Ice 2012 VLT Italian Market
8
M A G CONSULENTI ASSO CIATI A Business View VLTs in Italy EMMANUELE M. CANGIANELLI Gaming Leaders Programme Tuesday 24th January 2012 The Growth of the VLT Market in the EU
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Transcript of Ice 2012 VLT Italian Market
M A G
CONSULENTI ASSOCIATI
A Business View
VLTs in Italy
EMMANUELE M. CANGIANELLI
Gaming Leaders ProgrammeTuesday 24th January 2012
The Growth of the VLT Market in the EU
2
M A G
CONSULENTI ASSOCIATI
[email protected] introduction to MAG• MAG is a business advisory and
management consulting firm• MAG's ten years experience in
gambling regulated markets is with – european regulators (Italy, Spain)
and with
– top and middle size gambling operators, technology providers and financial operators involved in leisure industry
• MAG helps to focus business environments for the best shaped strategy and his economical positive implementation
REGULATION: drafting and compliance
management
BUSINESS STRATEGY: market analysis,
business planning, business development
deals
M&A: scouting, advisory,
deployment
3
M A G
CONSULENTI ASSOCIATI
[email protected] the italian VLT market• VLTs are server based RNG machines, with at least 85% payout and
jackpot systems up to 500K euros• VLTs systems are part of the concession for managing networked
gaming machines systems (first assigned in 2004)– VLTs can be exercised only by concessionaires– More than 80% of VLTs are offered through partnerships with venues
• VLT terminals right have been assigned for the first time in 2009, with proportion of 1VLT for 14 AWPs exercised by concessionaire– concessionaires have to pay 15k € per right – all rights sold in 2009: una tantum income for Italian government of 850 mls
in 2009-2010
• Next opportunity to buy new VLT: in late 2012 (new concession assigned) with proportion of 1VLT for 7 or 14 AWPs exercised by concessionaire
• VLTs might be liberalized in 2014
4
M A G
CONSULENTI ASSOCIATI
[email protected] roll out in the italian market
05,000
10,00015,00020,00025,00030,00035,00040,000
11,043
23,046
35,047
Authorized VLTsVLTs
VLT rights 2009 Authorized VLTs end 2011
To be authorized in 2012
Potential new VLT rights* 2012-2013
Potential VLT market 2013
010,00020,00030,00040,00050,00060,00070,000
56,697
21,650
35,047
5000
61697
VLT rights and roll outVLTs
* Inclunding new concessionaires
MAG analysis on AAMS and operators data – Jan 2012
5
M A G
CONSULENTI ASSOCIATI
[email protected] in the italian EGM market 2011
Historical casinos
24001%
Wide area AWPs
36300094%
Wide area VLTs
224006%
avg Machines* 2011
Historical casinos
28756%
Wide area AWPs2966064%
Wide area VLTs
1370030%
Turnover 2011
Historical casinos
2503%
Wide area AWPs
7207.3882%
Wide area VLTs
1328.915%
Gross revenues 2011
Historical casinos*
201%
Wide area AWPs**3603.69
92%
Wide area VLTs**
2747%
Tax revenues 2011
* Includes videopoker
* Tax on GGR ** Tax on GGT
€ MlnEGM
€ Mln € Mln
MAG analysis on AAMS and operators data – Jan 2012
6
M A G
CONSULENTI ASSOCIATI
• Main part of the first wave of the VLTs offer is a development of the historical AWPs convenience gaming offer
• Only few operators already invested in dedicated gaming halls linked with other leisure experiences and with a destination marketing approach
• Northern regions are faster in this process
Gaming halls* 140 5%
Slot par-lors** 1.800
66%Betting shops 800 29%
Operating venues dec 2011
VLTs venues 2011
Venues
* Includes Bingo Halls - more than 20 VLTs** Less than 20 VLTs
MAG analysis on AAMS and operators data – Jan 2012
7
M A G
CONSULENTI ASSOCIATI
[email protected] Vlt’s business scenario
MAG analysis
CONs PROs
Next opportunities to be managed (poker rooms, convergence online ↔ land based)
More than 30% of the potential VLTs to be placed yet
Marketing actions still poor in the italian EGM market
... Leisure industry experience
Decreased regulator's attention to industry growth
Limited number of VLTs systems already certified
Complex regulatory environment and increasing gambling taxation
