Onshore Interac-ve Gambling in the Netherlands

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1 Onshore Interac-ve Gambling in the Netherlands Simon Holliday H2 Gambling Capital Gaming in Holland Amsterdam 23 June

2 Interac-ve Gambling Market Update EU28 Market Trends Dot Country Markets - Recent Performance Current NL Gambling Market Dot NL Expecta-ons / Changes AGENDA

3 Interac-ve Gambling Market Update Con-nued Overall Strong Growth Dot Com Markets Developing Regions Product Innova-on Mobile Channel Weaker Performance Onshore Regulated Markets Poker 2013 Globally Interac-ve Gambling Up 7.8% to 26.5bn Current Year a Further 13% of Growth to 30.0bn Globally 8.3% of Gross Gambling Revenues are Now Interac-ve (8.9% 14 /10.2% 18) Highest in the Nordics where mid- 30%'s UK mid- to High 20%'s Southern Europe s-ll Low to Mid- Single Digit Dutch Market Currently 11% - Onshore Regula-on by % (20% Gross Win Tax) to 18% (10% Gross Win Tax) Onshore Ac-vity Accounted for 40% of Global Interac-ve Revenues 2013 / Expected to be 52% by 2018 Low Point Just Under 30% in 2006

4 EU28 Market Trends All Gambling 11.6bn Gross Win % of Total with 41% Onshore 14.2% Growth Expected in Current Year Bebng and Gaming Only 10.1bn - 20% of Total with 33% Onshore 12.5% Growth Expected in the Current Year UK - Largest European Market 2.96bn (bebng and gaming only) 29% of the Total European Market Just 18% Onshore (Going Forward PoC to Capture Taxa-on for the Treasury) 6 Fully Compe--ve Markets Up and Running with Bebng and Gaming Gross Wins Totalling 2bn in 2013 Another 1.3bn in Monopoly Markets or Those Restricted to Land Licensees A Number of Other Markets Expected

5 EU Dot Country Markets - Recent Performance Current Year Expec-ng 7.9% Dot Country Mkt a Growth vs EU28 Average 14.9% Lower GDP Growth Total Value Onshore Bebng and Gaming Ac-vity Approaching 2.1bn Offshore Ac-vity Sta-c c 900m Overall Ini-al Market Upside Expected Upon Onshore Regula-on Combined On and Offshore Will Grow the Market Amount will Depend on Tax Rate / Any Other Restric-ons New Onshore Market Will Not Surpass the Size of Previous Offshore Market at 20% Gross Win Tax (Closer to 15% to Achieve this) Channelling Average c70% Can Vary From Less than 50% (Highest Tax / Lack of Product Ver-cals / No Interna-onal Pooling) To 85% Op-mal Likely to be 95-97% Structural Restric-ons on Growth Beyond Market Launch Where Applicable Domes-c Liquidity Bigger Factor / Cri-cal Mass to Develop Momentum Predominantly the Same Operators Moving Onshore / Development of Local Monopolies' Offer Ini-al Land- grabs - Market Sehles Operators Cau-ous as Paying Tax on Bonuses which can be as High as 20% in Dot Com Gaming Affiliates Opera-ons

6 Current NL Gambling Market Netherlands 15th Largest Gambling Market in the World (7 th Largest in the World Average Gross Win per Adult 164 (25 th World/ 14 th EU28) EU28 Average 193 % of GDP Accounted for by Gambling c0.40% (EU28 Average c0.65%) NL Gross Win by Product" NL Total Gambling Gross Win ( bn)" Be#ng& 4%& 2.5# 2.0# 1.5# 1.0# Lo1eries& 44%& Gaming& 52%& 0.5# 0.0# 2003# 2004# 2005# 2006# 2007# 2008# 2009# 2010# 2011# 2012# 2013# Land# Interac6ve# EU Gross Win by Product" Lo1eries& 38%& Be#ng& 14%& Gaming& 48%& 90" 80" 70" 60" 50" 40" 30" 20" 10" 0" 2003" 2004" 2005" EU Total Gambling Gross Win ( bn)" 2006" 2007" 2008" 2009" 2010" 2011" 2012" 2013" Land" Interac5ve"

7 Dot NL Expecta-ons On Going Changes Changes to Our Approach / Key Drivers IMF GDP Forecasts Evolu-on of Benchmark Markets Adjustments in the Mix of Benchmark Markets Allowance for any Change of Pace in Current Marke-ng Changes in Regula-on / More Detailed Assessment of the Exact Similari-es / Differences with the Dot DK Regula-on

8 Dot NL Expecta-ons Currently An-cipated that the Offshore Dutch Market will be Worth c 225m in the Current Year With a 20% Gross Win Tax Onshore Bebng and Gaming Ac-vity First Full Year Could Range From c 150m (29% GWT) to c 300m (10% GWT) Ini-al Bebng and Gaming Channelling Could Vary from 60% to 90% Latest Update of Model / Start Date Execu-ve Market Report NL Interactive Gambling Gross Win ( m)" NL Interactive Gambling Gross Win by Product" 400" 350" 300" 250" 200" 150" 100" 50" 0" 2013" 2014e" 2015e" 2016e" 2017e" 2018e" Bingo/ Other& 10%& Poker& 11%& Casino& 32%& Be#ng& 47%& Onshore" Offshore"

9 H2 Annual Gambling Data & Market Intelligence Subscrip:on Service Online Access for Unlimited Users within an Organisa5on to Over 250 Datasets, Reports and Updates with c1,000 New and Updated Pos5ngs Expected in the Coming 12 Months Including Netherlands Updated Dataset / Execu5ve Market Report(Slide Deck Format) in July Further Details: Simon Holliday H2 Gambling Capital simon.holliday@h2gc.com

Client: Stichting Online Gaming Nederland (STIOG) Date: 18 February 2011

AN INDEPENDENT ASSESSMENT OF VARIOUS TAXATION/ LICENSING MODELS FOR REGULATING REMOTE GAMBLING IN THE NETHERLANDS Client: Stichting Online Gaming Nederland (STIOG) Date: 18 February 2011 EXECUTIVE SUMMARY