Effects of the Danish market regulation: What has changed Effects of the Danish market regulation: What has changed? What can we learn from Denmark? Has the attitude shifted in any direction?

Pre gambling reform in 2012 Old prevalence study from 2006 showed 0,3 % gambling addicted players ( vs NO 0,6 % and SE 1,1 %) but now follow-up since 2006. Huge grey market ( > 50 % on online betting and casino), advertising was booming RG prevalence was said to have increased Danske Spil was not performing well and support from Society was lacking Lack of funding for treatment and research of RG problems Support from media and Danish parliament for a gambling reform 2004-2006 STRATEGY CONSIDERATIONS FEB 2009 DRAFT OF LAW REFORM STARTS FEB 2010 POLITICAL AGREEMENT JUL 2010 LAW ADOPTED IN PARLIAMENT OCTOBER 2011 APPLICATION PROCEDURE STARTS JAN 2012 FIRST WAVE OF LICENSES

Post gambling reform: Stakeholders were happy New operators, products and bonuses (players were happy) 85 % channelling of grey market into licensed market, sustainable growth, profitable business (operators were happy) Increased funding for treatment and research (gambling researchers were happy) Increase in tax revenue from gambling (the Danish Government was happy) Advertising on all media platforms (media were happy)

Post gambling reform 2012- 2016: Massive growth in market

Post gambling reform 2012- 2016: Market stats betting, casino market 5.5 m population Total market: 1.2 bEUR (spend per capita 269 EUR per year), betting + online casino: 509 mEUR 2011 – 2016 betting + online casino: : 102 – 509 mEUR, market growth 399 % 2012 – 2016 betting + online casino: 274 – 509 mEUR, market growth 82 % Danske Spil market share 2012: 59 %, 2016: 48 % State revenue on licence market 2016: 153 mEUR (100 mEUR from Danske Spil incl dividend) Tax revenue growth 2011 - 2016: Approx. 70 mEUR Funds for research and treatment of RG. 2011: 20 mDKK (2.7 mEUR), 2016 30 mDKK (4 mEUR) Approx. 9,000 self-excluded persons in ROFUS

Today: Attitude shift - new prevalence study got the ball rolling National prevalence report published in 2016 Less gamblers in Denmark compared to 2006 (72 % 2006 vs 63 % 2016) Approx. 0,4 % gambling addicts (vs. 0,3 % in 2006) Slight increase in number of problem gamblers from 2006-2016 Results have been “spun” by researchers

Today: Attitude shift Media is much more critical towards industry and advertising There is a perception that advertising is overexposed Two major DK operators were fined for AML/player protection breaches Advertising, wagering requirements and T & C’s are being scrutinized by public authorities Researchers are calling for new RG measures

The future: The heat is rising Denmark: Minister of Treasury has invited political parties to discuss new player protection measures Advertising and T & C’s are being scrutinized by public authorities Researchers are calling for new RG measures Added focus on advertising and player protection (in UK) What can the industry do? Industry operators are launching own initiatives in Sweden