A short overview of the online gambling market in Bulgaria and future trends

1. Online Gambling in Bulgaria
Present and Future

2. Summary
Intro
Specific industry data
Interactive market
Marketing insight
Business Processes Outsourcing
Innovations
Future

3. Specific industry data
 Online sports betting accounts for 60% of all sports bets placed in the country in 2016 and is set to
grow with 30% in the next 4 years.
 Online GGR for sports betting stands at 25% of total sports GGR in 2016
1 EUR ≈ 1.95 BGN
0
50
100
150
200
250
300
350
400
2016 2017 2018e 2019e 2020e
Sportsbetting Turnover
Sportsbetting Landbased Pool betting
Interactive Sportsbetting
BGN mln
0
20
40
60
80
100
120
140
2016 2017 2018e 2019e 2020e
Sportsbetting GGR
Sportsbetting Landbased Pool betting
Interacrtive Sportsbetting
BGN mln

4. Specific industry data
 Interactive gaming accounts for 36% of all casino and games turnover in the country in 2016
 Interactive gaming GGR for casino and games stands at 14% of this product’s GGR
1 EUR ≈ 1.95 BGN
0
50
100
150
200
250
300
2016 2017 2018e 2019e 2020e
Casino, Gaming and Lotteries GGR
Casino Gaming Machines Bingo
Interactive Gaming Toto/Keno/Lotteries
BGN mln
0
500
1,000
1,500
2,000
2,500
2016 2017 2018e 2019e 2020e
Casino, Gaming and Lotteries Turnover
Casino Gaming Machines Bingo
Interactive Gaming Toto/Keno/Lotteries
BGN mln

5. Interactive market
As per 2017, the Bulgarian interactive wagering market is:
 Competitive
 Mature
 Fragmented
 Profitable

6. Marketing insight
Main KPIs observed with users in Bulgaria
 CPA: 60-70 EUR (blended)
 CTR for CPC networks (to funded): 0.3%
 ROI on Affiliate sites: up to 4.5 with typical affiliate share of 25%
 Funded sign up ratio: 40%
 Avg. bet size: 8 EUR for Sports and 12 EUR for Casino and Games (session)
 Bets per customer (monthly): 48 bets for Sports and 450 bets in Casino and
Games
 Over 90% of the NGR in Sports would come from European football (major
leagues) and the Live Dealer Casino would be the most preferred Casino game,
contributing up to 50% of the GGR
 VIPs would typically contribute up to 40% of the turnover and make 30% of the
NGR

7. Business Processes Outsourcing
Bulgaria, especially Sofia, has become an important hub for BPO
Main factors:
 Qualified IT specialists and multi-talented work force
 Favorable and friendly business climate, affordable and available real estate
 Flat corporate and personal income tax at 10%
 Liberal provisions in the Labor Code related to 24/7 operations
 EU jurisdiction for headquartering of companies

8. Innovations
 The BPO industry in the gambling sector and the beneficial business climate
have spurred a series of start ups researching in diverse fields such as ID
verification, payments, e-sports and crypto-currencies, behavioral marketing & AI
 The traditional market leaders in the field of gambling machines and equipment
are swiftly migrating their products in order to create converging and omni-
channel gaming platforms, all at the benefit of UX

9. Future
Business sentiment amongst the operators in the market place
 35% of operators are eyeing the launch of an online operation
 44% expect a decrease in their numbers in the traditional brick and mortar business
 55% find the current taxation scheme is fair
 50% plan to install a casino management system

10. Thank you!