SOCIAL REPORT - HBG Gaming...distributes new remote games, including Skill Games, Poker and Online...
Transcript of SOCIAL REPORT - HBG Gaming...distributes new remote games, including Skill Games, Poker and Online...
W E T A K E C A R E O F Y O U R E N T E R T A I N M E N T
SOCIALREPORT
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2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP2
CONTENTS
HBG GAMING GROUP
08 GroupProfile14 Governance20 QualityandCertifications24 TheGamingMarket
56 EconomicandSocialImpactontheCommunity60 EconomicResults61 TaxContribution62 TheCreationofWealthanditsDistribution
ECONOMIC ASPECTS
LETTER FROM THE PRESIDENT
STAKEHOLDERS,SOCIAL ASPECTS, AND SUSTAINABILITY
66 HBGGaming,itsStakeholdersand theMaterialityMatrix70 LegalandResponsibleGaming77 HBGGamingResearch79 DialoguewithConsumers85 CollaborationwithAssociations90 DialoguewithInstitutions93 CommunityInitiatives
106 PeopleatHBGGaming116 TheNetwork119 SupplierRelations122 EnvironmentalAwareness
THE TEAM, THE PARTNERS, AND THE ENVIRONMENT
01.
03.
04.
02.
How to read this Report GRI content index Scope of Material AspectsLetter of Assurance
SOCIALREPORT
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2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP 5
This volume summarises the initiatives carried out for the Stakeholders and the community as a whole, the results achieved, and the Group’s commitment to safe, legal, and responsible gaming.
HBG Gaming is one of Italy’s largest and most important companies operating in the safe and legal gaming sector, which has been regulated by the Italian Customs Agency for over 18 years. Through our collaboration with the State, the trade Associations, and the other Licensees, we have become leading players in the fight against illegality and player protection, as well as numerous voluntary initiatives extending well-beyond our legal obligations. Creating fun-filled, safe entertainment is part of HBG Gaming’s mission.
Our profound sense of responsibility towards the end consumer leads us to focus a great deal of our attention upon the aspects of Responsible Gaming: we have carried out communication and information activities on this topic, and have even developed training initiatives for both our Staff and Business Partners. In particular, we believe that, in order to help disseminate the culture of legal and responsible gaming, it is essential to focus upon training all the players in the field, including the employees and the supply chain, as well as to provide accurate information to the gaming industry’s end consumers.
We have been heavily engaged in prevention and support activities for studies, analyses and research projects dealing with the dynamics of problematic and pathological gambling. The Report focuses upon the centrality of the dialogue with all the Stakeholders, upon whom our business model has always been centred.
In order to better illustrate the activities carried out, we have adopted the Global Reporting Initiative’s “GRI Standards” international reporting model, which allows us to clearly represent and communicate the integration of our economic, social, and environmental sustainability, as implemented through the Group’s strategy, governance and business model.
This year we also conducted a study regarding the positive impact that the company’s business activities have had upon the community in terms of employment, the increase in wealth produced, and tax and social security contributions. The results reveal the considerable benefits that our company has had throughout the territory in terms of both direct effects, as well as indirect and induced effects.
Lastly, I would like to thank all the men and women of the HBG Gaming “Team”, whose commitment, passion, and professionalism have allowed us to achieve the extraordinary results represented herein. This comforts us and encourages us to diligently pursue our business goals, in full accordance with our corporate values and our management philosophy.
This is the fifth year that I have had the honour of presenting our Social Report, the document that provides the data and information necessary to not only illustrate HBG Gaming’s economic and financial developments, but also, and above all, the sustainable growth of its business and value creation activities from a social perspective.
LETTER FROM THE PRESIDENT
ANTONIO PORSIAHBG Gaming President
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2017 SOCIALREPORT
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HBG GAMINGGROUP
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ECONOMIC AND SOCIAL IMPACT ON
THE COMMUNITYGROUPPROFILE
18 BINGO HALLS
29,092NEWSLOT
4,798VLT installation permits
ONLINE GAMINGbetting, casino, skill games, horse-racing and virtual betting through the online channel www.quigioco.it
52GAMING SHOPS
761EMPLOYEES
12,812PEOPLE
Direct, indirect andinduced effect upon
employment
409.1millionsofEuros
Direct, indirect andinduced effect upon
the GDP
90.4millionsofEuros
572millionsofEuros
Direct, indirect andinduced effect upon
social security and taxcontributions
Tax revenuesderiving from HBG
Gaming games
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP 9
OUR STORY
HBG Gaming is a young and dynamic company that has achieved major goals in its eighteen years of market presence:
2003
2000
2004
2013
2016
2017
2015
2009
HBG Gaming emerges on the gaming market, becoming, in a short time, a major player in the management of Bingo halls.
Continues its successful trajectory by being awarded the New Slot telematic network activation and management licence.
Acquires 42 licences to open establishments for sporting, horse-racing, and virtual betting.
HBG Gaming makes a dramatic entry onto the betting scene with 54 shops operating under the QUIGIOCO brand name.
Significantly increases its market position in the Bingo sector with the acquisition of
Bingo Plus S.p.A.
Acquires 10 additional betting licences.
Purchases Napoli Bingo Srl, a bingo gaming license holder. In addition to the traditional entertainment-based game o�ering, HBG Gaming also develops the HBG Pay product
to market payment services.
Launches the SmartGames.it portal, which distributes new remote games, including Skill
Games, Poker and Online Casino Games.Also in 2009, HBG Gaming acquires the rights to install and distribute 4,798 Video Lottery
terminals on the Italian market.
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HBG Gaming is one of the largest Italian companies in the arena of legal and safe gaming, regulated by the Italian Customs Agency.
HBGGamingisaninnovativeandconstantly-evolvingcompanythat’scapableofhandlingthe complexity of contemporary reality by investing in product quality and focusing onsustainabilityandsocialresponsibility.
HumancapitalandtechnologicalexpertisearethedrivingforcesbehindHBGGaming,abletoprovideproductstosatisfyahighdemandforsecurityandcontrolaswellastoensureultimateconsumerprotectionandtransparencyoftheappliedregulations.
“Tocreatesafe,regulatedandresponsibleentertainmentwithapositiveimpactonsociety”:thatistheMissionchosenbyHBGGaming,acompanyabletocontributetosociety,generatevalueandemployment,andcomplywiththetaxrevenueearnedbylegalgaming.
Transparency in communication and governance; Focus upon customers and Business Partners; Participation, sharing and teamwork; Proactive, timely, and immediate action to ensure effective and efficient solutions: these are the Values upon which the Group’s business strategy is based.
THE GROUP
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Later, inOctoberofthesameyear,HBGGamingSrlgrantedHBGConnexSpAtheentireamountofitsequityinHBGEntertainmentSrl.
ThegoaloftheoperationwastoallowtheentireBingoBusinessUnittoparticipateinthetenderfortheawardingofthenewlicenses.
Throughadditionalextraordinarytransactionscarriedoutaftertheendofthefiscalyear,theGroup’sentirecorebusinesswasultimatelyconcentratedunder themanagementofHBGConnexSpA,thusleavingalltheassetsandliabilitiesnotfallingwithinthescopeofthecorebusinessandrelatingtocorporateaffairswiththegroup’sparentholdingcompany.
In this manner, the corporate structure was streamlined and simplified, thus makingthe decision-making chain more efficient, while at the same time reducing the Group’sadministrativecosts.
OthertransactionsincludedHBGConnexSpA’spurchase,inMayof2017,oftheentiresharecapital of Napoli Bingo Srl, a bingo gaming license holder, and the establishment of thecompany Cloudcoding Srl (December 2017). This companywill permit the internalisationofpreviouslyoutsourcedactivities(ICTservices) inorder toallowHBGGamingGrouptotransformpartofitsoperationalcostsintotechnologicalinvestments.
CORPORATE STRUCTURE
During the course of 2017, the extraordinary operation aimed at reorganising the Group’s entire “Bingo” business area was completed. In January of 2017, the companies Bingo Plus Srl, HBG Arcades Srl and Latina Bingo Srl, which hold shares in the company HBG Entertainment, were incorporated into HBG Gaming Srl.
HBG CONNEX SPA(AWP & VLT BU)
100%
HBG ENTERTAINMENT SRL(BINGO BU)
100%
HBG ON LINE GAMING SRL(ONLINE & BETTING BU)
100%
NAPOLI BINGO SRL(BINGO BU)
HBG ACTIVE SRL
100% 100%
HBG PAY SRL
100%
INNOVALIA SRL
100%
HBG IMMOBILIARE SRL
100%
CLOUDCODING SRL
100%
G&G SRL
100%
BINGO VIP SRL
100%
Bingo Segment
Referencesegment
Core Business
HBG GAMING SRL(HOLDING COMPANY)
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In 2017, HBG Gaming’s corporate structure consisted of:
HBG Gaming Srl: theHoldingCompany,withmanagementandcoordinationfunctionsofthecompaniesthatarepartofit;
HBG Connex SpA: alicenseeoftheAmusement-with-Prizemachines(AWP)telematicnetwork,theso-calledNewSlotandVideoLottery(VLT)machines;
HBG Entertainment Srl:acompanythatmanagesBingoHalls;
HBG On Line Gaming Srl:alicenseeforthecollectionofsportingevent,horse-racing and virtual bet throughGaming Shops and for the collection ofdistancegaming;
HBG Active Srl:aRetail&GamingHalldevelopmentcompany;
HBG PAY Srl: the company that develops the HBG Pay product for themarketingoftelephonerecharges,gamingandpaymentservices;
HBG Immobiliare Srl: the owner of two operating properties for themanagementofBingoHalls;
Innovalia Srl:acompanydedicatedtoinvestinginandconductingcorporaterestructuringoperations;
Napoli Bingo Srl:acompanybelongingtotheBingoBusinessUnit;
Cloudcoding Srl:ITservices;
G&G Srl:otherbusinesses;
Bingo Vip Srl:otherbusinesses.
BUSINESS AREAS
HBG Gaming has based its organisation on Business Units that allow it to reconcile the needs arising from each target market with the specific obligations associated with the licenses. In 2017 there were the following BUs:
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ORGANISATIONAL CHART AS OF 31/3/2018
The Bingo Business Unit (since2001):
this consists of the companies HBGEntertainment Srl and Napoli Bingo Srl.Manages18BingoHalls.
The Online Gaming Business Unit (since2013):
thisconsistsof thecompanyHBGOnLineGaming S.r.l., a licensee offering onlinegames (such as Skill Games and OnlineBingo)andSportsBetting;
AWP/VLT Business Unit (since2004):
correspondstoHBGConnexSpA,a licenseefor the management of the AWP and VLTtelecommunicationnetworkforAmusement-with-Prize(AWP)andVLTequipment;
The Gaming Shops Business Unit (since2014):
thisalsoconsistsofthecompanyHBGOnLineGaming S.r.l., as it also serves as a licensee forcollecting bets through the physical network,whichinthiscaseconsistsof52BettingPointsforsportingevents,horseracing,andvirtualgames.
• Sales Director• Information Systems and
Technologies• Retail• Administration, Finance and
Control
• Legal and Corporate Affairs• Compliance• Organisation and Human
Resources
In February of 2018 the On Line Gaming and Gaming Stores Business Units were merged to form the unified Online Betting and Gaming Business Unit.The4BusinessUnitsare joinedby7Departments toensureconsistentmanagementandcontributionintheproperexecutionoftheCompanyMission.
GI US E P P E CAL ZOL AI OG E N E R A L D I R E C TO R
SALES DIRECTOR
G IUSE P P E SE CCIA
AWP&VLT B.U.
G IUSE P P E CALZOLAIO A . I .
BINGO & ENTERTAINMENT B.U.
COS MA DAMIANO DE ROS A
ONLINE BETTINGAND GAMING B.U.
MICHELE GRAIFF
INFORMATION ANDTECHNOLOGY SYSTEMS
CARL O L ABA TE
RETAIL
MICHE LE BRAG ANTIN I
ADMINISTRATION,FINANCE AND CONTROL
G IOVANNI T IS C IONE
LEGAL AND CORPORATEAFFAIRS
CLAU DIO ALTOBELL I
COMPLIANCE
BARBARA COLU CCI
HUMAN RESOURCES AND ORGANISATION
GIU S EPPE CALZOLAIO A . I .
GOVERNANCE
HBGGamingSrl is organised according to the traditionalmodel of governance,which isdividedinto:
Shareholders’ meetingregularorspecialshareholdersmeetingsmaybecalledtodeliberateupon issuesthatarereservedfortheshareholdersbylaworunderthearticlesofincorporation.
Board of DirectorsvestedwiththebroadestpowersfortheCompany’smanagement,withthefacultytotakealltheappropriatemeasurestoachievethecorporatepurposes,excludingthosethatthelawandtheArticlesofAssociationreservefortheShareholders’Meeting.
TheBoardofDirectorsiscomposedofthreemembers,asfollows:• Dr. Antonio Porsia, Chairman• Dr. Giuseppe Calzolaio, Board Member• Dr. Salvatore Candido, Board MemberMr.GiuseppeCalzolaioalsoholdstheroleofGeneralManager.
HBGGaminghas alwaysplacedparticular focuson the governance system, with the aim ofencouraging an optimal relationship of trustwith stakeholders and ensuring the values oftransparencyandresponsibility(whichremainthecompany’sdefiningprinciples) in theconductofitsactivities.
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Board of Statutory Auditors,whoareresponsiblefor:a)monitoringthecompany’scompliancewiththelawsandthearticlesofassociation,andtheprinciplesofproperadministration;
b)ensuringtheadequacyof theCompany’sorganisationalstructureand internalauditingandadministrativeaccountingsystems,evenwithregardtothelatter’sreliabilityforcorrectlyrepresentingthemanagementoperations;
c) ensuring the adequacy of the measures taken by the Subsidiaries in relation to theinformationprovidedinordertofulfiltheirreportingrequirements.TheBoardsofAuditorsarepresentwithinHBGGamingSrl,HBGConnexSpAandHBGEntertainmentSrl.
TheHBGGamingSrlBoardofAuditorsismadeupofthreemembers,asfollows:• Dr. Giovanni Luca Cezza, Chairman• Dr. Paolo Omodeo Sale’, Statutory Auditor• Dr. Marco Tani, Statutory AuditorDr.FerdinandoLamandaandDr.DanieleDiPaoloserveasAlternateAuditors.
Independent Auditing Firmas required by the applicable legislation, the auditing of all the companies’ accounts isperformedbyan independentauditingfirmregisteredwithConsobandappointedbytheShareholders’Meeting.Deloitte&ToucheSpAhasbeenappointedastheindependentauditingfirm.
Supervisory Board (SB)è un istituto previsto dal Decreto legislativo 231 del 2001, che disciplina la responsabilitàamministrativa degli enti per reati commessi nel proprio interesse o a proprio vantaggio.HBG Gaming ha istituito il proprio OdV nel 2012, per vigilare sulla reale osservanza deiprincìpiespressinelCodiceEticodell’Azienda,affinchéquestisitraducanoincomportamentiquotidianinellosvolgimentodelleattività.
ThemembersoftheSBforHBGGamingSrl,HBGConnexSpAandHBGOnLineGamingSrlareasfollows:• Attorney Luigi Fischetti, Chairman• Dr. Barbara Colucci• Attorney Marco Moretti
TheSupervisoryBoardofHBGEntertainmentSrliscomposedof:• Attorney Luigi Fischetti, Chairman• Dr. Barbara Colucci• Attorney Geronimo Cardia
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DR. GIUSEPPE
CALZOLAIOBOARD
MEMBERBOARD
MEMBER
DR. SALVATORE
CANDIDO
BOARD OFAUDITORS
HBG GAMING SRL
INDEPENDENTAUDITING
FIRM
SUPERVISORYBOARD
DR. GIOVANNI LUCA
CEZZA
CHAIRMAN
DELOITTE & TOUCHE SpA
DR. ANTONIO
PORSIACHAIRMAN
DR. PAOLO OMODEO
SALÉ
STATUTORY AUDITOR
DR. MARCO TANI
STATUTORY AUDITOR
ATTORNEY LUIGI
FISCHETTI
CHAIRMAN
DR. BARBARACOLUCCI
ATTORNEY MARCO MORETTI
ATTORNEY LUIGI
FISCHETTI
CHAIRMAN
DR. BARBARACOLUCCI
ATTORNEYGERONIMO
CARDIA
HBG GAMING SRL
HBG CONNEX SPA
HBG ON LINE GAMING SRL
HBG
ENTERTAINMENT
SRL
DR. GIUSEPPE
CALZOLAIO
GENERALMANAGER
SHAREHOLDERS’MEETING
BOARD OFDIRECTORS
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HBGGaminghasdevelopedagroup-wideCodeofEthics,whoseadherencebyallrecipientsis an essential element for the efficiency, reliability and reputation of Group companies,factorsthatconstituteadecisiveassetfortheirsuccessandtheimprovementofthesocialcontextinwhichtheyoperate.
TheCodehasbeenadoptedbyalltheadministrativebodiesofHBGGamingGroupandformsan integral part of the organisational,management and controlmodels under LegislativeDecree 231/01 adopted by the latter. It has been translated into English, posted on theinstitutionalwebsite,anddistributedtoallnewhires.
TheCodepromptlyidentifiesthefollowingaspects:
• Recipients of the Code: directors, members of corporate bodies, management, employees, associates, consultants, suppliers, Business Partners, including technology partners and managers/individuals of the gaming chain, as well as anyone who, permanently or temporarily, acts on behalf of HBG Gaming Group or is affiliated with it through a collaborative relationship.
• General ethical principles to which the Group aspires in the pursuit of all activities: Compliance with the laws and regulations, Fairness and Honesty, Impartiality, Integrity and Transparency, Social Responsibility, and the Promotion of non-profit activities.
• Principles of conduct in business and relationships with third parties, including: anti-corruption obligations and proper management of gifts and donations, prohibiting conflicts of interest, confidentiality of information and privacy, fairness and legality in relationships with public administration, conduct criteria in relationships with suppliers and individuals in the gaming chain based on objectivity, trade-off between quality and cost-effectiveness, and compliance with internal procedures, regulations and contracts.
• Principles of conduct in accounting activities characterised by fairness, respect of accounting standards, truthfulness, timeliness and transparency.
• Principles of conduct to be respected in using the Internet and information systems in order to avoid acts that could harm third parties or the corporate image or compromise the security of information and entrepreneurial knowledge.
TheCodeplacesaparticularemphasisuponemployeerelations.Organisationalwell-being,which consists of eliminating any possible structural dysfunction or cause thatmay giverisetostaffconflictsandpsychologicaldiscomfort,theimportanceofmeritocracyincareerrewardinganddevelopment,continuingeducation,workplacesafetyandtherefusalofanykindofdiscriminationconstitute forHBGGamingGroupavalorisationmeasureofhumancapitalasanindispensableresourceforsuccess.
Lastly,asectiondedicatedtotheprinciplesofconductinthemanagementoflawfulgamingactivitieswasintroducedwiththeaimofprovidingtherecipientsoftheCode,andemployeesinparticular,withguidelinesandprinciplesofconducttobeobservedinthemanagementofpublicgames,toensurecompliancewiththeprescribedindustrylawsandregulationsandthusprotecttheplayerbyensuringlegalandresponsibleentertainment.
THE CODE OF ETHICS
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HBGGamingconductsitsbusinesswithinacomplexsector,whereitisnecessarytoworkwith a strong grounding in ethics in order to pay particular attention to the interests ofallStakeholders. It is thecompany’scommitment toactaccording tovaluesand rulesofconductthatmustberespectedinordinarybusinessmanagementandareconsistentwiththeGroup’smission:“Tocreatesafe,regulatedandresponsibleentertainmentwithapositiveimpactonsociety”.
ETHICS AND VALUES
Fairness, transparency and quality are key values for HBG Gaming. The company is committed to adopting an internal control system designed to preventunlawful behaviour by directors, employees, representatives, and business partners. HBGGaminghas adopted aComplianceManagementDepartment toprevent the riskof non-compliance with the current legislation, thus ensuring the compliance of the corporateprocessesandprocedures. Inparticular, theDepartmentdealswiththeregulationsof theItalianCustomsAgency,inordertoensurecompletecompliancewithlegalprovisions,andacommitmenttoactintheinterestoflegal,safeandresponsiblegaming.
All theHBGGamingGroupcompanieshaveadoptedanOrganisational,ManagementandControlModeltopreventandcombatthecommissionofthecrimesprovidedforinDecree231 through a structured system of procedures and constant monitoring action on thesystem’sproperimplementation.
Theorganisational,managementandcontrolmodelspursuanttoLegislativeDecree231/01ofGroupcompaniesthathaveadheredtothelawhavebeenupdatedtoincludenewoffencesandhavebeenpublishedonlineandontheinstitutionalsite.Inparticular:
• risks and related operational and control protocols regarding the offence of money laundering are better defined in Art. 648-ter 1 of the Italian Penal Code;
• regulatory reformulation of the false accounting offence has been transposed;
• the risk map and its organisational and control system has been extended to include new environmental offences (e.g. eco-offences, such as the environmental pollution offence referred to in Article 452-bis of the Italian Penal Code) - this third point only for HBG Connex SpA, HBG On Line Gaming Srl, and HBG Entertainment Srl.
TheHBGEntertainment SrlModelwas approved in 2016,while the other 3modelswereapprovedandpublishedon24/2/2017.TheCodeofEthicsandBehaviourformsanintegralpartoftheOrganisational,ManagementandControlModel and represents the tool thatHBGGaming employs to translate thesevaluesintoprinciplesandbehaviouralrulestowhicheveryoneaffiliatedwiththecompanyadheres.
Training with regard to the Organisational Model 231 TheComplianceManagementDepartmenthasarrangedfortheprovisionofspecifictrainingonthe231OrganisationalModelforallnewhires(includinginterns).
COMPLIANCE
ORGANISATIONAL MODEL 231/2001
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Teamwork, Transparency and RespectarethevalueswhichHBGGamingputsintoactioneverysingleday.
THE VALUES OF HBG GAMING GROUP
TEAMWORK
RESPECT
TRANSPARENCY
ACTION
The company firmly believes thatparticipation,sharingandteamworkaidinpersonalgrowth:theteamismorethanthesumofitscomponents.
Itvaluesinnovationaswellasprofessionalandpersonaldiversity,ensuringmaximumresults.
HBG Gaming is committed to treatingits customers, Business Partners andcolleagueswithrespect,throughbehavioursinspired by a sense of responsibility and
honesty. It works in compliance withlegality as well as internal and externalregulationsbypromotingandenhancingapositiveimpactonthecommunity.
Thecompanyconsistentlyandcompliantlyworkswithinitscorporatevalues,providingvisibility and feedback on its actions andinformation. Itcommunicateswithaclearandtransparentapproach,both internallyand externally, promoting a free andrespectfulinformationexchange.
OurcompanymakesTransparencyoneofthe pillars on which it bases its businessactivities, entertainment proposals,dialogue with employees, as well asrelationshipswith Institutions,Clients andConsumers.
The culture of ‘getting things done’ is inour DNA. That’s why our guiding valuesinclude ACTION, or rather the ability toactinatimely,proactiveandswiftmanner,
ensuring effective and efficient solutionsforinternalandexternalcustomersaswellasBusinessPartners.
OUR MISSION
“To create safe, regulated and responsible entertainment with a positive impact on society”
OUR VISION
“To become a leader in terms of quality of service and entertainment by developing talent and professional skills”
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QUALITY AND CERTIFICATIONS
TheGroupcompaniescertifiedunderthenewISO9001:2015standardareasfollows:
• HBG Connex SpA which has obtainedCertification for the “Network operationalexecutionandimplementationforthetelematicmanagementoflawfulgaming”
• HBG On Line Gaming Srl which hasobtainedtheCertification for the “Designandprovisionof functional services in the runningofpublicgamesthroughaphysicalnetworkofestablishments”
2017wasayearinwhichtheGroup’seffortswereconcentrated upon consolidating the processesimplementedforthetransitiontothenewversionoftheISO9001:2015standard,whichtookplaceinearly2017,bycontinuingtoemployarisk-basedthinkingapproach.
QualityManagementSystemCertification
Since 2009, HBG Gaming has adopted a Quality ManagementSystemcertifiedaccordingtotheISO9001InternationalStandard,with the aimof providing high quality standards throughout allservicestages.
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ForHBGGaming,Customersatisfactionrepresentsanimportantsuccessfactor,andisevaluatedbyconductinganannualsurveyusinganominativequestionnaire.
BelowaretheresultsofthesurveyconductedonthesatisfactionofcertaintypesofCustomersregardingtheserviceprovided.
thesatisfactionofAWPManagersregardingtheservicedeliveredin2017,withparticularemphasisonthefollowingaspectsofservice:
SERVICE QUALITY ASSESSMENT
Theaverage overall satisfaction is 4.1,whichisequalto82.7%ofthemaximumachievablescore.
SERVICE QUALITY: Averagesatisfactionlevel
AWP Managers / SURVEYOBJECTIVE:
AWPMANAGERS
1
2
4 . 3
3
4
5
0
HALLMANAGERS
GAMING ESTABLISHMENTMANAGERS
3 . 9 4 . 2
1 1.5 2 2.5 3 3.5 4 4.5 5
Courtesy and helpfulness of HBG Gaming sta
Availability of Customer Care
Telephone support sales assistant
Assistance in understanding regulatory updates
Competence and professionalism of HBG Gaming sta
Availability of Customer Care
Telephone support Help Desk assistant
Availability of administrative assistant
Availability of regulatory information
Administrative procedure management times
ASPECTS OF THE SERVICE AVERAGE SATISFACTION (scale of 1 to 5)
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thesatisfactionofRoomManagersregardingtheservicedeliveredin2017,withparticularemphasisonthefollowingaspectsofservice:
The satisfaction of Gaming ShopManagers regarding the service delivered in 2017, withparticularemphasisonthefollowingaspectsoftheservice:
Theresultsofthesurveysaregenerallygoodandarebasedonpositiveopinions.TheyrevealHBGGaming’scontinuouspursuitofimprovementinofferingassistance,supportandhigh-qualityservices.
In addition to identifying possible areas for improvement, the data analysis hasmade itpossibletomapprioritiesofinterventionthroughamethodologythatcross-referencestheexpressedsatisfactionparameterswiththeimportanceattributedtotheexaminedaspect.
Customer Satisfaction Survey – VLT Hall Visits
HBGGaming has also implemented a Customer Satisfaction survey system for the visitscarriedoutbyitsdedicatedstaffattheVLTHalls,whetherforinitiation,support,orcourtesypurposes.
Hall Managers / SURVEYOBJECTIVE:
Gaming Shop Managers / SURVEYOBJECTIVE:1 1.5 2 2.5 3 3.5 4 4.5 5
Help Desk courtesy and helpfulness
Ease of contacting the Help Desk
Courtesy and helpfulness of HBG Gaming sta�
Spielo In-Hall Assistance
In-Hall Novomatic Assistance
Regulatory comprehension assistance
Initial training
HBG Gaming sta� competence and professionalism
Sales support during the contracting phase
Availability regulatory updates
Inspired in-hall assistance
Ease of contacting an HBG Gaming Specialist
Periodic visits
Help Desk advanced troubleshooting update
ASPECTS OF THE SERVICE*
*the data was elaborated excluding the n/a responses
AVERAGE SATISFACTION (scale of 1 to 5)
1 1.5 2 2.5 3 3.5 4 4.5 5
Sales assistance via telephone
Administrative and regulatory assistance via telephone
On-site sales assistance
Schedule and quote assistance via telephone
On-site monitor and TV assistance
On-site training
Product schedules and quotes
On-site assistance
ASPECTS OF THE SERVICE* AVERAGE SATISFACTION (scale of 1 to 5)
*the data was elaborated excluding the n/a responses
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP 23
Thefollowingaspectswereassessed:• Knowledge of the topics• Punctuality• Availability• Helpfulness
OverallservicequalityassessmentVLT Hall Visits
EXCELLENT
92%
In2017,HBGGamingreachedasignificantmilestonebyobtainingthe ISO27001:2013Certification,aninternational standard that aims tomaintain theavailability, confidentiality and integrity of theprocessedinformation, includingaspectsrelatingtological,physical,andorganisationalsecurity.
HBG Connex SpA has obtained Certificationfor the “Operational management and supportsystem operation in the use of legal gamingdeviceswithcashprizes:AWP(AmusementWithPrizes) and VLT (Video Lottery Terminal).” Thiscertificationatteststothehighlevelofsecurityoftheplatformsandthereforeofthegamesofferedtotheclient,guaranteesdataconfidentiality,andalsooffersgreaterguaranteeforservicecontinuitybyreducingcyberrisks.
HBG Gaming is continually seeking solutions inordertoconsistentlyimprovethebusinessoffering.Forthisreason,itbelievestheadoptionofaformalInformationSecurityManagementSystemrelatedtotheAWPandVLTadministrativeprocessesandmanagement systems should act as a facilitatorfor:
• Perpetuating a virtuous process of continuously raising the security level of the platforms and therefore of the gaming level offered to the customers;
• Reinforcing the relationship of trust with its Stakeholders, through the adoption of increasingly secure systems;
• Ensuring service continuity through the reduction of cyber risks and the consequent reduction of negative impacts;
• Ensuring respect for privacy, in accordance with the national and European legislation;
• Distinguishing itself on its target market, creating added value.
OHSAS 18001:2007 Occupational Health &
Safety Management System Certification
Certification of the Information Security Management System
In 2018, HBG Gaming obtained certification for its Occupational Health & Safety Management System according to the international standard BS OHSAS 18001:2007, for all the Group’s Licensee companies. HBG Gaming is Italy’s first Bingo Hall Licensee to have obtained this prestigious certification for each of its Bingo Halls.
ThiscertificationisamajoracknowledgementforHBGGaming and its employees,who, for years,havebeenstrivingeverydaytoimprovethelevelsofworkerhealthandsafetyprotection.
This is a fundamental aspect for the company,withover60%ofitsstaffemployedattheGroup’s18BingoHalls,whileatthesametimeservingas
a driver for continuous improvement, with theaim of creating work environments with highqualitystandardsforboththecustomersandtheemployees.
The staff’s and the Management’s engagementin a shared health and safety commitment,effective internal communications at all levels, awell-structured riskassessment,andaneffectivemonitoringsystemfor theBingoHalls: thesearethe company’s strengths that have allowed it toobtainacertificationrecognisedonaglobalscale.
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP24
THE GAMING MARKET
In2017theGrossDomesticProduct(GDP)increasedby1.5%comparedto2016,consumptionroseby1.4%,playerspendingby 1.47%,andtheNGR(netgamingrevenues)by0.6%.
Based on the internal calculations, the overall gaming collections in 2017amountedto¤101,772million,asopposedto¤95,969millionin2016,foranincreaseof+6%,or¤5,803million.
The net gaming expenditure (i.e. collections net of winnings) increased by 1.47% compared to the previous year
HBGGamingGroupoperatesinthegamingwith cash prizes market, regulated by theItalianCustomsAgency.
GAMING CATEGORY NUMBER OF LICENSESGaming based on Sporting events and Horse-racing 2 4 7
Online Gaming (Remote Gaming) Licenses 9 2
Totaliser Number Games 1
Lotto and Lottery 1
Bingo Halls 2 0 6
Paragraph 6A and 6B devices 1 2
Source: 2016 Blue Book - Italian Customs Agency
NUMBER OF LICENSES / PERMITS
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP 25
200,000
180,000
238,744
76
150,000
101,772
81%
19.349
10.586
Direct employees in the gaming sector
Persons employed in the industry
Points of sale - Physical network
Onl ine operators act ive in I ta ly
Sector companies ( including hardware and software manufacturers , tobacco shops and out lets)
Mi l l ions of Euros - Total col lect ions for the sector
Percentage of winnings
Bi l l ions of Euros - Net player expenditure
Bi l l ions of Euros - Col lect ions for the tax author it ies
NATIONAL GAMING VOLUME SUMMARY
GAMING WITH CASH PRIZES SECTOR
Source: 2016 Blue Book - Italian Customs Agency Year 2016 Organisation, Activity and Statistics; Internal calculations based on data from the Italian Customs Agency
GAMECOLLECTION WINNINGS PLAYER EXPENDITURE(*) TAX AUTHORITIES(**)
2 0 1 6 2 0 1 7 2 0 1 6 2 0 1 7 2 0 1 6 2 0 1 7 2 0 1 6 2 0 1 7
New slot 26,324 25,431 18,841 17,861 7,483 7,570 4,608 4,785
VLTs 23,103 23,532 20,337 20,743 2,767 2,789 1,271 1 ,445
Paragraph 7 236 236 n.a. n.a. 236 236 19 20
Bingo 1 ,602 1,597 1,135 1 ,136 467 461 192 184
Gaming based on Horse racing 608 553 437 401 171 152 28 97
Gaming based on Sporting Events 7,505 9,976 6,566 8,630 939 1,346 189 317
Totaliser Number Games 1 ,580 1,598 849 956 731 642 468 457
Lotteries 8,981 9,000 6,549 6,562 2,432 2,438 1,336 1,367
Lotto 8,093 7,481 5,025 4,728 3,068 2,753 1,809 1,705
Online skill-based tournament games 755 919 685 835 70 84 14 19
Card Games not organised as Tournaments and Games of Chance with Fixed-odds 15,231 18,802 14,721 18,163 510 639 102 140
Virtual betting 1 ,166 1,517 974 1,282 192 235 38 49
Betting Exchange 784 1,130 781 1 ,126 3 4 0.8 1 .2
T O T A L 95,969 101,772 76,900 82,423 19,069 19,349 10,075 10,586
(*) Given by the difference between collection and winnings. The player’s expenditure does not include the withdrawal on dormant accounts and the 6% tax on winnings totalling approximately: 397 for 2016.
(**) The data relating to the Tax Authorities does not include dormant accounts and the 6% tax on winnings and the additional quota provided for in Art. 1, Paragraph 649, Law 190/2014, totalling 397 for 2016.
Data in millions of Euros | N.B. Comma 7 winnings are non-cash rewards
Source: WHITE PAPER ON PUBLIC GAMING created by ACADI; Online Gaming Observatory; Thematic Focus no. 6/2018 upB - Internal calculations
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP26
BREAKDOWN OF THE 2017 COLLECTIONS
ACTUAL PLAYER EXPENDITURE
8.6%
10.4%
81%GAMINGOPERATORS
WINNINGS
TAX AUTHORITIES
Source: Internal calculations based on Italian Customs Agency data
Expenditure is the actual cost for the players, considering that a large part of the collection is returned to the players in the form of winnings.
Theactualgamingexpenditurebetween2012and2017hasvariedlittle:¤18.3billionin2012,¤ 19.3billionin2017,duetotheincreaseinpayouts.In2012theactualcostwasbasically¤ 0.21foreachEuroplayed,whilein2017thisvaluedroppedto¤ 0.19.
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP 27
PLAYER EXPENDITURE
GAME 2017New slot 7 , 5 7 0
VLTs 2 , 7 8 9
Paragraph 7 2 3 6
Bingo 4 6 1
Games based on horse-racing 1 5 2
Games based on sporting events 1 , 3 4 6
Totaliser number games 6 4 2
Lotteries 2 , 4 3 8
Lotto 2 , 7 5 3
Online skill-based tournament games 8 4
Card games not organised as tournaments and games of chance with fixed odds 6 3 9
Betting exchange 2 3 5
Betting exchange 4
T O T A L 1 9 , 3 4 9
Player’s expenditure is broken down according to current industry regulations:
• The State in the form of taxes;• The licensees entrusted with the gaming
offering;• Other subjects authorised to offer gaming
products..
Between2012and2017,theactualexpenditurefor taxes to the Tax Authorities increased,from43.9%to54.7%.Theremainingportion,45.3%in2017,isdestinedforallthesubjectsmanaginggamingactivities.
BREAKDOWN OF THE EXPENDITURE BETWEEN THE TAX AUTHORITIESAND THE GAMING OPERATORS 2012-2017 [asapercentage]
2012 2013 2014 2015 2016 2017Tax authorities 43.9% 46.9% 47.0% 47.2% 52.8% 54.7%
Gaming Operators 56.1% 53.1% 53.0% 52.8% 47.20% 45.3%
Taken from the Blue Book 2014 – 2015 - 2016Italian Customs Agency; Internal calculations
Source: Internal calculations Values expressed in millions of Euros
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP28
TAX REVENUES
THE GAMING SECTOR IN ITALY
Gaming and betting are economic activities consisting of the provision of services, and are reserved, by law, for the State (Italian Legislative Decree no. 496 of 14 April 1948, art. 1) and entrusted to the Ministry of Economy and Finance, which in turn operates through the Italian Customs Agency (which has been merged with the Monopolies Division that regulates the Italian public gaming sector).
Thefiscalaspectisrelevantbecausethesectorconstitutesanimportantandstablesourceofrevenue.From2006to2017,thelevyonthesectorincreasedfromabout7billiontomorethan10billion,whichcorrespondsto0.6%oftheGDPandover2%ofthetotaltaxrevenues.
ItalyhasahigherleveloftaxationthanothermajorEuropeancountries:doublethatofFranceandtheUnitedKingdom,triplethatofGermany,andalmostfourtimesthatofSpain.
Thetaxlevyhasincreasedinrecentyears,especiallyinrelationtoAWPsandVLTs.In2018,thesingletaxlevyforAWPsisequalto19%,whileforVLTsit’sequalto6%.
Italianlawno.96of2017increasedthetaxrates;itwasalsodeterminedthatthe35percentreductionintheauthorisationstooperatetheNewsSlotsenvisagedbythe2016StabilityLawshouldtakeplaceintwophases.Thereductionto345,000authorisationswasenactedby31December2017;thereductionto265,000authorisationswasregulatedbytheDirectorialDecreeoftheItalianCustomsAgencyof30March2018.
GAME 2017New slot 4 , 7 8 5
VLTs 1 , 4 4 5
Paragraph 7 2 0
Bingo 1 8 4
Games based on horse-racing 9 7
Games based on sporting events 3 1 7
Totaliser number games 4 5 7
Lotteries 1 , 3 6 7
Lotto 1 , 7 0 5
Online skill-based tournament games 1 9
Card games not organised as tournaments and games of chance with fixed odds 1 4 0
Virtual betting 4 9
Betting exchange 1 , 2
T O T A L 1 0 , 5 8 6
Source: Internal calculations Values expressed in millions of Euros
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP 29
GAMING MARKET TREND
The total collectionshaveincreasedbyabout6%.
The value of the compound annual growth rate (CAGR) remains positive in the periodbetween2013and2017,equalto4.6%(from¤84.7billionin2012to¤101.8billionin2017).
TheNewSlot collectionsdecreasedby3.4%, alsodue to the reduction in thenumberofDevicesimposedbythestabilitylaw,whiletheVLTcollectionsincreasedby1.9%.
Followingthedecreaserecordedduring2014,andtheincreaseoverthefollowingtwoyears,theGamingMachines(GM)decreasedslightlyoverallonceagain,but recordedapositiveCAGRof+0.7%,withtheleadershipofthesedevicesneverthelessbeingconfirmedintermsofabsolutevalues,astheyamountedto48.4%oftheentiremarket’stotalcollectionsin2017.Bingohasremainedstable.
Onlinegaming,whichhasachievedsignificantcollectionlevelswiththeintroductionofnewgamesinrecentyears,continuedtogrowfollowingtheincreaserecordedin2016.
ThestabilityinthePokerCashsegmentandthegrowthofthetournamentgames(+22%)segment,particularlywithregardtoCasinòonline(+28%),hasresultedinanoverallgrowthamongtheonlinegames.
Theimpactofsportsbettingwasalsoextremelypositive(+27%),andwasdrivenbyonlinebetting(+39%),whichbroughttheCAGRvalueofthepast5yearsto+27%.
THE ITALIAN GAMING DISTRIBUTION NETWORK IN 2017
GAME No. LICENSES / AUTHORISATIONS
POINTSOF SALE
Games based on horse-racing 2 4 7 9 , 1 6 2
Online gaming (remote gaming) licenses 9 2 -
Totaliser number games 1 3 3 , 8 8 1
Lotto and Lottery 1 9 6 , 8 9 5
Bingo halls 2 0 6 2 0 6
Gaming Machines (paragraph 6) 1 2 9 8 , 6 0 0
Total with cash winnings 5 5 9 2 3 8 , 7 4 4
Gaming Machines (paragraph 7) - 1 0 4 , 8 8 6
Source: Thematic Focus no. 6/2018 upB Calculations based on Italian Customs Agency data
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP30
LEGAL GAMING IN ITALY
In 2017, the Italian gaming expenditure was equal to approximately ¤ 19 billion (in terms of GDP, just under one percent) and not ¤ 101 billion as sometimes stated in the press, as Collections (or rather the total amounts played) were confused with Expenditure (which is obtained by deducting the total winnings for the corresponding period from the total Collections). The winnings in 2017 amounted to approximately ¤ 82 billion.
Theaveragepay-outwas thereforeequal to81%.Thismeans that, after thewinningsarededucted,forevery¤100played,¤19remainforthetaxauthoritiesandfortheremunerationofthevariousplayersinvolved.
TheItalianpublicgamingsystemwasestablishedbetween2000and2005withtheaimofbringinggameswithillegal,irregularandunauthorisedcashwinningswithinalegalsphere.
According to the Parliamentary Budget Office (UPB), an independent Italian body thatoverseesthepublicfinances,in2006itwasestimatedthatforevery200,000gamingdevicesconnectedtotheinformationsystem(AWPsorNewSlots),therewereatleastjustasmanyillegaldevices,asindicatedinthedocumentFocusno.6“Taxationinthegamingsector.”
From2008to2011,theregulatoryinterventionswerestillaimedatdealingwiththeriseofillegalgaming.InapplyingtheEuropeandirectives,in2008aninterventionwascarriedoutinthefieldofremote(online)gaming,with200newlicensesbeingrenderedavailablebasedonspecialrequirementsandconditions,whichwouldrequirethelicenseestooperateviatheItalianCustomsAgency’scentralisedsystem.In2010,an“extraordinaryplan”resultedintheAWPsbeingjoinedbyVideolotteryTerminals(VLTs).
In recent years, due to the contrast of unlawful, irregular and unauthorised gaming and the modernisation of public gaming, there has been an emergence of legal gaming that has led to an increase in collections, from ¤ 61.4 billion in 2010 to almost ¤ 102 billion in 2017.
Themodel adoptedby the national legislation for themanagementof gamingwith cashwinnings stipulates that “the organisation and operation of skill games and fixed-oddscompetitionsforwhichthereisarewardofanykindandforwhichasumofmoneyisrequiredforparticipationarereservedfortheState”(LegislativeDecreeNo.496of1948).
Therefore,theState(actingthroughtheItalianMinistryofFinanceentrustedwitheverythingrelatedtogamingorganisationandmanagement)definesgamingrequirements,featuresfor
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP 31
pointsofsale,thepercentageofwinningsandtheamountrelatingtoapplicabletaxes.Bythislogic, individualprivateoperatorshavetheoptiontopursueoperationactivityforgamingonlyfollowingspecificpermitsbytheState.
In2002,thefunctionsofregulation,qualification,coordinationandcontrolwereexecutedbytheItalianStateMonopolies,andsince2012themanagementoftheGamingMarkethasbeenentrusted to the ItalianCustomsAgency,whichhas incorporated the Italian IndependentAuthority for the Administration of State Monopolies, assuming the name of the ItalianCustomsAgency.
Thefightagainstillegalityrepresentsapriorityfortheentiresector;alsofromtheplayer’sperspective, it constitutes a primary and fundamental form of protection and is possiblethankstogamingindustryregulation.
Licenseespresenton thesafeand legalgamingmarket, regulatedby the ItalianCustomsAgency, offer consumers an entertainment service that complies with well-definedregulations,including:prohibitinggamingaccesstominors,reportingtheoddsofwinningforeachtypeofgame,andensuringtheamountandpayoutofwinnings,preventingexcessiveand unauthorised gaming behaviour by disclosing informational material and providingassistance, andmonitoring the securityof systemsandplatforms in accordancewith thestandardsrequiredbytheItalianCustomsAgency.
In its capacity as an authorised licensee, HBG Gaming has always offered safe, legal, and responsible gaming.
HBGGamingaimstoensureincreasingcollaborationwithalltheInstitutions,theMinistryofFinance,theItalianCustomsAgency,LawEnforcement,theRegionsandtheMunicipalities,inordertoguaranteetransparency,regularityandsecurity.
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP32
THE HBG GAMING MARKET
HBG Gaming’s offering includes Bingo, New Slots,VideolotteryTerminals, andOnlineGamingandBetting.In2017,HBGGamingGroup’stotalcollectionsamountedto¤4.627billion,foradecreaseof1.8%comparedtothepreviousyear.
2013 2014 2015 2016 2017
Bingo 114.4 114.3 114.0 113.0 124.8
New slot 2,335.1 2,306.0 2,382 2,438 2,231.9
Videolottery Terminals 1,766 1,888 2,028 2,118 2,205.1
Online Gaming 9.2 8.7 9.1 12.5 30.5
Physical Betting N.A. 9.4 21.0 30.2 34.6
TOTAL 4,224.7 4,326.4 4,554.10 4,712.0 4,626.9
2013 2014 2015 2016 2017
84,611 84,460 88,249 95,969 101,772
2013 2014 2015 2016 2017
5.0% 5.1% 5.2% 4.9% 4.5%
HBG GAMING COLLECTIONS
MARKET SHARE
Data in millions of Euros
Data in millions of Euros
TOTAL GAMING COLLECTIONS
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP 33
2013 - 2017 COLLECTION TREND
Bingo
Betting
Videolottery Terminals
Online Gaming
New slot
2,205.1
1,766
1,888
2,028201520142013
20172016 2,118.3
9.2
8.7
9.1201520142013
30.520172016 12.5
9.4
21.0
30.2
2014201520162017 34.6
M€
M€
M€
M€
M€
2,231.9
2,335.1
2,306.0
2,382201520142013
20172016 2,438.2
124.8
114.4
114.3
114.0201520142013
20172016 113.0
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP34
HBGGAMING NET PLAYER EXPENDITURE
TAX REVENUES RESULTINGFROM HBG GAMING’S COLLECTIONS
RATIOBETWEENTAX REVENUESANDNET PLAYER EXPENDITURE
HBGGAMING NET PLAYER EXPENDITURE AND TAX REVENUE
In 2017, the tax revenues resulting from HBG Gaming’s collections amounted to ¤ 572 million, which was in line with the 2016 figure (¤ 572.1 million) and increased by ¤ 90.2 million, or +18.7%, compared to 2015. It represents 59.3% of net players’ net expenditure, due to the difference between collection and winnings.
2013 2014 2015 2016 2017
Videolottery Terminals 191 220 238 246.6 258.1
New slot 584 583 610 696.6 662.5
Bingo 34 34 34.2 33.8 37.4
Physical Betting 0.0 1.8 3.8 5.6 6.5
Online Gaming 0.2 0.2 0.3 0.4 0,9
TOTAL 809.1 839.5 886.3 983 965
2013 2014 2015 2016 2017
Total Net Player Expenditure 809 839 886 983 965
Total Tax Revenues 411 414 482 572 572
Data in millions of Euros
2013 2014 2015 2016 2017
Videolottery Terminals 93 100 113.2 122.9 135.4
New slot 304 300 353.7 434.0 419.6
Bingo 14 14 13.7 13.5 15
Physical Betting 0 0.6 1.2 1.6 1.8
Online Gaming 0.1 0.1 0.1 0.1 0,2
TOTAL 411 .1 414.7 481.8 572.1 572
Data in millions of Euros
2013 2014 2015 2016 2017
Videolottery Terminals 48% 45% 48% 50% 52%
New slot 52% 51% 58% 62% 63%
Bingo 40% 40% 40% 40% 40%
Physical Betting - 33% 32% 29% 28%
Online Gaming 44% 32% 25% 27% 24%
TOTAL 51% 49% 54% 58% 59.3%
Data in millions of Euros
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP 35
0 50 100 150 200 250 300 350 400 450 500 600 700
2013
2014
2015
2016
VIDEOLOTTERY TERMINALS
NEW SLOT BINGO + PHISICAL BETTING + ONLINE GAMING
2017
14.7300100
14.130493
15353.7113.2
15.2434122.9
17419.6135.4
Data in millions of Euros
Data in millions of Euros
Data in millions of Euros
TaxrevenuesfromHBGGaming’scollections
HBGGamingSpesa netta giocatori ed entrate erariali
TOTALE SPESA NETTA GIOCATORI TOTALE ENTRATE ERARIALI
0
200
400
600
800
1,000
1,200
2016 20172013 2014 2015
809
411 414
482
572 572
839886
983 965
17.0
135.4
419.6
BINGOPHYSICAL BETTING
ONLINE GAMING
NEW SLOT
VIDEOLOTTERYTERMINALS
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP36
BINGOBingo, based on the extraction of ninety numbers, derives from Lotto and is very similar to the traditional ‘tombola’ played by Italian families.
It’s entertainment that is close to home, perfect for spending free time, socialising and having fun, playing safely and in full compliance with the law.Bytheendof2017,HBGGamingmanaged18Bingohalls,with6,093seats,388NewSlotsand568VideoLotteryTerminals installedinside,andcornersdedicatedtosportingeventandvirtualbetting.
HBG Gaming’s Bingo Halls are gaming venues that guarantee security, legality, specific operator training, a high quality offering, excellent services and facilities, and absolute compliance with the prohibition on the admission of minors under the age of 18.
They promote social gaming and ensure a high level of control over the degenerativephenomena associated with gaming, thanks to the presence of the hall staff, as well asrigorous procedures to ensure the complete traceability of the bets and winnings. Theyrepresentidealplacesforlegalgaming,wherecustomerscanentertainthemselvesinasafeandsupervisedmanner.
TheGroup’shallshavebeentransformedontheinsideintoadvancedGamingHallsthatboastanewentertainmentexperience.InadditiontoBingo,therearedifferenttypesofgaming,fromAWPstoVideoLotteryTerminals,aswellasotheractivities,suchascatering,aimedatpromotingsocialisationandsharing,allwiththeaimofensuringresponsiblegaming.Enjoydeliciousfood,attendfunshowsandparticipate inprizeeventsandcompetitions,always
OverviewBingoNationalDistribution
HBG GAMING GROUP’S BINGO HALLS
6
2
2
1
1
11
1
3
LiguriaLombardyMarche
CampaniaLazio
PiedmontUmbriaSicily
REGION No. HALLS
121
123
116
Abruzzo 18
124.8
6,093
956
545
7.81%
BINGOHALLSINITALY
MILLIONSOF¤ INCOLLECTIONS
SEATS
NEWSLOTSANDVIDEOLOTTERYTERMINALS
HALLEMPLOYEES
INMARKETSHARE
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP 37
HBG Gaming Group’s Bingo collections in 2017 amounted to ¤ 124.8 million, representing 7.81% of the market share.
abletorelyonthehelpful,friendly,professionalandaccommodatingstaff.Foreachhall,inadditiontothemaintenanceandtechnologicalupgradesrequiredbythespecificlicensingcommitments, HBG Gaming has also created air-conditioned smoking and non-smokingroomswithpipedmusic,masterfullighting,andcomfortablefurnishings.
HBG Gaming is Italy’s first Bingo Hall Licensee to have obtained certification for its Occupational Health & Safety Management System according to the international standard BS OHSAS 18001:2007, for each of its Bingo Halls.
Thiscertification,whichwasvoluntarilyobtained in2018, isamajoracknowledgementforHBGGaminganditsemployees,who,foryears,havebeenstrivingeverydaytoimprovethelevelsofworkerhealthandsafetyprotection.This isa fundamentalaspectfortheGroup,whichemploys761employees,60%ofwhomareemployedatits18BingoHalls,whileatthesametimeservingasadriver forcontinuous improvement,withtheaimofcreatingworkenvironmentswithhighqualitystandardsforboththecustomersandtheemployees.
In 2017 the Group’s Bingo Halls generated total collections amounting to ¤ 513.6 million, ¤ 35.6 million (7.45%) more than 2016, and ¤ 40.1 million (8.47%) more than 2015.
2013 2014 2015 2016 2017
Bingo collections 114.3 114.3 113.9 112.7 124.8
VLT collections 311.9 321.9 330.0 330.2 345.1
New slot collections 22.9 25.1 28.3 33.7 42.3
Betting - - 1.3 1.4 1.4
2013 2014 2015 2016 2017
6.87% 7.04% 7.13% 7.03% 7.81%
HBGGaming’scollectionswiththevariousproductsofferedatitsBingoHalls
MarketShareBingo
Data in millions of Euros
HBGGAMINGBINGOdata in millions of Euros
BINGOMARKETdata in millions of Euros
2016 20172013 2014 2015100.0
105.0
110.0
115.0
120.0
114.3 114.3 113.9112.7
124.8
2016 20172013 2014 20151,500
1,550
1,600
1,700
1,650
1,750
1,800
1,664
1,624
1,598 1,602 1,597
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP38
This has been confirmed by the research study titled “The functionality of Bingo Hallsfor the promotion of responsible gaming”, published by the New Social pathologies Interdepartmental Research Unit at the University of FlorenceinMayof2017.ThegoalofthestudywastounderstandandevaluatewhetherBingoHallscouldformapublicgamingmodelwithcashprizescapableofpreventingtheriskofcompulsivegambling;onethatcouldbeextendedbeyondtheBingo-specificoffering.
Thesurvey,whichinvolvedover800playersthroughoutvariousregions,showedthat45% of players habitually go to the hall in the company of others, and another 23% (for a grand total of more than two thirds of the sample) go more frequently in the company of others rather than alone:thesefindingsconfirmthatthereisacloserelationshipbetween“responsiblegaming”andthegaming“environment”,andreinforcethevalueofBingoHallsasmeetingplacesforentertainmentactivities.
“The Functionality of Bingo Halls for the Promotion of Responsible Gaming.”
The game of Bingo is the most social of all those on the regulated public gaming market.
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP 39
New slots and Videolottery TerminalsINDUSTRYREGULATION
From2013to2014,theItalianParliamentandGovernmentsetuptheItaliangamingmachinegamingmanagementmodelthroughnumerouslaws,regulationsandadministrativeacts.ThechoiceforthissectorwastoentrustseveraloperatorswiththeimplementationandmanagementoftelematicnetworksintheofferandcontroloflegalgamingwithGamingMachines.Thisdecisionwasbasedonthemulti-concessionmodel.Industry regulation has affected a pre-existing illegalmarket of very largeproportions:videopoker.Atthetime,unlawfulequipmentwasestimatedatabout600,000unitsandtheestablishmentsinvolvedingamingdistributionequalledatleast150,000.Thecollection,obviouslyuncontrolledbytheState,exceeded¤20billionperyearwithwinnings for players below 60% of the sums involved, resulting in high earnings foroperatorsactiveinthecountry’sillegal,under-the-countereconomy.
InJuly2004,followingapublicdisclosureprocedure,tenoperatorswereidentifiedtobeentrustedwith the “public activities and functions for the network implementation andconductinthetelematicmanagementoflawfulgamingwithgamingmachinesandrelatedactivitiesandfunctions”forfiveyears.Thefullapplicationoftheconcessionsystemwaslaunchedon1November2004.Withtheexpiryofthelicensesissuedin2004,anewcallfortenderswaslaunchedin2011,throughwhichthirteenlicenseeswereselectedtooperateuntilMarch2022.
Today,thesectorconsistsoftwodistinctproducts:• AWPs(AmusementWithPrizes)orGamingMachineswithcashprizesdescribed in
Paragraph6(a)ofArticle110oftheT.U.L.P.S.• VideoLotteryTerminals(VLTs), i.e., theequipmentdescribed inparagraph6(b)of
Article110oftheT.U.L.P.S.
ForVLTs,thelegislaturehasimposedadistributionmodelbasedonpointsofsalededicatedtogaming,unliketheAWPs,whichcanbeinstalledatanycommercialvenue.
Italian law no. 96 of 2017 increased the tax rates and determined that the 35 percentreductioninthenumberofauthorisationstooperatetheNewsSlotsenvisagedbythe2016StabilityLawshouldtakeplaceintwophases.Thefirstreductionto345,000authorisationswasenactedby31December2017;thesecondreductionto265,000authorisationswasregulatedbytheDirectorialDecreeoftheItalianCustomsAgencyof30March2018,whoseimplementationmethodswereindicatedinthesubsequentDirectorialDecreeof30April.
Thesamestabilitylawfor2016envisagedamorestructuralintervention,whichwouldhaveanimpactuponthegamingpointsofsale.Itestablishedthatthecharacteristicsofthepointsofsale,aswellasthecriteriafortheirterritorialdistribution,wouldberedefinedwithinthecontextofaunifiedConferenceamongtheState,RegionsandProvincesby30April2016.Uponarrivingatanagreement that included,amongother things, the reductionof thepointsof sale, thisunifiedConferenceconcludedon7September2017.TheagreementreachedbytheunifiedConferencemustbeimplementedwithadecreebytheMinisterofEconomyandFinance,afterconferringwiththecompetentparliamentaryCommissions.
SOURCE: WHITE PAPER ON PUBLIC GAMING – ACADI – THEMATIC FOCUS NO. 6/2018 UPB
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP40
NEW SLOTSNew Slots or AWPs - Amusement With Prizes, are the Gaming Machines regulated by the T.U.L.P.S.
HBG Gaming, through its subsidiary HBG Connex SpA connects to its 29,092 New Slot telematics network distributed among 8,321 establishments with 444 partner managers.
TheGamingMachinewithcashprizessectororiginatedin2004,anditsmanagementwasinitiallyassignedto10licenseesselectedbytheItalianCustomsAgencyfollowingapubliccallfortenders,whooperatewithinthemarketaccordingtovaryingbusinessmodels.In2011,anewcallfortenderswasheldand13licenseeswereselecteduntilMarch2022.NewSlotsrepresentthemostsignificantsectorintheItalianmarket,accountingfor25%oftotalpublicgamingcollectionsand51.7%ofgamingmachinecollections.ThebusinessmodelfollowedbyHBGGamingGroupontheNewSlotmarketischaracterisedbyapredominantorientationtowardstheprovidermodel,withashareofequipmentinstalledindirectlyoperatedBingoHalls.
OverviewNewslotTerritorialDistribution
1.333
929
146
603
597
196
9 163
410
1245
376
339
116 304
307
452
368
170
1.446
CampaniaEmilia RomagnaFriuli Venezia Giulia
AbruzzoBasilicataCalabria
LazioLiguriaLombardyMarcheMolise
REGION
ApuliaSardiniaSicily
Piedmont
TuscanyTrentino Alto Adige Umbria Valle d’AostaVeneto
No. HALLS
929339
45
597116
307
1.446452603368146
304410
1.333
163
19612
1709
376
29,092
2,232
8,321
8.8%
444
NEWSLOTS
MILLIONSOF¤INCOLLECTIONS
BUSINESSES
MARKETSHARE
PARTNERMANAGERS
ManagerThemanageristheowner/holderoftheNewSlots,holding the licence provided for in Art. 86 and/or88oftheConsolidationActonPublicSecurityand as a contract holder with the licensee, inpossession of the requirements set forth in theDecreeof17/05/2006ThirdPartiesinCollection.ItcarriesoutactivitiesrelatedtotheprovisionofNewSlots,totheiroperationandinthecollectionofremainingsumsforthelicensee.
OperatorThe operator is the holder of theestablishmentinwhichtheNewSlotisinstalled, equipped with appropriatefacilitiesandcapacities, inpossessionof the requirements set forth in theDecree of 17/05/2006 Third Partiesin Collection. It carries out activitiesrelatedtotheprovisionofNewSlots,totheiroperationandinthecollectionofremainingsumsforthelicensee.
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP 41
In 2017 the total market amounted to ¤ 25.431 billion, for a decrease of 3.4% compared to the previous year. HBG Gaming has a total collections amount of ¤ 2.232 billion, with a market share of 8.8%.
2013 2014 2015 2016 2017
9.2% 9.1% 9.2% 9.3% 8.8%
2013 2014 2015 2016 2017
25,428 25,396 25,963 26,324 25,431
2013 2014 2015 2016 2017
2,335 2,306 2,382 2,438 2,232
NewSlotGamingChain
MarketShareNewslot
NewSlotsMarket
NewslotcollectionsHBGGaming
Data in millions of Euros
Data in millions of Euros
HBGGAMINGNEWSLOTSData in millions of Euros
NEWSLOTMARKETData in millions of Euros
2016 20172013 2014 20150
500
1,000
1,500
2,000
2,500
2,335 2,3062,382 2,438
2,232
2016 20172013 2014 201524,000
24,500
25,500
25,000
27,500
27,000
26,500
25,428 25,396
25,963
26,324
25,431
26,000
28,000
OverthepastthreeyearstheAWPpayouthasdecreasedfrom74.3%in2015to70.4%in2017.TheGamingMachinesectoristaxedoncollectionswiththeCTW,establishedin2003.Asawaytocombatillegalgaming,thistaxiscalculateddirectlyusingthecomputersystemtowhich themachinesareconnected.The tax rateshavegradually increasedsince2012,from12.2%to19%.
MANAGER OPERATOR
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP42
ThenetworkconnectingtheNewSlots is theultimatein innovation:designedbyEricssonTelecomunicazioniSpA, based on technologically advanced criteria, itenables real-timemonitoringofequipment,conveyinggamingdata to the licensee’s systemand the controlsystemoftheStateMonopolies.
Desk is the web portal dedicated to the remotemanagementofNewSlotsandVLTs.Equippedwithaclear,intuitiveinterface,itallowstheoperatortocarryoutalloperations in justa fewclicks,24hoursaday,without any time limits. There is also an App versionforthewebapplicationavailableforsmartphonesandtablets.
There are multiple features offered, allowing you tomanageadministrativeprocedures, inquireanddetectlocationandNewSlotandPDAcounters,viewandprintreports,andmore.
Experience, preparation and quality of service arethecorevalues onwhichHBGGaminghas, for years,foundedrelationshipswithitsBusinessPartners,whoseneeds are always heeded with quick and effectiveresponses.
Telematic Network
HBG Desk Portal
The dedicated service offered by HBG Gaming to its Business Partners is one of the company’s strengths: structured on numerous levels and consisting of a Customer Service, Technical Help Desk and a Specialist Team.
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP 43
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP44
VIDEOLOTTERY TERMINALSVideo Lottery Terminals, or VLTs, were introduced to respond to the need for safer and more enforceable gaming. This response was rendered possible thanks to technological advances in the field of automation and electronics.
They were introduced in Italy for the first time by Law 2008, No. 184 and effectively placed on the market with the so-called Abruzzo Decree. The Italian Customs Agency has defined the maximum number of installed VLTs, equal to 14% nulla osta (Article 38 - Law 388/2000), held on 12 August 2009.
VLTshaveachaininwhichtheItalianCustomsAgencymaintainscontrolofthepointsofsaleterminals.Licenseesplayacentralroleingamemanagement,particularlyfromatechnologicalandproductpointofview.ForVLTs,legislationhasdefinedadistributionmodelbasedonpointsofsalededicatedtogaming,whileNewSlotsmaybepresentinanycommercialvenue.
For VLTs, the payout is equal to 88% while the CTW has progressively increased since2012,whenalevyonwinningsexceeding¤500wasalsoestablished:forVLTs,theratehasincreasedfrom4%to6%andthelevyonwinningsexceeding¤500hasincreasedfrom6%to12%.Furthermore,withregardtotheentireGamingMachinesector,aflatratecontributionof¤500millionwasintroducedin2015,tobepaidbythelicensees.
ACADI White Paper on Public Gaming and Thematic Focus UPBno. 6/2018 Taxation in the gaming sector.
OverviewVideolotteryTerritorialDistribution
46
36
1
29
19
18
16
11
22
44
26
8 31
14
9
214
76
CampaniaEmilia RomagnaFriuli Venezia Giulia
AbruzzoBasilicataCalabria
LazioLiguriaLombardyMarcheMolise
REGION
ApuliaSardiniaSicily
Piedmont
TuscanyTrentino Alto Adige Umbria Valle d’AostaVeneto
No. HALLS
3626
2
198
14
769
6421
1
3111
46
29
1824-
44
4,798
9.4%
461
2,205
VIDEOLOTTERYTERMINALRIGHTS
MARKETSHARE
VLTHALLS
NOVOMATIC,SPIELO,andINSPIREDVLTs
MILLIONSOF¤ INCOLLECTIONS
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP 45
In 2017, the overall market reached a total collections amount of ¤ 23.532 billion, for an increase of 1.9% compared to the previous year. HBG Gaming has a total collections amount of ¤ 2.205 billion, with a market share of 9.4%.
2013 2014 2015 2016 2017
8.0% 8.8% 9.1% 9.2% 9.4%
2013 2014 2015 2016 2017
21,963 21,348 22,198 23,103 23,532
2013 2014 2015 2016 2017
1,766 1,888 2,028 2,118 2,205
VideolotteryTerminalGamingChain
MarketShareVideolottery
Terminals
MarketVideolottery
Terminals
VideolotteryTerminalCollectionsHBGGaming
Data in millions of Euros
Data in millions of Euros
HBGGAMINGVIDEOLOTTERYT.Data in millions of Euros
VIDEOLOTTERYMARKETData in millions of Euros
2016 20172013 2014 2015
1,766
1,888 2,0282,118
2,205
2016 20172013 2014 201520,000
20,500
21,500
21,000
23,500
23,000
22,500
21,963
21,348
22,198
23,103
23,532
22,000
24,000
1,000
1,200
1,600
1,400
2,400
2,200
2,000
1,800
2,600
HBG Gaming Group obtained authorisation to install 4,798 video terminals machines inaccordancewiththerequirementsofthePublicNoticeof15September2009.By the end of 2017, there were 461 licensed gaming rooms. Gaming operator partners are Novomatic, Spielo and Inspired.
HALL MANAGERS
VLT GAMING SYSTEM SUPPLIERS
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP46
HBG Gaming offers tailor-made solutions for all yourneeds,meetinganyVideoLotterydemand:installation,testing,softwareandhardwaresupport,andmarketing.
The solutions offered are cutting edge, utilisingdedicated broadband connections to ensure networkconnectivitystabilityandmaximumsecurity.
Within every single gaming hall, a local controlsystemis installed,whichensuressimpleandeffectivemanagement of the hall equipment: terminal, user,authorisation and alarm management; managementof game parameters and jackpots; management ofstatistics and reporting on all activities; remote gamecontrolanddownloads.
GamelibrariesincludetitlesofinternationalsuccessandtitlesdesignedanddevelopedspecificallyfortheItalianmarket,therebyofferinganarrayofchoicestotheHallManager,tosatisfyeventhemostdemandingofplayers.
VideoLotterypaymentsystemsarethesafestandmostwidelydistributedonthemarket,basedonTicket(TITO:Ticket-In,Ticket-Out).
This is theonlinesolutiondedicatedtoHallManagers,through which you can manage hall reporting; viewgame reports and winnings, view CTW accountstatements,ItalianCustomsAgencyfees,etc.;printtheperiodicstatementofaccountandthedailyreportsofoneormorehallsforspecificperiods.
MyHBG is theApp for smartphones and tablets thatallowsyoutolocateallthehallswithintheHBGGamingcircuit,geolocatingthembasedonyourlocation.
Support, Platform and Infrastructure
Games and Payment Systems
VLT Manager System (VMS)
My HBG
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP 47
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP48
BETTINGThe system for betting establishments is based on licences to private individuals, with the additional need to obtain a police licence.
In1998therewere330activelicencesforhorse-racingandsportingeventbetting,aswellas41 racecourses. In 2000, thefirst licences forhorse-racingand sportingeventgamingmanagementwereissuedaccordingtothecurrentregime.
Between 2000 and today, there has been an expansion in licence number, as explicitly stated by the Granting Authority, seeking to shut down the unregulated market. The total number of licences authorising the acceptance of bets equalled 16,186 at the end of 2015.
Today,thebettingmarketischaracterisedbyavarietyofproducts:sportingeventgaming,horse-racing gaming and betting on simulated events. Sporting event gaming, in turn, issubdividedintofixed-oddsbetting,totaliserbettingandbettingpools.Thosebasedonhorse-racingare,ontheotherhand,distinguishedbetweenfixed-oddsandtotaliser horse-racing betting, National and International Horse Racing and horse-racingbettingpools.Bettingonvirtualeventsconsistofgamesofchancewithfixedodds,introducedattheendof2013,inwhichthebetterwagersonsimulatedsportingevents,generatedbyarandomsystem.Thesebetsrepresentagamingmodelackingtheabilitytomakepredictions;thevirtualbet isthereforecharacterisedbyagreaterentertainmentcomponentbasedongraphicappeal,frequencyofplay,andtheusabilityobtainedthroughgamingmodessuchassoccerchampionships.Thesportingeventandhorse-racingchainischaracterisedbythepresenceoftwodistinctplayerswhocontribute,together,tothegamingoffer:licenseesandpointsofsalemanagers.
Taken from the White Paper on Public Gaming – Acadi
BettingOverviewTerritorialDistribution
1
1
1
9 33
1 2
9
8 1 2
2
7
2
42
30.5
52
34.6
HBGGAMINGPROPERTYRIGHTS
MILLIONSOFONLINEGAMINGCOLLECTIONS
GAMINGSHOPS
MILLIONSOFBETTINGCOLLECTIONS
CampaniaEmilia RomagnaFriuli Venezia Giulia
AbruzzoBasilicataCalabria
LazioLiguriaLombardyMarcheMolise
REGION
ApuliaSardiniaSicily
Piedmont
TuscanyTrentino Alto Adige Umbria Valle d’AostaVeneto
No. HALLS
81-
212
9132-
2-7
9
1-1-3
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP 49
In 2017, HBG Gaming presented a new and complete product proposal with the QuiGioco brand, intended for Points of Sale, Gaming Halls and Betting Agencies.
The new “QuiGioco” concept store, created for the retail market, features a modernenvironmentwith optimised spaces dedicated, in a targeted and harmoniousmanner, togamingmachines,sportsbetting,horseracingandvirtualbetting,allenrichedbyanareawith liveevents inorder tooffermaximumentertainment.The “QuiGiocoPoint”proposalisaimedatHBGGamingBusinessPartnersthatseektocreatehigh-techpointsofsaleandoptimisetheinvestedresources.
The“QuiGioco Point”isdesignedtooffertheendcustomeranenvironmentwhereclearandinstantgamingproductsandotherservicescanbeenjoyed:automaticcashiers,self-serviceterminals;paymentandrechargeservicesthroughtheQuiGiocoShopportal,HDscreens,aswellasmobiledevicesandappstohighlightthestrongtechnologicalcomponent.The QuiGioco store offers a new dimension of entertainment, in full compliance with the requirements for the reorganisation of the gaming distribution network.Infact,thestorehasbeendesignedaccordingtothequalitystandardsrequiredbytheindustry’sregulations, not only in terms of the premises’ technical and architectural characteristics,whichallowforaprecisegamingdistribution,butalso,andaboveall,intermsoftheattentiondedicatedtothetransparencyofthecommunicationsconcerningresponsiblegaming.Ongoing operator training and information and prevention activities, combined with constant support, guarantee the total safety of consumers at the specialised QuiGioco points.
Inordertomeettheneedsofthosecustomerswhotraditionallypreferentertainmentwithintheestablishments,HBGGaminghasexpandeditsofferingbyparticipatingintheselectionprocessfortheassignmentoflicensesforpublicgamingestablishments.Asof31December2017,HBGGaminghad52activeshops.Thebusinessisaimedatcollectingsports,horseracingandvirtualbets.TheyarepresentinalmostallItalianregions,withaparticularconcentrationintheCentre-Southarea.
Inadditiontothepossibilityofbettingonnumeroussportingevents,horseracesandvirtualgames,theshopsalsocontainothergamingproducts,suchasNewSlotsandVideoLotteryTerminals.Additionalservicesofferedtothecustomerincludeabararea,smokingandnon-smokingrooms,andarechargingserviceforthegamingaccounts.QuiGiocoshopsprovideplayerswithareal-timequotedisplaysystemaswellasasatelliteTVsystemtobroadcastliveimagesofsportingeventsorhorseraces.All QuiGioco stores are fully compliant with the quality standards required by the industry’s regulations.
In 2017 the shops were renovated according to the new “QuiGioco” format.
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP50
ONLINE GAMING
Italy’s Online Gaming sector is growing considerably, and this is essentially due to the impact of new technologies and the ongoing processes of digitalisation, which represent an evolutionary framework shared among every sector of the economy.
According to theOnline GamingObservatory of the Polytechnic University ofMilan, 2.2millionItaliansengagedinatleastoneonlinegamingsessionin2017,forinincreaseof22%compared to the 1.8millionof theprevious year.Gamingonmobiledevices, tablets andsmartphonesrecordedanoverallgrowthof52%comparedtothepreviousyear,alsothankstoan increase in theoffering.Thecharacteristicsof the typicalplayers,however,haven’tchanged:men(82%ofcases)residinginCentral/SouthernItaly(70%),betweentheagesof25and44(53%).Morethanhalfoftheusersplayoccasionally,andonethirdoftheplayersonlyplayforonemonthayear.Inviewofthisoverallscenario,theItalianregulatorysystemandtheadoptedregulatoryapproachconstitutethebestpracticesforEuropeasawhole.
The system is based on the implementation of strategies that incorporate responsible gaming culture directly within the gaming systems..Thefightagainstunregulatedgaming,responsiblegaming(tobeunderstoodasconsumerprotectionagainstfraudandproblematicgambling),andthepreventionofunder-agegamingare the threemainprinciplesuponwhich themeasuresadopted toestablishaneffectivesystemofresponsiblegamingarebased,andtowhichallthelicenseesadhere.
Themainmeasure forcombatingunregulatedgamingconsistsofanagreementbetweentheItalianCustomsAgencyandthemaininternationalprovidersofonlinegamingsoftware,which is geared towards rendering the offering of legal gaming more competitive andadvantageouscomparedtoillegalgaming,withtheaimofhinderingthoseoperatingontheItalianmarketwithoutaregulargovernmentlicense.Access to unregulated “.com” websites is rendered increasingly difficult thanks to synergies between operators and Law Enforcement Agencies.
ConsumerprotectionisensuredthroughtheCentralRegisterofGamingAccounts(CRGA),thesystemmanagedbySogei–anITcompanyownedbytheMinistryoftheEconomyandFinance-whichrecordsalltransactionsconductedonItaliangamingsites.
Allplayersarerequiredtosetgaminglimitsbasedonthemonthlyvalueofthepaymentsthatcanbemadetotheirgamingaccounts(“self-limitation”),andhavetheabilitytoblocktheiraccountsfordefinedperiodsoftime,orindefinitely(“self-exclusion”).Oneofthemostimportantregulatorydevelopmentsof2018wastheestablishmentoftheUnifiedRegisterofSelf-Exclusions(URSE)bytheItalianCustomsAgency,aninitiativethatwillallowplayerswhorequestself-exclusiontobeautomaticallyexcludedfromallgamingsitesatthesametime. In2017,56thousandpeople in Italyaskedtoexcludethemselvesfromgaming.Thisfigureconstitutesan increaseofmorethansixpercentagepointscomparedto2016,andamountstoatotalof3%oftheonlineplayersinvolved(OnlineObservatorydata).
THEEVOLUTIONOFONLINEGAMING: A SUSTAINABLE APPROACH
Thefightagainstunregulatedgaming
Protectionagainstfraudandproblematicgambling
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP 51
HBGGamingoffersafullrangeofdistancegameswithcashprizes,including,inadditiontoskillgames,SportingEventandHorse-RacingBetting,CasinoGamessuchasRoulette,andSlotMachines,aswellasvirtualbettingevents.
Throughthewww.quigioco.itportal,HBGGamingoffersanyonewithaninternetconnectionthechancetohavefunfromthecomfortoftheirownhome,atanytime.Registereduserscanbetonsportingeventsandhorse-racing,playwithonlineSlotMachinesandBingo,orparticipateinTexasHold’emtournaments,eveninCashmode.
The QuiGioco platform is technologically advanced and highly reliable, and guarantees high security standards in full compliance with the current legislation and the requirements dictated by the State Monopolies, which impose real “barriers” to prevent under-age gaming, require players to self-limit themselves, and offer the possibility of self-exclusion from gaming.
The distance gaming licensees, who are connected in real time to the Italian CustomsAgency’scentralinformationsystemthatoverseesallgamingandcalculatesthetaxesdue,arecommittedtoensuring:
• gaming security;• return of winnings at a minimum percentage, fixed by law, and dependent on the game type;• the transparency and confidentiality of the processed information.
Each individual player, suitably identified according to the rules in force, has a gamingaccountthatcanbepoweredviaelectronicpaymentinstrumentssuchaselectronicpurses,bankcreditcards,PostePaycardsandwiretransfers,orprepaymentsforsaleatparticipatingestablishments. Winnings may be collected at any time via wire transfer, reloading ofPostePaycardsandelectronicpurses,orincash,butonlyforsmallamountsbybookingtheirwithdrawalatQuiGiocostores.
The procedure for opening a gaming account requires each player to be identified bysubmittingtheir identitydocumentandfiscalcode,withtheobligationforthe licenseetoverifytheconsistencyandveracityoftheinformationenteredbytheplayer,evenbycross-checkingitwiththeSogeiregisterofgamingaccounts,whichinturnhandlesthevalidationprocess.Allsuspiciousrequeststoopennewaccounts,includingthosesubmittedbyminors,are promptly blocked and the relative gaming accounts are closed. With regard to theadvertisingofOnlineGamingservices,thisiscurrentlynotpermittedinlocationsandduringtimeframesthataren’tstrictlyreservedforadults.
ItisalsoworthnotingtheinitiativelaunchedbytheItalianNationalInstituteofHealth,whichin2017,withinthescopeofaresearchprojectcommissionedbytheItalianCustomsAgency,experimentallyactivatedthetoll-freenumber800-558822 inorder toprovideassistanceandsupporttoplayerswithgamblingproblems.
QUIGIOCO.IT HBGGAMING’SONLINEGAMINGPORTAL
Protectionofminors
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP52
This is the new platform dedicated to HBG OnlineGamingend-users.
The gaming site has been designed to enhanceentertainmentandsharingbetweenplayerswiththeuseoftheSocialBonus:promotionsthatallowyoutoplay,havefun,andimmediatelytakeadvantageoffreereplaycoupons,orsharethemwithfriends.
Thegoalistosimplifyandmakeaccesseasiertogamingestablishmentsforpeopleplayingwithmiddleandlowamounts.Onthesitethereisalsoinformation,statisticsandpredictionsshowninordertoenrich,inadditiontothecontents,thesimplepropositionofbettingodds.
In 2017 the gaming platform’s layout was entirelyredesignedinordertomakeitevenbetter,withanewgraphiclayout,anoptimisationofthewebsite’sloadingtime,andthepossibilityforuserstopersonalisecertainelementsoftheinterface.
In June of 2018, through its subsidiary HBG Latam,HBGGamingGroupwasgrantedalicencetorunonlinegaminginColombiaundertheAquiJuegobrand.Infact,theagreementwithColjuegos, theColumbiangamingregulator,grantstheauthorisationrequiredtooperate.
HBG Gaming Group’s entry onto the Latin Americanmarket represents the first step of its growth andinternationalisation strategy. Colombia is the first bigopportunity for HBG Gaming to become known onthe“globalmarketplaceandtobeabletocapitaliseontheknow-howwhichhasledittooccupyaleadershippositionontheItaliangamingmarket.
AquiJuegoallowsHBGGamingtoentertheColombianmarket with an innovative proposition which will usea networkof sales outlets inspiredby the Italianbestpractices,coupledwiththeaimofusingitsonlinegamingplatform as a lever to create sustainable, successfulbusinessopportunities.
www.quigioco.it
2017 SOCIAL REPORT CHAPTER 01. HBG GAMING GROUP 53
2017 SOCIALREPORT
CHAPTER02.
ECONOMICASPECTS
2017 SOCIAL REPORT CHAPTER 02. ECONOMIC ASPECTS56
ECONOMIC AND SOCIAL IMPACT ON THE COMMUNITY
HBGGamingisoneoftheleadingcompaniesinthearenaoflegalandsafegaming, regulatedby the ItalianCustomsAgency,andgeneratessignificant positive economic, employment and fiscaleffects for the Community to which it belongs.
Thestudy,whichwasverifiedbyDeloitte&Touche,highlightstheoverall impacts, takingintoaccountnotonlythedirectimpacts,butthoseofanindirectandinducednatureaswell.Thiseconomicimpactassessmentallowsthenewwealthgeneratedbythecompanytobemeasured.
The Group’s social security and tax contribution in2017amountedto ¤ 90.4 million. Thisamountisinadditiontothetax levies on the HBG Gaming’s collections, which amounted to ¤ 572 million.
Withregardtotheindirectimpacts,thenumberofjobscreatedamountedto10,129,withaGDPcontributionof¤ 301.6million,andtaxandsocialsecuritycontributionsamountingto¤69.6million.Finally,theinducedeffectsgeneratedemploymentfor1,922people,withanadditionalGDPcontributionof¤ 49.3million,andtaxandsocialsecuritycontributionsof¤ 8.5million.
Overall,consideringthedirect,indirectandinducedeffects,in2017HBGGamingcontributedtothecommunity’swell-beingthroughthe creation of 12,812 jobsandacontributiontotheGDP(GrossDomesticProduct),orratheratotal generated wealth, of ¤ 409 .1 million.
In particular, considering only the direct impacts, HBG Gaming Group created 761 jobs, contributed ¤ 58.2 million to the GDP, and paid ¤ 12.3 million in social security and tax contributions.
2017 SOCIAL REPORT CHAPTER 02. ECONOMIC ASPECTS 57
Employment:direct,indirect,andinducedimpacts
GDP:direct,indirect,andinducedimpacts
DirectemployeesemployedbyHBGGamingGroup
DirectcontributionofHBGGamingGroup
JobsindirectlycreatedthroughcollaborationwithBusinessPartnersandmerchants
IndirectcontributionresultingfromcollaborationwithBusinessPartnersandmerchants
Inducedemploymentderivingfromhouseholdexpenses
Inducedcontributionderivingfromhouseholdexpenses
In total, as a sum of the direct, indirect and induced value, 16.8 people were involved in the value chain for every HBG Gaming Group employee.
n total, as a sum of the direct, indirect and induced value, for every million Euros of GDP generated by HBG Gaming Group, ¤ 7 million in GDP were generated in the economy as a whole
761EMPLOYEES
58.2millionsofEuros
12,812PEOPLE
409.1millionsofEuros
10,129PEOPLE
301.6millionsofEuros
1,922EMPLOYEES
49.3millionsofEuros
Direct, indirect andinduced effect upon
employment
Direct, indirect andinduced effect upon
the GDP
2017 SOCIAL REPORT CHAPTER 02. ECONOMIC ASPECTS58
Socialsecurityandtaxcontributions:direct,indirect,andinducedimpacts
Direct,indirect,andinducedimpacts
DirectcontributionofHBGGamingGroup
IndirectcontributionresultingfromcollaborationwithBusinessPartnersandmerchants
Inducedcontributionderivingfromhouseholdexpenses
In total, as a sum of the direct, indirect and induced value, for every million Euros in contributions generated by HBG Gaming Group, ¤ 7.3 million in tax and social security contributions were generated in the economy as a whole
12.3millionsofEuros
90.4millionsofEuros
69.6millionsofEuros
8.5millionsofEuros
Direct, indirect andinduced effect upon
social security and taxcontributions
EMPLOYMENT(FTE)
GDP(millions of Euros)
CONTRIBUTIONS(millions of Euros)
12,812
x 16.8
761
DIRECT TOTAL
409.10
x 7.0
58.20
DIRECT TOTAL
90.43
x 7.3
12.35
DIRECT TOTAL
If we add the tax levies on HBG Gaming’s collections to its total tax and social security contributions, the total
revenues for the State amount to:
662.4 millionsofEuros
2017 SOCIAL REPORT CHAPTER 02. ECONOMIC ASPECTS 59
Methodology
The analysis took into account the three fundamental socio-economic variables: employment, GDP and tax and social security contributions.
The impact can be direct, indirect or induced
TheGroup’sbusinessgeneratesadirectcontribution as a result of the activities themselves
Employment numberofpeopleemployedalongthevaluechain
Thepurchaseofgoodsandservicesfromsuppliersgeneratesanindirect contribution due to the activation of the supply chain
GDPrepresentstheAddedValuegenerated
Theincomeprovidedtolocalfamiliesgeneratesaninduced contribution due to the purchase of goods and services by families
Contributions representsthetotalcontributionspaid into the state’s coffers, orrathertaxesforthefinancialyearandsocialsecuritycontributions
Impacts
Induced
Indirect
Direct
Generated through the expenses andconsumption inducedbythedirectandindirectimpacts
GeneratedbythesuppliersofgoodsandservicesforactivitiesdirectlyattributabletoHBGGamingGroup
DirectlyrelatedtoHBGGamingGroup’sbusiness
2017 SOCIAL REPORT CHAPTER 02. ECONOMIC ASPECTS60
ECONOMIC RESULTS
In2017HBGGamingGroupcollected¤ 4,627 millionanditsmarketsharewasequalto4.5%.
The Group’s revenues amount to ¤ 418 million, the EBIT is equal to ¤ 13.8 million, and the profit for the year is ¤ 3.9 million
Main Group Data
2017 2016 VARIATION %
Revenues 4 1 8 , 1 6 8 4 3 5 , 5 1 9 - 4 %
Operating Profit (EBIT) 1 3 , 8 1 6 1 7 , 0 7 7 - 1 9 %
Profit prior to Taxes 1 0 , 3 7 5 1 0 , 4 5 7 - 1 %
Income Tax for the Year 6 , 5 0 9 6 , 6 1 1 - 2 %
Profit for the financial year 3 , 8 6 6 3 , 8 4 6 1 %
data in thousands of Euros
2017 SOCIAL REPORT CHAPTER 02. ECONOMIC ASPECTS 61
TAX CONTRIBUTIONS
In2017,thegamingmarketinItalyamountedto¤ 101.772 billion in terms of collections,foranincreaseof ¤ 5.803billioncomparedto2016(+6.05%),withtax contributions equal to ¤ 10.586 million.
Breakdown of HBG Gaming’s collections in 2017
data in millions of Euros*Including Italian Customs Agency fee
Actual player expenditure amounted to ¤ 19.349 billion. In order to obtain this figure, the total amount of winnings disbursed, amounting to ¤ 82.423 billion, for an increase of ¤ 5.523 billion compared to 2016 (+7.18%), must be subtracted from the collections.
TOTALCOLLECTION WINNINGS TAXES* COMPENSATION FOR
THE REST OF THE CHAIN HBG GAMING
4 , 6 2 7 3 , 6 6 2 5 7 2 3 0 3 9 0
Atthemarketlevel,thepayout,orratherthewinningswithrespecttothecollections,wasequalto81%ofthecollections;10.4%wenttotheTaxAuthorities(includingfees)and8.6%tothegamingsupplychain(licenseecompanies,operatorsandmerchants),avaluethathasbeenconstantlydecreasingwithrespecttopreviousyears(9.37%in2016,10.23%in2015,and10.61%in2014).
Thetaxrevenuesderivedfromgamingamountedto¤ 10,586million in2017,¤ 511millionmorethan2016(+5.1%)and¤2,515millionmorethan2015(+31.2%).
HBG Gaming Group contributed ¤ 4,627 million to the collections, with total winnings disbursed amounting to ¤ 3,662 million, equal to 79.14% of collections.
1.95%
12.36%
6.55%
79.14%
SUBJECTS IN CHARGE OF COLLECTION
HBG GAMING
WINNINGS
TAXES
Applicable taxes are572 million (12.36%), netremuneration for Groupcompaniesequals90million(1.95% of collections) andtheremainingchain(subjectto collection) benefits froman amount of 303 million(6.55%ofthetotal).
2017 SOCIAL REPORT CHAPTER 02. ECONOMIC ASPECTS62
THE CREATION OF WEALTHAND ITS DISTRIBUTION
The Consolidated Financial Statements show the Added Value asequivalenttotheshareoftheGrossDomesticProduct(GDP)generatedbyHBGGaming’sbusiness.
The Total Gross Added Value is the wealth generated by the Company. It also includes amortisation, and was equal to ¤ 58.183 million in 2017.
The Total Net Added Value amounted to ¤ 42.489 million, 3% more than in 2016 and 21% more than in 2015.
The breakdown of the added value among the company’s various Stakeholders was asfollows:
• 70.1% was for Staff remuneration, for an increase of 68% with respect to the previous year;
• 15.3% was for taxes;
• 4.6% was for remuneration of Lenders for loan capital;
• There was no dividend distribution to Shareholders for which risk capital was not remunerated;
• Company remuneration, equal to retained earnings, was 9.1%;
• 0.82% went to the Community, for an increase of 0.46% with respect to 2016.
2017 SOCIAL REPORT CHAPTER 02. ECONOMIC ASPECTS 63
2017 % 2016 %
Operating revenue 4 1 8 , 1 6 8 1 0 0 . 0 % 4 3 5 , 5 1 9 1 0 0 . 0 %
Revenues from sales and services 4 1 4 , 2 4 2 4 3 1 , 0 4 4
Other revenues and income 3 , 9 2 6 4 , 4 7 5
Operating costs 3 6 1 , 9 9 8 8 6 . 6 % 3 7 8 , 6 2 3 8 6 . 9 %
For raw materials, consumables, supplies and merchandise 2 , 1 1 5 2 , 4 5 1
For services 3 4 8 , 3 9 9 3 6 2 , 0 3 6
For use of third party assets 4 , 5 9 9 4 , 4 2 0
Allocations 1 , 2 5 0 7 0 0
Other operating charges 5 , 6 3 5 9 , 0 1 6
Characteristic added value 5 6 , 1 7 0 1 3 . 4 % 5 6 , 8 9 6 1 3 . 1 %
Financial income and extraordinary components 2 , 0 1 3 2 9 5
Total gross added value 5 8 , 1 8 3 1 3 . 9 % 5 7 , 1 9 1 1 3 . 1 %
Depreciation and impairment 1 5 , 6 9 4 1 5 , 8 9 3
Total net added value 4 2 , 4 8 9 1 0 . 2 % 4 1 , 2 9 8 9 . 5 %
2017 % 2016 %
Staff remuneration 2 9 , 8 0 4 7 0 . 1 5 % 2 8 , 0 9 9 6 8 . 0 4 %
Personnel costs 2 8 , 1 5 8 2 6 , 6 2 8
Severance indemnity and pension 1 , 6 4 6 1 , 4 7 1
Remuneration of the pub. Administration 6 , 5 0 9 1 5 . 3 2 % 6 , 6 1 1 1 6 . 0 1 %
Taxes 6 , 5 0 9 6 , 6 1 1
Loan capital remuneration 1 , 9 6 0 4 . 6 1 % 2 , 5 5 3 6 . 1 8 %
Expenses for long-term and short-term assets 1 , 9 6 0 2 , 5 5 3
Risk capital remuneration 0 . 0 0 % 0 . 0 0 %
Distributed earnings - -
Company remuneration 3 , 8 6 6 9 . 1 0 % 3 , 8 4 6 9 . 3 1 %
Retained earnings 3 , 8 6 6 3 , 8 4 6
Transfers to the community 3 5 0 0 . 8 2 % 1 8 9 0 . 4 6 %
Local taxes and fees 6 0 6 1
Donations and sponsorships 2 9 0 1 2 8
Total net added value 4 2 , 4 8 9 1 0 0 . 0 0 % 4 1 , 2 9 8 1 0 0 . 0 0 %
DETERMINATION OF ADDED VALUE
DISTRIBUTION OF ADDED VALUE
data in thousands of Euros
data in thousands of Euros
2017 SOCIAL REPORT CHAPTER 03. STAKEHOLDERS, SOCIAL ASPECTS, AND SUSTAINABILITY64
2017 SOCIAL REPORT
SOCIALREPORT2017
CHAPTER03.
STAKEHOLDERS,SOCIAL ASPECTS, AND
SUSTAINABILITY
2017 SOCIAL REPORT CHAPTER 03. STAKEHOLDERS, SOCIAL ASPECTS, AND SUSTAINABILITY66
HBG GAMING,ITS STAKEHOLDERS AND
THE MATERIALITY MATRIX
In2017,HBGGamingonceagainupdateditsMaterialityMatrix,orratherthemapofthemostrelevantaspectsforthecompanyanditsStakeholders,tobereportedforsustainabilitypurposes.
The term Stakeholder indicates those who may affect or be affected by the company’s business activities.
Thisserves to respondto thestakeholders’ transparencyexpectationswith regard to theimpactsthatthecompany’sactivitieshaveonaneconomic,socialandenvironmentallevel.
Theanalysis,whichwasconductedthroughtheengagementoftheGroup’smanagers,andwithacriticalcomparisonofthematerialityanalysescarriedoutbythebestpractices,wasgenerallyconsistentwiththeresultsofthepreviousyears.
ThefinalresultoftheseevaluationsisbrieflysummarisedintheMaterialityMatrix,which,forHBGGaming,representsatoolfordefiningtheGroup’ssustainabilitygoals.
• SHAREHOLDERS• REGULATORSAND
INSTITUTIONS• BANKS• OURTEAM• THEGAMINGCHAIN
• OURPARTNERS• CONSUMERS• INDUSTRYASSOCIATIONS• PRESSANDMEDIA• ENVIRONMENT• THECOMMUNITY
HBG Gaming’s Stakeholders:
2017 SOCIAL REPORT CHAPTER 03. STAKEHOLDERS, SOCIAL ASPECTS, AND SUSTAINABILITY 67
The procedure for identifying HBG Gaming’s Stakeholders
The process of defining materiality is the tool used to identify the relevant issues to be adequately communicated to Stakeholders within the Social Report. Themes are analysed based on internal and external relevance.
TheWorkingGroupresponsibleforthedraftingoftheSocialReportcarriesout,asafirstphase,theidentificationofallmaterialthemes,witheachtopicthenanalysedwithreferencetotheimportanceforHBGGaming(internalrelevance),aswellasthevaryingStakeholdercategories(externalrelevance).
ThisprocessisrepeatedandupdatedeveryyearaspartofthedraftingprocessoftheSocialReport. To assess internal relevance, the various themes are analysed through interviewswithDepartmentHeadsandBusinessUnitHeads,evaluatingforeachindividualtheme:
• the present and future implications of a financial or non-financial nature;• the impacts on strategies, policies, processes, relationships and commitments;• the impacts on competitive advantages or management excellence;• the likelihood that risks and opportunities will arise, or potential long-term or short-term
impacts, and the severity of the implied impact.
Toevaluateexternalrelevance,theimpactofeverysingletopicontheprimaryStakeholdercategoriesisanalysedthrough:
• the identification of relevant industry issues, through benchmark analysis and study of the most significant industry publications;
• Interviews with the departments responsible for managing relationships with varying Stakeholder categories and analysing Stakeholder information requests;
• a media analysis to evaluate the issues for which HBG Gaming was cited by the media.
Theresultoftheactivitiesdescribedisrepresentedbyamaterialitymatrix,fromwhichthe
most relevant themes emerging are those related to regulatory compliance, responsible
gaminginitiativestowardsgamingend-usersandpersonnelmanagementpolicies,including
activitiesintendedtopromoteworkplacehealthandsafety.
The various themes are divided into social, environmental and business areas.
2017 SOCIAL REPORT CHAPTER 03. STAKEHOLDERS, SOCIAL ASPECTS, AND SUSTAINABILITY68
LOW
LOW
MEDIUM
MEDIUM
HIGH
HIGH
Relevance to HBG Gaming
Re
lev
an
ce t
o S
take
ho
lde
rs
Stakeholderengagement
Relat ionship withinformation bodies
Dia logue withcontrol bodies
Management ofenvironmental
Creat ion of economicand financia l va lue
Workplace health and safety
Sta�development
Socia lresponsibi l i ty in i t iat ives
Suppl iers(transparency / se lect ion cr i ter ia)
Responsible gaming and protect ionof minors
Compl iance with the appl icable regulat ions
Servicequal i ty
Transparency and integr i ty
CorporateGovernance
Tax contr ibut ions
Relat ionship withthe supply chain
SOCIAL AREA ENVIRONMENTAL AREA BUSINESS AREA
Presence inindustry associat ions
Materiality Matrix:
The Main Tools of Engagement:
• InstitutionalDocuments:FinancialStatementsoftheGroup’sCompanies-ConsolidatedFinancialStatements-SocialReport
• Companywebsite
• Thewebsitecsr.hbg-gaming.it
• The“PlaySensibly”(GiocaconlaTesta)Blog
• SocialNetworks:LinkedIn,Facebook,Twitter
• WebArea:IntranetCompany-SuppliersPortal
• InstitutionalPresentations
• CustomerSatisfactionAnalyses
2017 SOCIAL REPORT CHAPTER 03. STAKEHOLDERS, SOCIAL ASPECTS, AND SUSTAINABILITY 69
GRI STANDARDS
The GRI (Global Reporting Initiative) is a body that has developed the most widely used sustainability performance reporting system for companies and organisations.
ThenewGRI Standardswereofficially presentedon 19October 2016. Theseconstitute the main global reference standards for reporting a company’ssustainabilityperformance.
TheyreplacedthepreviousG4Guidelinesasof1July2018.
HBG Gaming’s social and environmental performance reporting is compliant with the “GRI Standards”, and this allows the Group to effectively represent and communicate the integration of its economic, social and environmental sustainability, both within its strategy, as well as within its governance, business model, and decision-making processes.
TheStandardsallowtheeconomic,socialandenvironmentalresultstobeclearlycommunicatedtheStakeholders.
The topics addressed in the document reflect the results of the materialityanalysis developed according to the methodology indicated and updatedannually.
2017 SOCIAL REPORT CHAPTER 03. STAKEHOLDERS, SOCIAL ASPECTS, AND SUSTAINABILITY70
Rimini -“I believe that these times require the gaming industry to take a further leap forward in order to assert its own virtues and characteristics, which we would like to be more widely recognised externally. What we need, therefore, would be a sort of ‘social report for the industry’, in order to communicate the extraordinary developments of recent years in terms of security, protection of legality, and social investments.”
ThesewerethewordsofAntonioPorsia,PresidentofthelicenseeHBGGaming,whoexalted thegaming sector’s founding values in an interviewwithEnadaPrimaveraofGiocoNews.it.
“I believe that the virtuous pathway undertaken by the sector and, in particular, by the most committed licensees, even in terms of social responsibility, is extraordinarily significant, and needs to be communicated externally in a more effective manner in order to develop a more informed and knowledgeable public opinion. This is where our efforts must be increasingly focused, without losing sight of the strategic role played by legal gaming.”
16 March 2018
Antonio Porsia, President of HBG Gaming, exalted the gaming sector’sfoundingvaluesinaninterviewwithEnadaPrimaveraofGiocoNews.it.
LEGAL AND RESPONSIBLE GAMING
2017 SOCIAL REPORT CHAPTER 03. STAKEHOLDERS, SOCIAL ASPECTS, AND SUSTAINABILITY 71
HBGGaming operateswithin the safe and legal gamingmarket, regulated by the ItalianCustomsAgency,andoffersitsconsumersanentertainmentserviceestablishedamongwell-definedregulations,including:prohibitionofgamingtominors,communicatingtheoddsofwinningforeachtypeofgameandensuringtheamountanddistributionofthewinnings;preventing excessive and unauthorised gaming behaviour by disclosing informationalmaterialandprovidingassistance,andmonitoringthesecurityofsystemsandplatformsinaccordancewiththestandardsrequiredbytheItalianCustomsAgency.
Responsibilityandapropergamingculturecannotoverlooksecurity,which isguaranteedthroughtechnologicalexpertise,innovativecapabilities,andtheofferingofstate-of-the-artservicesandinfrastructures,whichensuretheabsoluteinviolabilityofthetransmissionstothegamingdevicesaswellasthecentralcontrolsystem.
HBGGaming is aware that sustainability and competence are two aspects of a complexrealitythatmustevolveinparallel.Sinceitsinception,theCompanyhasembarkedonapathofsocial,economicandenvironmentalsustainability,in-linewithitsbusinessobjectives.
Since 2012, the “Play Sensibly” Responsible Gaming Project has been in motion, aprogrammethataimstopromoteclearandcomprehensivecommunicationongaminginordertofacilitateinformedchoices,providinginformationregardingtherisksofunaccompaniedgamingbehaviourandpayingparticularattentiontoconsumerswhomaybemoreexposedtogamingrisk.
The focus of the programme, which is reflected in a number of integrated initiatives, is prevention,which includesawareness raising, thediffusionofknowledge,and thepropertraining of insiders, both for corporate staffing and as a business partner network. ThecommunicationaspectisalsoaddressedinordertoreachallStakeholdersmoreeasilythroughtheuseofmore immediate languageaswellassocialmediachannels,suchasFacebook,TwitterandLinkedIn,inadditiontotraditionalchannels.
2017 SOCIAL REPORT CHAPTER 03. STAKEHOLDERS, SOCIAL ASPECTS, AND SUSTAINABILITY72
PROTECTION OF MINORS
TRAINING ON LEGAL ANDRESPONSIBLE GAMING
TheprotectionofminorsisoneofHBGGaming’sprimarycommitments,whichiscarriedoutthroughcontrolactivitiesinitsBingoHalls,providingthebroadestcirculationandadvertisingregardingtheprohibitionofchildrenundertheageof18,andinareasimmediatelyinfrontofthebuildingentrance,throughthe“Prohibitedtoanyoneunder18yearsofage”messagefoundon theadvertisingofeachproduct, the informationalmaterial relating to legalandresponsiblegaming,aswellasontheVideoLotterygamesandthelicensee’swebsite.
Inaddition,HBGGamingcarriesoutthemonthlypublicationofaninformativemessageontheprohibitionofminors inprint andonline, onHBGGaming social channels (Facebook,Twitter,Linkedin),thehbg-gaming.itwebsiteandtheGiocaconlatesta.itblog.
HBGGamingbelievesthat,inordertohelpdisseminatethecultureoflegalandresponsiblegaming,itisessentialtofocusupontrainingalltheplayersinthefield,includingtheemployeesandthesupplychain,aswellastoprovideaccurateinformationtothegamingindustry’sendconsumers.
Itisstrictlyforbiddenforminorstoregisterandplayonthequigioco.itwebsite.Gamingbyminorsispreventedviatheprocessofregisteringandvalidatingtheuserontheplatform,asregistrationrequiresthe Italianfiscalcodeandavaliddocumenttoattest identity.Theplatformhasanautomaticage-trackingsystemthroughtheItalianfiscalcode,whichexcludesregistration for thosewithout theproperage requirements. Inaddition, self-declaration isrequiredbytheplayerintheearlystagesofregistration,providingproofofage.
HBGGamingconsistentlyemploysstaffwithaparticularfocusonthosewhointeractmorewiththepublicontheissuesofgamblingdisorders(GD)throughthesupportofspecialisedcompanies, providing tools for the development of individual and professional skills ofidentificationforproblemplayers,andprimaryinterventionforplayersregardingGDthroughreferraltospecialisedfacilities.
Withregardtoonlinegaming,thequigioco.itportalbyHBGGamingguaranteesabsolute compliance with the prohibition of minors through the gamingmanagementsystem,whichensuresfullcompliancewithcurrentregulations.
2017 SOCIAL REPORT CHAPTER 03. STAKEHOLDERS, SOCIAL ASPECTS, AND SUSTAINABILITY 73
Trainingcourseforgamingoperators
“Gambling in Italy:
Residential training for gaming operators”
HBGGaminghasbeenanactiveparticipantinthe“GamblinginItaly:Research,TrainingandInformation”projectbetweentheItalianNationalInstituteofHealth(ISS)andtheItalianCustomsAgency.ThecompanyparticipatedinthetrainingcourseforLicenseestitled“GamblinginItaly:ResidentialTrainingforGamingOperators”,heldbytheItalianNationalInstituteofHealth.
Inaddition,attherequestoftheItalianNationalInstituteofHealth,HBGGaminghelpeddistributeaspecificallytargetedcommunicationregardingthedistancetraining event organised by the Italian National Institute of Health to theindustry’soperatorsandmerchants,throughdedicatedchannels.
Thecommunicationwastransmittedthroughapop-upwithintheHBGGamingwebportalandthroughtheDeskandVLTManagerSystem,channelsthatallowthecompanytocommunicatedirectlyandeffectivelywithalloperators.
TrainingcourseforBusinessPartnerson
“Pathological Gambling in Italy”
HBGGaminghasprogressively involved theentireBusinessPartner networkwith aManagers TrainingProgram that has thedual purposeof transferringa culturally sensitive GD theme to gaming environments and providing thenecessarytoolsformanagersandemployeestofacilitatetheproblematicplayerinaccessingthehelpline,associationsandstructurestoguideandassisthim/her.
Thecoursewasdevelopedin2015throughapartnershipbetweenHBGGamingandArticolo1,anHRservicescompany.Theonlinetrainingcourseisdedicatedto disseminating an awareness of Pathological Gambling, providing tools topreventtheassociatedrisks,andpromotinglegalandresponsiblegaming.
The lessons are conducted in an e-learning format, and can be downloadedonline using the login credentials distributed to the entire network of HBGGamingcustomers.Attheendofeachmodulearetestsandexercises,aswellasafinallearningtest.
2017 SOCIAL REPORT CHAPTER 03. STAKEHOLDERS, SOCIAL ASPECTS, AND SUSTAINABILITY74
COMMUNICATION AND INFORMATION INITIATIVES
HBG Gaming companies holding a licence have fulfilled, within the terms indicated, therequirements of the Balduzzi Decree, such as posting billboards, labels, and providinginformationtothegamingindustryonthesubjectofresponsiblegaming.
Warning messages that HBG Gaming has produced and distributed throughout the chain, ensuring they are properly placed.
Phrase posted on all advertising materials:
“This device is certifiedby the ItalianCustomsAgency and complieswiththe lawfulgamingprojectionsandallowscashwinningsdirectlycalculatedfromthedeviceinanon-predeterminedmanneroveratotalofnomorethan140,000games, so that it isnot less than70%of the sumsplayedon thedevicewithinthesamecycle.Formoreinformationonthegames,theoddsofwinning,andthepercentageofcollectionsintendedforprizes,pleaseconsultthematerialsinthehallorvisitwww.agenziadoganemonopoli.gov.it.”
AWPStickersandVLTPlatesPLAY WITH MODERATION
2017 SOCIAL REPORT CHAPTER 03. STAKEHOLDERS, SOCIAL ASPECTS, AND SUSTAINABILITY 75
SIIPaCwasthefirstfacilityinItalytofocusonstudyingand expanding on the phenomenon of PathologicalGambling, inorder toofferaneffective interventionprogramme, not only to those affected, but also tofamilymembers.HBGGaminghasbeencollaboratingwithSIIPaCforyearsbyfundingthetoll-freenumberand the chat line, which are advertised online, in brochures, and through informationcampaigns.Theservicesrenderavailablespecialisedoperatorscapableofprovidinglistening,assistanceandinitialguidance.
HBG Gaming has published the nation-wide toll-freehelpnumberonallof itswebsites.Activeonanexperimentalbasisupuntil31March2019,thishelplineguaranteessupportMondaythroughFriday,from10:00 a.m. until 4:00 p.m., for peoplewith gamblingproblems.
The initiative is part of the three-step research, training and information plan conceivedandfundedbytheItalianCustomsAgencyandentrustedforimplementationtotheItalianNationalHealthInstitute’sNationalCentreforAddictionandDoping,andisaimedatraisingawarenessofandtacklinggambling-relatedissues,especiallywithregardtotheirpotentialhealthimpactsonvulnerableindividuals.
HBG Gaming distributes to all its BusinessPartnersahandbookentitled“La Dea bendata ci vede benissimo”(LadyLuckSeesUsPerfectly),written by Dr. Florinda Maione, psychologist,psychotherapist and president of S.I.I.Pa.CLazio (The Italian Society for the Treatmentof Compulsive Disorders [Società ItalianaInterventoPatologieCompulsive]).This publication aims to provide accurateinformation on gambling and its pathologicalcomponent in order to raise awareness andincrease protective factors, on the basis thateducationequatesprevention.“La Dea bendata ci vede benissimo” can bedownloadedbyHBGGamingBusinessPartnersfrom the Partner Area of their managementsoftware.
SIIPACLAZIOTOLL-FREE NUMBERSIIPAC CHAT LINE: http://www.siipaclazio.it/assistenza-on-line.html
NATION-WIDE TOLL-FREE NUMBER forGambling-relatedissues
Distributionofthehandbook“LADY LUCK SEES US PERFECTLY”
2017 SOCIAL REPORT CHAPTER 03. STAKEHOLDERS, SOCIAL ASPECTS, AND SUSTAINABILITY76
CreationofanINFORMATION CAMPAIGN ON RESPONSIBLE GAMING
PreventingandfightingILLEGAL GAMING
HBG Gaming has created the “Use good sense” information campaign to disseminate informationuseful for preventing gambling addiction and forpromotingaresponsiblegamingculture,aninitiativethat falls within the scope of the “Play Sensibly”project. The information page was publishedmonthlyinindustrymagazines.
The Licensees represent a safeguard of legality, andas such have the duty to guarantee the protection andharmonisation of important collective interests, such asthe protection ofminors, the prevention of pathologicalgambling, and the prevention of money laundering ofcriminalactivities.
Through its collaboration with the State, the tradeAssociations, and the other Licensees, HBGGaming hasbecomealeadingplayerinthefightagainstillegalityandplayerprotection,aswellasnumerousvoluntaryinitiativesextendingwell-beyonditslegalobligations.
HBGGaminghasalwaysofferedsafe, legalandresponsiblegaming,andhasproducedaninformativestickerthathighlightstheimportanceofplayingresponsiblyandonlyatgaminglocationsauthorisedbytheItalianCustomsAgency.
Thephenomenonofillegalgaminginvolvesallsegmentsofthepublicgamingmarketandrepresentsaveryseriousriskforconsumers,asitexposesthemtogamingproposalsthatareillegal,unsafe,andnon-guaranteedintermsofbothregularityandprobabilityofwinning.Thosewhoareparticularlyatriskincludetheweakestsegmentsofsociety,especiallyminors.
AtthesametimetheStateisdepletedofresourcesforfundingpublicpolicies.
2017 SOCIAL REPORT CHAPTER 03. STAKEHOLDERS, SOCIAL ASPECTS, AND SUSTAINABILITY 77
Creating fun-filled, safe entertainment is part of HBG Gaming’s mission.However,theissueofthelimitationofthesocialimpactassociatedwithgamingandthefightagainstitspathologicalaspectsconcerntheentirepublicgamingsector. That’s why HBG Gaming goes beyond its legal obligations, and promotes responsible gaming through prevention and support activities for studies, analysis and research projects that deal with the dynamics of problematic and pathological gambling.
HBG GAMING RESEARCH PROJECTS
HBGGaming,incollaborationwithSIIPaC(theItaliansocietyfortheTreatmentofCompulsiveDisorders),haspromotedandfundedtheresearch“ChildTrauma,DissociationandEmotionalRegulationinPsychologicalGambling”.TheresearchhasparticularvalueintheprocessofunderstandingthepathologicalgamblingphenomenonandaimstoconstituteabestpracticeforthedevelopmentoftargetedtherapeutictechniquesforthetreatmentofpatientswithGD,inordertoputanendtothediseaseanddisablethepathologicalbehaviour.
HBGGamingcollaboratedwithinACADItoinitiatethisresearchproject,whichwaslaunchedin2017andended inJulyof2018. Inkeepingwiththeobjectivesexpressedbythe ItalianCustomsAgency,thegeneralpurposeoftheprojectwastofurtherenrichtheinformationassetsalreadyavailableontheissuesoflegalgaming,illegalgaming,andthepreventionofaddictionphenomena,withparticularregardtogaminginvolvingGamingMachines.
TheresearchprovidedfurtherinsightintotheimpactofnewresponsiblegamingmeasuresonplayersinItalythroughtheanalysisoftheregulations,media,andbestpracticesofcountriesconsideredtobe“virtuous”intermsofresponsiblegamingpolicies.
Thestudyconsistedofthefollowingsteps:• strategic classification of legal gaming• magnitude assessment of illegal gaming: estimate using the MIMIC method• analysis of measures for preventing the phenomenon of pathological gambling• analysis of the impact of new responsible gaming measures (market research).
“Comparative and Multidisciplinary Analysis of the Legal and Illegal Market and Measures to Prevent the Phenomena of Addiction to Gaming Machines”
“Child Trauma, Dissociation and Emotional Regulation in Psychological Gambling”
2017 SOCIAL REPORT CHAPTER 03. STAKEHOLDERS, SOCIAL ASPECTS, AND SUSTAINABILITY78
“The Functionality of Bingo Halls for the Promotion of Responsible Gaming”
HBGGaming,onavoluntarybasisandwiththehelpofASCOBAssociates,haspromotednationwideresearchtounderstandandevaluatewhetherBingoHallscanconstituteapublicgamingwithcashprizesmodelcapableofpreventingtheriskofpathologicalgambling,amodelthatcouldbeextendedbeyondtheBingo-specificoffer.Thesurvey,theresultsofwhichwerepresentedon26June2017,wascommissionedattheUniversityofFlorence-DepartmentsofPoliticalandSocialSciencesandHealthSciences.
ThegameofBingowasfoundtobethemostsocialofallthoseontheregulatedpublic gaming market. In particular, the survey, which was conducted on asampleof800playersthroughoutvariousregions,showedthat45%ofplayershabituallygotothehallinthecompanyofothers,andanother23%(foragrandtotalofmorethantwothirdsofthesample)gomorefrequentlyinthecompanyofothers rather thanalone: thesefindingsconfirmhowBingoHalls serveasdestinationsandmeetingplacesforentertainmentactivities.
“Customers in the environments dedicated to Gaming
Machines at Bingo Halls”
Thisproject,whichconstitutesthesecondpartoftheprevioussurvey,isonceagainbeingconductedbytheUniversityofFlorenceandisstillongoing.
ItfocusesuponthestudyofthefunctionalityoftheenvironmentsdedicatedtoGamingMachineswithintheBingoHalls,andtheanalysisofthehabits,conduct,and inclinationsof thosewho frequent them, frombothapsychological andsociologicalstandpoint.
“Responsible gaming and healthy behaviour”
Theresearchproject,conductedbytheUniversityofBologna,aimstoobtaina more in-depth knowledge of GD (gambling disorders) within the contextof Emilia Romagna,which is among the Italy’s foremost regions in terms ofgamblingturnoverandindividualspending,andspecificallythebiomedicalandsocio-structuralcausesthattransformgamingfromarecreationalactivityintoaformofdeviantandpathologicalbehaviour.
2017 SOCIAL REPORT CHAPTER 03. STAKEHOLDERS, SOCIAL ASPECTS, AND SUSTAINABILITY 79
Inordertoprotectconsumers,HBGGaminghasevenintroducedastrongappealforsocialresponsibility within its Group Code of Ethics, which contains behavioural principles forthemanagementoflegitimategamingactivities.TheaimistoprovidetherecipientsoftheCode,andemployeesinparticular,withtheprinciplesofconducttobeobservedduringthemanagementofpublicgamingtoensurecompliancewiththeobligationsprescribedbythelawsandregulations,thusguaranteeinglegalandresponsibleentertainment.
Inaddition,HBGGaminghasvoluntarilyadoptedaformalInformationSecurityManagementSystemrelatedtoAWPandVLTgamingadministrativeprocessesandmanagementsystems,obtainingISO27001:2013Certification.Thiscertificationatteststothehighlevelofsecurityof the platform and the games offered to customers, the confidentiality of data, and animprovedguaranteeofthecontinuityofservices,throughthereductionofcomputerrisks.Inthisapproach,HBGGamingaimedtostrengthentherelationshipoftrustwithallStakeholdersandconsumers,distinguishingitselffromthereferencemarket.
InthedialogueestablishedwiththeConsumer/StakeholderConsumer,HBGGaminghasidentifiedthemainareasofinterventionandprotection.Therefore,theCompanyiscommittedto:• Ensuringtheprohibitionofunder-agegaming,alwaysandeverywhere;• Promotingresponsiblegaming;• Preventingexcessivegamingbehaviour;• Notifying,informingandassistingplayers.
DIALOGUE WITH CONSUMERS
GROUP CODE OF ETHICS
INFORMATION SECURITY MANAGEMENT SYSTEM
2017 SOCIAL REPORT CHAPTER 03. STAKEHOLDERS, SOCIAL ASPECTS, AND SUSTAINABILITY80
Inordertofacilitatethecontinuityoftherelationshipandthedirectdialoguewithitscustomers,HBGGamingpromotestheuseofwidelyavailablecommunicationtoolsliketheInternetandsocialnetworks,throughwhichactionstakeninthevariousareasofinterventionaremadeknown,andassistanceisprovidedtoanyoneinneed,whethertheindividualhimself/herselforthroughthesupportoffamilyandfriends.
On the corporate website, a section dedicated entirely to responsible gaming has beendeveloped, available to all users, where materials on responsible gaming can also bedownloaded.Inthisarea,abriefself-evaluationtestcanbetaken,developedbytheSouthOaksGamblingScreen,whichisusedtoidentifypathologicalgamblers.Notethatadiagnosisof this typemayonlybegivenbya licensedpsychotherapist; however, this test can stillprovideausefulindicationofwhetherornotgamblingproblemsarepresent.ThetestisalsoofferedinpaperformatintheGamingHall.BoththebrochureandthewebsiteindicatetheSIIPaCtoll-freenumbertocallifthefinaltestscoreindicatestheneedtocontactspecialistsforfurtherdetails.
In2017,HBGGamingdevelopedanewwebsitededicatedentirelytoSocialResponsibility,whichprovidesconstantupdatesontheGroup’s initiativesforthepromotionof legalandresponsiblegaming,withparticularregardtoinformation,trainingandresearch.
Withintheportaldedicatedtotheoperators,allthematerialinherenttoresponsiblegamingandthecommunicationmaterialintendedfortheprotectionofminorsandtheprohibitionofgamingaccesshavebeenmadeavailableindownloadableformat.
Promotion of activities aimed at preventing gaming addictiononthesocialnetworksandtheInternetasawhole
hbg-gaming.it
csr.hbg-gaming.it
servizi.hbg-gaming.it
HBGGamingmakesTransparencyoneofthepillarsonwhichitbasesitsbusinessactivities,entertainmentproposals,dialoguewithemployees,aswellasrelationshipswithInstitutions,ClientsandConsumers.HBGGaminghandlesmarketchangesandtechnologicaldevelopmentswiththegoalofensuringsustainability,clarity,andrespectfortherules.In2017itwasthefirstcompanyinthesectortodedicateanentirewebsitetoitssocialresponsibilityefforts,inordertocommunicateandreportonitscommitmentandtheconcreteactionsthatitcarriesout,inacontinuousdialoguewithitsStakeholders.
TRANSPARENCY AND CORPORATE SOCIAL RESPONSIBILITY
2017 SOCIAL REPORT CHAPTER 03. STAKEHOLDERS, SOCIAL ASPECTS, AND SUSTAINABILITY 81
Socialchannels:
FacebookLinkedIn
Blog: giocaconlatesta.it
HBGGaming’sCSRteamregularlypublishespostingsonsocialmediainordertopromoteHBGGaminginitiativesandtoshareahealthyandresponsiblegamingculture,allinanefforttopreventexcessivegambling,toprotectminors,andtomaintainaconstantdialoguewithitsStakeholders.
TheHBGGamingGroupaccountsthatalsohavecommercialpurposesandperformmarketing activities, such as Bingo Halls, prohibit access to userprofilesundertheageof18.
TheBlogwascreatedasavirtualmeetingpointforfacilitatingdiscussionandinteractiononthetopicofgaming:throughtheperiodicpublicationofarticles,itstimulatesreflectionontheconceptofentertainment,disseminatingahealthyandresponsibleapproachtogaming,inordertopreventpathologicaldeviationsandpotentiallyharmfulbehaviour.
Inthe“UsefulInformation”sectionoftheBlog,contactstoidentifythefacilitiesandtherapeuticpathsforproblematicgamersandfamilymemberscanbefound.
In 2016, HBG Gaminglaunched its “Play Sensibly”Blog, a highly interactivecommunication tool forthe entire community,which provides for aconstant dialogue with theStakeholders and is evencapableofreachingouttothemost difficult-to-interceptconsumersegments.
In 2018 (in order to adapt to the Dignity Decree - Italian Legislative Decree no. 87 of 12 July 2018), the Blog’s URL was changed from giocaconlatesta.it to usalatesta.hbg-gaming.it
2017 SOCIAL REPORT CHAPTER 03. STAKEHOLDERS, SOCIAL ASPECTS, AND SUSTAINABILITY82
Weare currentlywitnessing a growth and rapid evolution in the field ofOnlineGaming,andthisisduetothedevelopmentofdigitalisationprocesses,thestrengtheningofnetworkconnections,andthespreadofsmartphones.TheItalianCustomsAgencyandtheLicenseesarehighlydedicatedtoensuringthelegalityandsecurityofremotegaming,especiallywithregardtotheprotectionofminors,whichinItalytakesplaceviatheapplicationofoneofEurope’smostadvancedregulatorymodels.
Throughthequigioco.itportal,HBGGamingoffersaccesstoanadvancedandcompletelyreliablegamingplatformthatguaranteesthehigheststandardsofsecurityinfullcompliancewiththestatutoryandregulatoryrequirementsoftheStateMonopolies.TheCompanyalsoactively promotes Safe andResponsibleGamingwith regard to distance gaming. At thewebsite quigioco.com, players can find all the information useful to them regarding self-limitationandself-exclusionfromgamingforafixedoropen-endedterm.
Inaddition,aspecial sectionof thesite, “ResponsibleGaming”,wascreated, inwhich thefollowingwasmadeavailabletotheplayer:
• HBG Gaming’s Responsible Gaming Program, with reference to the website csr.hbg-gaming.it/gioco-legale-responsabileandtheBloggiocaconlatesta.it
• amanualforenjoyingaconscientiousandresponsiblegamingexperience,
• the“PlaySensibly”supportserviceofferedincollaborationwithSIIPaC,thelinktothefreechatline,andtheindicationofthetoll-freenumber
• the “PLAY SENSIBLY” advice to players, an invitation to consider gaming as funentertainment,andtopayattentiontothefirstwarningsignstobeshowniftheplayerrecogniseshis/herat-riskbehaviours.
Prevention and limitation mechanisms in distance gaming on the quigioco.it portal
AssistanceforproblemplayersCOLLABORATION WITH SIIPAC
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HBG Gaming has a strong sense of responsibility towards the consumer; that’s why it does not limit itself to merely working for the prevention of pathological gambling, but is also actively engaged in supporting all people who, in various forms and for different reasons, are affected by GD and are in need of specialised support facilities.
HBGGaminghaschosentocollaboratewithSIIPaC,theItalianSocietyfortheTreatmentofCompulsiveDisorders,withwhichithasaneffectiveandstrongrelationship,asitbelievesthathighlyqualifiedprofessionalsareneededinordertostudy,diagnoseandtreatcomplexissuessuchaspathologicalgambling.
SIIPaC is a centre specialised in the care and rehabilitation of people with problems ofpsychologicaldependenceandcompulsivedisorders.Officiallycreated in 1999, itwasthefirstfacilityinItalytofocusonstudyingandexpandingonthephenomenonofpathologicalgambling,inordertoofferaneffectiveinterventionprogramme,notonlytothoseaffected,but also to family members. It currently provides an innovative Rehabilitation Centre,both for proposed therapies and for the variety of professionals involved: psychologists,psychotherapists,psychiatrists,accountants,lawyers,andtutors.
ThecontributionofferedbyHBGGamingallowstheassociationtoprovidefreepsychologicalpreventionandpsychotherapyservices.Specifically,aninitialpsychologicalconsultationisofferedtoallplayersandfamilyofplayersrequestinghelporinformation.
HBGGaminghassupportedSIIPaC’sresearchintothefactorsassociatedwithpathologicalgambling since 2016, andhas financed the free chatline service http://www.siipaclazio.it/assistenza-on-line.html forseveralyears.Thisonlineplatformcanbeusedbypeoplewhowant to ask for help, but don’t have the courage to do it directly, and prefer to remainanonymous.TheSIIPaCoperatorsrespondtotheirneeds,providesupportandunderstandingand, where necessary, propose a structured programme consisting of individual andgrouppsychotherapeuticdiscussions,anarrayofpsychodiagnostic tests,and informationinterventionsthroughoutthecountry.
OnceagainthankstothesupportofHBGGaming,asof2016ithasbeenpossibletoinitiatecompletelyfreepreventionandtreatmentservicesforsubjectsafflictedbyGD.TheSIIPaCLazio Onlus project involves participation in informative and therapeutic groups for thetreatmentofPathologicalGambling,andtheadministrationofteststopathologicalplayersbeforeandaftertherapyattheCentreinRome.
HBG Gaming has also established a free support service, managed by SIIPaC, which isavailablevia the toll-freenumber800589372. In fact, thenumber isdisseminatedonlineviathecompany’swebsite,theCsrwebsite,theBlog,andSocialMedia,throughinformationcampaigns in industry magazines, and throughout all the HBG Gaming halls and BingoHalls.Theservice,withthehelpofspecialists,isabletoprovidelistening,guidanceandfirstassistancetoproblemplayersorthoseaffectedbyGD.
Thisproject,whichconstitutesavoluntaryinitiativebyHBGGaming,arosepriorto,andservesto support, theNation-wide Toll-FreeNumber forGambling-related issues (800 558822)promotedin2017bytheItalianCustomsAgency,whichisdisseminatedbytheCompanyinthesamemannerastheSIIPaCtoll-freenumber.
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theHBGGamingwebsitededicatedtoCorporateSocialResponsibility
csr.hbg-gaming.it:
In 2017, HBG Gaming became the first company in the sector to dedicate an entire website to its Social Responsibility: a level of attention that reflects a commitment to Society and the Environment that goes well beyond the mandatory regulatory requirements.
Thecsr.hbg-gaming.itwebsiterepresentsaninnovativewayforHBGGamingtocommunicateand explain the commitments and activities it has undertaken to achieve the socialsustainability objectives integratedwithin its business objectives, while at the same timeprovidingitsinternalandexternalStakeholderswithinformationrelatingto thecompany’sawarenessofcriticalgaming-relatedissuesanditsdailyactivitiesinfavourofthecommunityanditsemployees.
Theintuitiveanduser-friendlywebsitealwayshighlightsthelatestnewsregardtheGroup’sactivities, and focuses upon three areas of interest: Legal and Responsible Gaming,withparticularregardtoinformation,trainingandresearch;People:theemployees,thenetwork,thecustomersandthesuppliers;theCommunity,withafocusupontheinitiativesundertaken,fromcollaborativeprojectswithnon-profitorganisations,toprofessionalorientationactivitiesforyoungpeople.
The“HBGNews”itemsallowstheusertokeepconstantlyup-to-dateonCorporateSocialResponsibility (CSR)andLegalandResponsibleGamingevents,with theaimofensuringgreater interactionandengagementamongall theStakeholders.Thenewwebsite,whichwascreatedafterthe“PlaySensibly”Blog(www.giocaconlatesta.it)launchedinSeptemberof2016,bearswitnesstoHBGGaming’sincreasingattentiontoInternetcommunications,achannelthatoffersexcellentvisibilityandagreatopportunityfordialogueandinteraction,andisessentialforcontinuingdownthepathwayofsocialsustainabilitythatthecompanyundertookin2012withthe“PlaySensibly”ResponsibleGamingProjectaimedatdisseminatingasafe,legalandresponsiblegamingculture.
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AdherencetoIndustryAssociationsiscarriedoutinactiveparticipationamongdiscussionforumswith thedevelopmentof unifiedproposals and strategies thatpromote legal andresponsiblegaming; in theexecutionof analysis and researchprojectson thematic areasidentifiedbytheItalianCustomsAgency;indisseminatingaccurateinformationonthepublicgamingmarketinItaly,andincontributingtothedevelopmentofthesectorandthegrowthofemployment,alsothroughtechnologicalinnovation.
ASCOB(BingoLicenseesAssociation)definesadevelopmentstrategyfortheindustryandexpressesthegeneralguidelinesoftherepresentationpolicybywayofstatutorybodies.Ithasthetaskofidentifyinginterventionsandcoordinatingimplementationtools.ItadherestoFIPE(ItalianFederationofPublicEstablishments).
HBGGamingisthefounderofASCOBandtheBingo&CasinoBusinessUnitManager,CosmaDamianoDeRosa,sitsontheBoardofArbitrators.
HBGGaming collaborateswith IndustryAssociations, in particularASCOBandACADI, to promote initiatives in accordancewith the Italian CustomsAgency,inordertocarryoutactionstoensureresponsiblegamingandtheprinciplesof sustainability, control and transparency in the industryand inthe execution of studies and research, to provide a reliable picture of theproblematicbehaviourassociatedwithgamingandtheeffectivenessofthepreventiontools.
COLLABORATION WITH ASSOCIATIONS
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“The Functionality of Bingo Halls for the Promotion of Responsible Gaming”
In Julyof 2017 theASCOBassociatespresentedanation-wide studyconducted inordertounderstandandevaluatewhetherBingoHallscanconstituteapublicgamingwithcashprizesmodelcapableofpreventingtheriskofpathologicalgambling,amodelthatcouldbeextendedbeyondtheBingo-specificoffer.
ThestudywasconductedbytheNewSocialPathologiesUnitoftheUniversityofFlorence,coordinatedbyFrancaTaniandMassimoMorisiofthedepartmentsofPoliticalandSocialSciences and Health Sciences, which as of 2013 established a branch of research andinterventionplanningcentreduponthephenomenonofgambling.Thesurvey,whichinvolvedmorethan800playersdistributedamongvariousregionsandhighlightedtheexistenceofacloserelationshipbetween“responsiblegaming”andthegaming“environment”,confirmthevalueofBingoHallsasentertainmentvenueswithanaturalpropensityforhospitalityandcustomerprotection.
“Customers in the environments dedicated to
Gaming Machines at Bingo Halls”
Theproject,whichconstitutesthesecondpartoftheprevioussurvey,isstillongoing.It focuses upon the study of the functionality of the environments dedicated toGamingMachineswithintheBingoHalls,andtheanalysisofthehabits,conduct,andinclinationsofthosewhofrequentthem,frombothapsychologicalandsociologicalstandpoint.
ItisoneofthefirstfieldsurveystobeconductedinItaly,andisaimedatimplementinganempirically-basedmodelforthepreventionofgamingrisksandthepromotionofresponsiblegaming.
“Responsible gaming and healthy behaviour”
In2018,ASCOBsponsoredanotherresearchprojectconductedbytheUniversityofBologna.The“Responsiblegamingandhealthybehaviour”researchprojectaimstoobtainamorein-depthknowledgeofGD(gamblingdisorders)withinthecontextofEmiliaRomagna,whichisamongtheItaly’sforemostregionsintermsofgamblingturnoverandindividualspending,andspecifically thebiomedicalandsocio-structuralcauses that transformgaming fromarecreationalactivityintoaformofdeviantandpathologicalbehaviour.
Itisalsoproposedtoexperimentwithhowaresponsiblegamingeducationcampaign,andthe involvementofpathologicalplayers in recreationalandsportingactivities,canreducepathologicalbehaviourandimprovethepsychophysicalhealthoftheplayersthemselves.
Thebasichypothesisofthestudyisthat,throughthereinforcementofasocio-educationalintervention, Bingo Halls can become elective places for the prevention of pathologicalgamblingandthepromotionofresponsiblegambling(placesfora“newsocialreflexivity”).
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“Comparative and Multidisciplinary Analysis of the Legal and Illegal Market and Measures to Prevent the Phenomena of Addiction to Gaming Machines”
In 2017, HBG Gaming collaborated with other Licensees belonging to ACADI for theexecution of a researchproject on the topic ofResponsibleGaming, titled “ComparativeandMultidisciplinaryAnalysisoftheLegalandIllegalMarketandMeasurestoPreventthePhenomenaofAddictiontoGamingMachines.”
InkeepingwiththeobjectivesexpressedbytheItalianCustomsAgency,thegeneralpurposeof theprojectwasto furtherenrichthe informationassetsalreadyavailableonthe issuesoflegalgaming,illegalgaming,andthepreventionofaddictionphenomena,withparticularregardtogaminginvolvingGamingMachines.
The survey outlined the magnitude of illegal gaming in Italy, providing an internationaloverview of the measures for preventing gaming machine gambling addiction. It alsoproposed hypotheses for intervention on the topics addressed in the study,which couldserveasabasisforthesector’ssustainabledevelopment.
Since 2013, HBG Gaming has been part of ACADI (Italian Association of Entertainment Device Licensees), one of the leading Italian associations in the gaming industry. ACADI’s members include Cogetech SpA, Gamenet SpA, Admiral Gaming Network Srl, HBG Connex SpA, Intralot Gaming Machines SpA, and NTS Network SpA.
ACADIhasthegoalofpromotingtheprogressofthesector,inthegeneralinterestsofallthepartiesconcerned,andhasestablisheditselfasadirectinterlocutoroftheItalianregulatorybody(the ItalianCustomsAgency)andof the Institutions.ThroughthetransparencyandresponsibilityofitsmemberLicensees,itformulatesunifiedproposalsforthedevelopmentofthegamingmarket,whicharegearedtowardstheprotectionofboththebusinessandtheconsumer, in theprotectionof legality,employmentgrowthandtechnological innovation.It supports initiatives related to the gaming sector,with specific reference to regulatory,technicalandcommunicationinterventions.Theassociationisalsoactiveinthefightagainstpathologicalgamblingandinpromotinghealthy,responsiblegaming.
“The Rules of the Game”
As an ACADI member, HBG Gaming commissioned The European House-Ambrosetti toconductthestrategicstudytitled“TheRulesoftheGame”-Impactsofpublicpoliciesonthegamingindustryandguidelinesforthefuture.”
ThestudywaspresentedataWorkshopinRome,on19September2017, inthepresenceofqualifiedpolicymakersand industry leaders. Itproposesa frameworkof reflectionsonproposalsandguidelinesforinterventionaimedatovercomingthegamingmarket’scriticalissues, and identifiespossiblemedium-long term solutions,with the aimof openingup aspaceforconstructivedebatewithinasectorthat’simportanttothecountry’seconomy.
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Thereportcontainsthemaineconomicdata,andanalysesthephenomenonofillegalgamblingandunder-the-counter(i.e.under-declared)gaming.Ithighlightstheneedtoatleastpartiallyredesignthesector’sregulatoryandmanagementmodel,discussestechnologicalinnovationanditsimpactuponcompaniesandconsumers,and,finally,attemptstoaddressthetopicof pathological gambling, starting from the information available and encouraging thecollectionofthatwhichismissing.Tothisend,itmightbehelpfultocreatean“Observatory”forthecollectionandreprocessingofindustrydata,inordertobetterclarifytheconnectionsbetweenthephenomenaandtheircauses,andtoinitiatemoremodernandeffectivesystemsformonitoringandcombatingpathologicalcases.
Thestudyalsohighlightsthefundamentalroleofcommunication,whichrepresentsthemaintoolcapableofincreasingawarenessofthedifferencesbetweenlegalandillegalgaming.Inorderforcommunicationtofulfilthistaskandguidepeople’sbehaviour,analystssaythattheStatemusttakeclearandtransparentactiontohelpovercomethenowwidespreadprejudice,accordingtowhichgamingisexclusivelyconsideredapathologyorquasi-pathology,andtoinsteadhighlightitsentertainmentvalue,withinthelimitsestablishedbylaw(especiallywithregardtotheprotectionofminorsandvulnerablegroups).
Communicationfocusedupontheconceptofresponsiblegaming,capableofemphasisingthenot-necessarilynegativeaspectsofmoderategamingactivity,andcallinguponpeopletoactresponsibly,isessentialinordertocorrectlypositionthisformofentertainment.
First level Master’s in Economics and Gaming Company Management
Starting inNovemberof2016,andthroughoutallof2017,ACADIsponsoredan importantinitiativeaimedatyoungpeople:afirstlevelmaster’sdegreeprogrammeinEconomicsandGamingCompanyManagement,whichwasheldattheUniversityofCassinoandSouthernLazio.TheparticipatingLicenseesrenderedoneormorecorporateprofessionalsavailableasteachers,andevenhostedtraineestocompletethetrainingprogramme.
TheMaster’sprogrammeendedinMarchof2018withthethesisdissertations.TheDirectorof Legal and Corporate Affairs, Claudio Altobelli, coached the HBG Gaming trainee asaspeaker.The trainingcoursewaseven followedbyaGroupemployee,AlbertaAngioni,who discussed the thesis titled “The quality standards of the supply chain in theUnifiedConferenceagreement.”ThespeakerwasAttorneyGeronimoCardia,whoalsoservedasateacherduringtheMaster’sprogramme.
Theaimoftheinitiativewastotrainlegalgamingprofessionalsascompetentfiguresabletorespondinatimelyfashiontothedynamismthatcharacterisesthepublicgamingsector.Thecourseparticipantshavedevelopedin-depthtechnicalskillsspecifictothesebusinessrealitiesinthefieldsofaccounting,economics,finance,taxations,contracts,andcommunication.
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Reconstruction of the “Don Giovanni Minozzi” Playground in Amatrice
ACADIdonated thenew “DonGiovanniMinozzi”Playground,designedby theFrancescoAndreaniarchitecturalfirm,totheMunicipalityofAmatrice.
“Amatrice is reborn with a playground”:thiswasthenamegiventotheproject,whoseaimwastooffernewgamesandorganiseditineraries;aninclusive,creativeandcommemorativespace that even features artistic installations by the Pavart Gallery in Rome. The artisticprojectwasmade possible thanks to the contribution of theHBGGaming, Snai, Codere,Gamenet,NtsNetwork,andAdmiralGamingNetworklicensees,aswellastheparticipationofauthorChiaraGamberale.
The initiative arosewith the aimof providing concrete help for the reconstruction effortthroughthecreationofasharedspacethatwouldlaythefoundationsforthecommunity’srebirth,namelyintheeducational,social,andculturalspheres.
TheparkfeaturesseverallargeartisticworksbyfourartistsselectedbythecuratoroftheVeliaLitteragallery:RobertaMorzetti,AngeloSavarese,AlbertoTimossiandStefanoTrappolini.
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In recent years, effective cooperation between the State, Licensees, IndustryAssociationsaswell as thedialoguewith territorial institutions, inaddition tofacilitating the resolutionofproblems associatedwith illegal gaming and theseriousconsequencesthatitcancauseintermsofcrime,gambling,andlossoftaxrevenue,hasalsoallowedforgreattechnologicaldevelopmentintheindustry,GDPgrowthandnationwideemployment.HBGGaminghasalwaysencouragedandenactedthiscollaboration,whichbothassumesresponsibilityinthesearchfor effective and equitable solutions that ensuremaximum transparency andregularitytotheenduser,andrespectsalloperatorsinthechain.
DIALOGUE WITH INSTITUTIONS
SAFEANDLEGALGAMING:HBG GAMING ALIGNED WITH THE INSTITUTIONS
The Customs Agency, which has recently been reorganised, absolves the function of regulating and controlling the gaming industry in Italy by constantly verifying the obligations the industry’s licensees and operators are required to meet, and by combating illegal gaming.
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TheState’spresenceinthepublicgamingsector,inadditiontoensuringaflowofrevenuetothetaxauthorities,primarilypursuestheaimofensuringlegality,protectingthehealthofplayersandcounteringthecriminaldegenerationofgamingactivities,whilealsoprotectingtheindustryfromaneconomicperspective.Itismotivatedbytheneedtocreatesafegamingenvironmentsbymonitoringandprohibitingpotentiallygaming-related illegalphenomena(theftofrevenuesduetothetaxauthorities,moneylaundering,fraud,lackorreducedpayoutreturnedtotheplayer),andtheneedtocontrolthesocialimpactsofgamingwithparticularregardtothemostvulnerablecategories.
Overthelastfewyears,theculturalcontextcentredaroundthegamingandentertainmentsectorhasundergonesignificantmetamorphosis.Therehasbeenamovementofprofoundchange,whereprogresshas evolved froma regulation-free context, inwhich thebulkofproceedsweremanagedby criminal organisations, to an era of gamingwith cashprizeswithinaframeworkoflegalityandpubliccontrol.However,despitethecontrastingactivities,theillegalandunder-the-countergamingphenomenonremainsdangerousandwidespreadtoday.
Illegalgamingisthatwhichisexercisedoutsidethelawandintheabsenceofalicense,whileunder-the-countergamingisexercisedwithinalegalenvironment,butwithillegalorartificialinstruments.BothplacethefinancialinterestsoftheStateandthesecurityofcitizensatrisk,especiallyminors.Thefightagainstillegalityrepresentsapriorityfortheentiresector;alsofromtheplayer’sperspective,itconstitutesaprimaryandfundamentalformofprotection.
THE REGULATION OF THE SECTOR FOR SUSTAINABLE GAMING
The 2016 Stability Law required the number of New Slots to be reduced by 30% as of 2017, and also required the characteristics of the points of sale, as well as the criteria for their territorial distribution, to be defined, at a Unified Conference held between the State, the Regions and the Provinces, by 30 April 2016, in order to ensure better levels of health protection and public order, and to prevent the risk of access by minors.
Uponarrivingatanagreementaimedatreorganisingthegamingoffering,theConferenceconcludedon7September2017.Themainpointsoftheagreementarethefollowing:
• The reduction of the number of AWPs, the gaming volumes, and the points of sale;• The establishment of a system of rules for the gaming points’ territorial and temporal
distribution;• The improvement of the quality standards of the gaming points and the offering
through new rules for the granting of gaming sales licenses. The points of sale that will remain throughout the territory must be certified. The certification shall be subject to such criteria as selective customer access, internal video surveillance, and complete traceability of bets and winnings;
• The improvement of the control system;• The reinforcement of preventive measures for combating pathological gambling.
Themeasureofimprovingthequalitystandardsofthepointsofsaleintermsofcombatingpathological gambling requires the gaming sales licenses to be granted following thecertification of the collection points, which in turn requires the physical environmentsto be compliant with certain criteria, and the staff to obtain adequate preparation andprofessionalismthroughspecificemployeetrainingactivities.
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HBGGaming,whichhassupportedtheItalianCustomsAgencyforyearsinthelegalisationofthesectorandthedisseminationofasafeandresponsiblegamingculture,hasinvestedinthehighestqualitystandards intermsofsafety,theprotectionofminors,andthefightagainst illegal gaming. It has always focused upon informing and training its employeesandtheentirenetworkinordertoguaranteetheutmostprofessionalismofitspersonnel.Itensuresthegamingenvironments’totalcompliancewiththequalitystandardsrequiredbytheindustry’sregulations,notonlyintermsofthetechnicalandarchitecturalcharacteristicsofthepremises,butalso,andaboveall,intermsoftheattentiondedicatedtotransparencywithincommunicationsconcerningresponsiblegaming.
Qualitycontrolsandvoluntarycertificationsarefurtherguaranteesavailabletocustomers,Business Partners and suppliers. As far back as 2009, HBG Gaming adopted a QualityManagementSystemcertified according to the ISO9001 international standard,with theaimofprovidinghighqualitystandardsthroughoutallservicestages;in2017itobtainedISO27001certification,whichisextremelyimportanttothesectorasitatteststothequalityoftheInformationSecurityManagementSystemlinkedtothegamingsystems’administrativeandmanagementprocesses.Fortheconsumer,thismeansthemaximumlevelofsecurityforthegamesofferedandtheguaranteeofdataprivacy.
In 2018, HBG Gaming Group obtained certification for its Occupational Health & Safety Management System according to the international standard BS OHSAS 18001:2007, for all the Group’s Licensee companies.
Transparency, legalityandsocial responsibilityare the imperatives thatguidetheGroup’schoices.InkeepingwiththeEuropeanDirectiveonthereportingofnon-financialinformationfor5years,HBGGamingpublishes itsSocialReport,adocument thatbearswitness toasustainablebusinesschoicepursuedovertime,withconvictionandforesight.
HBG Gaming is Italy’s first Bingo Hall LicenseetohaveobtainedthisprestigiouscertificationforeachofitsBingoHalls.
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HBG Gaming works constructively with its Stakeholders, supporting social, cultural andhumangrowthprojectsinpartnershipwithhighlyqualifiedandreputableactors;itpromotestherealisationofconcreteprojectswiththeaimofrespondingand,occasionally,anticipatingtheexpectationsofthesocietyandcommunityofreference.
HBGGaming’s Social Report , throughwhich it reports the sustainability impacts of thecompany’sactivitiesforeachStakeholder,hasbeenregularlypublishedsince2013.The2016SocialReportwaspresentedinRome,on3October2017,attheHalloftheTempleofHadrian.
Since the time of its founding, HBG Gaming has followed a pathway ofprogressivegrowthtowardsSustainability,ensuringproperandcompetitivebusinessmanagement,andgeneratingsharedvalueforallofitsStakeholders.Thesociallyresponsibleconduct inwhichthecompanyengagesonadailybasisarelaidoutinitsCorporateCodeofEthics,andreflecttheprinciples,culture,andMissionthatconstituteanintegralpartoftheGroup’sdevelopmentstrategy.
COMMUNITY INITIATIVES
TothebenefitoftheCommunity,in recent years the Company has supported various initiatives of solidarity, scientific research and the development of young people,andhaschosentogivecontinuitytotheactionstakenandtotheaffiliationofthechosenpartners.
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HBGGamingsupportsscientificresearch,andhasbeensponsoringTelethonforseveralyearsnow.In2017itcontributedtotheFoundation’sactivitieswithadonationof¤15,000forresearchon the treatment of rare genetic diseases. The Foundation’smission is to provide concreteanswerstoallthosefightinggeneticdiseasesthataresorarethatthey’reoftenoverlookedbylargepublicorprivate investments inresearch.With¤498million invested,thankstoall thesupportgeneratedthroughoutoursociety,Telethoncurrentlyfunds1611researchers,with571diseasesbeingstudiedthrough2629researchprojects.
Christmas e-cards
During the 2017 Christmas season, HBGGaming once again donated to Telethonby purchasing Christmas e-cards for itscustomersandsuppliers;aninitiativethat’smainly aimed at raising awareness of theFoundation’s commitment in the field ofresearch,andtheprestigiousresults ithasachieved.
Payroll Giving
In2018,HBGGamingextendeditsTelethonsolidarity network to include all thecompany’s employees by introducing thePayroll Giving initiative, which offers thecompany’sstafftheopportunitytosupportthe Telethon Foundation’s researchersby making individual donations directlythroughpayroll.
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FIABA DAY 2017
HBG Gaming supported the fifteenth edition ofFiaba Day, which was dedicated to the themeof “The importanceof trainingtoeducateaboutaccessibility”,withtheaimofhighlightingtheimportanceoftrainingforthecreationofanopen,inclusiveandcohesivesocietycapableofguaranteeingtheactiveparticipationofallindividuals.ForHBGGaming“training”meansencouragingthegrowthanddevelopmentofindividuals,withtheaimofcreatingaculturebasedonthesharingofvalues,objectivesandknowledge,whichcanbringaddedvaluetoboththeindividualandthegrouptowhichhe/shebelongs.
Amatrice for reconstruction without barriers
HBGGamingfundedaprojectpromotedbyFIABAOnlus aimed at disseminating correct informationso that the reconstruction of Amatrice, which wasdevastated by a terrible earthquake in August of
2016,wouldtakeplaceaccordingtocriteriathatwouldeliminatethearchitecturalbarriers.Operationally,HBGGaminghascontributedtothecreationofamobileinformationcentreinthemunicipalareaofAmatrice,whichaccompanieslocalinstitutions.Theaimofthe“AmatriceforReconstructionwithoutBarriers”projectistofacilitateinnovativereconstructionthatisabletoprovidecitizenswithacomfortableenvironmentadaptedtohumandiversity.
In its commitment to disseminate a culture of equal opportunity and to ensure a totallyaccessibleenvironment through theeliminationofallphysical, cultural,psychologicalandsensorialbarriers,HBGGaminghasespousedthemissionofFIABAOnlusandhassupporteditsince2013.
Theassociationaimstoteardownallthearchitecturalandculturalbarriersthatprecludethepossibilityofenjoyingandexperiencingtheenvironment,inallitsforms.ItpromotesuniversalusabilityanddesignoffullyaccessibleareasaccordingtotheprinciplesofTotalQualityandUniversalDesign: the“Design forAll”concept,aimedatsocial inclusionandequalitywithrespectforhumandiversity,whichisattentivetopeople’sneeds,demandsanddesires.
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AIL-theItalianAssociationagainstLeukaemia,LymphomaandMyeloma-hasbeenoperating
inItalyforover40years,fundingresearchthroughthenon-profitcooperativegroupGIMEMA
(ItalianGroupforHaematologicalDiseasesinAdults);creatingpatientcentresandengaging
innumerousotheractivitiesrelatedtoitsmission.
ThankstoAILand itsvolunteers, thousandsofpatientscanbenefitfrommodernhospitalfacilities,state-of-the-artequipment,homecareandAILpatientcentres,wheretheycanbeaccommodatedalongsidetheirfamilies.
Easter e-cards
In 2017 and 2018, additional support activitieswere planned forFIABA Onlus, including a donation for the purchase of Eastere-cards.
Home care project
HBG Gaming has supported AIL everyChristmasforseveralyearsnowbypurchasingChristmas gifts for employees and greetingcardsforfriendsandsuppliers.
Activein51provinces,theAILprojectconsistsof providing home care services, with theaim of sending multi-professional teams ofdoctors, nurses, psychologists, and socialworkerstothepatient’shome.At-homecareenhances the quality of life for patients andfamilymembers,helpingthembetterconfrontthepathaheadonadailybasis.
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Race for the Cure
HBGGaminghasteamedupinthe“RacefortheCure”event,thenationalfund-raisingeventorganisedbytheG.KomenFoundationinthefightagainstbreastcancer.
SupportfortheinitiativestemsfromtheCompany’swillingnesstobeanactivepresenceinthereferencecommunityandtopromoteandsupportinformationandpreventioncampaignsthatpromotewell-beingandhealthatthepersonalandcollectivelevel.HBGGamingseesthepromotionofwomen’shealthasaparticularlyimportantobjective,especiallyconsideringthefactthat44%oftheGroup’spersonnelarewomen.RacefortheCureisthesymbolicsportingeventofSusanG.KomenItaly,anon-profitorganisationbasedonvolunteering,which,since2000,hasbeenactiveinthefightagainstbreastcancerthroughoutthecountry.
In 2018 participation on the part of HBG Gaming employees tripled with respect to 2017, for a total increase of 190%.
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KIDS DAY
This day, which is dedicated to theemployees’children,hasnowbecomeafixtureforalltheheadquarters’staff,andhasbeenagreatsuccessforHBGGaming,acompanymadeupofmanyyoung professionals who are alsomothersandfathers.
Theinitiativearosewiththeaimofbringingtheemployees’workandfamilylivestogether,asafunandentertainingwaytobringtheirchildrento theworkplace and let them discover firsthand theplacewhere their parentsgowhenthey’renotwiththem.
Forthe2018edition,thethirdinwhichHBGGaminghasparticipated,educationalworkshopsweredesignedandcreatedforthespecificpurposeofteachingchildren3to12yearsofageabouttheenvironment,nutrition,andart.
ThroughouttheKidsDayevent,thechildrenhadtheopportunitytoexperimentwithdifferentcreativeandculinaryworkshopsfordifferentagegroups.Colourfulballoons,cottoncandy,popcorn,andnumerousrecreationalactivitiestransformedtheoffices intoachild-friendlyenvironment,whichover60youngguestsfilledwiththeirjoy,cheerfulness,andacontagiousenthusiasm.
“Pink Day”
Thankstothecompany’scollaborationwiththeSusanG.KomenFoundationand the specialised medical staff ofthe A. Gemelli University PolyclinicFoundation,HBGGaminghasgivenitsemployeestheopportunitytoundergoaspecialistvisitfreeofchargeduringtheir working hours within a MobileBreastCancerPreventionunitlocateddirectlyattheworkplace.
Over 60% of the female employees over the age of 40 participated in the initiative.
ForHBGGaming,thePinkDayinitiativerepresentsanimportantwaytoimprovethehealthandwell-beingofitsemployees,byraisingawarenessoftheissueofpreventionanddrawingattentiontotheimportanceofundergoingperiodicchecks.
INITIATIVES FOR EMPLOYEES AND THEIR FAMILIES
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Gaming Cup
In 2017 the HBG Gaming team participated and won the sixth edition of the “Memorial M. Armellini” Gaming Cup, the 8-a-side football tournament reserved for gaming company representatives, and participated again in 2018.
AtHBGGaming,theGamingCuphasbecomeafixedeventthat’sverymuchanticipatedbyalltheemployees;acompanywelfareactivitythat,inrecentyears,hasproducedexcellentresultsintermsofteambuilding,asithashelpedstrengthenthebondsbetweencolleagues.
Thefootball teamcanbeseenasametaphorfortheCompany’sworkenvironment:HBGGaming’ssuccessisowedtoteamwork,adelicateandcomplexobjective,whereeveryonesharesinthegoalstobeattained,isawareoftheirrole,knowswithwhomtocommunicateandtowhomtheresultoftheirworkisrelayed.
HBG Gaming invests in young people through its own HR professionals, and is actively engaged in numerous initiatives dedicated to their orientation on the Labour Market.
In addition to financial support, the company also dedicates the time and skills of its professional figures, in order to make a valuable contribution to the growth and development of the new generations and to promote concrete social innovation.
EDUCATION AND TALENTS
2017 SOCIAL REPORT CHAPTER 03. STAKEHOLDERS, SOCIAL ASPECTS, AND SUSTAINABILITY100
The 2017 Millennials Ambassador Award
Asevidenceof this commitment,on20December2017HBGGamingwasawardedthetitleof“MillennialsAmbassador”byHRCMillennialsforhavingcontributedtotheorientationofyoungpeopleonthelabourmarket,withaprofoundsenseofsocialresponsibility.
This awardwas obtained thanks to the commitment of HBGGaming’s HR professionals:AntoniaBuscemi,HumanResourcesManager;ClaudiaRuggeri,StaffRecruitmentManager;FrancescaGargaro,StaffRecruitment;allofwhomhavebeenactivelyengagedintheHRCinitiativesdedicatedtoyoungpeople.
Career Days by Brain at Work
As a partner of Brain At Work,HBG Gaming collaborates on therealisation of Career Day eventsdedicatedtoprofessionalorientation.
With its HR Specialists, the companyparticipatedintheeditionsheldon18October2017and21March2018.Theeventsrepresentanopportunityforyoungpeopletobecomemorefamiliarwiththelabourmarket,throughcognitive interviews aimed at exploringpossible career opportunities and orientingthecareerchoicesofrecentgraduates.
John Cabot University Career Fair
HBGGamingwasoneoftheleadingcompanies at the Career Fairorganisedon10November2017byJohnCabotUniversity.
The event, which gives many youngundergraduates and graduates theopportunity to showcase their skillsand ambitions by meeting with HumanResources professionals, represents anexcellent opportunity for universities,students and businesses to engage in“networking”. Claudia Ruggeri, Staff
RecruitmentManager,andGiovanniTiscione,DirectorofFinanceandControlAdministration,rendered themselves available to the numerous young people who attended the event,contributingtotheirprofessionalorientation.
2017 SOCIAL REPORT CHAPTER 03. STAKEHOLDERS, SOCIAL ASPECTS, AND SUSTAINABILITY 101
Lumsa Talent Academy Job Corner
On23November2017,HBGGamingparticipated in the Job Cornerorganised by the Lumsa TalentAcademyincollaborationwithHRCAcademy, with the Group’s HRManager, Antonia Buscemi, actingasHRMentor.
TheHRCAcademyisthemostimportantItalianBusinessCommunity.TheTalentDaysaretrainingandinformationbasedorientationdaysledbytheDirectorsandHumanResourcesManagersofmajornationalandmultinationalcompanies,whohelpyoungpeoplediscovertherealitiesof theworkplacebyofferingtheir testimonialsandprovidingtheparticipantswith their ownwealth of personal skills and experience. The primary objective is to helpyoungpeoplechooseacareerpathin-linewiththeirinterests,aswellaswiththedemandsoftheworkplace.
Republic of Interns
In 2018, HBG Gaming joined thenetwork of virtuous companiescomprisingthe“RepublicofInterns”,or rather the RDS Network. As amember,theCompanyiscommittedto offering favourable internshipconditions for all young peopleenteringtheworkforce.
Internships are precious resources thatallow young people to gain a footholdin the workforce, while at the same timehelpingthemdiscoverthemselvesandtheir
own talents. Theyconsistofperiodsofon-the-job training thatprovideopportunities fordirectknowledgeofjobopportunitiesandtheacquisitionofspecificprofessionalskills.HBGGamingbelievesthatthecreationofvaluefortheCommunityalsoinvolvestheprotectionoftheyoungergenerations’rightsandlegitimateaspirations.
Millenials Enel Days
On23February2018,HBGGaming’sown HR Mentors attended the“MillennialsEnelDays”,anorientationand training day dedicated toMillennials.
2017 SOCIAL REPORT CHAPTER 03. STAKEHOLDERS, SOCIAL ASPECTS, AND SUSTAINABILITY102
CULTURE ANDSOLIDARITY
Operation Smile and the Lazio Food Bank
During the 2017 Christmas season, inadditiontosupportingAIL,HBGGamingreinforced its commitment to theCommunity by supporting two majornon-profit organisations: OperationSmileOnlusandtheLazioFoodBank.
The Company sent Christmas greetings to itsStakeholdersusingthepapergreetingcardsande-cards by Operation Smile, the humanitarianmedical organisationmade up of a network ofthousandsofvolunteersfromover80countriesworldwide,whichhelpstoimprovethehealthandlivesofchildrenfromover60countriesaroundtheworld.ThegoalofOperationSmile istobringsmilestothefaces of childrenbornwith facial deformities,whohave noother treatment options. Thefundsareusedtopurchasemedicalequipmentforlessdevelopedcountries,andtotrainlocalmedicalpersonnel.OperationSmilehasalreadyperformedover240,000freesurgeriesforchildrenandyoungadultsbornwithcleftlipandotherfacialdeformities.
ThroughtheLazioFoodBank,ontheotherhand,HBGGamingdonatedfoodproductstothoseengagedinprovidingassistanceandhelptothepoorandtheneedy.TheCompany’scollaborationwiththeFoodBankwillcontinuethroughout2018withtheinvolvementofHBGGaming’semployees,whowillhavetheopportunitytodovolunteerworkforthefoundationduringpaidworkinghours.
The“Together Against Cancer” foundation
HBG Gaming supports the “TogetheragainstCancer”Foundationbyparticipatinginthefund-raisingeventforthepromotionofcancerpreventionprojects,andhealthylifestyles involving physical activity andsportsatallages,inanefforttosafeguardthewell-beingofthepopulation.
2017 SOCIAL REPORT CHAPTER 03. STAKEHOLDERS, SOCIAL ASPECTS, AND SUSTAINABILITY 103
Partita Mundial
In 2017 HBG Gaming contributedto a series of important initiativesin support of some of the mostimportant women’s issues, and itintendstomaintainthiscommitmentthroughout2018aswell.
Thecompany’sQuiGiocobrandsupportedthe sixth edition of the “Partita Mundial”dedicated to raising funds for thepreventionofviolenceagainstwomen.Theevent,whichwasheldon21March2018attheOlympicStadiuminRome,consistedof
afriendlymatchbetweenformerfootballers,magistratesandcelebrities,andservedtoraiseawarenessoftheissueofviolenceagainstwomen.
The evening’s collections were entirely donated to several non-profit organisations and associations dedicated to the prevention of violence against women in Italy
TheeventwassponsoredbytheMinistryofSports,Coni,RomaCapitale,TheRegionofLazio,andFIGC.
Sundays of the heart
HBGGamingisamongthesupportersofthe“OpenHeart”event:acharitygolf tournament organised by thenon-profitorganisationDonalaVitaconilCuore.
Thepurposeoftheeventistoraisemoneyin support of the “Sundays of the heart”project, which will allow travelling “HeartTruck” clinics to offer specialist visits toneedy or marginalised people, or thosewhohavenotreatmentpossibilities.
The Sundays of the Heart are part ofthe medical solidarity project managedby volunteer doctors from the GemelliPolyclinic.
CHAPTER04.
THE TEAM,THE PARTNERS,
AND THEENVIRONMENT
2017 SOCIALREPORT
2017 SOCIAL REPORT CHAPTER 04. THE TEAM, THE PARTNERS AND THE ENVIRONMENT106
332 WOMEN
429MEN
TOTAL STAFF ANDGENDER BREAKDOWN
2 0 1 5 2 0 1 6 2 0 1 7
Women 2 9 7 3 1 3 3 3 2
Men 3 5 9 4 0 9 4 2 9
T O T A L 6 5 6 7 2 2 7 6 1
TOT. 761 PEOPLE
Participation, sharing and teamwork are values stipulated within the Group’ Code ofEthics,inwhichparticularemphasishasbeenplacedonemployeerelations.Theassuranceof organisational well-being, meritocracy in career rewarding and career development,continuingeducation,safetyintheworkplace,andtherefusalofanykindofdiscriminationconstitute,forHBGGamingGroup,awaytoenhancehumancapitalasanessentialresourceforsuccess.
Thepeoplewhowork forHBGGaming are theGroup’s greatest strength,which,inrecentyears,hasbeenaleadingcompanywithinthegamingindustry.Atthecoreofthisexcellenceliesthevalueandworkofallitsemployees-itis for this reason theCompanystrives topreserveanddevelop theassetsof each individual. To do so, it invests resources in every aspect: training,professional growth opportunities, career development, work-life balanceinitiatives,aswellasprogramsandprojectsfortheprotectionofhealthandsafetyattheworkplace.
EMPLOYMENT AND TURNOVER
PEOPLE AT HBG GAMING
2017 SOCIAL REPORT CHAPTER 04. THE TEAM, THE PARTNERS AND THE ENVIRONMENT 107
Asof31December2017,HBGGamingGrouphadatotalof761workers.69.1%areemployedwith open-ended contracts, 28.9%with fixed-term contracts, and theremainderwithother typesofcontracts. 100%of theemployeesarecoveredbycollectivecontracts.
EMPLOYEES RECRUITED IN 2017
W O M E N M E N T O T A L
Managers 0 0 0
Middle managers 1 3 4
Office employees 9 9 1 4 3 2 4 2
T O T A L 1 0 0 1 4 6 2 4 6
FIXED-TERM
W O M E N M E N T O T A L
Managers 0 0 0
Middle managers 0 0 0
Office employees 9 0 1 3 0 2 2 0
T O T A L 9 0 1 3 0 2 2 0
EMPLOYEES TERMINATED IN 2017
W O M E N M E N T O T A L
Managers 0 2 2
Middle managers 0 2 2
Office employees 9 0 1 3 7 2 2 7
T O T A L 9 0 1 4 1 2 3 1
PERMANENT CONTRACT
W O M E N M E N T O T A L
Managers 1 7 8
Middle managers 1 0 4 2 5 2
Office employees 2 2 9 2 3 7 4 6 6
T O T A L 2 4 0 2 8 6 5 2 6
EMPLOYEESBYCONTRACTTYPEANDGENDER
EMPLOYEESBYPROFESSIONALCLASSIFICATIONANDGENDER
TOTAL WORKFORCE AS OF 31/12/2017 WOMEN MEN TOTAL
Collaborators / Interns 2 1 3 1 5
Employees 3 3 0 4 1 6 7 4 6
T O T A L 3 3 2 4 2 9 7 6 1
TOTAL EMPLOYEES AS OF 31/12/2017 WOMEN MEN TOTAL
Managers 1 7 8
Middle Managers 1 0 4 2 5 2
Office Workers 3 1 9 3 6 7 6 8 6
T O T A L 3 3 0 4 1 6 7 4 6
2017 SOCIAL REPORT CHAPTER 04. THE TEAM, THE PARTNERS AND THE ENVIRONMENT108
AVERAGE AGE (WOMEN/MEN)
AVERAGE SENIORITY (WOMEN/MEN)
TheHBGGamingstaffcomprisesa“young”teamwith an average age of 37 years.
STAFF BREAKDOWN BY AGE
Women Men Average
3 7 . 4 1 3 7 . 2 5 3 7 . 3 2
BREAKDOWN BY CORPORATE SENIORITY
Women Men Average
7 . 4 6 6 . 4 0 6 . 8 6
PERSONAL DEVELOPMENT
Career Management is an integrated set of resourcemanagement tools to optimise thereconciliation between individual preferences and resources/skills and the needs of theorganisation.
Itdefineshorizons,verticalandmultidisciplinarycareerstructuresandprospectswithintheorganisation,andallowsthecompanytodirectthegrowthofinternalresources.Italsooffersthetalents,bothexternalandinternal,aclearvisionoftheirprospectivecareerwithinHBGGaming,rangingfromorganisationallogictomanagementanddevelopment.
In2017,thefollowingactivitieswerecarriedout:
• Role analysisThemappingofthespecificskillsforeachrolewascarriedoutwithanindicationoftheexpectedlevel.
Basedontheidentifiedcompetencies,theEvaluationCardsusedinthe2017PerformanceManagement process have been modified and updated, which include the sectiondedicatedtoevaluatingspecificroleskills,aswellas identifyingthedeltabetweentheexpectedscoreandthelevelactuallypossessedbytheindividual.
The 2017 Performance Management results provided concrete guidance on the 2018Training Plan, with the aim of shifting from multidisciplinary training for the entirecompanypopulationtotrainingclosertotheindividualneedsfortherolescoveredandforhomogeneousgroupsofworkers,basedontechnicalskills.
HBGGamingpromotes andprotects the valueof human resources and iscommittedtoretaininganddevelopingtheassetsofeachemployee,ensuringthattheabilitiesandlegitimateaspirationsofindividualsarefullyrealisedinaccordancewithcompanygoals.Startingin2016,HBGGamingimplementeda reviewofHumanResource processeswith the aimof building aCareerManagementSystem.
2017 SOCIAL REPORT CHAPTER 04. THE TEAM, THE PARTNERS AND THE ENVIRONMENT 109
JOBROTATION
The analysis revealed that 95.6% of weighted positions have higher remuneration or average market share.
SELECTION AND ON BOARDING
Furthermore,withanincreasingawarenessoftheimportanceofencouragingtheinclusionofyoungtalentsattheworkplace,inadditiontohavingconsolidateditsrelationshipwithHRCommunityAcademy,HBGGaminghasalsoestablishednewpartnershipswithspecialisedCompanies andUniversities, includingBrain atWorkandJohnCabotUniversity, andhastakenpartinaseriesofJobMeetingsandCareerDayinitiativeswiththeaimofcontributingtotheprofessionalorientationofthenewgenerations.
AnotherimportantdevelopmentisHBGGaming’smembershipinthenetworkofvirtuouscompaniescomprisingtheRepublicofInterns(theRDSNetwork),wherebytheCompanyhascommitted itself tooffering favourable internshipconditionsforallyoungpeopleenteringtheworkforce.
InHBGGaming,newhiresarewelcomedandguided in theentryphasebyHRstaffandcolleagues.
• Weighting of positionsIn order to strengthen the internal and external principles of fairness already presentwithinthecompany,HBGGaming, incollaborationwitha leadingconsultingcompany,hasconductedtheanalysisandweightingofpositions, identifyingtheircorrespondingremuneration levels in relation to the general market and reference segment (dataprovidedbyathirdcompanyspecialisinginjobpricing).
Theprocessofskillmappinghashelpedtoensuregreaterinternalflexibility.Withanaimforcontinuousorganisationalimprovementaswellaspersonalandprofessionalgrowth,in2017,averticalandhorizontalinternalJobRotationwithinbothBusinessDivisionsandStaffDirectorieshasallowedemployeestogainmoreandmoreskillsandresponsibilities,contributingtothecreationofvalueandanincreasingexchangeofknowledgeandprofessionalism.
0 2 4 6 8 10 12 14
TOTAL JOB ROTATION
VERTICAL JOB ROTATION
HORIZONTAL JOB ROTATION
1 3
2
1 1
2017 SOCIAL REPORT CHAPTER 04. THE TEAM, THE PARTNERS AND THE ENVIRONMENT110
EQUAL OPPORTUNITY AND FOSTERING DIVERSITY
TRAINING AND PROFESSIONAL GROWTH
StaffrecruitingforHBGGamingisplannedannually,dependingontheneedsoftheGroupinconnectionwithrecruitingspecialists,andisrequiredtocomplywiththeCodeofEthics.
Inlinewiththecompany’sobjectivetopromoteandmaintaintheorganisationalwell-beingofeachemployee,HBGGamingtranslatesitscommitmentintoapplyingpart-timeandtime-savingsolutionswhereverpossible.Inparticular,itprotectsmaternityandpaternityleave.
HBGGamingoffersallemployeesequalopportunitiesintheworkplacewithoutdiscrimination.Theselection,recruitment,remunerationandmanagementofcareer development for each employee takes place solely on the basis ofmerit and skill,without discrimination and regardless of race, political andreligiousbeliefs,nationalorigin,gender, sexualpreference, civil status, anddisabilities, inaccordancewiththelaws,employmentcontracts,regulationsanddirectivesinforce.
Likein2016,duringthecourseof2017majorinvestmentswereonceagainmadeinthepromotionofpathwaysofgrowthforHBGGaming’sPeopleManagerTeam,andtheexpansionoftheofferingintermsoftechnicalandspecialisedtraining,withadhocinterventionsbeingmadeinrelationtospecificskillsinordertomeettherequirementsforprofessional,regulatoryandITupdates.
Tofostertheirfullintegration,InductionandBasicTrainingareprovided,inwhichtheprimarycommunicativeandoperationalflowsofthecompanyareillustratedthroughtheanalysisofinternalregulations,proceduresandoperatingstandards,aswellastheCodeofEthicsandguidelinesadopted.
In 2017, 331 training hoursweredelivered inInduction.
Thegoalistoensurethatpeopleimmediatelyfeel like part of the teamwhen joining thecompany; they acquire awareness of theirrole within the organisation, sharing valuesandorganisationalculture.
2017 SOCIAL REPORT CHAPTER 04. THE TEAM, THE PARTNERS AND THE ENVIRONMENT 111
Awareofthe importanceof itsPeopleManagers’ teamspiritandtheneedtoaccompanythemonthepathwayofDevelopingtheirManagerialSkills,HBGGaminghasdevelopedaCounsellingprogrammededicatedspecificallytothem.Counselling constitutes a professional relationship aimed at helping people improve theconductoftheirorganisationalroles,withafocusuponthetopicsofPeopleandPerformanceManagement.Theprojectincluded6individual1-hourmeetingsforeachparticipant,and,inordertobetteradapttothecorporaterealityandthedifferentPeopleManagerprofiles,itwasdividedinto3groups:
• 1st group - Newly-appointed or potential People Managers,forwhomatwo-daytrainingcoursewasinitiatedonPeopleManagementplus6counsellingsessions.
• 2nd group - Follow up Counseling forcolleagueswhoalreadyparticipated inacounsellingprogrammeduringtheHBGGamingPeopleManagementtrainingprojectin2015,asarefreshercourseandanextrarolesupportinitiativetobeundergone2yearslater.
• 3rd group - People Managers who want to engaged with the Counsellor inorder toaddressspecific rolechallengesand improve their skillsandknowledgeofPeopleManagementtopics(EmployeeManagement,EmployeeMotivation,PerformanceManagement,etc.).Inthiscasetherolecounsellingwasonlybegun“uponrequest”aftertheirparticipationintheinitiative,inwhichalmostallthefiguresconcernedparticipated.
The toolofCounsellinghasallowedus tocreateanatmosphereof learninganddialogueaimedathelpingpeopleimprovetheconductoftheirrolesandstrengthentheirmanagerialskills.
AnotherHBGGaminginitiativededicatedtoRoleDevelopmentwascarriedoutforseveralpotentialDeputyDirectorsoftheGroup’sBingoHalls,forwhomatwo-day“DevelopmentCentre”wasorganisedinordertoestablishandimplementanindividualdevelopmentplanforeffectivelyconductingthemselvesintheroleofDeputyDirector.Furthermore,inordertofosteropportunitiesfordialogue,networkingandupdatingfortheHBGGamingmanagementteam,theCompanyhasadheredtothePermanentUpdateserviceofferedbyTheEuropeanHouse-Ambrosetti.
Other2017initiativesinclude:
• Technical and specialised training activities,promotedthroughtheorganisationofadhoccourses,andparticipationinconferences,seminarsandinter-companycourses.
• “Master Gaming Certificate”: a three-year master’s course focused upon thegamingmarket andaimedat increasing the technical and relational skills of the salesnetworkanddevelopingateamculture,whichhasreacheditsfinalyear-2017/2018.
2017 SOCIAL REPORT CHAPTER 04. THE TEAM, THE PARTNERS AND THE ENVIRONMENT112
The Master Gaming Certificate
THEMASTERGAMINGCERTIFICATE:ATHREE-YEARMASTER’SCOURSEFORBECOMINGALEADERINCUSTOMERSERVICE
Thethree-yeartrainingprogrammeaimstofosterangenuinemeetingdedicatedtosharinganddialogueamongallthemembersofthesalesnetworkinordertoimprovetheirawarenessoftheirrolesandtofacilitatethetransitiontowardsasalesconsultingactivityforthedevelopmentofthegamesandproducts.Theatmosphereofsharingisgeneratedbyaseriesofactivitiesdesignedtobeengagingonbothanemotionalandanalyticallevel.
Thetopicsdiscussed,accordingtodifferentmethodologiesandapproaches,arethefollowing:• Negotiation,• Relations,• Networking,• Communication,• Marketing,• Teambuilding.
Thesesametopicsaredevelopedoverthecourseof3yearsatdifferentlevelsofin-depth analysis and complexity, with the participants obtaining the Master GamingCertificateattheendofthetrainingcourse.
Eachyearofwork isconcludedwithan importantoff-siteexperience,consistingofa full-immersion within a particularly exemplary reality of the gaming world: SaintVincent,LondonandLasVegas,developedinsequence,providethebackdropforahighlyeducationalexperienceofprofessionalinfluenceandenrichment.
Anassessmentoftheacquiredskillsandanindividualfeedbacksessionareconductedattheendofthecycle.
2017 SOCIAL REPORT CHAPTER 04. THE TEAM, THE PARTNERS AND THE ENVIRONMENT 113
TOTAL TRAINING HOURS
HALL TRAINING HOURS
W O M E N M E N T O T A L
Managers 0 0 0
Middle Managers 8 1 2 8 1 3 6
Office Workers 1 6 8 5 0 4 6 7 2
T O T A L 1 7 6 6 3 2 8 0 8
OFFICE TRAINING HOURS
W O M E N M E N T O T A L
Managers 2 4 1 8 8 2 1 2
Middle Managers 1 6 0 3 2 8 4 8 8
Office Workers 9 1 7 7 9 9 1 , 7 1 6
T O T A L 1 , 1 0 1 1 , 3 1 5 2 , 4 1 6
2,160
1,064
TECHNICAL
MULTIDISCIPLINARY
TOTAL: 3,224
Training hours by professionalcategory and gender
From 1 January to 31 December 2017
Womenhours
Average hours/women
Menhours
Averagehours/men
Totalhours
Averagehours/total
Managers 2 4 2 4 1 8 8 2 7 2 1 2 2 7
Middle Managers 1 6 8 1 7 4 5 6 1 1 6 2 4 1 2
Office Workers 1 , 0 8 5 3 1 , 3 0 3 4 2 , 3 8 8 3
T O T A L 1 , 2 7 7 4 1 , 9 4 7 5 3 , 2 2 4 4
2017 SOCIAL REPORT CHAPTER 04. THE TEAM, THE PARTNERS AND THE ENVIRONMENT114
EMPLOYEE HEALTH AND SAFETY
In fact, with the awareness that the adoption of international systems and standards isbeneficialtotheGroup’smanagementandcontinuousimprovement, in2017HBGGamingcarriedoutan intense initiative inordertoverifyand improve itsmanagementprocesses,with theaimofadoptingacertifiedmanagementmodel. In 2018, HBG Gaming obtained certification for its Occupational Health & Safety Management System according to the international standard BS OHSAS 18001:2007, for all the Group’s Licensee companies.
In2017,numeroussupplementaryactivitieswerecompletedwiththeaimof implementingsystemsformonitoringandcontrollingthecompany’sactivitiesforpreventionpurposes.
Themainactivitiescarriedoutin2017were:
• EnvironmentalmonitoringinalltheGroup’shallsforchemicalandbiologicalagents.
• The implementationof thenumberofemergency teamemployeesat theBingoHalls,forwhichanextensiveprogrammeof trainingand instructioncourseswasorganised,asrequiredbyItalianLegislativeDecreeno.81/08.Thisaspect,beyondrepresentingaveritableincreaseinoperationalsecuritylevels,hasbeenperceivedasasystemofgreaterresourceinvolvementincompanyactivities.
• Theassessmentofthework-relatedstressrisk,whichinvolved100%ofthecompany’sstaffandofferedeveryoneopportunitytoexpresstheiropinionsandobservationsonthetopic.Thefinalevaluationsurveyswereansweredbyasignificantnumberofworkers,thusallowingforseveralimprovementactionstobeorganisedandimplemented.
• Thecompletionofthedocumentcomputerisationandstandardisationprocess,launchedin2015andcompletedin2017,whichnowensurestheavailabilityofallthedocumentationrequiredbyItalianLegislativeDecreeno.81/08indigitalformat,andinrealtime,onasharedplatform.
• The launchof the implementationproject for a softwareapplicationdedicated to themanagementofSafetyTrainingandHealthSurveillancecompliance,completewiththeschedulingandintervalsrequiredbylaw,inordertoimprovetheefficiencyandqualityoftherelativemanagementprocesses,andtorenderthedecision-makingflowsmoreagile.
• Theupgradingofhealthsurveillanceandstafftraining,drivenbyHBGGaming’sincreasingattentiontotheneedsofitsemployees,whichhascometofruitionwithmorefrequentinterventionsbythetechniciansandmedicalstaffoftheOperatingUnits.
HBG Gaming is extremely sensitive to the issue of health and safety ofindividuals:everyyear,allhealthinspection,trainingandmonitoringactivitiesarecarriedoutinatimelymannerandalwayswithgreateradherencetoanidealmanagementmodel.
2017 SOCIAL REPORT CHAPTER 04. THE TEAM, THE PARTNERS AND THE ENVIRONMENT 115
FocusonHealthandSafetyEducation
In2017,particularattentionwaspaidtoimprovingthetrainingprovisionofGamingHallstaff.
Themainaspectsuponwhichtheinterventionfocusedwerethefollowing:
• Greater participation in the composition of the classes on the part of the Gaming Hall Directors: asharedsystemofparticipantbookingandregistrationwasestablished,withagreaternumberofsessionsinordertoensurealesserorganisationalimpactuponthehall’sshifts.
• Logistics: greater attentionwas paid to the areas dedicated to training, creating “adhoc”classroomsintheGamingHall,whenpossible,orfindingexternalclassroomswithinorganisedandhospitablestructures,inordertorenderthetimedevotedtotrainingmorecomfortable.
• Organisation: thestaffwasconvenedformandatorycoursesinsmallgroupsfromthenearbyGamingHall,inordertoengageinanddebateoncommonthemes.
HealthandSafety
0 1,000 2,000 3,000 4,000 5,000
OFFICE TRAINING HOURS
CLASSROOM TRAINING HOURS
1,058
4,923
0 200 400 600 800 1,000
OFFICE EMPLOYEES TRAINED
HALL EMPLOYEES TRAINED
192
661
Main injuryindicators*
2017number of injuries
2017days lost
In Progress 4 8 0
On the job 8 1 6 6
TOTAL 1 2 2 4 6
*The above information constitutes a partial cross-section of that which is required by the GRI 403-2 disclosure.
2017 SOCIAL REPORT CHAPTER 04. THE TEAM, THE PARTNERS AND THE ENVIRONMENT116
THE NETWORK
In 2017, HBG Connex SpA obtained the ISO 27001:2013 Certification.With the adoptionof a formal InformationManagementSystem related to the administrativeprocesses andmanagement of AWP and VLT gaming systems, the company sought to strengthen therelationshipoftrustwithitsbusinesspartners,distinguishingitselfinthereferencemarket.
Retailers and managers are the owners of premises and AWP machines,respectively.In2017,thenetworkconsistedof8321establishments.
HBG Gaming continually performs a series of controls on operators to detect any non-conformitiesand,inparticular,toverifythepresenceofinformationalmaterial.TheretailerreceivesregulatorytrainingfortheproperuseofAWPsbythemanager,whileHBGGamingprovides information material, responsible game documentation, and placards for theprohibitionofgamingforminors.Italsoprovidesonlinetrainingandcustomerservice.
HBGGamingstrivesfortheloyaltyofmanagersthroughcontinuouslisteningandconstantoperationalsupport.Theannualsatisfactionofmanagersismonitoredthroughacustomersatisfactionsurvey.
HBG Gaming Group, through its subsidiary HBG Connex SpA, has theoperational management of telematics networks, which follows the entirepath,fromreceivingapprovaltotheinstallationandmonitoringofAWPandVLTequipment.Attentiontothequalityofserviceandthecontextofrulesandregulationsrelatingtobusinessregularityandtransparency,aswellasacontinuouscommitmenttothediffusionofa legalandresponsiblegamingculture,distinguishHBGGaming’srelationshipwithitsbusinesspartners.
THE AWP NETWORK
2017 SOCIAL REPORT CHAPTER 04. THE TEAM, THE PARTNERS AND THE ENVIRONMENT 117
OperatorsaretheownersofpremisesdedicatedtoVLTdevices.HBGGaminghas4,798VideoLotteryinstallationpermits,whicharedistributedin461VLThalls,aswellasinitsBingoHalls.
Asalicensee,HBGGamingisresponsibleforinstallingtheterminalsandprovidingsupportandupdatingservices for itsoperators.Auditsarealsocarriedout inorder toandverifycompliancewiththeregulationstheprotectionofthePlayers.Operatorsareprovidedwiththenecessarytrainingandallgamingmaterial,includingresponsiblegamingbillboardsandplacardsontheprohibitionofminors.
In addition to dedicated assistance and traditional tools, HBGGaming is also capable ofofferingitsBusinessPartnersinnovativeandhighlytechnologicalproductsandservices.Through theHBGMy.YouDeskplatform,operatorscanaccess the rangeofproductsandtoolscapableofdevelopingandoptimisingtheirbusinesses.
QuiGioco PointsIn2017,HBGGamingenricheditsrangeofservicesattheQuiGiocopointsofsalebyrenderingavailableaplatformforthesaleofprepaidrecharges.Inadditiontogamingproducts,theQuiGiocopointsofsalearenowabletooffertheir customers a wide range of rechargeable products, including national andinternational mobile phone recharges, Pay-TV recharges, and online purchaseVouchers.
HBG Desk HBGDeskisthesolutionthatHBGGamingofferstoitsBusinessPartnersinordertooperateonlineandmanagealloperationsrelatedtotheirNewSlotandVideoLotteryequipment.Inadditiontothewebportal,HBGDeskisalsoavailableinaversiondesignedforsmartphonesandtablets.
VLT Manager SystemIstheonlinesolutiondedicatedtothehallmanager’sday-to-dayoperation.
HBG You DeskHBGYouDesk is the newweb platform offered byHBGGaming to its BusinessPartnersinordertohaveimmediatecontroloftheirbusiness,andisalsoavailableonsmartphonesandtablets.
My HBGt’stheappforsmartphonesandtabletsthatallowsyoutolocateHBGGamingcircuithalls,geolocatingthembasedonyourlocation.
HBG QuiGioco ShopHBGQuiGiocoShop is thewebplatformwhereHBGGaming’sBusinessPartnerscanactivateelectronicpaymentservicestobedeliveredtothepointofsale.
VLT OPERATORS
2017 SOCIAL REPORT CHAPTER 04. THE TEAM, THE PARTNERS AND THE ENVIRONMENT118
LEGALANDRESPONSIBLEGAMING:HBG GAMING AND NETWORK INVOLVEMENT
HBG Gaming’s strong bond with its Business Partners is also useful for disseminating a culture with an awareness of the importance of responsible gaming.
Within the operator-dedicated portal, the company provides all the material inherent to responsible gaming and communication material aimed at the protection of minors and their prohibition on access to gaming.
Inaddition,HBGGaminghaspublishedabrochureongamblingaimedattheentirechain,andsince2015hasprovidedane-learningtrainingcoursedirectedatmanagersunderthetitle“GD-PathologicalGambling”,accessiblethroughthededicatedplatform.
ThecourseaimstoprovideawarenesstoHBGGamingBusinessPartnersofthegrowingculture of responsibility and knowledge of issues related to pathological gamblingwithingamingenvironments.
Italsoaimstoprovidethenecessarytoolsforoperatorsandstaffmemberstofacilitatethepathologicalplayerwithaccesstothehelpline,aswellasassociationsandpublicandprivatefacilitiesthatcanguideandassisthim/her.
Invitationsandrecall letters forparticipation inthecoursearesentoutthroughthechannelsdedicatedtothemanagers(DeskandVMS).
Theonlinetrainingmoduleiscurrentlybeingupdated.
In order to bolster the distance and on-site support already provided, a video formanagersconcerningtheregulatoryaspectsandtheprotectionofCustomerswillalsobeincludedonthee-learningplatform.
In 2017, once again through the channels dedicated to thegamingoperators,HBGGamingsentoutacommunicationregardingthedistancetrainingeventheldbytheNationalHealthInstituteinaccordancewiththeItalianCustomsAgency.Thecoursefocusesuponthemainaspectsofthegamblingphenomenon,andaimstosatisfythetrainingneedsoftheoperatorsandmerchants.
Thecommunicationwastransmittedviaapop-upwindowontheHBGDeskandVLTManagerSystemwebportals,channelsthatallowfordirectandeffectivecommunicationwiththeentirenetworkofBusinessPartners.
2017 SOCIAL REPORT CHAPTER 04. THE TEAM, THE PARTNERS AND THE ENVIRONMENT 119
ThelevelofHBGGaming’sserviceisdirectlyinfluencedbythequalityofexternalsupplies,their cost and supply times. For this reason, the company focuses great attention oncompliancewithservicestandardsandregulatoryrequirementsaswellasexpectationsofitsStakeholders,whilemaintainingconstantanddirectcommunicationwithitsSuppliers.
TRANSPARENCY IN SUPPLIER RELATIONS
HBGGamingmanagesfairlyandtransparentlyallstagesofthepurchasingprocess,andhasestablishedadedicatedoffice,theAFAG(SuppliersandGeneralAcquisitionsAdministrativeOffice[l’UfficioAmministrazioneFornitoriedAcquistiGenerali]),withtheaimofensuringsupply and control processes for purchasedgoods and services that are in linewith theprinciplesstatedandobservedbytheGroup:
HBGGamingrequiresitssupplierstocomplywiththeCorporateCodeofEthics,which isbroughttotheirattentionat thetimeof request foraccreditationthroughtheSuppliersPortal.
AccordingtotheHBGGamingCodeofEthics,thesupplyofgoodsandservicesmustbeguidedbyinternalbusinessproceduresbasedoncriteriaforquality,costandimpartiality,aswellasfairnessandobjectivityintheevaluationoftheperformanceprovided,sothatsupplierrelationsareconductedwiththeutmostintegrityandmutualtrust.
SUPPLIER RELATIONS
There were 1263 suppliers managed by HBG GAMING in 2017,
94% of which were local.1
2017 SOCIAL REPORT CHAPTER 04. THE TEAM, THE PARTNERS AND THE ENVIRONMENT120
PRODUCT CATEGORY 2017
NO. SUPPLIERS EXPENDITURE (€/MILLIONS) % EXPENDITURE
Suppliers of goods 3 8 9 € 3 3 , 8 0 5 , 1 3 7 . 3 8 5 9 . 2 9 %
Providers of services and maintenance2 3 0 7 € 1 6 , 8 4 4 , 3 8 5 . 4 3 2 9 . 5 4 %
Professional Consultancies 1 7 9 € 6 , 2 1 8 , 6 9 2 . 0 8 1 0 . 9 1 %
Other expenditures 3 8 8 € 1 4 8 , 8 5 1 . 6 1 0 . 2 6 %
T O T A L 1 2 6 3 € 5 7 , 0 1 7 , 0 6 6 . 5 0 1 0 0 %
GEOGRAPHIC LOCATION 2017
NO. SUPPLIERS EXPENDITURE (€/MILLIONS) % EXPENDITURE
Northern Italy 3 0 8 € 2 5 , 2 6 4 , 9 6 5 . 1 5 4 4 . 3 %
Central Italy 4 8 9 € 2 1 , 5 9 6 , 6 3 7 . 3 8 3 7 . 9 %
Southern Italy 4 3 4 € 6 , 4 6 9 , 7 1 0 . 5 2 1 1 . 3 %
Abroad 3 2 € 3 , 6 8 5 , 7 5 3 . 4 5 6 . 5 %
T O T A L 1 2 6 3 € 5 7 , 0 1 7 , 0 6 6 . 5 0 1 0 0 %
1 Italian suppliers are considered “local.”2 Maintenance Services, IT Services, Financial Services, Other Services.
HBGGaminghasbeenequippedwitheffectivemanagement tools tosupport thevariousstagesofsupply.Thisguarantees:
• Centralised and structured management of Suppliers’ records, their administrative/accountingreferences,productcategoriesforwhichqualificationisrequired,etc.;
• Process of accreditation, validation and approval of Suppliers, according to clear anddefinedrequirementsandfeatures;
• Chartingandstoringalldailyactivities(e-mails,appointments,faxes,letters)carriedoutontheserecords;
• Managing the documentation of suppliers and their expiration/renewal/withdrawal(“document timetable”), with automatic notification mechanisms that indicate theimpendingexpiryofdocumentstoproviders;
• Structuredandmonitoredofferrequestmanagementfromthevariousdepartmentsandtenders,inaccordancewiththebudgetdefinedforeachdepartment;
• Managementof the supplierevaluationprocess,basedonconfiguredcriteria,weightsandscoringclasses.
SELECTION AND EVALUATION CRITERIA FOR SUPPLIERS
AtHBGGaming,theSuppliers’Registerisactiveandaccessibletoallsubjectswhowishtoregisterasasupplierandapplyforaccreditation.
The register was created to facilitate the knowledge of new suppliers and strengthenrelationships with those already working with the company. The Suppliers’ Register,automating the selection, accreditation and negotiation process, tracks the process andensuresmaximumtransparencythroughout thepurchasingprocess,optimisingtimesandprovidingthetoolsneededtomanagerelationshipsthroughoutthecontractduration.
2017 SOCIAL REPORT CHAPTER 04. THE TEAM, THE PARTNERS AND THE ENVIRONMENT 121
HBGGamingrendersthefollowingdocumentsavailablethroughtheportal:
• HBGGamingCodeofEthics(MandatoryAcceptance)• Organisation,Management andControlModels (pursuant to Italian LegislativeDecree no.
231/01)-(Mandatoryacceptance)
• PrivacyPolicy• HealthandSafetyPolicy• NoticeregardingSpecificRiskspresentattheWorkplace(pursuanttoArticle26TU81/08)• InformationSecurityPolicy• User’sManual
Inturn,HBGGamingprovidersmustsubmitthenecessarydocumentationthroughtheportaltoverifythegeneralandspecificprerequisitesforthereferenceproducttyperequiredforqualificationpurposes.
TheAFAG’spreliminaryassessmentisintendedtoverifytheexistenceofsomeessential prerequisites to satisfyHBGGaming’s requirements and,withoutwhich, aworking relationship cannot be established, including compliancewithhealth and safety regulationsand theproper fulfilmentofobligationstowardsemployees.
Foraccreditedsuppliers,thefinalevaluationisperformed,namelythequalitycontroloftheperformance effectively provided aswell as the compliance of service levels, in order toevaluatethevalidityoftheselectionmade.Annually,HBGGamingevaluatesthesupplybyassigningascorewithregardtopredefinedgoals and parameters. The evaluation of Suppliers is based on compliancewith contractandorderprovisionsandontrackingdeviationsbetweenagreedservices,theServiceLevelAgreements(SLAs,)andservicelevelseffectivelydisbursed.
Theseassessmentsmaychangethesuppliers’statusand,inextremecases,leadtoexclusionfromthelist.ThemonitoringofSLAsandtheassessmentofparticularelements,suchascompliancewithdeliverytimesandspecifications,aswellasthecorrectnessoftechnicalandadministrativedocuments,allow foroverall supplieranalysisandcalculationofacomprehensiveVendorRatingIndex(VR)andpartialindexesrelatedtoessentialcategories(Punctuality,Availability,Flexibility).
Thisprocedureprovidesfullandconsistentperformancemonitoringaswellascontinuousimprovementopportunity.
STRATEGIC SUPPLIERSStrategicvendorsareprovidersofgoodsandservicesthatarecloselyrelatedtothecorebusiness.
Theefficiencyofstrategicpartnersiscrucialtoensuringtheoptimallevelofserviceoffered,andthecompetitivenessofthesesuppliersdependsonthequalityofentertainmentofthegamingendconsumer.
TheevaluationofstrategicsuppliersisalsocarriedoutbyconductingAuditsatthepartners’operationalcentres.
2017 SOCIAL REPORT CHAPTER 04. THE TEAM, THE PARTNERS AND THE ENVIRONMENT122
ENVIRONMENTAL COMMITMENT
HBG Gaming is committed, with all those whoworkwithintheCompanyandwithwhomitsharesrelationships, to spreading awareness that it isnecessarytoprotectthenaturalenvironmentforthebenefit of future generations, through the rationaluseofenergyandtheuseofrecoveryandresource-savingstrategies.
HBG Gaming operates within the conviction that the environment is aheritagetobesafeguardedfortheinterestofall,andalthoughitactswithina sector of low environmental criticality, it is inspired by the principles ofeco-sustainabilityandreductionofdirectandindirectenvironmentalimpactsattributabletotheirbusiness.
EnvironmentalEducationatHBGGaming
FOR THE ENVIRONMENT
In2017HBGGamingconductedamajorinitiativeaimedatraisingitscentralofficeemployees’awarenessandengagementintheproperdisposalofwastematerials, namely toners,paperandplastics,withsignsbeingaffixedtotheappropriatecontainers.
Thecompanyalsolaunchedacampaignaimedatreducingthewasteofpaper,inkandtoner,byofferingtechnicalsuggestionson the production of prints, in collaboration with the ITdepartment,andaffixinganoticetoeachprinter.
2017 SOCIAL REPORT CHAPTER 04. THE TEAM, THE PARTNERS AND THE ENVIRONMENT 123
ENERGY SAVING
MATERIALSFOR PLASTICRECYCLING
TO CONSERVE ENERGY,TURN OFF LIGHTS ANDAIR-CONDITIONING
Regardingenergyconsumption,HBGGamingwishedtolimitresourcewasteat the head office and in the Bingo Halls, where efficient and low-impacttechnologieswereadopted,bothforheatingandfortheheatsourcesusedinkitchens.
AttheBingoHallswithinternalfoodservicemanagement,theuseofplasticdisheshasbeendrasticallyreduced,withtheaimofensuringgreaterenvironmentalsustainability.DuringtheprovisionofthecateringservicesofferedattheBingoHalls’tables,themealsareservedusingceramicdishes,glassdrinkingcups,andsteelcutlery.Thepaperusedintherestaurantserviceisexclusivelyecological.
2017 SOCIAL REPORT CHAPTER 04. THE TEAM, THE PARTNERS AND THE ENVIRONMENT124
HBGGamingiscommittedtoadoptingandimplementingmeasurestoreducetheenvironmentalimpactofcompanyvehicles:thecarparkconsistsoflow-emissionCO2models,includingahybridmotorcar.In2017,boththeaverageconsumptionandemissionsdecreased.
MOBILITY
CO2emissionsandConsumption
A < 100 g/km
101-120 g/km
121-140 g/km
141-165 g/km
166-185 g/km
100-225 g/km
> 226 g/km
B
C
D
E
F
G
Emiss ions Range
2014 2015106
108
110
112
116
114
118
120118.66
113.83
108.37
106.24
2016 2017
Average CO2 emiss ions per year (g/km)
g/k
m
2014 20154.00
5.00
6.00
5.50
4.50
5.72
4.48
4.86
5.29
2016 2017
Average consumption per year (L/100km)
L/1
00
km
2017 SOCIAL REPORT CHAPTER 04. THE TEAM, THE PARTNERS AND THE ENVIRONMENT 125
Other eco-sustainable activities
Energy Consumption
Other HBGGaming activities are linked to noise reduction in Bingo Halls,whichareprogressivelymonitoredaccordingtoanassessmentplanaffectingallrooms.
Particular attention is paid to differentiated collection, in addition to respecting localregulations,withthevoluntarycollaborationandinvolvementofallcompanyemployees.
ConsumptionincludestheHeadOfficeand18BingoHalls.TheNapoliBingoHallwasacquiredinMayof2017.ThedataregardingtheMassauaHallinTurinareestimated.1
2016 2017
Electricity (kWh) 1 0 , 3 5 0 , 4 0 8 1 1 , 6 2 0 , 1 3 3
1 FortheMassauaBingoHallinTurin,thevaluesareestimatedbasedonroomsofsimilarsizesintermsofsquaremetresofsurfacearea.
2017 SOCIAL REPORT CHAPTER 04. THE TEAM, THE PARTNERS AND THE ENVIRONMENT126
HOW TO READ THIS REPORT
The HBG Gaming 2017 Social Report represents the primary tool forprogramming,reportingandcommunicatingvalues,strategiesandresultsintermsofcorporatesocialresponsibilityandsustainability.It has now reached its 5th edition.
The report is prepared annually and contains data and information regarding the year ended on 31 December 2017, as well as several news items and values whose latest dates are generally indicated directly in the text and, regardless, no later than 30 June 2018, with the exception of the attainment of OHSAS 18001:2007 Certification on 17 July 2018.
ItsscopeincludesallthecompaniesbelongingtoHBGGamingGroupasof31December2017:HBGGamingSrl(parentcompany),HBGConnexSpA,HBGEntertainmentSrl,NapoliBingoSrl,HBGActiveSrl,HBGOnLineGamingSrl,HBGPaySrl,HBGImmobiliareSrl,InnovaliaSrl,CloudcodingSrl,G&GSrlandBingoVipSrl.They includeNewSlot,VideoLottery,Bingo,OnlineGamesandPhysicalBets.TheselectionofsubjectsandthedetailofthecontenttobemadehasbeenbasedonastructuredprocessofmaterialityanalysisandisdeterminedbytheweightonthesustainabilitystrategyforHBGGamingandtherelevanceforStakeholders.
The data and document collecting process is coordinated and managed by the CSRFunction; all Business Units and Departments were involved and data was verified byfunctionmanagers.Theeconomic,financialandgovernancedataaretakendirectlyfromtheConsolidatedFinancialStatements,whichhavebeenauditedbyexternalandindependentauditors.Environmentalandstaffdataanddatarelatedtootherrelevanttopicshavebeencollectedwiththeresponsiblefunctions.Wherepossible,the2017datawerecomparedwiththoseofthepreviousyear,andinsomesignificantcasesthetrendwaspresentedoverseveralyears,alsobytheuseofchartsandtables.ThemarketdataandtheinformationutilisedrefertoTAXATIONINTHEGAMINGSECTOR-THEMATICFOCUSNO.6/2018-PARLIAMENTARYBUDGETOFFICE, to the2016BLUEBOOKOFTHE ITALIANCUSTOMSAGENCY, to thePUBLICGAMINGWHITEPAPERpublishedbyACADI,toPROTECTIONSANDTOOLSFORINCREASINGLYSUSTAINABLEGAMING-ONLINEGAMESOBSERVATORY,toTHERULESOFTHEGAME–THEEUROPEANHOUSEAMBROSETTI.Asindicatedinthevarioustables,someofthedatahavebeenprocessedinternally.
2017 SOCIAL REPORT 127HOW TO READ THIS REPORT
• EconomicandSocialImpactontheCommunity• EconomicResults• TaxContribution• TheCreationofWealthanditsDistribution
• PeopleatHBGGaming• TheNetwork• SupplierRelations• EnvironmentalAwareness
Structure of the 2017 Social Report
The 2017 Social Report was audited by the law firm responsible for legal review, Deloitte & Touche SpA.
The2017SocialReportiscomposedof4chapters:
HBG GAMING GROUP
• GroupProfile• Governance• QualityandCertifications• TheGamingMarket
ECONOMIC ASPECTS
STAKEHOLDERS,SOCIAL ASPECTS, AND SUSTAINABILITY
• HBGGaming,itsStakeholdersandtheMaterialityMatrix• LegalandResponsibleGaming• HBGGamingResearchProjects• DialoguewithConsumers• CollaborationwithAssociations• DialoguewithInstitutions• CommunityInitiatives
THE TEAM, THE PARTNERS, AND THE ENVIRONMENT
Thedocumentissubjecttovoluntaryreview,basedonthecriteria indicatedbythe“ISAE3000 Revised” principle, by Deloitte & Touche SpA, which, upon concluding its work,issuedthereportattachedtothisdocument.This2017SocialReporthasbeenpreparedinaccordancewiththeGRIStandards(2016)publishedbytheGlobalReportingInitiative(GRI):Coreoption.The2017SocialReportistobeconsideredcompliantwiththeaforementionedguidelinesifconsideredasawhole,orratherincludingtheAnnextothe2017SocialReportattachedheretooravailableinthe“Social Responsibility”sectiononthewww.hbg-gaming.it/en/ website.TheGRIContentIndexisincludedattheendofthedocumentinordertoprovidecompleteevidenceofthecoverageoftheGRIindicatorsassociatedwiththeissuesarisingasmaterial.Finally,itshouldbenotedthattheinformationanddataregardingthestudyontheeconomicimpact of HBGGaming’s business and the relative externalities in terms of employment,GDPandsocialsecuritycontributions,aspresentedinthesectiontitled“ECONOMICANDSOCIALIMPACTONTHECOMMUNITY”,arenotattributabletospecificindicatorsoftheGRISustainabilityReportingStandards.Thisstudycontains indicatorsdefinedusingstatisticaleconomicmodelsconsistentwiththemethodologicalapproachgenerallyadoptedinimpactanalyses.Theseindicatorsareobtainedfromcalculationsthat,byanalysingtheinteractionsbetween the various economic sectors and the actors involved, provide for a thoroughexaminationoftheeconomiccontextinwhichthecompanyoperates.
2017 SOCIAL REPORT128 GRI CONTENT INDEX
GRI CONTENT INDEX
GRI CONTENT INDEX
GRI Indicator
Description Page Omission
GENERAL STANDARD DISCLOSURE
ORGANIZATIONAL PROFILE
102-1 Name of the organisation Colophon
102-2 Activities, brands, products, and services P. 32
102-3 Location of Headquarters Colophon
102-4 Number of countries in which the organisation carries out its operations and countries in which the organisa-tion has activities or in which the activity carried out
has a specific relevance to the elements of sustainability dealt with in the relative Social Report
P. 36; P. 40; P.44; P. 48.
102-5 Ownership and legal form P. 11
102-6 Markets served P. 12
102-7 Scale of the organizations P. 8
102-8 Information on employees and other workers Attached to the Social Report p. 2
102-9 Description of the organisation’s supply chain P. 120 The monitoring and data collection systems implemented by the company did not allow for the full disclosure of the
indicator in 2016.
102-10 Significant changes to the organization and supply chain How to read this report p. 128
102-11 Method of applying the Precautionary Principle or approach
The indicator is not applicable based on the business carried out by the
Company.
102-12 Adoption of codes of conduct, principles or charters developed by external bodies/associations relating to
economic social and environmental performance
P. 17
102-13 Membership in national or international associations for the promotion of sustainability
P. 85-89
STRATEGY
102-14 Declaration by the top manager who leads the organisation
P. 5
ETHICS AND INTEGRITY
102-16 Values, principles, standards and norms of behavior adopted by the organisation
P. 18-19
GOVERNANCE
102-18 Governance structure of the organisation P. 14
STAKEHOLDER ENGAGEMENT
102-40 List of Stakeholders engaged by the organisation P. 66
102-41 Percentage of total employees covered by collective bargaining agreements.
P. 107; Annex to the Social Report P. 3
102-42 Principles for identifying the Stakeholders to be engaged P. 66
102-43 The organisation’s approach to the concept of Stakeholder engagement, including the frequency of engagement by Stakeholder type and group, and the
indication of the engagement activity and interaction in the reporting process
P. 68
102-44 Relevant issues raised through the engagement of the Stakeholders and how the organisation responded,
including the drafting of the report. List of the groups of Stakeholders that raised the issues subject to analysis
P. 66-68
THE REPORTING PRACTICE
102-45 Entities included in the organisation’s financial statements or equivalent documents
How to read this report P. 128
102-46 Defining report content and topic boundaries How to read this report P. 128
102-47 Material aspects identified in the analysis process for defining the scope of reporting
P. 68
102-48 Changes to information included in previous reports and the reasons for these changes
How to read this report P. 128
102-49 Significant changes to the objective and limitations with respect to the previous reporting period
How to read this report P. 128
102-50 Reporting period How to read this report P. 128
102-51 Date of the most recent report How to read this report P. 128
102-52 Reporting cycle How to read this report P. 128
102-53 Contacts and addresses useful for requesting information about the Social Report
How to read this report P. 128
102-54 Claims of reporting in accordance with the GRI Standards How to read this report P. 128
102-55 GRI Content Index P. 130
102-56 External assurance for the report P. 134
SPECIFIC STANDARD DISCLOSURES
CATEGORY: ECONOMIC
ECONOMIC PERFORMANCE
Management Approach
103-1 Explanation of the material topic and its Boundary P. 132
103-2 General information on the management approach and relative characteristics
P. 62
103-3 Evaluation of the management approach P. 62
Economic Performance
201-1 Direct economic value generated and distributed P. 63
PROCUREMENT PRACTICES
Management Approach
103-1 Explanation of the material topic and its Boundary P. 119-121; P. 132
103-2 General information on the management approach and relative characteristics
P. 119-121
103-3 Evaluation of the management approach P. 119-121
Procurement practices
204-1 Proportion of spending on local suppliers P. 120 The monitoring and data collection systems implemented by the company did not allow for the full disclosure of the
indicator in 2016.
ANTI-CORRUPTION
Management Approach
103-1 Explanation of the material topic and its Boundary P. 17-18; P. 132
103-2 General information on the management approach and relative characteristics
P. 17-18
103-3 Evaluation of the management approach P. 18
Anti-corruption
205-3 Confirmed incidents of corruption and actions taken During the reporting period there were no verified incidents of corruption.
CATEGORY: ENVIRONMENTAL
ENERGY
Management Approach
103-1 Explanation of the material topic and its Boundary P. 122-125; P. 132
103-2 General information on the management approach and relative characteristics
P. 122-125
103-3 Evaluation of the management approach P. 122-125
Energy
302-1 Energy consumption within the organisation P. 125
SUPPLIER ENVIRONMENTAL ASSESSMENT
Management Approach
103-1 Explanation of the material topic and its Boundary P. 119-121; P. 132
103-2 General information on the management approach and relative characteristics
P. 119-121
103-3 Evaluation of the management approach P. 119-121
Suppliers environmental assessment
308-1 New suppliers that were screened using environmental criteria
No assessment policies have been formalised based on environmental criteria
CATEGORY: SOCIAL
EMPLOYMENT
Management Approach
103-1 Explanation of the material topic and its Boundary P. 106-113; P. 132
103-2 General information on the management approach and relative characteristics
P. 106-113
103-3 Evaluation of the management approach P. 106-113
Employment
401-1 New employee hires and employee turnover Annex to the Social Report P. 3-4
OCCUPATIONAL HEALTH AND SAFETY
Management Approach
103-1 Explanation of the material topic and its Boundary P. 114; P. 132
103-2 General information on the management approach and relative characteristics
P. 114
103-3 Evaluation of the management approach P. 114
Occupational health and safety
403-2 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related
fatalities
P. 115 I sistemi di monitoraggio e raccolta dei dati attualmente
in essere in azienda non hanno consentito la piena disclosure
dell’indicatore.
TRAINING AND EDUCATION
Management Approach
103-1 Explanation of the material topic and its Boundary P. 108-110; P. 132
103-2 General information on the management approach and relative characteristics
P. 108-110.
103-3 Evaluation of the management approach P. 108-110.
Training and Education
404-1 Average hours of training per year per employee P. 113
DIVERSITY AND EQUAL OPPORTUNITY
Management Approach
103-1 Explanation of the material topic and its Boundary P. 110; P. 132 Code of Ethics.
103-2 General information on the management approach and relative characteristics
P. 110; Code of Ethics.
103-3 Evaluation of the management approach P. 110; Code of Ethics.
Diversity and equal opportunity
405-1 Diversity of the governance bodies and employees Annex to the Social Report P. 4-6
SUPPLIERS SOCIAL ASSESSMENT
Management Approach
103-1 Explanation of the material topic and its Boundary P. 119-121; P. 132.
103-2 General information on the management approach and relative characteristics
P. 119-121
103-3 Evaluation of the management approach P. 119-121
Suppliers Social Assessment
414-1 New suppliers that were screened using social criteria Assessment policies based on social criteria have not been formalised
CUSTOMER PRIVACY
Management Approach
103-1 Explanation of the material topic and its Boundary P. 79; P. 116; P. 132.ISO 27001:2013 Certification P. 23.
103-2 General information on the management approach and relative characteristics
P. 79; P. 116.ISO 27001:2013 Certification P. 23.
103-3 Evaluation of the management approach P. 79; P. 116.ISO 27001:2013 Certification P. 23.
Customer Privacy
418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data
One (1) case in 2017, zero (0) in 2016.
On 30/10/2017 and on 6/12/2017, a distance gaming user (HBG On Line Gaming Srl) sent identical re-quests to the e-mail address [email protected], requesting:
- to stop receiving advertising e-mails;
- the indication of the origins of his/her personal data, simultaneously objecting to the use of such data for commercial communications.
Both requests were fulfilled by the Data Controller (HBG On Line Gaming Srl), in accordance with the law, respectively on 30/11/2017 and on 7/12/2017, with the in-dication of the origin of the data (which legitimised the specific processing carri-ed out pursuant to Article 130 par. 4 of Italian Legislative Decree no. 196/03) and the confirmation of the deletion of the personal data regarding the user.
SOCIO-ECONOMIC COMPLIANCE
Management Approach
103-1 Explanation of the material topic and its Boundary P. 18; P. 132.
103-2 General information on the management approach and relative characteristics
P. 18
103-3 Evaluation of the management approach P. 18
Socio-economic compliance
419-1 Value of fines and number of penalties for violation of laws and regulations in the economic and social sphere
Explanatory note: Significant events occurring during the financial year.
2017 SOCIAL REPORT132 SCOPE OF MATERIAL ASPECTS
TABLE SHOWING THE SCOPE OF THE ORGANISATION’S MATERIAL ASPECTS
GRI 103-1: Explanation of the material topic and its Boundary
Material issue GRI Topic HBG Role Scope
Responsible gaming and protection of minors N/A Direct HBG Gaming Group
Creating economic and financial value GRI 201-1 Direct HBG Gaming Group
Economic Performance
Compliance with regulatory framework N/A Direct HBG Gaming Group
Relationship with the chain GRI 204-1 Direct HBG Gaming Group
Procurement practices
Relationship with information bodies N/A Direct HBG Gaming Group
Transparency and Business integrity
GRI 205-3 Direct/ Indirect;
HBG Gaming GroupAnti-corruption
GRI 419-1 Direct
Socio-economic compliance
Tax Contribution N/A Direct HBG Gaming Group
Management of environmental impacts GRI 302-1 Direct HBG Gaming Group
Energy
Service quality N/A Direct HBG Gaming Group
Suppliers (transparency / selection criteria)
GRI 308-1 Direct
HBG Gaming Group
New suppliers that were screened using environmental criteria
GRI 414-1 Direct
New suppliers that were screened using social criteria
Presence in industry associations N/A Direct HBG Gaming Group
Workplace health and safety GRI 403-2 Direct HBG Gaming Group
Occupational health and safety
Stakeholder Engagement N/A Direct HBG Gaming Group
Staff development GRI 404-1 Direct HBG Gaming Group
Training and Education
Dialogo con gli organi di controllo N/A Direct HBG Gaming Group
Corporate Governance GRI 405-1 Direct HBG Gaming Group
Diversity and equal opportunity
Social responsibility initiatives N/A Direct HBG Gaming Group
2017 SOCIAL REPORT134 LETTER OF ASSURANCE
2017 SOCIAL REPORT 135LETTER OF ASSURANCE LETTER OF ASSURANCE
CLAUDIO ALTOBELLILegalandCorporateAffairsDirectorMARIA MICAELA ALTOMANO StaffAdministrationandLabourDisputesManagerALBERTA ANGIONI QualityProceduresDIEGO BAGNATOBusinessDeveloperFABIO BEDINIRetailManagerMICHELE BRAGANTINIRetailBusinessUnitDirectorANIELLO BUONOCORETrading&BusinessOperationsManagerANTONIA BUSCEMIHeadofHumanResourcesSTEFANIA BUTNARU CustomerCareSpecialistISABELLA CAPONECustomerAdministrationandCreditCheckManagerMARCO CAPPONISupplierContractsAdministrationCARLO CASALONEBusinessAnalystALESSANDRA CASINI GeneralBingo&CasinòAccountingManagerGIORGIO CATANI StrategicPlanningandManagementControlManagerBARBARA COLUCCIComplianceDirectorMANUELA COSSIDENTEQualityandComplianceManagerTIZIANA D’URSO GeneralAWPandVLTAccountingManagerDANIELA DE NOTARIS Food&BeverageServiceManager COSMA DAMIANO DE ROSA Bingo&CasinòBusinessUnitDirector CRISTIANA DE’ COCCI HeadofEconomic/CommercialContractsManagementSTEFANO DEFALCHIDU GeneralOnLineandBettingAccountingManagerROSSELLA DI PIERRI StaffTrainingALESSIA FERRI CivilandCorporateAffairsManager
The fifth edition of the HBG Gaming Social Report is mainly characterised by two aspects:
• Evidence of the positive impact that the company’s activities have had upon the community in terms of employment, economic growth, and tax and social security revenues. HBG Gaming’s presence on the market generates a series of direct, indirect and induced benefits for its Community.
• The considerable effort that HBG Gaming has made to promote Responsible Gaming through the training of its staff and network, communication and information initiatives, and research.
I would like to thank all those who have made the results achieved possible, who have taken part in the social responsibility and sustainability initiatives, and who have worked together to prepare this volume.
This Social Report was made possible with the collaboration of:
GIUSEPPE CALZOLAIO Board Member and General Manager
ENZA FILOSA CustomerCareSpecialistFRANCESCA GARGARO StaffRecruitment MICHELE GRAIFF BettingandOnLineGamingBusinessUnitDirectorGIUSEPPE GULLO AccountingandBudgetManagerCARLO LABATE ITandTechnologiesDirectorELENA LAZZARISeniorPrivacySpecialistANTONELLA MAIDA SalesBackOfficeVALENTINA MANNI PayrollGABRIELE MONACOHeadofGamingOperationsandBusinessProcessesFABIO MORETTI ControllerGIADA PATARINI CustomerServiceManagerGIANFRANCO PERSIA PayrollManagerGIANLUCA PERUZZINI GeneralServicesManagerFABRIZIO PICCINI MarketingManagerCRISTINA PORTALE RegulatoryandLicensingAffairsManager DANIELA QUARTO CustomerCareSpecialistANNA CHIARA RESTA LegalBackOfficeALFONSO MASSIMO RICCARDI HeadofSupplierAdministrationandGeneralAcquisitions GIOVANNI RIZZI SalesManager GIOVANNA RUCCIA StaffAdministrationCLAUDIA RUGGERI StaffRecruitmentManagerGIUSEPPE SECCIA SalesDirectorGIOVANNI TISCIONEAdministration,FinanceandControlDirectorGIACOMO VENTOLONE BusinessAnalystVALENTINA VISCONTI ProjectManager&HRISCoordinatorFRANCESCA ZULIAN CustomerCareManager
Internal coordination for the preparation of the 2017 Social Report was carried out by:
ALESSANDRA DE ANGELISCorporateSocialResponsibilitySpecialistALESSANDRO CROCETTAJuniorCorporateSocialResponsibilitySpecialist
The 2017 Social Report was created with the support of Eidos Consulting Srl and in particular:
FRANCO BOMPANILOREDANA CONTIMARCO FAGIOLI GraphicDesign
ThisReportwasprintedinthemonthofAugust2018at:TIPOGRAFIA OSTIENSE Srlno.106ViaPellegrinoMatteucci,Rome,Italy
HBG GAMINGRegisteredoffices:no.7ViaCesare
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