2. 2 TrustPartners
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OBJECTIVE
The objective of today’s meeting is to:
• share sports betting business system and key elements
• discuss the evolution of the sports betting market in Italy
• study the betting exchange sector in Italy
• indentify the possible approach for the implementation in Italy of the betting exchange
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IMPORTANT REGULATORY CHANGES IN THE ITALIAN MARKET
Extended Event Offering
Virtual Events
Regulatory changesRegulatory changes
• The virtual Event betting is offered as a game of pure
randomness offered in the initial phase only for fixed odds
• The events can belong both to sports and racing (horses,
dogs)
• With the Extended Event Offering the concessionaire has
the possibility to integrate the event schedule of the AAMS
obtaining a customized and differentiating offer
• The events offered are those corresponding to the forms of
wagering already admitted by AAMS
• The concessionaire must declare and certify for each event
which are the sources of information on the basis of official
certification
• The betting exchange is the most waited and feared new
functionality of the decree
• It does not constitute an improvement of the existing product
as is the case of the Extended Event offering or a
complementary product as is the case of virtual betting, but
is instead a complete new product
Area Activities
Betting Exchange
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VIRTUAL EVENTS – KEY ELEMENTS
Decree ElementsDecree Elements
DescriptionDescription
Description
•The virtual betting events are carried out on a computer-simulated outcome, which is
determined randomly and displayed with animated graphics or by means of a real event
previously recorded. Can be defined as the visual representation of the outcome of the
extraction of a pseudo-random numbers.
•The random number generator is held by Sogei, where the authorized platforms can obtain it
and represent
•Possible sports are, as an example, football matches and car, horse and dog racing. The
platform creates schedules for concessionaires every day, which may be shared or dedicated.
•Dedicated to the concessionaires of fixed-odds betting and pari-mutuel, with remote
participation and not
•At the beginning only fixed odds, later also pari-mutuel
•Minimum amount of the bet 0.50 euro but minimum amount of the bet ticket 1 Euro.
•Admitted bets: single, plural and multiple
•Pilot phase required
• The time availability is not H24, is the same as the real bet
•It is permitted to share events among concessionaires
•The program contains no more than 500 events per day
•Max Win 10.000 €
•Quote can not be changed
•The Pay Out for the customer has to be between 80% and 90%
•Taxation set to 20% of the margin
PlatformPlatform
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EXTENDED EVENT OFFERING – KEY ELEMENTS
Betting OfferBetting Offer
DescriptionDescription
Description
•With the extended event offering, the concessionaire has the ability to integrate the schedule
of the AAMS thus obtaining a customized offering. The betting typologies offered are those
corresponding to the forms of wagering already admitted by AAMS. It will be possible to
make multiple bets with AAMS and other/extended/complementary events schedule.
•Sogei/AAMS has to provide detailed instructions during the month of June and at the same
time open up the test environment to allow concessionaires to test communications.
•Sogei/AAMS plans to start accepting applications for authorization at the beginning of
football league; then the launch will happen later, presumably at the end of year.
•The introduction of complementary programming has long been claimed by concessionaires
to counter the best offer of the physical sites and foreigner dotcom. Providing a general
improvement of the appeal of the betting offer
•It should have a biggest impact on in-play business. It should be noted that the sustained
growth in the live game in Italy is very low compared to the levels prevailing in the dotcom
• In Italy, the turnover for the operators in 2012 was EUR 500 million against a total GGT of
€ 3.9 billion of Euro, of which about 1.2 billion of Euro on the online channel. In the event
that the offer has a great impact on in-play game, it is foreseeable a considerable increase of
the sports betting revenues for the online channel equivalent to 20 -25 million euro.
PlatformPlatform
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BETTING EXCHANGE – KEY ELEMENTS
Betting OfferBetting Offer
DescriptionDescription
Description
•The concessionaire makes available the schedule, on which the player can declare a
willingness to share and laying, indicating maximum amount banked. Then, another player
can bet on that entry and market coverage up to the amount made available by the player who
banked. Subsequently to the event and the outcome of the dealer certification, accredits will
be available to the winning player. All transactions are validated by the AAMS central system.
To ensure safe interaction between player and player who bets, the bank is mediated by the
concessionaire.
•It is likely that we should wait until the end of 2013 for the launch. In the betting exchange
concessionaire offers bettors a program of events and markets. This schedule is coincident
with the schedule fixed odds AAMS joined the extended schedule fixed odds of the
concessionaire. There is nor national liquidity. It is still not clear if it will be possible to have
intra operators liquidity
•The platform must be certified. So it is subject to the authorization procedure in a manner
presumably similar to those provided for poker and in this sense the concessionaires
participating in the circuit will submit a request for authorization to use a platform already
authorized to another dealer
•The decree allows the concessionaire to retain up to 10% of the stakes by players. In fact
dotcom sites practice a commission of between 2% and 5% of winnings, that is, of net gain
obtained by the player who has won. In Italy, it will take probably 5%.
•The minimum bet is € 0.50.
•It is retained the limit of the maximum payout, which is equal to € 10,000. This constraint is
important because an important part of the bet on the dotcom sites occurs at high levels.
PlatformPlatform
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BETTING MARKET EVOLUTION – KEY SUCCESS FACTORS
Alignment to Italian
customers behavior
Alignment to Italian
customers behavior
Relationships
management with
stakeholders
Relationships
management with
stakeholders
Liquidity and network
Policies
Liquidity and network
Policies
Marketing and
Distribution
Marketing and
Distribution
Description
• Good relationships with the main public institution (such as AAMS and Sogei) are
mandatory to enter in the market faster
• Customers’ needs are not always in line with the international ones: a perfect know-
how of their characteristics will surely helps the business for a new entry Operator, in terms
of gaming customization
• Liquidity is key in all the products with peer to peer interaction. The need of
interconnection with other operators requires the ability to create a stable and profitable
environment.
• The ability to acquire and maintain at the lowest cost customers is critical. It is crucial to
know how to handle the advertising networks, agencies, affiliations operators, big database
owners. Using partners to distribute the product could be critical.
Time to MarketTime to Market
• First Mover advantage it is critical to be among the first to lauch to get a big share of the
market for a specific channel or niche. Examples are Bingo, Sporting Bets, Casino Games.
The only exception is PokerStars but they invested a lot in adverting and they have the best
platform
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BETTING BUSINESS SYSTEM
Infrastructure/Product
Design Devel.ent Certification Launch
Business Developement
Operative
Marketing
Brand Distribution
•Design and development of products tailored on Italian
Customers
•Alignment of products to AAMS/SOGEI requirement
and product certification
•Products launch and fine tuning on the bases on market
feed-backs
•Analysis of Customer behavior and wishes in order to
develop more appealing products
•Design and development of products tailored on Italian
Customers
•Alignment of products to AAMS/SOGEI requirement
and product certification
•Products launch and fine tuning on the bases on market
feed-backs
•Analysis of Customer behavior and wishes in order to
develop more appealing products
•Scouting of potential Clients and negotiation of
agreement terms and conditions
•Marketing plan definition and Implementation
•Communication plan development and stakeholders
Management
•Identification of new business opportunities and design
of an effective strategy to develop them
•Scouting of potential Clients and negotiation of
agreement terms and conditions
•Marketing plan definition and Implementation
•Communication plan development and stakeholders
Management
•Identification of new business opportunities and design
of an effective strategy to develop them
Operations
Infrastructure
Management
Resource
Management
•Proper infrastructure and resources management in order to reach
the business goals
•Customer analysis and resources allocation
•Partners management and support
•Customer Care
•Content development and distribution
•Proper infrastructure and resources management in order to reach
the business goals
•Customer analysis and resources allocation
•Partners management and support
•Customer Care
•Content development and distribution
Business
Intelligence
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BETTING EVOLUTION – ROAD MAP
JuneJune
AAMS / SOGEI ManagementAAMS / SOGEI Management
Extended Schedule / Virtual BettingExtended Schedule / Virtual Betting
Marketing/Extended Schedule / Virtual Betting/
Current Business
Marketing/Extended Schedule / Virtual Betting/
Current Business
Distribution
Betting Exchange
Distribution
Betting Exchange
Launch / Products Development
ES / VB
Launch / Products Development
ES / VB
Liquidity Creation
Betting Exchange
Liquidity Creation
Betting Exchange
JulyJuly AugustAugust SeptemberSeptember OctoberOctober NovemberNovember DecemberDecember
Betting ExchageBetting Exchage
Launch
Preparation
BE
Launch
Preparation
BE
Marketing
Betting Exchange/ Current Business
Marketing
Betting Exchange/ Current Business
Marketing, Acquisition,
Customer Care
Marketing, Acquisition,
Customer Care
Relationships
management with
stakeholders
Relationships
management with
stakeholders
Liquidity and network
Policies
Liquidity and network
Policies
DistributionDistribution
Platform / ProductsPlatform / Products
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NEXT STEPS
• Evaluation of the development opportunities in the Italian market
• Identification of the most effective development strategy
• Definition of the potential entry road map and high priority activities to be launched
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WHO WE ARE
• TrustPartners is composed of a network of consultants, the most part with a high
seniority and several years of advisory experience in major national and international
consulting companies
• We support innovative and successful Top Managers, during their strategic and
operational actions, to achieve sustainable economic and value growth; in particular
we operate into 3 main areas:
• Business Planning & Strategy
• Performance Management
• Organization
• The Headquarter is located in Rome, with a branch in Milan, and its business has a
nationwide presence. TrustPartners has, also, developed business relationships with
other consulting companies in other countries
• Team linkage and management ability, in order to work with our Client as one team
• Reliability on results achievement
• Continuous attention on the cost/performance ratio
TrustPartners is a Management Consulting Company, which has developed know-how and experience in highly
regulated markets (i.e.: Gaming & Gambling, Pharmaceutical, etc), Energy and Public Administration
TeamTeam
MissionMission
Strength pointStrength point
StructureStructure
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• Spread knowledge about mid-short term strategic plan from the Top Management
• Clients “value added driven”: when they have to identify a consultant team,
supposed to support its business actions, they do not care about the brand behind
but they are just oriented on the personal abilities, business network and know-how
• Under-equipped structure, overworking and not properly skilled employees do not
allow to achieve their goals
• Employees sometimes are not comfortable with extra-ordinary issues, such as
structural changes, organizational adjustments and change management
• Request of short-term structural adjustments, in order to help the Company being
competitive and surviving or growing into the market
• Ensure suitable levels of market reactivity in line with the competitors and satisfy
customers’ needs
• Middle management cooptation as a key point
Our experience give us the ability to find out several connecting points among our Client’s strategic views, issues and
needs
Our Clients …Our Clients …
… and their typical
needs
… and their typical
needs
OUR CLIENTS
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HOW WE OPERATE
Management Consulting activities are strictly linked with change management activities: they both require holistic approach,
in order to avoid typical issues that can affect project implementation:
• Fine tuning of designed solutions through field-based analysis
• Support activities for the Clients’ Management, in order to let them focused on daily business
• Need for high skilled resources, with problem solving techniques know how, in order to face all project challenges
FulfillmentFulfillment
• Alternatives
screening
• Selection of the
right solution
• Feasibility analysis
• Final indication
• Detailed Business
plan
• Risk Assessment
• Program fulfillment
• Management
identification
• Design of a progress
monitoring system
• Field-based
analysis and
proposal “fine
tuning”
• Identification of
issues
• Analysis of
priorities
CHANGE MANAGEMENT
BUSINESS CONSULTING
TrustPartners operates both in the planning and decision development stage
DesignDesignPlanningPlanningSolutionSolutionDiagnosticDiagnostic
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• Gaming & Gambling market analysis and online products and games benchmarking
• Start-up support for the online launch of new games and products
• Analysis of the strategies for the Gaming & Gambling “for pay” product launch, of
an Italian player operating in the “for free” market
• Support for the bid creation in order to participate at the 2008 public competition
for the online numeric games (games with jackpot) distribution, for a leading Italian
company
• Online Gaming and Gambling market report, focused on national and international
market analysis (in terms of products, Client’s target, analysis of the most relevant
competitor), with a detailed analysis for each single new distributed game
• Support for the new online products and services launch toward the Key Success
Factor identification, and launch roadmap management for selected products and
services
OUR EXPERTISE IN GAMING & GAMBLING MARKET (1/2)
Area Project
Business Planning &
Strategy
Business Planning &
Strategy
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• Online poker launch toward market analysis, Key Success Factors and key
development points identification and business model definition
• Online marketing plan development for different products (Betting, Instant lotteries,
Poker, etc…)
• Platform provider selection for new online games launch (Poker and Skill games)
• Partner scouting and selection (horizontal and vertical web sites) for the online
games and betting distribution
• Organizational structure review and optimization support for a specialized online
business unit
• Implementation of new logistic and administrative procedures and introduction of the
Tableau de Bord
Performance
Management
Performance
Management
Project
OrganizationOrganization
Area
OUR EXPERTISE IN GAMING & GAMBLING MARKET (2/2)
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TRUSTPARTNERS: KEY FACTORS
Goal orientedGoal oriented
• Our projects have to generate a substantial value added for our
Clients in terms of revenues, quality of the service, imagine, etc.
Experienced and flexible team
work
Experienced and flexible team
work
• We make use of high level and experienced resources, during the
projects, with strong and acknowledge cross industry
competencies
Project management and
coordination capabilities
Project management and
coordination capabilities
• We manage and are able to support our Clients on all the project
activities, in line with its needs and requests
Modular approachModular approach
• We adopt a modular approach that reduce our Client’s risks: all
the following project phases can be “purchased” only when the
result is achieved during the previous phase
NetworkNetwork
• We manage a wide cross-industry network inside the gaming
industry, focused on the top relevant stakeholders
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Location Address
Zip code / city
Phone no.
Fax
E-mail
Web-site
• Business opportunity identification
• Performance management planning
• Management support
Activity Business Consulting
& Change
Management
Piazza di Pietra, 26
00187 / Roma
(0039) 3473561211
(0039) 06 23317076
info@trustpartners.eu
www.trustpartners.eu
TrustPartners
CONTACTS