tax refund when the
profits are distributed by way of dividend
amounting to 6/7ths of the tax paid by
the company. For shareholders, nonresident in Malta, for tax purposes this
means the effective rate of tax is five per
cent on profit.
Meanwhile Malta does not impose any
withholding tax upon distributions on
outbound dividends to shareholders who
are resident in other jurisdictions. In
addition the country offers an educated
and English speaking workforce, an
impressive banking sector and Central
European Time zone.
Performing at
C
Casinos Everywhere
Analysis
MALTA - PART II
the authority branched out into its own
offices and recruited new staff and began
to revise the gaming regulations.
In April 2004 the Remote Gaming
Regulations came into force under the
Lotteries and Other Games Act making
Malta the first EU member state to
regulate remote gaming.
The idea behind the regulations was to
remain both technology neutral and
game neutral therefore encompassing all
types of games using distance
communication (such as internet, digital
TV, mobile phone) and any remote game
that can be managed under the LGA
regulations will be considered.
Since 2004 more than 600 remote gaming
applications have been processed in
Malta. There are currently 330 remote
gaming licenses issued to some 250
operators, with some of the largest
operators located here. A further 120
applications are currently in the licensing
process.
In 2004 Malta joined the European Union
which gave licensees the benefit of being
located in and regulated by a jurisdiction
which formed part of the largest single
market in the world.
In 2005 the Malta Remote Gaming
Council (MRGC) was formed by the LGA
to act as a forum between the LGA and
the operators and is made up of
stakeholders in the industry. The councils
aim is to serve as an ongoing discussion
forum giving feedback to the LGA
In 2007 Maltas strong regulatory regime
qualified the country for the UKs white
list jurisdictions from which online
gaming companies could advertise their
services in the UK market. As a result
some 20 companies moved their remote
gaming operations to Malta
reMote gaMBling
Remote gaming was introduced in Malta
back in the year 2000 and was covered by
the law The Operation of Betting Offices
Regulations 2000 under the Department
of Public Lotto Act. At the time these
offered regulations for offshore betting
offices and only betting was licensed with
a 0.5 per cent tax incentive. The
regulations attracted around 60
companies between 2000 and 2004
although only 42 operated successfully.
In 2002 the Department of Public Lotto
Act was replaced by the Lotteries and
Other Games Act but the regulations did
not reflect the needs of a changing
market.
Meanwhile offshore betting was hit by the
The remote gaming

sector is comprised
of two very distinct
sections online
casinos and sports
betting. In the field
of sports betting
Malta has drawn
some of the major
European names
although it is
thought the online
casino sector offers
the biggest
opportunities.
0% betting tax in the UK and 16

operators closed down their offices in
Malta. Betting suddenly took a side step
and illegal street gaming suddenly
became the hot topic in Malta.
In 2003 talks began to create new
regulations for the remote gaming
industry and in the summer these were
presented as a draft to the public. A
Public Consultation was held in
November which proved to be quite
negative due to the response and the
authority had to go back to the drawing
board.
Meanwhile the Lotteries and Gaming
Authority, which had been set up in 2001,
had until 2004 operated from the DPL
offices and employed their staff. In 2004
pro curve
laws and legislation

The remote gaming sector is comprised of
two very distinct sections online casinos
and sports betting. In the field of sports
betting Malta has drawn some of the
major European names although it is
thought the online casino sector offers the
biggest opportunities.
The sector is governed under the Remote
Gaming Regulations of 2004 and the
regulations divide the area into four
classes and include the following points:
To qualify for a license the applicant
must be a body corporate established
in Malta in terms of the Companies
Act.
All licensees must pay a one off
Your
Analysis
MALTA - PART II
application fee and licenses are granted
for a five year period which is renewable.
The application fee is 2,330 for all class
of remote gaming licences, followed by
8,500 annual license fee for all classes
once the license is granted. A renewal fee
for each license is then 1,500 for all
classes. See chart below.
A licensee shall appoint at least one
key official who personally supervises
the operations of the licensee and
ensure that the laws and regulations
are applied to.
The license of a key official can be
cancelled by the authority if they cease
to be resident in Malta, cease to be a
director of the licensee and cease to be
a fit and proper person.
There are four licenses available:
1. Class 1 Remote Gaming License shall
be a remote gaming licence which
covers casino type games, skill games
and online lotteries.
be remote betting office licence or an
online betting exchange office licence.
This covers sports betting, pool betting
and spread betting.
be a license to promote and, or abet
remote gaming from Malta. This covers
P2P, poker networks, betting exchanges
and games portals.
be a license to host and manage
remote gaming operators, excluding the
licensee himself. This is intended for
software vendors who want to provide
hosting and management facilities on
their platform.
All remote gaming shall be conducted
under the control system which has
been approved by the authority.
The licensee, in respect of a new
gaming system, shall provide adequate
certification to show the gaming system
has been found within the previous six
months to comply with all the
technical standards.
Players must be registered and hold an
account with the licensee and prove
their age, identity and place of
residence and valid email address.
The licensee shall establish and
maintain the players account and
wagers can only be accepted by credit
or debit cards, electronic transfer, wire
transfer or cheques or other methods
approved by the authority.
Your
cross-platform
solutions
for your casino
Analysis
MALTA - PART II
No payments in excess of 2,329.37
shall be made until players identity
has been verified.
Players funds must be kept separately
from the licensees own funds.
The licensee should display at all times
gambling addiction warnings and
associated links. Registered players can
set limit on amount of wagers within a
specified time, limit on losses or limit
on time or self exclude for a definite or
indefinite period of time.
Full screen games cannot be offered
unless a real time clock is displayed on
the screen at all time and players are
given the facility to exit the game.
A licensee shall pay the following
taxes: a fixed amount per month in
case of online gaming, the total
amount of bets made in case of online
betting and aggregate winning bets in
case of betting exchanges. See chart
below for figures. In all cases the total
maximum of tax payable per year by
one licensee shall not exceed 466,000.
When applying for

a license the
applicant must
present the
software used and
specification of the
control system to
the LGA. The
operational manual
must include all
details such as
game description,
software reporting
requirements, a list
of terms and
conditions and
rules of the games.
The LGA also needs
procedures for
maintenance and
security and
storage plus
procedures for
accounting systems
and how prizes are
paid.
There are three stages:
One of the main specifications covers

player protection and the LGA maintains
an open channel of communication with
the players. Maltese registered casinos
and poker rooms are allowed to display
the eCOGRA Play it Safe seal.
Malta had of course set itself up as a

jurisdiction for these gaming companies
to use as a base to access the rest of
Europe. The countrys economy would
lose significantly if the gambling markets
were to close. Of course the whole idea
behind the online gaming Green Paper is
to unify laws across Europe is something
which the Maltese back wholeheartedly.
stage one: Proper Test and Business

Adequacy. This is where the LGA will
look at the applicant and any stake
holders with five per cent or more interest
and carry out a financial analysis of the
business plan. An application fee of
4,600 is required together with an
application form, personal declaration
form followed by a preliminary meeting
with the LGA.
stage three: Compliance Audit. The

applicant can use the LOI for six months
and during this time they are expected to
start operating and a formal license is
issued when the LGA obtains approval
from the compliance certification entity.
Once the license is issued this will last for
five years.
Before a new gaming system is

operational a licensee must confirm that
the gaming system complies with all the
technical specifications within the
previous six months.
oPerators oPinions
One problem which hovers over Maltas
head is the fear of all your eggs in one
basket syndrome. When the ECJ stated
in 2009 (in a case brought by Austrian
gaming company BWIN against Portugals
state owned Santa Casa de Misericordia)
that EU member states should ban
gambling websites within their territories,
it provoked a huge reaction.
Applicants can apply for one or more

types of license and licensees are
expected to operate in compliance to the
LOGA and adhere to anti money
laundering and electronic commerce
legislation.
stage two: Business and Technical

Ability Assessment. This stage involves
registering a Maltese company, providing
a list of games and rules and regulations
and details of the system, plus taking on
a data centre with agreements on server
hosting etc. If the applicant is successful
they will receive a Letter of Intent (LOI)
and they then have six months to
complete the establishment of
infrastructure and operations.
When applying for a license the applicant

must present the software used and
specification of the control system to the
LGA. The operational manual must
include all details such as game
description, software reporting
requirements, a list of terms and
conditions and rules of the games. The
LGA also needs procedures for
maintenance and security and storage
plus procedures for accounting systems
and how prizes are paid.
One problem which

hovers over Maltas
head is the fear of
all your eggs in
one basket
syndrome. When
the ECJ stated in
2009 (in a case
brought by Austrian
gaming company
BWIN against
Portugals state
owned Santa Casa
de Misericordia)
that EU member
states should ban
gambling websites
within their
territories, it
provoked a huge
reaction.
But Malta has to date proved an ideal

location for software developers and there
are some 25 companies which hold a
Class 4 license. These include Chartwell
Games, Net Entertainment and
Microgaming.
International connectivity is of course
vital to the remote gaming industry and
today Go, Vodafone and Melita, operators
of the submarine fibre optic cables, say 50
per cent of their broadband capacity is for
the e-gaming industry either directly or
indirectly.
Some suggest that in the future the
adoption of international security, testing
and other standards should be
incorporated into the regulations so
accredited operators are recognised for
their internal systems that meet these
relevant international standards.

Your
Analysis
MALTA - PART II
There have also been suggestions to

slightly adapt the regulations to cater for
live gaming and also in relation to
intermediaries and B2B situations.
However it seems the regulators are
flexible enough to cope with these
changes.
Meanwhile a ruling in the European Court
of Justice last year against gaming
monopolies in Germany has been seen as
a major step forward for Malta as the
decision will open the doors for firms
operating in Malta to penetrate this
market. The ruling particularly benefits
those German companies based in Malta
currently who cannot service German
clients.
Betfair
Betfair is one of the biggest online betting
companies which pioneered the first
successful betting exchange in 2000. The
company now processes over five million
transactions a day from three million
registered customers worldwide. Betfair
offers sports betting, casino games,
exchange games, arcade and poker. The
company saw total revenues in 2010 of
340.9m, a growth of 13 per cent
We came to Malta in 2005 and obtained
Your
A ruling in the
European Court of
Justice last year
against gaming
monopolies in
Germany has been
seen as a major
step forward for
Malta as the
decision will open
the doors for firms
operating in Malta
to penetrate this
market. The ruling
particularly benefits
those German
companies based
in Malta currently
who cannot service
German clients.
our first license that same year. We were

looking at several jurisdictions but what
tipped the scales in favour of Malta is
their legal framework, which continues to
enhance Maltas reputation as a
jurisdiction to be trusted by both players
and operators alike. Strong, but pragmatic
regulation has become a hallmark of
Maltas success as a leading European
remote gaming jurisdiction.
Further to this, we believe Malta offers
the remote gaming industry a package
that few other jurisdictions can match on
account of having a stable economic and
political environment; excellent language
skills, a productive labour force; an
attractive incentives package; as well as
excellent legislative and regulatory
frameworks. An objective analysis of
Maltas position as a remote gaming hub
immediately reveals compelling reasons
as to why Malta was, and continues to
be, attractive to online gambling operators
and platforms.
The sector has grown considerably over
the last few years and we believe this is
because of Maltas pro-business approach.
Theres a supportive regulatory
environment that we believe is essential
for achieving growth. In fact, regulations
in many countries restrict or prohibit

some or all forms of gaming. The
challenge facing the LGA is to continue
crafting policies that protect customers,
while enabling the growth of the sector.
This has been possible so far as a result
of the knowledgeable staff employed
there, and a clear steer to protect three
fundamental principles the protection of
players, the prevention of crime and the
proper operation of games.
Malta was the first EU Member State to
regulate online gaming in a specific and
direct manner. Malta set the stage that
serves as an example of how other
member states can effectively regulate
gambling, especially for those looking at
licensing the remote sector. We believe
member states could learn from Maltas
experience and we hope to see them
enter into bilateral or multilateral
agreements with Malta. This would
ensure they understand the requirements
of all players involved in the sector and
help them establish a regime that would
not deter online gaming companies
established in Malta, or other reputable
jurisdictions from obtaining a license in
their own country.Roger Parkes, Betfairs
Head of Regulatory Compliance
taking
t
a
your casino mobile
le
Analysis
MALTA - PART II
Malta: Vital Statistics
kyte consultants
Kyte Consultants was set up in 2006 by
former Deloitte consultants, Alan Alden
and Trevor Axiak, to provide Information
and Communications Technology related
risk management services. The company
is accredited by the LGA and is also the
only validated Qualified Security Assessor
Company in Malta.
Although the market has continued to
grow, the rate of growth has slowed
greatly. We are also seeing a consolidation
of operators as the number of competitors
is growing at a faster rate than the
available markets. We are also seeing
more B2B activity as operators previously
focused in specific areas of gambling seek
to enter new areas. Mobile gambling is
also growing in popularity and more and
more operators are offering mobile
solutions. Whilst business may have
slowed down in the growth of the
number of licensees, these other areas of
activity are more than compensating for
the decrease in the licensing part of the
business.
We like to think that Malta has a future
and that the main regulations of other
jurisdictions are based on the ground
breaking Maltese remote gaming
regulations which are now seven years

old. We have only made minor changes
to the regulations and they still hold their
ground in any fair court of law and at
European level. No jurisdiction can say
that their laws are better than the Maltese
ones in the key areas of online gambling.
The Green Paper has been published and
is being discussed and will continue to be
discussed. We do not know what will
happen after that I do not like to
speculate. Many operators and service
providers like ourselves are hoping that
the EU understands that the French and
Italian models have not changed anything
other than the fact that the governments
are now calling the operators legal just
because they are collecting taxes. They
are no longer concerned about
responsible gambling, fraud, public
security etc which were the reasons used
to justify their licensing of operators to
allow them to operate in their countries.
The general opinion is that the situation
being created by these separate licensing
systems is not sustainable and will
collapse.
A ruling in the
European Court of
Justice last year
against gaming
monopolies in
Germany has been
seen as a major
step forward for
Malta as the
decision will open
the doors for firms
operating in Malta
to penetrate this
market. The ruling
particularly benefits
those German
companies based
in Malta currently
who cannot service
German clients.
We must not forget another important

stakeholder in the whole debate, the
player. Why should a French poker player
delivering the
Capital: Valletta
Population: 408,000
Land Area: 316 sq.m
Median age: 40 years
Languages: Maltese (official) 90%,
English (official) 6%, multilingual 3%,
other.
Currency: Euro
Government: Republic
Chief of State: President George Abela
(since 2009)
Head of Government:
Prime Minister Lawrence Gonzi (since
2004)
Elections: President elected by a
resolution of the House of
Representatives for a five year term.
Next election 2014. Leader of majority
party usually appointed Prime Minsiter
for five year.
only play against French or an Italian
against Italians? Where is the fun in that?
Malta invented the regulation of online
gambling and became a victim of its
foresight and success. Therefore in my
opinion Malta will continue to be a major
player in the remote gaming industry
even in the foreseeable future as the
solutions being proposed although
temporarily benefit the member states as
they will rake in more taxes, will
eventually collapse. The operators and
players will not be able to work in a
common market where 27 separate
licenses are required. It just doesnt make
business sense.
Alan Alden, Director,
Kyte Communications and General
Secretary of MRGC.
Your
Index
SUBSCRIPTIONS
APEX Gaming Technology
67
www.apex-gaming.com
G3 iGaming Review - European Regulated Markets

Gaming Publishing launched its inaugural iGaming Review in September 2011.
A guide for both established land-based operators with an online offer, and
companies looking to start up new online gaming enterprises for the first time. The
G3 iGaming Review covers certification, licensing and technical requirements for
operators and game developers for the following countries: UK, France, Italy,
Denmark, Estonia, Belgium, Spain, Greece, Germany and Holland. Distributed to the
G3 database, the iGaming Review is also available online at www.G3imagazine.com
and on the G3i App for iPad and iPhone.
Austrian Gaming Industries
19
www.austrian-gaming.com
Bally Technologies
IFC, 5, 11, 17, 18, OBC
www.bally-tech.com
IBC
DRGT
www.drgt.com
Suzo Happ
IBC
www.suzo.com
DOWNLOONAED
TO IPAD, IPH
OR IPOD TOUCH
TCSJohnHuxley
83
www.tcsjohnhuxley.com
Readership
G3i App - iPad,

iPhone and iPod
Gaming Publishing
launched its G3i App in
August 2011. The first to
launch a magazine App,
the response has been
overwhelming, as the
App now provides readers with instant access to
their favourite gaming magazine wherever and
whenever they want. The App is available as a
free download from the Apple App Store, with
users able to view the latest issues of the
magazine at their convenience on their device of
choice. Download your copies today.
Combined monthy readership: 21,400

Circulation by country
www.G3imagazine.com
The G3imagazine.com website launched in 2008 and
is an invaluable resource for gaming industry
executives hungry for news, market reports, product
and exhibition information and the latest digital
copies of G3, G3i, the Annual Market Report,
iGaming Review and more.
G3 Market Review - European Gaming Statistics

Gaming Publishing produces its G3 Market Review in January each year. A
combination of our market reports from the year with the latest, up-to-date statistics
regarding casinos, slot halls, bingo,
arcades and betting
sites across Europe. Including

A

A in-depth market
20 different countries and further
analysis, the G3 Market Review

has become an essential guide to the European gaming
market,
while
in
recent

years

gaming reports covering South

we have expanded our reach to include continental

America, South East Asia and Africa. To view the
latest reports visit

www.G3imagazine.com.

Subscriptions
Advertising
John Slattery
T: +44(0)7917 166471
Email: john@gamingpublishing.co.uk
James Slattery
T: +44(0)7917 166471
Email: james@gamingpublishing.co.uk
Jennifer Pek
T: +44(0)161 7248716
Email: jennifer@gamingpublishing.co.uk

Editorial
Lewis Pek
T: +44(0)1942 879291
Email: lewis@gamingpublishing.co.uk

Karen Southall
T: +44(0)1942 879291
Email: karensouthall
@gmail.com
X125
X10
X35
X53
X73
X25
X11
X48
X25
X51
X17
X89
X45
X135
X20
X345
X15
X55
X98
X72
X212

by
job

Austria
Azerbaijan
Belarus
Belgium
Bulgaria
China
Cambodia
Croatia
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Georgia
Germany
Gibraltar
Greece
Hungary
Ireland
Italy
Readership
title
X45
X23
X11
X21
X 7
X234
X44
X32
X210
X50
X55
X217
X25
X35
X92
X275
X72
X58
X45
X955
X115

CEO/ Managing Director - 25%
10
Macedonia
Malta
Moldova
Monaco
Nepal
Netherlands
Norway
Philippines
Poland
Portugal
Romania
Russia
Singapore
Slovakia
Slovenia
Spain
Sweden
Switzerland
Turkey
UK
Ukraine
25
Marketing/Sales Director - 14%

Media Communications - 2%
Administrative - 3%
12
3
14
13
5
32
Chief Financial Officer - 8%

Logistics/Supply Chain - 5%
Purchasing Director/Agent - 13%
Human Resources - 3%
Chief Technical Officer - 12%
Technical Director - 10%
Chief Operating Officer - 5%
Readership by region
R
8
Europe - 75%
Asia - 12%
South America - 8%
US and rest of the world - 5%
12
75
Disclaimer: All contents Gaming Publishing Limited 2012.

No part of this publication may be reproduced in any form
without the express permission of the publisher. While we
make every effort to ensure that everything we print in Global,
Games and Gaming (G3) is factually correct, we cannot be
held responsible if factual errors occur. Advertisements are
accepted by us in good faith as correct at the time of going to
press.
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THE BUSINESS FOR GAMES

GLOBAL GAMES AND GAMING MAGAZINE I SPECIAL ISSUE

DIVIDE AND GAMBLE - THE CYPRUS MARKET - Page 34

euroPean Market statistics

A TOWERING SUCCESS - ITALIAN VLTS - Page 44

the Malteeze squeeze

Maltas land-based gaming industry

The online gaming industry in Malta

GEORGIA ON MY GRIND - THE FASCINATING GEORGIAN MARKET - Page 68

the industry's first curved LCD display

SELF-IMPOSED STATE OF EMERGENCY - Page 52

EPIC GREEK STRUGGLE - GREECE UPDATE - Page 60

The G3 annual Market Review is the

Some of this legislation makes sense,

We begin compiling the Annual Review

To help unravel exactly whats

Many of the markets we

The central idea driving this review is to

Karen Southall Market Review - Editor, Email: karensouthall@gmail.com

eight decades at the

Today, players are becoming more and

Bally naMes new euroPe

knowledge of the European marketplace

Field service operations and customerrelationship services are also supervised

Michael Jackson 2012

Most recently, Stelios served as Sales

Ballys VLT games for Italy are presented

world-class brands that entertain

an unprecedented 15 bonuses at any bet

Like Ballys landbased games, its

BALL game to a new level on the Pro

new compelling content for pro series cabinets

Ballys Elite Bonusing Suite (EBS), when

Dynamic bonusing at the point-of-play

British Columbia Lottery Corporation,

Last year the

Bally interactive takes

Division is getting ready to create the

is the one you want

cutting-edge play mechanics keep players engaged

the industry's first curved LCD display

new compelling content for pro series cabinets

is the one you want

Approx 50 (private clubs)

world-class brands that entertain

Dynamic bonusing at the point-of-play

24 licenced (22 by December 2011)

cutting-edge play mechanics keep players engaged

new compelling content for pro series cabinets

the industry's first curved LCD display

39 (plus 4 gaming rooms)

19 (7 A casinos and 12 B casinos)

is the one you want

world-class brands that entertain

third of the island; the UN controlled

Dynamic bonusing at the point-of-play

the casino Market

betting only plus small arcades with

In 2010 the number

back feel with beautiful sandy bays,

and betting premises in a bid to

In 2007 there were a total of 130 hotel

There are five