Spanish tender for online gaming license - main requirements and TrustPartners support - october 2011

TrustPartnersConfidentialOnline gaming market in Spain:possible business opportunities2011, October

ConfidentialOBJECTIVEDocument purpose is to describe market opportunities, for a foreign Company, to enter in the Spanish market, though: • An overview of the main characteristics of the on going Spanish tender, in terms of administrative, financial and corporate qualifications to grant the distribution license and operate in the online national gaming market • A possible support that TrustPartners may offer to our Clients during (and after) the tender license process 2 TrustPartners

ConfidentialAGENDA  How to enter in the online Spanish market  Possible TrustPartners support  Next steps 3 TrustPartners

ConfidentialTENDER FOR NEW ONLINE LICENSES IN SPAIN Description • Spanish online gaming market will be legalized in the following months Market scenario • First licenses will be available since January 2012, even with the General government elections stated in November • Tender key elements can be classified in the three following areas: New tender requirements Characteristics of the • All the components that characterize the tender tender • Required qualifications focused on Corporate and administrative, corporate and financial item to financial requirements comply with Technical and other • Requested qualifications focused on IT and requirements procedural items to comply 4 TrustPartners

ConfidentialTENDER FOR NEW ONLINE LICENSES IN SPAIN: CHARACTERISTICS OF THE TENDER Description • Deadline for the participation will be next 14th of November 2011 and length time of Basic information concession will be 10 years • Licenses will allow Concessionaires to distribute a list of selected online games: sports and horse betting, exchange betting, poker and card games (black jack and baccarat), social games, bingo and roulette) divided in two main groups: general license (for betting, other games and competition) and singular license (in which is exploded any general license into different products) • Application period will be open for a limited time (between 20 and 30 days): once the period is ended, companies that have not participated will remain out of the market until a new public tender is opened (in principle within 18 months) • There are no costs for the License; on the other side Operators must provide a consistent Economics bank guarantee, in line with the single product license application • Applicant Companies must provide a sufficient guarantee, dependent on the specific Deposit / Guarantee general and singular license interested • For general licenses, is required a 2mln guarantee for the first year and at least 1mln€ for the following years • For singular licenses, the total amount of guarantee is calculated as a % on the last year’s gross revenues and is diversified per each product (this percentage differs from 1,5% for sports betting, to 6,5/7,5% for exchange betting and to 8% for poker and casino) 5 TrustPartners

ConfidentialTENDER FOR NEW ONLINE LICENSES IN SPAIN: CORPORATE AND FINANCIALREQUIREMENTS Description • Participants must (at the same time): Main qualifications • Be located in Spain or in any other country of the European Economic Area • Be organized as a ‘Spanish Sociedad Anónima’ (or the equivalent in other EEA states) • Have a minimum share capital of at least 100.000€ fully paid up (this may be reduced to € 60,000 in case of companies applying for competitions general licenses) • Be focused exclusively in the organization, marketing and operation of gaming activities • Furthermore their financial standings must be proved by (one of the following): • Appropriate declarations or statements made by financial institutions in order to assure the solvency • Annual Accounts submitted in the Companies House • Declaration about the global turnover volume obtained in the last three years • Statement issued by the Spanish Tax Agency accrediting the compliance with the tax obligations 6 TrustPartners

ConfidentialTENDER FOR NEW ONLINE LICENSES IN SPAIN: TECHNICAL AND OTHERREQUIREMENTS Description • Participants must demonstrate their technical expertise and solvency through: Main qualifications • Declaration or statement indicating the technical staff structure whether if they are integrated or not in the applicant company • Academic/professional qualifications of the Directors/Managers • Declaration/statement describing the details of the technical systems and its supporting documentation • Facilities and means used by the company in order to ensure quality and safety • Application must also contains a technical project that details: • the fundamental aspects of the system for the development of gaming activities • the components of the Central Gaming Unit and the internal control system • Gaming system has to be submitted, approved/certified by National gambling authority • Applicants have to include: • The Operational Plan in which is taken into account the principle of responsible gaming, training of employees, distribution channel used • A request for the authorization to carry out advertising, sponsorship and any other promotional activities that will be previously analyzed by a public commission • The implementation process to avoid fraudulent and money-laundering activities 7 TrustPartners

ConfidentialSPANISH TENDER: TRUSTPARTNERS POSSIBLE SUPPORT Area Activities 1 • Analysis of the tender requirements (in terms of Tender/Concession administrative, economical and technical qualifications), requirements analysis for the Spanish market; evaluation of any possible entry strategy for our Client 2 • Market analysis, for the Spanish tender, in order to get a Market and product wide know-how about products value and technical analysis features and identify the most interesting product niches where to focus the license request (general or specificTrustPartners possibleTrustPartners possible games license) support support 3 • Support our Client, during all the certification Tender/Concession processes needed for the online license and set up of the documentation set up technical and formal documentation for the Spanish tender 4 • Introduction our Client to the main Spanish Communication with stakeholders, for online gaming activities (Public relevant Stakeholders institution, Media, eventual other Partners, etc), and operative support to manage communication/ relationships with them 9 TrustPartners

ConfidentialNEXT STEPS • Evaluation of the entry opportunities in the Spanish online gaming market • Identification of the most effective entry opportunities and strategies in the Spanish online gaming market • Definition of the potential entry road map and related high priority activities to be launched 11 TrustPartners

Spanish tender for online gaming license - main requirements and TrustPartners support - october 2011

by TrustPartners on Oct 21, 2011

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Spanish tender for online gaming license - main requirements and TrustPartners support - october 2011 — Presentation Transcript