Past, Present and Future
Warwick Bartlett, CEO
Global Betting & Gaming Consultants
GGY per Capita in 2013 (US$)
1,000
900
800
700
600
500
400
300
200
100
0
866
464
413 395
371
319 318 300 283
273 239 243 242
233 218
Source: GBGC’s Global Gambling Report
Las Vegas Strip Casino GGY (US$bn) 2005-2014
8
6.75
7
6
6.68
6.61
6.39
5.58
5.62
5.66
5
4
3
2
1
0
Source: GBGC’s Global Gambling Report
6.01
6.05
6.29
Greece Casino GGY (€m) 2005-2014
900
804
800
700
771
712
648
631
600
530
500
432
400
339
306
275
300
200
100
0
2005
2006
2007
2008
Source: GBGC’s Global Gambling Report
2009
2010
2011
2012
2013
2014
Source: GBGC’s Global Gambling Report
GBGC 50
iGBGC
02/07/2015
02/01/2015
02/01/2014
02/07/2014
02/01/2013
02/07/2013
02/07/2012
02/01/2012
02/01/2011
02/07/2011
02/01/2010
02/07/2010
02/01/2009
02/07/2009
02/07/2008
02/01/2008
02/01/2007
02/07/2007
02/01/2006
02/07/2006
02/01/2005
02/07/2005
GBGC 50 vs iGBGC Index Jan/05 – Oct/15
750
650
550
450
350
250
150
50
GBGC – Consulting, Data, Reports,
Feasibility, Research
Gambling Tax: The Only Way Is Up
Jurisdiction
Tax Change
Neuquen, Argentina
Gaming tax increased from 16% to 22% in 2014
Bulgaria
Lottery tax raised from 12% to 15% of sales (2011)
Massachusetts, US
5% tax on lottery and betting wins over $600
South Africa
1% levy on GGY instead of new winnings tax
Spain
20% tax on lottery prizes over €2,500
Armenia
Gaming duties increased from 2013
Croatia
Tax on gambling winnings increased twice, in April 2014 and
then again from January 2015 for betting winnings
7
Gambling Tax: The Only Way Is Up cont.
Jurisdiction
Tax Change
Western Cape, South Africa
Tiered casino tax increased by 2 percentage points for each
rate (March 2013).
Panama
Casino tax raised twice, from 10% in 2010 to 15% in 2012;
machine tax raised several times from 10% in 2010 to 22% in
2014
Mexico
Gaming tax up from 20% in 2008 to 30% in 2010
Finland
Lottery tax on slots and casinos up from 8.25% to 10%, horse
racing tax up to 10%, all from 2012
Romania
Winnings and admissions tax up from 2010
Macedonia
Gaming taxes increased, winnings tax introduced from 2013
UK
Point of consumption tax of 15% on gross profits for remote
gambling from 1 December 2014
8
Gambling Tax: The Only Way Is Up cont.
Jurisdiction
Tax Change
New York, US
5% tax also applied to out-of-state ADW operators 1 January
2014
Kenya
20% on gambling winnings from 2014
Ukraine
War tax on lottery prizes announced in late 2014
Italy
AWP and VLT tax in effect from January 2015, proposal to
increase the rates in autumn 2015
Ireland
Online gambling tax introduced in August 2015
Czech Republic
Taxes for bookmakers proposed to increase to 23% and to
28% for slot machines from 2016
Vietnam
A proposal to increase special consumption tax for casino
from 30% to 35% from 2016
9
Gambling Tax: The Only Way Is Up cont.
Jurisdiction
Tax Change
Italy
20 to 25% Gross Profits
Belgium
11% Gross Profits
Denmark
20% Gross profits
Spain
25% Gross profits
France
Sports 9.3% Horses 13.2% Poker 2% Cash Game Pot
VAT 20%
Germany
5% tax amount staked for sports and lotteries.
VAT at 19% for egaming.
Ireland
VAT Ireland 23%
10
GBGC – Consulting, Data, Reports,
Feasibility, Research
Combined Effect – Tax Increase and Recession
•
•
•
•
•
Tough for smaller operators
Fewer start-ups
On-shore trying to marginalise off-shore
Complex and costly regulation
Consolidation (37 deals worth US$32bn in 18
months)
However...
Paddy Power, Betfair and Bet 365 produced
shareholder value in excess of US$18bn in
10 years
Operator Concerns with Regulation
• Dormant accounts
• Common standards
• Suspicious transaction reporting
GBGC – Consulting, Data, Reports,
Feasibility, Research
I will clog your
arteries and
cause a stroke
or heart
attack!
GBGC – Consulting, Data, Reports,
Feasibility, Research
www.gbgc.com
Thank you!
www.gbgc.com
Warwick Bartlett
CEO
[email protected]