Online gambler profile analysis

Report Online gambler profile analysis Prepared by the Directorate General for the Regulation of Gambling

Presentation In 2015 the Directorate General for the Regulation of Gambling presented the online gambler profile in Spain for the first time in order to provide an integrated and comprehensive perspective of gamblers, their gambling transactions, preferences and consumer habits. We now present the second edition, which analyses the behaviour of gamblers in 2016 and the major changes that have taken place compared to the previous study. The first publication of the study in 2015 demonstrated its value as an aid and reference for all parties involved in the gambling market - for gambling operators, researchers, consumers and society in general - and the importance of publishing it at least once a year. The study addresses issues such as "Who gambles online?", "What games do Spaniards participate in?", "Is there any relationship between the different games?", "What are the habits of gamblers in terms of deposits and withdrawals of money?", "What is their level of spending?" and "What is the relationship between spending and participation?". The new features included in this edition are, amongst others, data relating to the payment methods used by gamblers and an analysis of the evolution of the main market variables with respect to the previous year. With the reopening of the market in June 2015, new operators joined the Spanish market and the commercialisation of new games (slot machines and bettingexchange) was authorised. The study includes the new configuration of the gambling market in Spain as it encompasses all operators that have commercialised games throughout 2015 and also includes the preferences of gamblers in relation to new games. From a methodological point of view, there have also been some improvements. On one hand, the processes for the identification and unification of online gamblers have improved, bearing in mind that they may be registered on more than one gambling platform in order to provide a single view. On the other hand, statistical data processing has been improved in order to ensure that the information provided is as relevant as possible.

As regards the results of the study, it can be seen that the online gambling sector is a growing economic activity. With respect to the previous year an overall increase in the main indicators, the total number of active gamblers (19.58%), the monthly average number of active gamblers (16.18%), average participation (10.88%), and the average spend per gambler (20.58%) can be observed. The preferred payment method for gamblers making deposits is by bank card (66% in terms of the number of transactions), followed by electronic wallet (16%) and prepaid cards (11%). Regarding preferences in the different games, one can observe a substantial increase in the number of gamblers compared to the previous year in the Betting (34.39%), Bingo (37.64%) and Casino (80.44%) segments, the latter being caused largely by the commercialisation of slot machines. Meanwhile Poker experienced a slight drop in comparison with the previous year. The most typical gambler profile by volume of participation in terms of Betting, Casino and Poker continues to be a man aged between 26 and 35, while for Bingo it is a woman aged between 36 and 45. We hope this report will be useful for all groups related to the gambling sector and society in general. We hope that the study will help deepen knowledge of the various aspects of this activity: economic, demographic and sociological. Carlos Hernández Rivera. Director-General for the Regulation of Gambling

Contents CONTENT OF THE REPORT METHODOLOGY WHO GAMBLES? WHAT IS PLAYED? HOW DO GAMBLERS MANAGE THEIR DEPOSITS AND WITHDRAWALS? APPENDIX I. TABLES SHOWING THE DISTRIBUTION OF GAMBLERS BY GENDER AND AGE APPENDIX II. TABLE SHOWING THE RELATIONSHIP BETWEEN GAMES AND GAMBLERS HOW MUCH IS GAMBLED? HOW MUCH DO GAMBLERS SPEND? HOW HAS THE GAMBLING MARKET EVOLVED? CONCLUSIONS REPORT ONLINE GAMBLER 2015 PAGE 5 OF 102

1 Content of the report The report is made up of the following sections: Methodology Who gambles? What is played? How do users manage their deposits and withdrawals? How much is gambled? How much do gamblers spend? How has the gambling market evolved? The aim of the Who gambles? section is to answer questions such as How many users are registered on online gambling sites?, How many gamblers are registered with one or more than one operator?, What is their level of participation?, What is the proportion of men and women? and What is the age distribution of gamblers? After analysing the user record, registration processes and gambler activity level, we will go on to study the games. In the What is played? section we will try to explore the preferences of gamblers, how many different games they participate in and if there is any relationship between the various forms of gambling. We will then go into the analysis of the participants' gambling accounts. Firstly, habits in terms of deposits and withdrawals will be examined under How do gamblers manage their deposits and withdrawals?. The aim is to analyse the active gambler population and answer the following questions: What is the average deposit or withdrawal by gamblers? How often do gamblers perform deposit or REPORT ONLINE GAMBLER 2015 PAGE 7 OF 102

withdrawal transactions? How many deposit or withdrawal transactions do they perform each year? We will also study whether there is a pattern in terms of time (time of day, day of the week, day of the month) in deposit and withdrawal transactions and the payment methods preferred by gamblers. In How much is gambled? we will continue with the study of gambling activity from the perspective of the gender and age of gamblers through gambling transactions, participations and prizes recorded in 2015. Firstly an overview is presented and, subsequently, each gambling segment is studied. The analysis of deposits and participations is completed with the study of gamblers spending, defined as the capital variation, net winnings or losses, resulting from gambling during the year. This will be covered under the heading How much do gamblers spend?. The report concludes with a chapter devoted to the analysis of the evolution of the main gambling figures based on the data published in the 2014 report. REPORT ONLINE GAMBLER 2015 PAGE 8 OF 102

2 Methodology Data universe For the purpose of preparing this report we have used data from the ICS (Internal Control System) of licensed gambling operators in Spain under the gambling activity monitoring system. The report includes transactions performed during 2015 through gambling operators licensed nationwide under the Gambling Act 13/2011. Data on Sociedad Estatal Loterías y Apuestas del Estado, S.A. (SELAE) pool betting are excluded because it is mainly commercialised in person which, given its pool betting nature, entails the inability to draw conclusions consistent with the methodology of this report. Data for Contests are also excluded because in these games only gamblers who have won a prize are identified. According to their nature, two sets of data are distinguished: on the one hand, the data relating to the identity, gender and age of users recorded on the different gambling platforms and, on the other hand, the data on the transactions performed by gamblers on their gambling accounts relating to deposits, withdrawals, vouchers recognised by the operator, participations and prizes. On a quarterly basis the DGOJ publishes economic data on state online gambling market developments relating to operator gambling revenues (participations and GGR (Gross Gaming Revenue) defined as participations net of prizes and vouchers awarded). REPORT ONLINE GAMBLER 2015 PAGE 9 OF 102

The data used in the quarterly report on operator activity is taken from the information on net gambling revenue, that is to say, participations and GGR net of vouchers, which is provided to the DGOJ quarterly by each of the licensed gambling operators. The quarterly report provides the aggregation of this information, thereby presenting a comprehensive picture of the online gambling market financial revenue figures. By contrast, in this gambler report, in which the intention is to analyse the online gambler profile, the figures for participations and prizes from the gambler's perspective are included, as are the transactions performed by the gamblers on their gambling accounts reflecting the changes in their entitlements from the operator. For these reasons there are differences between certain figures used in both types of report. As regards participations, differences 1 between the data in this gambler report and the data in the quarterly report may be explained as follows: - The amounts for participation in the gambler report include gambler vouchers recognised by the operator upon being accounted for in the gambling account. Participations published in the quarterly report do not include vouchers. - There are differences due to temporary allocation of revenue from certain participations. In the case of Fixed-Odds Betting on future events, the participations of gamblers are recorded on their gambling accounts at the moment they are placed, but on the revenue account they are recorded according to when they are recognised by the operator. With regard to gamblers, the quarterly activity reports also include information on user registration and active gamblers. The differences between the data published in the quarterly report and in this gambler report are due to the following: - As regards user registration, for the purposes of this gambler report the operators full user record, including all registered users regardless of their 1 2015 participation net of vouchers in betting, poker and casino games stood at 8,557 million. Participations accounted for in the gambling accounts amounted to 8,488 million. The difference between the two figures is 0.82%. REPORT ONLINE GAMBLER 2015 PAGE 10 OF 102

registration status, is used. That is to say, users whose identity data are temporarily pending verification are also included. Variations from one month to another include new registrations, cancellations or, if any, deregistrations due to total closure of activities by an operator. We have also consolidated the user records of a single operator on different gambling platforms 2. - As regards active gamblers, the quarterly activity reports include the data on gamblers who participated during the period, without taking into consideration that the same user can be registered with several operators. For the purposes of this report, on the one hand, users who have participated have been included, including participations with vouchers, and the number of single gamblers has also been obtained as explained in the next section. Finally, with regard to the data relating to deposits and withdrawals, the differences between the data 3 are due to the fact that in this gambler report, given its purpose and nature, and unlike the quarterly activity report, we have consolidated the transactions of a single operator between different gambling platforms. These internal movements between operators accounts are included in quarterly reports in order to reflect the financial size of the market accurately. However, they alter the perception of the online gambler profile in the analysis of their gambling account. Users and gamblers Prior to participating in games on an online gambling site, the user must register. During the registration operation, the operator collects the data that enable the participant to be identified and verified and, once validated, allows them access to gambling activities. 2 According to the quarterly report, in 2015 there were 1,406,231 newly registered users. According to the gambler report, the changes to the record in 2015 amounted to 1,463,212. This represents a 4.1% difference. 3 These adjustments represent 1.3% in deposits and 1.6% in withdrawals. REPORT ONLINE GAMBLER 2015 PAGE 11 OF 102

Users registered on gambling platforms are identified by their full name and personal identification number (DNI (Spanish national identity document), in the case of Spanish nationals, NIE (foreigner's identity number), in the case of resident non-nationals, and passport or other personal identification document in the case of non-residents). Since one person can register with several operators, it is the identity data that make it possible to obtain a single gambler list, independent of gambling platforms. Thus, in this report, two different concepts are addressed: USER, to refer to the user records on different gambling platforms and GAMBLER, who is the person, regardless of the number of platforms on which they register. Not all users/gamblers have the same level of gambling activity. Thus the concept of ACTIVE user/gambler, which means a person who has participated at least once in gambling during the period being studied. Given the above, the variables used are as follows: Registered user: A person who has completed the process to register with a gambling operator. Registration by the same person with two different operators counts as two users. Active user: A registered user who has participated at least once in gambling during the period being studied. Gambler: A person who is registered on any gambling website. If the same person is a user of more than one platform, they are counted as one gambler. Active gambler: A gambler who has participated at least once in gambling during the period being studied. The data relating to the user s date of birth and gender are taken from the user record and analysed. The age of gamblers is calculated as at 31 December 2015. Users' Gambling accounts Each user record has an associated gambling account which reflects the gambling transactions performed. From the point of view of the gambler, their gambling account reflects the charges for deposits, vouchers recognised by the operator or prizes won and payments for the amount of the participations in games or cash withdrawals. REPORT ONLINE GAMBLER 2015 PAGE 12 OF 102

Deposits and withdrawals are monetary transactions involving transfers to/from the gambling platform from/to the outside using the payment gateways provided by the operator (card, bank transfer, electronic wallet, etc.). Participations, prizes and vouchers are transactions within the platform in each of the games offered by the operator. These transactions are valued in Euros but do not involve a monetary transaction. Vouchers Fees Deposits Withdrawals Opening Balance Gambling account Closing Balance Transac. Out Transac. In Participation Prizes Illustration 1. Gambling account The gambling account should always maintain an accounting balance. At year-end the following conditions are met 4 : Where, CCBB DDDDDDDDDDDDDDDD = OOOO JJJJJJJJJJJJJJ + DDEE AAAAAAAAAAAA WWWW AAAAAAAAAAAA PPPP AAAAAAAAAAAA + PPPP AAAAAAAAAAAA + VVOO AAAAAAAAAAAA CB December, is the balance of the user account at 31 December 2015 (at 23:59 hours). OB January, is the balance of the user account at 1 January 2015 (at 00:00 hours). DE Annual, total amount of deposits made by the user in 2015. WI Annual, total amount of withdrawals made by the user in 2015. 4 In the ICS data model the participations include, where appropriate, the fees paid by the gambler. REPORT ONLINE GAMBLER 2015 PAGE 13 OF 102

PA Annual, total amount of participations in games in 2015 PR Annual, total amount of prizes won from games in 2015. VO Annual, total amount of user vouchers acknowledged by the operator in 2015. Gamblers' Gambling accounts From the single gambler relationship obtained, as explained in the Users and gamblers section above, it is possible to obtain the gambling accounts of gamblers by simply aggregating the gambling accounts of each of them held with the different operators. Therefore, the figures relating to deposits, withdrawals, participations and prizes include all of the transactions performed by the gambler, regardless of the operators through which they carry them out. Calculation of the gambler s spending on gambling Throughout this study, the variables for deposits and participations are analysed. Although these variables are representative of the gambler s behaviour, they do not reflect the actual spending on gambling, defined as the capital variation, net winnings or losses, resulting from gambling during a certain period of time. Using the data on the gambling account it is possible to calculate the capital variation resulting from gambling in two ways: firstly, using the cash flows, the capital variation is calculated from the amount of the deposits made in the period, minus the withdrawals, plus the change in the balance; secondly, based on the gambling activity, it is calculated from the difference between the prizes won and the participations. Therefore, when the deposits made by gamblers are analysed, we must take into account that, in order to assess actual spending, it is necessary to consider withdrawals of funds and changes in balances in the relevant period. SSSSSSSSSSSSSSSS = OOOO JJJJJJJJJJJJJJ + DDEE AAAAAAAAAAAA WWWW AAAAAAAAAAAA CCCC DDDDDDDDDDDDDDDD REPORT ONLINE GAMBLER 2015 PAGE 14 OF 102

When participations in games are analysed it should be borne in mind that, in order to assess actual spending, it is necessary to consider the gambler s prizes and vouchers recognised by the operator. SSSSSSSSSSSSSSSS = PPAA AAAAAAAAAAAA PPRR AAAAAAAAAAAA VVVV AAAAAAAAAAAA Gambling To analyse games, they were classified into the following segments: BETTING: Is made up of transactions corresponding to Sport Fixed-Odds Betting (ADC), Sports Pool Betting (ADM), Horse Fixed-Odds Betting (AHC), Horse Pool Betting (AHM), Other Fixed-Odds Betting (AOC), Sports Betting- Exchange (ADX), Horse Betting-Exchanges (AHX) and Other Betting- Exchange (AOX). POKER: Encompasses Poker Cash (POC) and Poker Tournament (POT). CASINO: Is made up of Blackjack (BLJ), Roulette (RLT), Baccarat (PUN) and Additional Games (COM). BINGO: Includes Bingo (BNG). SLOT MACHINES: Includes Slot Machines (SLO). Payment methods This edition of the report includes, for the first time, information about the payment methods used by online gamblers in deposit and withdrawal transactions. The standardised payment methods' list is used to classify transactions, according to the Resolution of 6 October 2014 approving the data model of the system for the monitoring of the information corresponding to gambling transaction records, annex I, heading 3.5.7.4, published on the DGOJ s website as of 31 October 2014. REPORT ONLINE GAMBLER 2015 PAGE 15 OF 102

3 Who gambles? In this first section we analyse gamblers, registration processes, the number of operators with which users register, their activity level and distribution by gender and age. Data analysis is based on the user accounts held with each operator. Since the same person may have an account with different operators, it is necessary to perform the task of integrating this information in order to obtain the number of single gamblers. Single gamblers, therefore, correspond to the number of people registered on a gambling website, regardless of the number of operators with which they are registered. In turn, within the group of users and gamblers the subgroup of active individuals is of special interest since, as in any online platform, the gambler can register but, after registration, be inactive. For this reason the study has been completed with the analysis of users and active gamblers, defined as those who have participated at least once in gambling during the period being studied. The activity level of gamblers is obtained using three different criteria: (1) gamblers who have been active every month, (2) active gamblers who are new and (3) the number of months in which gamblers are active. The study is completed with the demographic analysis of gamblers by gender and age. REPORT ONLINE GAMBLER 2015 PAGE 17 OF 102

Registered users and gamblers Total gamblers and users The total number of registered users grew from 3,985,320, as at 1 January 2015, to 5,448,532 5 as at 31 December, representing an increase of 36.7%. Based on the information on users registered with the different operators and using the identity data, information is obtained on single gamblers whose total number has risen from 1,925,401 at the beginning of the year to 2,413,137 at the end of 2015, which represents an increase of 25.3% and an average of 1,336 new gamblers a day or 40,645 gamblers per month. Monthly evolution of the number of users and gamblers Using the data relating to registered users and gamblers at the end of each month during the year we can calculate the monthly rate of change. Thus, the number of registered gamblers grew at an average monthly rate of 1.9%, with above average increases in the months from October to May and below average increases in the middle months of the year from June to September. The minimum value is registered in July. 5 The total number of users in December 2014 recorded in "The 2014 gambler profile" was 3,940,232. At the date of preparation of this report, 3,985,320 were recorded, i.e., 45,088 more gamblers. This difference is due to data updates occurring after completion of the previous report. REPORT ONLINE GAMBLER 2015 PAGE 18 OF 102

Period Total Users Total Gamblers Ratio Users/ Gamblers 2014 and earlier 3,985,320 1,925,401 2.07 January 4,121,249 1,973,572 2.09 February 4,242,905 2,015,730 2.10 March 4,374,759 2,061,237 2.12 April 4,489,333 2,100,913 2.14 May 4,604,087 2,143,428 2.15 June 4,698,426 2,172,917 2.16 July 4,763,282 2,193,847 2.17 August 4,871,527 2,228,724 2.19 September 4,999,541 2,270,044 2.20 October 5,154,600 2,317,746 2.22 November 5,312,991 2,368,120 2.24 December 5,448,532 2,413,137 2.26 Table 1. Total registered users and gamblers in 2015 Table 1. Total registered users and gamblers in 2015 This reflects the total number of users and gamblers at the end of the aforementioned period. The table contains the following columns: Period: Month in which the number of users and gamblers are recorded. Total users: Number of registered users. Total gamblers: Number of registered gamblers. User/gambler ratio: Relationship between the number of users and the number of gamblers. REPORT ONLINE GAMBLER 2015 PAGE 19 OF 102

Illustration 2. Monthly evolution of registered users and gamblers 3,41% 2,95% 3,11% 3,10% 3,07% 2,50% 2,62% 2,56% 2,14% 2,26% 1,92% 2,02% 2,05% 2,27% 2,63% 2,55% 1,38% 1,59% 1,85% 2,10% 2,17% 1,90% 1,38% 0,96% Monthly User Variation Rate Monthly Gambler Variation Rate Illustration 3. Monthly rate of change in number of registered users and gamblers REPORT ONLINE GAMBLER 2015 PAGE 20 OF 102

Multi-operator gamblers: Number of operators The gambler, as has been stated in the methodological note, is linked to the individual and the user to the registration operation. The number of users associated with a single individual indicates the number of operators with which the gambler is registered. As shown in the following table, most of the gamblers are registered with one (57.7%) or two operators (19.2%). No. of Operators Men % Men / Total Gamblers Women % Women / Total Gamblers Total % Total / Total Gamblers 1 1,088,552 45.1% 304,825 12.6% 1,393,377 57.7% 2 374,802 15.5% 88,216 3.7% 463,018 19.2% 3 184,726 7.7% 37,703 1.6% 222,429 9.2% 4 101,412 4.2% 19,979 0.8% 121,391 5.0% 5 58,522 2.4% 11,698 0.5% 70,220 2.9% 6 or more 113,874 4.7% 28,828 1.2% 142,702 5.9% Total 1,921,888 79.6% 491,249 20.4% 2,413,137 100.0% Table 2. Distribution of multi-operator gamblers Table 2. Distribution of multi-operator gamblers This shows the distribution of gamblers according to the number of operators with which they are registered. The table contains the following columns: Number of operators: Number of operators with which the gambler is registered. Men: Number of male gamblers registered. % Men / Total gamblers: Percentage of total number of gamblers who are men Women: Number of female gamblers registered. % Women / Total gamblers: Percentage of total number of gamblers who are women. Total: Number of registered gamblers. % Total / Total gamblers: Percentage of total number of gamblers who are gamblers. REPORT ONLINE GAMBLER 2015 PAGE 21 OF 102

Active gamblers In this section we focus on analysing the level of activity of active gamblers, who are those who have participated at least once in gambling during 2015. For this purpose, we analyse the active gamblers in each month, new gamblers and their behaviour in the months following registration and the number of months during which gamblers are active. We end the section with the demographic profile of gender and age and of registration with multiple operators. The total number of users who participated at least once in gambling during 2015 was 1,541,241 and the total number of gamblers was 985,333. Active gamblers by month The number of active gamblers in each of the months of the year has remained more or less stable around the average figure of 379,883, with above average figures in the months from September to May and below average figures in the middle months of the year from June to August. The minimum number of active gamblers was registered in July. Period 2015 Active Users Active Gamblers Ratio Active Users/ Active Gamblers January 468,680 385,136 1.22 February 463,362 381,322 1.22 March 477,522 391,048 1.22 April 464,570 383,177 1.21 May 465,761 385,024 1.21 June 408,096 334,637 1.22 July 336,959 279,846 1.20 August 437,440 362,274 1.21 September 481,066 395,909 1.22 October 517,041 417,356 1.24 November 519,016 423,503 1.23 December 510,785 419,358 1.22 Average 462,525 379,883 - Table 3. Active users and gamblers by month REPORT ONLINE GAMBLER 2015 PAGE 22 OF 102

Table 3. Active users and gamblers by month This shows the number of users and gamblers who were active in each of the months of the year. The table contains the following columns: Period: Month of 2015 in which the number of users and active gamblers were recorded. Active users: Number of users who played at least once in the month. Active gamblers: Number of gamblers who played at least once in the month. Ratio users / Active gamblers: Relationship between the number of users and the number of active gamblers. Illustration 4. Evolution of the number of users and active gamblers in the different months REPORT ONLINE GAMBLER 2015 PAGE 23 OF 102

Active gamblers who are new gamblers The analysis of the active gamblers in each month is completed with the study of the gamblers who are new. Thus, for each month, next to the total number of active gamblers for the month. The number of active gamblers who registered in 2015 and those who registered in the same month is shown. 9.2% of the active gamblers recorded each month are gamblers who registered in that same month. In December, 36.1% of active gamblers were new in the year. Period 2015 Active Users Active Users (Reg. in 2015) % Active Users (2015) / Active Users Active Gamblers Active Gamblers (Reg. during the month) Active Gamblers (2015) % Active Gamblers (2015) / Active Gamblers January 468,680 66,007 14.1% 385,136 40,130 40,130 10.4% February 463,362 99,035 21.4% 381,322 34,054 61,051 16.0% March 477,522 128,382 26.9% 391,048 37,520 79,255 20.3% April 464,570 136,634 29.4% 383,177 32,672 85,792 22.4% May 465,761 150,634 32.3% 385,024 33,825 96,569 25.1% June 408,096 133,029 32.6% 334,637 24,984 82,335 24.6% July 336,959 102,938 30.5% 279,846 17,008 63,227 22.6% August 437,440 146,653 33.5% 362,274 31,519 93,483 25.8% September 481,066 182,246 37.9% 395,909 37,301 116,192 29.3% October 517,041 220,783 42.7% 417,356 44,550 136,726 32.8% November 519,016 231,411 44.6% 423,503 44,795 148,183 35.0% December 510,785 233,305 45.7% 419,358 39,537 151,308 36.1% Average 462,525 152,588-379,883 34,825 96,188 - Table 4. New active users and gamblers REPORT ONLINE GAMBLER 2015 PAGE 24 OF 102

Table 4. New active users and gamblers This shows the number of users and gamblers who were active in each of the months of the year. The table contains the following columns: Period: Month of 2015 in which the number of users and active gamblers were recorded. Active users: Number of users who played at least once in the month. Active users (registered in 2015): Number of new users in 2015 who played at least once in the month. Active gamblers: Number of gamblers who played at least once in the month. Active gamblers (registered in the month): Number of new gamblers in the month who played at least once in the month. Active gamblers (registered in 2015): Number of new gamblers in 2015 who played at least once in the month. New gamblers. Analysis of their behaviour As we observed in the table above, a significant percentage of active gamblers each month are new gamblers in the month (in December, 36.1% of active gamblers were gamblers registered over the course of 2015). We will try to perform an in-depth analysis of the behaviour of new gamblers, for each month, studying all new gamblers separately and observing their activity in the following months. The data for each month are shown below. Illustration 5. Activity by month of gamblers registered in January REPORT ONLINE GAMBLER 2015 PAGE 25 OF 102

Illustration 6. Activity by month of gamblers registered in February Illustration 7. Activity by month of gamblers registered in March Illustration 8. Activity by month of gamblers registered in April REPORT ONLINE GAMBLER 2015 PAGE 26 OF 102

Illustration 9. Activity by month of gamblers registered in May Illustration 10. Activity by month of gamblers registered in June Illustration 11. Activity by month of gamblers registered in July REPORT ONLINE GAMBLER 2015 PAGE 27 OF 102

Illustration 12. Activity by month of gamblers registered in August Illustration 13. Activity by month of gamblers registered in September Illustration 14. Activity by month of gamblers registered in October REPORT ONLINE GAMBLER 2015 PAGE 28 OF 102

Illustration 15. Activity by month of gamblers registered in November Illustration 16. Activity by month of gamblers registered in December Number of months' activity and average activity time The distribution of gamblers according to the number of months in which they have been active is shown in the following table. It is considered that a gambler has been active in a month when they have participated at least once in gambling during that month. 28.3% of gamblers have played for just one month; 60.5% (596,456) of gamblers have been active for 4 months or less; and 79.1% (779,041) play for 8 months or less. Gamblers who have been active every month represent 9.1% of the total (89,869). From the above data we can calculate the average activity time defined as the number of months on average during which gamblers have been active REPORT ONLINE GAMBLER 2015 PAGE 29 OF 102

throughout the year. The average activity time of gamblers calculated in this way is 4.63 months, not necessarily consecutive 6. No. of months Active Users Active Gamblers % Cumulated Active Gamblers/ Total Active Gamblers 1 month 617,694 278,766 28.3% 2 months 253,132 150,226 43.5% 3 months 141,532 95,704 53.3% 4 months 99,575 71,760 60.5% 5 months 75,327 56,627 66.3% 6 months 57,169 45,627 70.9% 7 months 50,592 41,751 75.1% 8 months 44,784 38,580 79.1% 9 months 41,320 37,060 82.8% 10 months 39,866 37,535 86.6% 11 months 42,161 41,828 90.9% 12 months 78,089 89,869 100.0% Total 1,541,241 985,333 - Table 5. Number of months' activity of users and active gamblers Table 5. Number of months' activity of users and active gamblers This shows the distribution of gamblers according to the number of months of activity. The table contains the following columns: Months: Number of months' activity. Active users: Number of active users. Active gamblers: Number of active gamblers. % accumulated active gamblers / Total active: Percentage of accumulated active gamblers by months' activity. 6 The data in Table 5 show that the number of gamblers who have played every month exceeds the number of users. This is because the gamblers do not necessarily play through the same operator. REPORT ONLINE GAMBLER 2015 PAGE 30 OF 102

Illustration 17. Gamblers, users, and average activity time The analysis of active gamblers can be summarised as follows: 85.7% of new gamblers have participated at least once during the year. The average number of active gamblers each month was 379,883. The average activity time of gamblers was 4.63 months. Each month the proportion of new gamblers was 9.2%. In December, 36.1% of active gamblers were gamblers who registered over the course of 2015. Distribution by age and gender The demographic analysis of active gamblers reveals that gamblers are mostly men (83%) and under 46 years of age (87%). The most typical age profile, for both men and women, is the one between 26 and 35 (representing 37% of the total). REPORT ONLINE GAMBLER 2015 PAGE 31 OF 102

The most typical gambler profile is a man aged between 26 and 35, which represents 32% of the total. No. of Gamblers Between 18-25 years Between 26-35 years Between 36-45 years Between 46-55 years Between 56-65 years Over 65 years Total per gender Men 249,099 312,782 167,016 62,276 21,606 7,567 820,346 % Men (Total Gamblers) 25.3% 31.7% 17.0% 6.3% 2.2% 0.8% 83.3% Women 41,625 52,100 33,089 24,320 9,588 4,265 164,987 % Women (Total Gamblers) 4.2% 5.3% 3.4% 2.5% 1.0% 0.4% 16.7% Total per age 290,724 364,882 200,105 86,596 31,194 11,832 985,333 % Total (Total Gamblers) 29.5% 37.0% 20.3% 8.8% 3.2% 1.2% 100.0% Table 6. Distribution of gamblers by gender and age Illustration 18. Distribution of gamblers by gender and age REPORT ONLINE GAMBLER 2015 PAGE 32 OF 102

Multi-operator active gamblers: Number of operators The distribution of gamblers according to the number of operators with which they are registered shows that 70.0% of active gamblers are registered with a single operator. The study of the distribution of men and women by number of operators shows a slight preference among women for registering with a single operator. No. of Operators Men % Men / Total Men Women % Women / Total Women Total active % Total / Total active 1 569,658 69.4% 119,831 72.6% 689,489 70.0% 2 153,408 18.7% 27,325 16.6% 180,733 18.3% 3 50,900 6.2% 8,624 5.2% 59,524 6.0% 4 or more 46,380 5.7% 9,207 5.6% 55,587 5.6% Total 820,346 100.0% 164,987 100.0% 985,333 100.0% Table 7. Multi-operator active gamblers Table 7. Multi-operator active gamblers This shows the distribution of active gamblers in the year according to the number of operators with which they are registered. The table contains the following columns: Number of operators: Number of operators with which the gambler is registered and through which they participate. Men: Number of active male gamblers registered with the no. of operators indicated. % Men / Total men: Percentage of total number of active gamblers who are men with respect to the number of operators indicated. Women: Number of active female gamblers registered with the no. of operators indicated. % Women / Total women: Percentage of total number of active gamblers who are women with respect to the number of operators indicated. % Total / Total active: Percentage of total number of active gamblers who are women and men with respect to the number of operators indicated. REPORT ONLINE GAMBLER 2015 PAGE 33 OF 102

Illustration 19. Distribution of gamblers by number of registrations and gender REPORT ONLINE GAMBLER 2015 PAGE 34 OF 102

4 What is played? After analysing the user record, registration processes and gambler activity level, we will go on to study the games. The aim is to ascertain the preferences of gamblers, how many different games they participate in, what the most popular games are and if there is any relationship between the various forms of gambling. Under this heading, games are classified by taking the list of games authorised as described in the section "Games" under "Methodology" as a reference. Relationship between gamblers and games The distribution of gamblers according to the number of games in which they have participated is reflected in the following table. No. of games No. of Gamblers % Gamblers / Total Gamblers % cumulated Gamblers/ Total Gamblers 1 607,847 61.7% 61.7% 2 180,440 18.3% 80.0% 3 103,415 10.5% 90.5% 4 54,738 5.6% 96.1% 5 24,824 2.5% 98.6% 6 or more 14,069 1.4% 100.0% Total 985,333 100% - Table 8. Number of gamblers based on the games in which they participated REPORT ONLINE GAMBLER 2015 PAGE 35 OF 102

During 2015, 61.7% of active gamblers participated in only 1 game and 18.3% participated in 2 games. The two groups account for 80% of gamblers. The average number of games per gambler is 1.74. 7 Table 8. Number of gamblers based on the games in which they participated This shows the distribution of active gamblers in the year according to the different games in which they participate. The table contains the following columns: No. of games: Number of different games in which a gambler participates. Games are considered according to the classification in specific licences established in the regulations in force. No. of gamblers: Number of gamblers participating with respect to the indicated number of games. % Gamblers / Total: Proportion of gamblers according to number of games. % accumulated Gamblers / Total: Accumulated proportion of gamblers according to number of games. Illustration 20. Accumulated volume of gamblers by number of games 7 Complete data for calculating the average can be found in Annex II. REPORT ONLINE GAMBLER 2015 PAGE 36 OF 102

Distribution by game of gamblers who only participate in one game The 607,847 gamblers who only participated in one game have done so mainly in Sport Fixed-Odds Betting (66.3%), in Poker (25.5%) and at rates below 4% in the other games. Game No. of Gamblers % Gamblers / Total 3.8% 2.3% 1.3% 0.5% 0.3% ADC 402,962 66.3% POQ 155,036 25.5% ADC POQ BNG 23,307 3.8% 25.5% BNG RLT 13,739 2.3% RLT AZA 7,943 1.3% BLJ 2,912 0.5% Others 1,948 0.3% Total 607,847 100.0% 66.3% AZA BLJ Others Table 9. Games most commonly played by gamblers who only participate in one game Distribution by game of gamblers who participate in two games The most common combination of games for gamblers who play two games is Sport Fixed-Odds Betting and Poker, accounting for 21.7% of gamblers, followed by Sport Fixed-Odds Betting and Roulette, with 15.1%. Sport Fixed-Odds Betting, which is the most popular game for gamblers who play a single game, is also the most played in this group. REPORT ONLINE GAMBLER 2015 PAGE 37 OF 102

Games No. of Gamblers % Gamblers / Total ADC POQ 0% 5% 10% 15% 20% 25% ADC POQ 39,169 21.7% ADC RLT 27,259 15.1% ADC AHC 21,826 12.1% BLJ POQ 20,880 11.6% RLT POQ 16,152 9.0% ADC AOC 8,463 4.7% ADC AZA 7,851 4.4% AZA BNG 7,657 4.2% ADC BLJ 7,598 4.2% ADC BNG 4,479 2.5% RLT BNG 4,318 2.4% BLJ RLT 2,883 1.6% AZA RLT 2,444 1.4% AZA POQ 2,278 1.3% ADC ADM 1,960 1.1% POQ BNG 1,662 0.9% BLJ BNG 1,205 0.7% ADC ADX 1,169 0.6% Others 1,187 0.7% ADC RLT ADC AHC BLJ POQ RLT POQ ADC AOC ADC AZA AZA BNG ADC BLJ ADC BNG RLT BNG BLJ RLT AZA RLT AZA POQ ADC ADM POQ BNG BLJ BNG ADC ADX Others Total 180,440 100.0% Table 10. Distribution by game of gamblers who participate in two games Distribution by game of gamblers who participate in three games In the case of 3 games, the most common combinations are Blackjack, Roulette and Poker, accounting for 24% of gamblers, followed by Sport Fixed-Odds Betting, Roulette and Poker, which represent 11.4%. In this group Sport Fixed-Odds Betting, which is the most common game in the previous groups, is ranked second. REPORT ONLINE GAMBLER 2015 PAGE 38 OF 102

Games No. of Gamblers % Gamblers / Total BLJ RLT POQ 0% 5% 10% 15% 20% 25% BLJ RLT POQ 24,830 24.0% ADC RLT POQ 11,759 11.4% ADC AHC AOC 9,808 9.5% ADC BLJ POQ 8,923 8.6% ADC BLJ RLT 8,210 7.9% AZA RLT BNG 5,348 5.2% ADC AZA RLT 4,087 4.0% ADC AHC POQ 2,807 2.7% ADC AHC RLT 2,496 2.4% ADC RLT BNG 2,150 2.1% ADC AZA POQ 1,874 1.8% AZA RLT POQ 1,819 1.8% AZA BLJ RLT 1,578 1.5% ADC AZA BNG 1,539 1.5% BLJ RLT BNG 1,489 1.4% AZA BLJ BNG 1,389 1.3% AZA BLJ POQ 1,389 1.3% ADC AZA BLJ 1,353 1.3% ADC AOC RLT 1,097 1.1% ADC AOC POQ 1,016 1.0% Others 8,454 8.2% Total 103,415 100.0% ADC RLT POQ ADC AHC AOC ADC BLJ POQ ADC BLJ RLT AZA RLT BNG ADC AZA RLT ADC AHC POQ ADC AHC RLT ADC RLT BNG ADC AZA POQ AZA RLT POQ AZA BLJ RLT ADC AZA BNG BLJ RLT BNG AZA BLJ BNG AZA BLJ POQ ADC AZA BLJ ADC AOC RLT ADC AOC POQ Others Table 11. Distribution by game of gamblers who participate in three games Relationships between the games Given the percentage of gamblers participating in two games or more (38.3%), this section analyses the quantitative relationship between the different games using the number of gamblers and the amount bet in each of them as variables. For this purpose, the following two tables are presented. In the first table there is a row for each game and in each of its columns the relationship with other games in terms of percentage of gamblers is shown. Therefore, for each of the games the proportion of gamblers who, in addition to that game, participate in another game is shown. By way of an example, if we look at the first row we can observe that of all the gamblers who play Sport Fixed-Odds REPORT ONLINE GAMBLER 2015 PAGE 39 OF 102

Betting 19.1% play Roulette (RLT), 18.6% play Poker and 13.3% play Blackjack (BLJ) 8. Game No. Gamblers ADC ADM ADX AHC AOC AOX AZA BLJ PUN RLT COM POQ BNG ADC 665,528 100.0% 0.9% 0.4% 9.3% 5.7% 0.0% 8.8% 13.3% 0.2% 19.1% 0.1% 18.6% 4.7% ADM 6,700 92.3% 100.0% 1.1% 14.2% 9.6% 0.0% 28.0% 30.0% 3.5% 48.6% 0.9% 25.9% 15.5% ADX 3,060 94.6% 2.5% 100.0% 23.5% 12.8% 0.0% 17.9% 19.2% 0.5% 27.4% 0.5% 24.6% 8.0% AHC 63,070 98.3% 1.5% 1.1% 100.0% 36.0% 0.0% 17.6% 21.7% 0.5% 30.7% 0.2% 25.1% 7.2% AOC 38,775 98.0% 1.7% 1.0% 58.6% 100.0% 0.0% 19.7% 23.4% 0.6% 34.1% 0.2% 26.8% 7.5% AOX 1 100.0% 0.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 0.0% 100.0% 0.0% 0.0% 0.0% AZA 105,007 55.8% 1.8% 0.5% 10.6% 7.3% 0.0% 100.0% 45.6% 1.2% 59.1% 0.7% 40.1% 37.8% BLJ 161,884 54.8% 1.2% 0.4% 8.4% 5.6% 0.0% 29.6% 100.0% 1.1% 65.7% 0.5% 69.1% 17.2% PUN 2,003 79.5% 11.6% 0.8% 16.4% 12.3% 0.0% 64.6% 86.9% 100.0% 89.7% 9.6% 47.0% 42.7% RLT 216,230 58.8% 1.5% 0.4% 9.0% 6.1% 0.0% 28.7% 49.2% 0.8% 100.0% 0.5% 53.1% 18.7% COM 1,095 60.5% 5.8% 1.5% 11.1% 7.7% 0.0% 67.1% 79.3% 17.6% 90.5% 100.0% 61.5% 47.2% POQ 360,046 34.3% 0.5% 0.2% 4.4% 2.9% 0.0% 11.7% 31.1% 0.3% 31.9% 0.2% 100.0% 5.9% BNG 88,502 35.3% 1.2% 0.3% 5.1% 3.3% 0.0% 44.9% 31.5% 1.0% 45.7% 0.6% 23.9% 100.0% Table 12. No. of gamblers who play each game who also participate in other games For each of the games the second table shows their connection with the other games, but this time taking the relative participations in them as a reference. Therefore, for example, if we again analyse the first row, for every 100 that gamblers spend when participating in Sport Fixed-Odds Betting, these same gamblers spend 23.40 on Roulette (RLT), 18.60 on Poker (POQ), 9.50 on Blackjack (BLJ) and 4.90 on Slot Machines (AZA) 9. 8 The table is not symmetrical between games as the number of gamblers differs from one game to another. 9 Once again we can see from the table that there is no symmetry among the various games, since the amounts bet differ from one game to another. REPORT ONLINE GAMBLER 2015 PAGE 40 OF 102

Game Stakes ( x1000) ADC ADM ADX AHC AOC AOX AZA BLJ PUN RLT COM POQ BNG ADC 4,133,557 100.0% 0.0% 0.1% 1.5% 0.2% 0.0% 4.9% 9.5% 0.0% 23.4% 0.0% 18.6% 0.3% ADM 132 61,967.2% 100.0% 15.3% 1,033.3% 71.2% 0.0% 7,415.9% 16,139.0% 69.9% 39,111.5% 3.0% 5,981.1% 601.4% ADX 5,896 1,652.2% 0.1% 100.0% 33.0% 3.4% 0.0% 14.2% 30.9% 0.0% 83.3% 0.0% 123.1% 1.1% AHC 61,153 1,767.7% 0.0% 0.8% 100.0% 11.0% 0.0% 63.6% 71.5% 0.1% 203.2% 0.0% 122.6% 2.6% AOC 7,286 6,819.3% 0.1% 3.1% 542.2% 100.0% 0.0% 281.6% 496.9% 1.1% 1,193.4% 0.1% 629.4% 14.9% AOX 0 16,073.5% 0.0% 2,140.0% 84.5% 250.0% 100.0% 32,268.0% 17,975.0% 0.0% 13,830.0% 0.0% 0.0% 0.0% AZA 400,249 155.4% 0.0% 0.9% 2.7% 0.4% 0.0% 100.0% 83.3% 0.2% 212.4% 0.0% 71.4% 11.1% BLJ 605,460 126.4% 0.0% 0.1% 2.4% 0.4% 0.0% 45.3% 100.0% 0.2% 162.3% 0.0% 128.1% 4.5% PUN 2,336 1,116.8% 0.2% 0.1% 14.5% 2.2% 0.0% 757.1% 2,465.5% 100.0% 3,548.3% 0.8% 380.4% 37.0% RLT 1,497,225 72.2% 0.0% 0.1% 1.2% 0.3% 0.0% 21.1% 33.3% 0.2% 100.0% 0.0% 51.2% 2.5% COM 115 7,536.5% 0.7% 2.6% 86.8% 6.7% 0.0% 19,764.4% 10,221.3% 100.2% 43,196.5% 100.0% 5,512.6% 381.4% POQ 1,706,577 45.5% 0.0% 0.0% 0.8% 0.1% 0.0% 10.0% 23.0% 0.0% 42.3% 0.0% 100.0% 0.7% BNG 67,706 286.3% 0.0% 0.2% 7.4% 0.9% 0.0% 395.3% 233.5% 0.9% 623.9% 0.1% 122.5% 100.0% Table 13. Participation of gamblers in each game in relation to the participation of those same gamblers in other games REPORT ONLINE GAMBLER 2015 PAGE 41 OF 102

Relationship between Sport Fixed-Odds Betting and the other games If we analyse the participants in Sport Fixed-Odds Betting, it can be observed that their participation in other games is lower in terms of both the number of gamblers and the volume of participation. In percentage terms we can see that, out of the total number of gamblers participating in Sport Fixed-Odds Betting, 19.1% also play Roulette, 18.6% Poker, 13.3% Blackjack, 8.8% Slot Machines, 9.3% Horse Fixed-Odds Betting, 5.7% Other Fixed-Odds Betting, 4.7% Bingo and 0.9% Sports Pool Betting. In terms of participation rates, these are as follows: Roulette (23.4%), Poker (18.6%), Blackjack (9.5%), Slot Machines (4.9%) and Horse Fixed-Odds Betting (1.5%) 10. ADC: % Gamblers ADC: % Stakes BNG ADC 100% 80% ADM BNG ADC 100% 80% ADM POQ 60% ADX POQ 60% ADX 40% 40% COM 20% 0% AHC COM 20% 0% AHC RLT AOC RLT AOC PUN AOX PUN AOX BLJ AZA BLJ AZA Illustration 21. Relationship between Sport Fixed-Odds Betting and the other games 10 Participations with a volume of less than 1% are not reflected. REPORT ONLINE GAMBLER 2015 PAGE 42 OF 102

Relationship between Poker and the other games In the case of Poker, we can see that Poker players also play Sport Fixed-Odds Betting (34.3%), Roulette (31.9%), Blackjack (31.1%) and Slot Machines (11.7%). From the point of view of participation, for every 100 bet on Poker, they spend 45.50 on Sport Fixed-Odds Betting, 42.30 on Roulette, 23 on Blackjack and 10 on Slot Machines. POQ: % Gamblers POQ: % Stakes COM POQ BNG ADC 100% 80% 60% 40% 20% 0% ADM ADX AHC COM POQ BNG ADC 100% 80% 60% 40% 20% 0% ADM ADX AHC RLT AOC RLT AOC PUN AOX PUN AOX BLJ AZA BLJ AZA Illustration 22. Relationship between Poker and the other games REPORT ONLINE GAMBLER 2015 PAGE 43 OF 102

Relationship between Roulette and the other games Roulette gamblers play other games such as Sport Fixed-Odds Betting (58.8%), Poker (53.1%), Blackjack (49.2%), Slot Machines (28.7%) and Bingo (18.7%). RLT: % Gamblers RLT: % Stakes COM POQ BNG ADC 100% 80% 60% 40% 20% 0% ADM ADX AHC COM POQ BNG ADC 100% 80% 60% 40% 20% 0% ADM ADX AHC RLT AOC RLT AOC PUN AOX PUN AOX BLJ AZA BLJ AZA Illustration 23. Relationship between Roulette and the other games In terms of participation, for every 100 bet on Roulette, they spend 72.20 on Sport Fixed-Odds Betting, 51.20 on Poker, 33.30 on Blackjack, 21.10 on Slot Machines and 2.50 on Bingo. Relationship between Blackjack and the other games The behaviour of Blackjack players is very similar to those who play Roulette. Its players participate in other games such as Poker (69.1%), Roulette (65.7%), Sport Fixed-Odds Betting (54.8%), Slot Machines (29.6%) and Bingo (17.2%). However, compared with Roulette, relative participation rates in those games is over 100% in Roulette (162.3%), in Sport Fixed-Odds Betting (126.4%), in Poker (128.1%) and in Slot Machines (45.3%). REPORT ONLINE GAMBLER 2015 PAGE 44 OF 102

BLJ: % Gamblers BLJ: % Stakes COM POQ BNG ADC 100% 80% 60% 40% 20% 0% ADM ADX AHC COM POQ BNG ADC 200% 150% 100% 50% 0% ADM ADX AHC RLT AOC RLT AOC PUN AOX PUN AOX BLJ AZA BLJ AZA Illustration 24. Relationship between Blackjack and the other games Relationship between Horse Fixed-Odds Betting and the other games Regarding Horse Fixed-Odds Betting, a strong relationship with Sport Fixed-Odds Betting can be seen in terms of the number of players: Out of all the gamblers who engage in Horse Fixed-Odds Betting, 98.3% participate in Sport Fixed-Odds Betting, 36% in Other Fixed-Odds Betting, 30.7% in Roulette, 25.1% in Poker, 21.7% in Blackjack and 17.6% in Slot Machines. In terms of participation, for every 100 bet on Horse Fixed-Odds Betting, 1,767.70 is spent on Sport Fixed-Odds Betting, 203.20 on Roulette, 122.60 on Poker, 71.50 on Blackjack, 63.60 on Slot Machines and 2.60 on Bingo. REPORT ONLINE GAMBLER 2015 PAGE 45 OF 102

AHC: % Gamblers AHC: % Stakes COM POQ BNG ADC 100% 80% 60% 40% 20% 0% ADM ADX AHC COM POQ ADC 2000% BNG 1500% 1000% 500% 0% ADM ADX AHC RLT AOC RLT AOC PUN AOX PUN AOX BLJ AZA BLJ AZA Illustration 25. Relationship between Horse Fixed-Odds Betting and the other games Relationship between Bingo and the other games Bingo players also play Roulette (45.7%), Slot Machines (44.9%), Blackjack (31.5%), Sport Fixed-Odds Betting (35.3%) and Poker (23.9%). In terms of participation, for every 100 bet on Bingo, 623.90 is spent on Roulette, 395.30 on Slot Machines, 286.30 on Sport Fixed-Odds Betting, 233.50 on Blackjack and 122.50 on Poker. BNG: % Gamblers BNG: % Stakes COM POQ BNG ADC 100% 80% 60% 40% 20% 0% ADM ADX AHC COM POQ BNG ADC 700% 600% 500% 400% 300% 200% 100% 0% ADM ADX AHC RLT AOC RLT AOC PUN AOX PUN AOX BLJ AZA BLJ AZA Illustration 26. Relationship between Bingo and the other games REPORT ONLINE GAMBLER 2015 PAGE 46 OF 102

Relationship between Slot Machines and the other games Slot Machine players also play Roulette (59.1%), Sport Fixed-Odds Betting (55.8%), Blackjack (45.6%), Poker (40.1%) and Bingo (37.8%). In terms of participation, for every 100 bet on Slot Machines 212.40 were spent on Roulette, 155.40 on Sport Fixed-Odds Betting, 83.30 on Blackjack and 71.40 on Poker. AZA: % Gamblers AZA: % Stakes BNG ADC 100% 80% ADM BNG ADC 250% 200% ADM POQ 60% ADX POQ 150% ADX 40% 100% COM 20% 0% AHC COM 50% 0% AHC RLT AOC RLT AOC PUN AOX PUN AOX BLJ AZA BLJ AZA Illustration 27. Relationship between Slot Machines and the other games Relationship between Sports Betting-Exchange and the other games If we analyse those participating in Sports Betting-Exchange, it can be observed that 94.6% of them also participate in Sport Fixed-Odds Betting, 27.4% in Roulette, 24.6% in Poker, 23.5% in Horse Fixed-Odds Betting and 17.9% in Slot Machines. REPORT ONLINE GAMBLER 2015 PAGE 47 OF 102

In terms of participation rates, for every 100 bet on Sports Betting-Exchange, 1,652.20 is spent on Sport Fixed-Odds Betting, 123.10 on Poker and 83.30 on Roulette. ADX % Gamblers ADX: % Stakes COM POQ BNG ADC 100% 80% 60% 40% 20% 0% ADM ADX AHC COM POQ ADC 1000% BNG 800% 600% 400% 200% 0% ADM ADX AHC RLT AOC RLT AOC PUN AOX PUN AOX BLJ AZA BLJ AZA Illustration 28. Relationship between Sports Betting-Exchange and the other games REPORT ONLINE GAMBLER 2015 PAGE 48 OF 102

5 How do gamblers manage their deposits and withdrawals? Having studied the user record, single gamblers, registration processes and activity on the gambling platforms, as well as the gamblers' preferences among the different games offered, we will go into the analysis of the participants' gambling accounts. In this chapter we focus on deposit and withdrawal transactions, that is to say, monetary transactions involving transfers into and out of the gambling platform using the payment gateways provided by the operator (card, bank transfer, electronic wallet, etc.). Illustration 29. Deposits into and withdrawals from the gambling account REPORT ONLINE GAMBLER 2015 PAGE 49 OF 102

The study is based on the deposit and withdrawal transactions carried out by gamblers which are reflected in their gambling accounts. Since the same gambler can be registered on various gambling platforms and, therefore, have several gambling accounts, in order to determine the number and volume of transactions carried out by a specific gambler all their gambling accounts are taken into account. The aim is to analyse the population of active gamblers and to answer questions such as What is the gamblers' average deposit or withdrawal amount? ; How often do they perform deposit or withdrawal transactions? ; How many deposit or withdrawal transactions do they perform each year?. The analysis also considers the evolution of deposit and withdrawal transactions over time on the basis of different time perspectives: the time of day, the day of the week or the date This year, for the first time, information is provided on the payment methods used by gamblers. General distribution of deposits and withdrawals The following table summarises the deposit and withdrawal transactions recorded by the online operators. During 2015 the number of transactions in terms of deposits was 20,739,076 and in terms of withdrawals was 2,688,925. The total volume of transactions amounted to 848,960,454 in terms of deposits and 551,042,382 in terms of withdrawals. Deposit transactions were carried out by 823,129 gamblers, representing 84% of active gamblers, whereas withdrawal transactions were carried out by 323,504 gamblers, representing 33% of active gamblers. REPORT ONLINE GAMBLER 2015 PAGE 50 OF 102

Concept Deposits Withdrawals 1. Annual number of transactions 20,739,076 2,688,925 2. Average number of transactions per day 56,819 7,367 3. Annual average number of transactions per active gambler (*) 21.0 2.7 4. Amount of transactions ( ) 848,960,454 551,042,382 5. Number of active gamblers who have made a transaction 823,129 323,504 6. Average amount of transactions ( ) (4/1) 40.9 204.9 (*) Taking into account all the active gamblers, not only the ones who have made a deposit Table 14. Summary of deposit and withdrawal transactions performed in 2015 Based on the total number of transactions, the total number of active gamblers and the total amount of the transactions, an annual average of 21.0 deposit transactions is obtained for an average amount of 40.90 carried out by active gamblers. In the same way, an annual average of 2.7 withdrawal transactions for an average amount of 204.90 is calculated. Number and amount of deposits and withdrawals The following tables list the classification of gamblers according to the number of annual transactions carried out and their average amount. The average deposit ranges have been defined in such a way that there is a significant number of gamblers in each one distributing the population in homogeneous groups. Therefore: - 32.7% of active gamblers made deposits of between 0 and 10-35.0% of active gamblers made deposits of between 10 and 25-32.3% of active gamblers made deposits of more than 25 The same procedure was followed with the number of deposits carried out throughout the year by gamblers: - 27.1% of active gamblers made one deposit - 25.4% of active gamblers made between 2 and 4 deposits - 25.3% of active gamblers made between 5 and 20 deposits - 22.2% of active gamblers made more than 20 deposits REPORT ONLINE GAMBLER 2015 PAGE 51 OF 102

For example, the category of gamblers making between 2 and 4 annual deposits for an average amount of between 10 and 25 consists of 62,728 people, which is 7.6% of the total. The table shows the percentile corresponding to each of the sections, allowing us to establish how each category is positioned in relation to the total. For example, 52.5% of gamblers make between 1 and 4 deposits per year. The group of gamblers who make one deposit per year for an amount less than 10 is in the majority. In the group of gamblers who make more than 20 deposits annually, the most typical group is the one whose average amounts are between 10 and 25. Category Annual Dep. (Pctile) Average Deposit / Percentile (0-10 ] / (0-32) (10-25 ] / (33-67) (25 - ) / (68-100) Total / (0-100) No. of Gamb. No. of Depos. No. of Gamb. No. of Depos. No. of Gamb. No. of Depos. No. of Gamb. No. of Depos. 1 Dep. (0-27) 2-4 Dep. (28-52) 5-20 Dep. (53-77) +20 Dep. (78-100) Total (0-100) 112,641 112,641 46,640 46,640 64,163 64,163 223,444 223,444 77,481 205,801 62,728 175,420 68,712 186,869 208,921 568,090 55,771 527,935 87,951 915,047 64,266 643,348 207,988 2,086,330 23,248 1,590,876 90,863 8,666,633 68,665 7,603,703 182,776 17,861,212 269,141 2,437,253 288,182 9,803,740 265,806 8,498,083 823,129 20,739,076 Table 15. Distribution of gamblers according to the number of deposits and their average amount REPORT ONLINE GAMBLER 2015 PAGE 52 OF 102

Table 15. Distribution of gamblers according to the number of deposits and their average amount This shows the distribution of the number of gamblers according to the number of deposit transactions and their average amount. The table contains the following columns: Dep. Group Year (Pctile): Number of annual deposits made by a gambler. Percentile the value falls within. Example: 20+ annual deposits correspond to the percentile (78-100) of the distribution. Average deposit - Percentile: Average amount of deposits made by gamblers. Percentile the value falls within. No. of Gamb.: Number of gamblers who belong to that category. No. of Dep.: Total number of deposit transactions which belong to that category. Average Deposit / Percentile Category Annual Dep. (Pctile) 1 Dep. (0-27) 2-4 Dep. (28-52) 5-20 Dep. (53-77) +20 Dep. (78-100) Total (0-100) (0-10 ] / (0-32) (10-25 ] / (33-67) (25 - ) / (68-100) Total / (0-100) % Gamb. / Total % Dep. / Total % Gamb. / Total % Dep. / Total % Gamb. / Total % Dep. / Total % Gamb. / Total % Dep. / Total 13.7% 0.5% 5.7% 0.2% 7.8% 0.3% 27.1% 1.1% 9.4% 1.0% 7.6% 0.8% 8.3% 0.9% 25.4% 2.7% 6.8% 2.5% 10.7% 4.4% 7.8% 3.1% 25.3% 10.1% 2.8% 7.7% 11.0% 41.8% 8.3% 36.7% 22.2% 86.1% 32.7% 11.8% 35.0% 47.3% 32.3% 41.0% 100.0% 100.0% Table 16. Distribution of gamblers according to the number of deposits and their average amount expressed as a % REPORT ONLINE GAMBLER 2015 PAGE 53 OF 102

Table 16. Distribution of gamblers according to the number of deposits and their average amount expressed as a % This shows the distribution of the number of gamblers according to the number of deposit transactions and their average amount expressed as a percentage. The table contains the following columns: Dep. Group Year (Pctile): Number of annual deposits made by a gambler. Percentile the value falls within. Example: 20+ annual deposits correspond to the percentile (78-100) of the distribution. Average deposit - Percentile: Average amount of deposits made by gamblers. Percentile the value falls within. % Gamb. / Total: Percentage of the total number of gamblers. % Dep. / Total: Percentage of the total number of deposit transactions. Illustration 30. Gamblers by average amount and number of deposits The same analysis of the number of transactions and average amount was performed for withdrawals. The average withdrawal ranges defined are as follows: - 23.9% of active gamblers made withdrawals of between 0 and 40-25.4% of active gamblers made withdrawals of between 40 and 90-23.7% of active gamblers made withdrawals of between 90 and 200-27% of active gamblers made deposits of more than 200 REPORT ONLINE GAMBLER 2015 PAGE 54 OF 102

The same procedure was followed with the number of withdrawals carried out throughout the year by gamblers: - 35.1% of active gamblers made one withdrawal - 32.3% of active gamblers made between 2 and 4 withdrawals - 32.7% of active gamblers made more than 4 withdrawals The results are shown in the tables below. The number of gamblers making withdrawals is distributed more uniformly in the groups established. Average Withdrawal / Percentile Category Annual With. (Pctile) ( 0-40] / ( 0-23) ( 40-90] / (24-49) ( 90-200] / (50-72) ( 200 - ) / (73-100) Total / (0-100) No. of Gamb. No. of With. No. of Gamb. No. of With. No. of Gamb. No. of With. No. of Gamb. No. of With. No. of Gamb. No. of With. 1 With. (0-35) 2-4 With. (36-67) +5 With. (68-100) 32,404 32,404 26,578 26,578 25,059 25,059 29,395 29,395 113,436 113,436 25,872 68,148 26,894 72,689 23,378 63,321 28,197 75,031 104,341 279,189 19,013 410,988 28,652 637,055 28,301 634,602 29,761 613,655 105,727 2,296,300 Total (0-100) 77,289 511,540 82,124 736,322 76,738 722,982 87,353 718,081 323,504 2,688,925 Table 17. Distribution of gamblers according to the number of withdrawals and their average amount Table 17. Distribution of gamblers according to the number of withdrawals and their average amount This shows the distribution of the number of gamblers according to the number of withdrawal transactions and their average amount. The table contains the following columns: With. Group Year (Pctile): Number of annual withdrawals made by a gambler. Percentile the value falls within. Example: 5+ annual withdrawals correspond to the percentile (68-100) of the distribution. Average withdrawal - Percentile: Average amount of withdrawals made by gamblers. Percentile the value falls within. No. of Gamb.: Number of gamblers who belong to that category. No. of With.: Total number of withdrawal transactions which belong to that category. REPORT ONLINE GAMBLER 2015 PAGE 55 OF 102

Average Withdrawal - Percentile Category Annual With. (Pctile) 1 With. (0-35) 2-4 With. (36-67) +5 With. (68-100) Total (0-100) ( 0-40] / ( 0-23) ( 40-90] / (24-49) ( 90-200] / (50-72) ( 200 - ) / (73-100) Total / (0-100) % Gamb. / Total % With. / Total % Gamb. / Total % With. / Total % Gamb. / Total % With. / Total % Gamb. / Total % With. / Total No. of Gamb. No. of With. 10.0% 1.2% 8.2% 1.0% 7.7% 0.9% 9.1% 1.1% 35.1% 4.2% 8.0% 2.5% 8.3% 2.7% 7.2% 2.4% 8.7% 2.8% 32.3% 10.4% 5.9% 15.3% 8.9% 23.7% 8.7% 23.6% 9.2% 22.8% 32.7% 85.4% 24% 19% 25% 27% 24% 27% 27% 27% 100.0% 100.0% Table 18. Distribution of gamblers according to the number of withdrawals and their average amount expressed as a % Table 18. Distribution of gamblers according to the number of withdrawals and their average amount expressed as a % This shows the distribution of the number of gamblers according to the number of withdrawal transactions and their average amount. The table contains the following columns: With. Group Year (Pctile): Number of annual withdrawals made by a gambler. Percentile the value falls within. Example: 5+ annual withdrawals correspond to the percentile (68-100) of the distribution. Average withdrawal - Percentile: Average amount of withdrawals made by gamblers. Percentile the value falls within. % Gamb. / Total: Percentage of the total number of gamblers. % With. / Total: Percentage of the total number of withdrawal transactions. Illustration 31. Gamblers by average amount and number of withdrawals REPORT ONLINE GAMBLER 2015 PAGE 56 OF 102

Distribution of deposits and withdrawals over time The following graphics show the number of deposit and withdrawal transactions and the total amounts of these transactions throughout the year, month, week and day in order to reflect the behaviour of the online gambler. Analysis of deposits and withdrawals carried out over the course of the year As can be seen in the following graphics, which reflect the number of deposit and withdrawal transactions throughout the year and the total amounts of those transactions, a slightly rising trend in all variables can be observed, albeit subject to more or less regular fluctuations. The number of deposit and withdrawal transactions experienced a decrease in the period between mid-june and the first week of August. The highest volume of deposit transactions occurred on several days of the last three months of the year (4 October, 3 and 21 November, and 3, 5 and 8 December). The largest withdrawals occurred at two specific junctures: 7 June and 3 December. REPORT ONLINE GAMBLER 2015 PAGE 57 OF 102

Illustration 32. Daily evolution of the number of deposit and withdrawal transactions REPORT ONLINE GAMBLER 2015 PAGE 58 OF 102

Illustration 33. Daily evolution of the amount of deposit and withdrawal transactions REPORT ONLINE GAMBLER 2015 PAGE 59 OF 102

Analysis of deposits and withdrawals carried out over the course of the day With regard to the time distribution of the number and amounts of deposit transactions, an off-peak period can be identified, which runs from 02:00 to 09:00, reaching its minimum between 05:00 and 06:00, and a peak period can be discerned that runs from 12:00 to 23:00, reaching its maximum between 20:00 and 21:00. The time distribution of the number and amounts of withdrawal transactions maintains the same pattern as deposits except for some minor differences: the number of withdrawals experiences a sharp drop around 14:00, rises slightly at 15:00 and then falls again until 19:00, when it again rises to the maximum peak, which is reached at 22:00. REPORT ONLINE GAMBLER 2015 PAGE 60 OF 102

Hour No. of Deposits No. of Withdrawals Amount of Deposits Amount of Withdrawals 00h 947,865 139,553 39,065,323 27,287,134 01h 670,746 92,068 26,580,551 18,098,157 02h 439,856 67,579 17,924,549 14,420,227 03h 288,965 59,184 12,244,126 13,244,409 04h 183,537 36,540 8,267,791 8,064,113 05h 130,520 27,947 6,140,471 6,186,612 06h 131,545 29,176 6,473,733 6,263,091 07h 178,177 37,274 9,199,510 7,746,856 08h 278,014 52,281 14,897,144 10,996,452 09h 453,155 86,064 23,228,165 17,944,158 10h 664,644 99,864 31,193,775 21,902,120 11h 858,410 102,876 38,768,009 23,939,004 12h 995,083 116,284 43,148,678 26,234,546 13h 1,122,348 151,697 46,976,371 35,332,816 14h 1,172,695 122,624 48,093,747 25,616,292 15h 1,274,570 177,420 51,909,075 36,129,042 16h 1,308,303 169,897 53,745,218 32,441,600 17h 1,390,158 143,817 56,638,441 28,859,252 18h 1,480,467 135,183 59,313,036 27,910,432 19h 1,603,753 128,801 62,371,446 25,920,531 20h 1,648,376 132,341 62,298,219 26,456,368 21h 1,261,888 154,911 46,355,142 30,284,546 22h 1,181,333 222,309 43,401,561 41,094,711 23h 1,074,668 203,235 40,726,374 38,669,914 Total 20,739,076 2,688,925 848,960,454 551,042,382 Table 19. Distribution of deposit and withdrawal transactions carried out over the course of the day REPORT ONLINE GAMBLER 2015 PAGE 61 OF 102

Illustration 34. Time distribution of the no. of deposit and withdrawal transactions Illustration 35. Time distribution of the amounts of deposit and withdrawal transactions REPORT ONLINE GAMBLER 2015 PAGE 62 OF 102

Analysis of deposits and withdrawals carried out over the course of the week The weekly deposit pattern shows that the weekend is the period of greatest transaction volume, particularly Saturday. The same analysis as used for withdrawals shows that the day of the week with the highest volume of transactions is Monday. Week Day No. of Deposits No. of Withdrawals Amount of Deposits Amount of Withdrawals Monday 2,533,748 436,490 106,604,652 95,106,823 Tuesday 2,925,132 379,352 120,853,617 79,787,552 Wednesday 2,888,067 393,330 120,384,362 80,293,324 Thursday 2,757,474 392,269 115,195,322 79,721,782 Friday 2,841,894 325,276 118,618,510 67,185,280 Saturday 3,538,531 327,307 139,519,991 63,024,850 Sunday 3,254,230 434,901 127,784,000 85,922,772 Total 20,739,076 2,688,925 848,960,454 551,042,382 Table 20. Distribution of deposit and withdrawal transactions carried out over the course of the week REPORT ONLINE GAMBLER 2015 PAGE 63 OF 102

Illustration 36. Weekly distribution of the no. of deposit and withdrawal transactions Illustration 37. Weekly distribution of the amounts of deposit and withdrawal transactions REPORT ONLINE GAMBLER 2015 PAGE 64 OF 102

Analysis of deposits and withdrawals carried out over the course of the month 11 In the monthly analysis of the number of deposits, the maximum number of transactions occurs at the beginning of the month. From then onwards there is a slightly downward trend throughout the month. Regarding withdrawals, no significant variations with respect to the pattern for deposits can be discerned. 11 For ease of reading, the 31st of the month has been removed in all the graphics. REPORT ONLINE GAMBLER 2015 PAGE 65 OF 102

Month No. of No. of Amount of Amount of Day Deposits Withdrawals Deposits Withdrawals 1 725,533 89,396 31,586,592 18,754,161 2 694,955 88,802 30,003,002 18,863,671 3 748,104 90,677 31,664,638 19,462,573 4 760,659 95,767 31,574,578 19,842,466 5 713,660 95,250 29,469,442 19,255,502 6 711,191 91,716 30,021,355 18,952,420 7 716,885 97,184 29,125,788 19,187,472 8 744,677 95,010 30,280,573 20,327,394 9 668,236 93,961 27,852,009 19,304,533 10 722,904 87,472 29,214,416 19,020,981 11 718,391 86,944 28,994,601 18,185,070 12 711,600 88,817 28,197,321 17,209,971 13 688,156 89,267 28,103,308 17,674,281 14 674,507 90,682 27,305,158 18,174,859 15 673,617 88,306 27,231,650 17,714,686 16 634,091 85,446 26,163,194 17,304,942 17 689,763 85,718 27,622,731 17,207,101 18 633,973 93,564 25,479,901 18,544,125 19 641,128 86,010 25,755,533 17,220,795 20 647,702 86,519 26,318,618 17,744,366 21 696,249 83,408 28,079,125 17,012,517 22 658,100 89,260 26,660,790 17,890,529 23 591,635 83,230 24,154,541 17,844,524 24 607,340 82,517 25,325,751 17,433,534 25 628,224 88,285 25,057,979 17,583,372 26 637,166 84,153 25,613,346 17,134,539 27 624,130 80,972 25,784,073 16,769,791 28 670,772 81,157 27,242,481 16,286,877 29 636,208 77,853 26,137,803 15,811,267 30 656,887 80,784 26,624,070 16,934,980 31 412,633 50,798 16,316,085 10,389,082 Total 20,739,076 2,688,925 848,960,454 551,042,382 Table 21. Distribution of deposit and withdrawal transactions carried out over the course of the month REPORT ONLINE GAMBLER 2015 PAGE 66 OF 102

Illustration 38. Monthly distribution of the no. of deposit and withdrawal transactions Illustration 39. Monthly distribution of the amounts of deposit and withdrawal transactions REPORT ONLINE GAMBLER 2015 PAGE 67 OF 102

Payment methods Bank cards are the principal payment method for deposits, followed by the electronic wallet and prepaid cards. The latter account for a higher number of transactions than electronic wallets, but for a smaller amount. In terms of withdrawals, bank cards are also the preferred means, although to a lesser extent than for deposits. The electronic wallet and bank transfers are the next most preferred means. Payment Method No. of Deposits Amount of Deposits No. of Withdrawals Amount of Withdrawals Credit or Debit Card 13,510,276 556,446,031 1,311,517 235,490,002 Ewallet 2,393,498 135,894,450 625,115 120,391,270 Prepaid Card 4,047,695 91,316,999 16,250 2,224,716 Bank Transfer 117,306 16,684,045 301,698 74,409,961 Money Order 34,995 9,814,339 216,747 60,571,599 Cash 341,662 19,914,627 104,007 27,520,129 Others 293,644 18,889,963 113,591 30,434,705 Total 20,739,076 848,960,454 2,688,925 551,042,382 Table 22. Payment methods used in deposit and withdrawal transactions Payment Method % No. Dep. / Total % Amt. Dep. / Total % No With. / Total % Amt. With. / Total Credit or Debit Card 65.1% 65.5% 48.8% 42.7% Ewallet 11.5% 16.0% 23.2% 21.8% Prepaid Card 19.5% 10.8% 0.6% 0.4% Bank Transfer 0.6% 2.0% 11.2% 13.5% Money Order 0.2% 1.2% 8.1% 11.0% Cash 1.6% 2.3% 3.9% 5.0% Others 1.4% 2.2% 4.2% 5.5% Table 23. Payment methods used in deposit and withdrawal transactions expressed as a % REPORT ONLINE GAMBLER 2015 PAGE 68 OF 102

Illustration 40. Number of transactions and amounts of deposits classified by payment method Illustration 41. Number of transactions and amounts of withdrawals classified by payment method REPORT ONLINE GAMBLER 2015 PAGE 69 OF 102

6 How much is gambled? In this chapter we focus on the analysis of gambling operations: participations and prizes. The participations variable reflects the amounts spent by gamblers on participation in games, including any fees paid to operators. The prizes variable reflects prize money won by participants. Illustration 42. Participations and prizes in the gambling account Participation is not an accurate reflection of actual expenditure, since a portion of the participations comes from prizes, but the study of this variable provides information about the preferences and behaviour of gamblers and an idea of their REPORT ONLINE GAMBLER 2015 PAGE 71 OF 102

activity level. The relationship between spending and participation will be studied in the next chapter. In order to analyse participations overall market figures are presented first. The distribution of participation and the number of gamblers by gender, age group and by both variables are shown together below in order to obtain a more complete picture of the gambler profile in each of the segments. Participations and prizes by gambling segment The average annual participation of the 985,333 active gamblers amounted to 8,614, with a return rate in prizes of 95.1%. Segment No. of Gamblers Stakes ( ) Prizes ( ) Mean Median Mean Median RTP Total 985,333 8,614 289 8,187 221 95.1% Table 24. Total participation and prizes The gambling segment with the largest number of gamblers is Betting with 668,869 players, followed by Poker with 361,409, Casino with 306,397 and Bingo with 89,242. As regards the average participation, the gambling segment with the highest value is Casino with 8,177, followed by Betting with 6,291 and Poker with 4,722. Bingo is a long way behind with an average participation of 759. If we take the average as a way of gauging the core tendency 12, the order of the gambling segments changes: ranked in first place would be Betting with 225, followed by Poker with 139, Casino with 117 and, lastly, Bingo with 26. We can, 12 The median is an average value which depends on the number of ordered data and not their value. REPORT ONLINE GAMBLER 2015 PAGE 72 OF 102

therefore, conclude that although average participation is higher in the "Casino segment, the core participation figures are significantly higher in "Betting". Segment No. of Gamblers Stakes ( ) Prizes ( ) Mean Median Mean Median RTP Betting 668,869 6,291 225 5,895 163 93.7% Casino 306,397 8,177 117 7,922 99 96.9% Poker 361,409 4,722 139 4,534 102 96.0% Bingo 89,242 759 26 650 8 85.7% Table 25. Main gambling figures by segment Distribution of the number of gamblers and participation by gender Men account for 83.3% of the total number of gamblers and their average participation amounts to 8,992. Women represent 16.7% and their average participation amounts to 6,734. Segment No. of Gamblers % No. of Gamblers / Total Gamblers Mean Stakes ( ) % Stakes / Total Men Women Men Women Men Women Men Women Total 820,346 164,987 83.3% 16.7% 8,992 6,734 86.9% 13.1% Table 26. Number of gamblers and participation in the market by gender REPORT ONLINE GAMBLER 2015 PAGE 73 OF 102

Segment No. of Gamblers % No. of Gamblers / Total Gamblers Average Stake ( ) % Stakes / Total Segment Men Women Men Women Men Women Men Women Betting 578,719 90,150 86.5% 13.5% 6,490 5,017 89.3% 10.7% Casino 250,206 56,191 81.7% 18.3% 8,108 8,484 81.0% 19.0% Poker 311,608 49,801 86.2% 13.8% 5,025 2,826 91.8% 8.2% Bingo 52,504 36,738 58.8% 41.2% 501 1,127 38.8% 61.2% Table 27. Number of gamblers and participation by gambling segment and gender The percentage of men is significantly higher in all gambling segments. Only in the Bingo segment does the number of women (41.2%) approach that of men (58.8%). In terms of participation, women have a lower average than men in all segments except Casino, where the average participation of women is slightly higher than that of men, and in Bingo, where it is double. In terms of participation percentages, the segments in which men participate most are Poker (91.8%), Betting (89.3%) and Casino (81.0%), while Bingo is the segment where female participation predominates with 61.2%. Distribution of the number of gamblers and participation by age group The age group with the largest number of gamblers is 26 to 35 years of age, while the age group with the highest average participation rate is 36 to 45 years of age. From the point of view of the participation rate, the age group with the highest rate is 26 to 35 years of age. From this age the participation rate gradually falls. REPORT ONLINE GAMBLER 2015 PAGE 74 OF 102

No. of Gamblers Market Between 18-25 years Between 26-35 years Between 36-45 years Between 46-55 years Between 56-65 years Over 65 years Total Total 290,724 364,882 200,105 86,596 31,194 11,832 985,333 Table 28. Number of gamblers in the market by age group Average Annual Stake ( ) Market Between 18-25 years Between 26-35 years Between 36-45 years Between 46-55 years Between 56-65 years Over 65 years Total Total 4,603 9,116 11,870 10,973 11,458 11,862 8,614 Table 29. Average participation in the market by age group % Stakes / Total Market Market Between 18-25 years Between 26-35 years Between 36-45 years Between 46-55 years Between 56-65 years Over 65 years Total Total 15.8% 39.2% 28.0% 11.2% 4.2% 1.7% 1.7% Table 30. % Participation of the total market by age group In relation to the number of gamblers, all gambling segments exhibit the same behaviour. Most gamblers are concentrated in the 26 to 35 age group, followed by the 18 to 25 age group. From 36 years of age the number of gamblers decreases progressively as the age of the player rises. REPORT ONLINE GAMBLER 2015 PAGE 75 OF 102

No. of Gamblers Segment Between 18-25 years Between 26-35 years Between 36-45 years Between 46-55 years Between 56-65 years Over 65 years Total Betting 217,316 246,943 129,473 51,992 17,017 6,128 668,869 Casino 101,230 112,122 55,663 24,490 9,235 3,657 306,397 Poker 100,258 147,163 71,135 28,552 10,642 3,659 361,409 Bingo 20,637 29,809 20,698 11,169 4,734 2,195 89,242 Table 31. Number of gamblers by gambling segment and age group Illustration 43. Number of gamblers by gambling segment and age If the different segments are now analysed based on the average participation, it is noted that this increases as the age of the gamblers rises, mainly due to the increasing average participation in casino games. As far as Betting is concerned, the age groups with the highest average participation are those of gamblers between 36 and 45 and those over 65. Casino participation clearly increases as the age of gamblers rises, with gamblers between 56 and 65 being those registering the highest average participation, with 18,321. For Poker, it is gamblers between 26 and 35, followed by those between 36 and 45, who have the highest average participation. REPORT ONLINE GAMBLER 2015 PAGE 76 OF 102

Bingo participation increases slightly as the age of gamblers rises, with the highest rate being in the 56 to 65 age group. Average Annual Stake ( ) Segment Between 18-25 years Between 26-35 years Between 36-45 years Between 46-55 years Between 56-65 years Over 65 years Total Betting 3,160 6,713 9,703 7,943 7,927 9,697 6,291 Casino 3,038 7,461 13,125 16,257 18,321 17,326 8,177 Poker 3,393 5,552 5,167 4,288 4,178 4,050 4,722 Bingo 183 498 1,005 1,493 1,873 1,252 759 Table 32. Average participation by gambling segment and age group Illustration 44. Average participation by gambling segment and age The combination of these two elements, number of gamblers and average participation, results in the highest rates of participation being concentrated in the 26 to 35 age group in all segments except Bingo, whose maximum rate falls in the next age group, the 36 to 45 year-olds. REPORT ONLINE GAMBLER 2015 PAGE 77 OF 102

% Stake / Total Market Segment Between Between Between Between Between Over 65 18-25 years 26-35 years 36-45 years 46-55 years 56-65 years years Betting 16.3% 39.4% 29.9% 9.8% 3.2% 1.4% Casino 12.3% 33.4% 29.2% 15.9% 6.8% 2.5% Poker 19.9% 47.9% 21.5% 7.2% 2.6% 0.9% Bingo 5.6% 21.9% 30.7% 24.6% 13.1% 4.1% Table 33. % Participation of the total by gambling segment and age Illustration 45. % Participation of the total by age and game Distribution of participation by gender and age group In the joint analysis of gender and age the group with the largest volume of participation is that of men between 26 and 35, both for the overall market and for the Betting, Casino and Poker segments. For Bingo the main group is women between 36 and 45 years old. REPORT ONLINE GAMBLER 2015 PAGE 78 OF 102

Segment Between 18-25 years Between 26-35 years Between 36-45 years Between 46-55 years Between 56-65 years Over 65 years Total Stakes( ) Betting Casino Poker Bingo Men 578,393,810 259,646,327 317,279,784 1,825,621 Women 108,256,305 47,924,725 22,942,372 1,942,530 Men 1,507,113,107 689,249,984 757,465,922 6,133,440 Women 150,699,053 147,311,236 59,642,933 8,720,546 Men 1,160,670,912 603,078,937 340,123,923 8,876,357 Women 95,601,375 127,478,119 27,426,586 11,920,981 Men 355,739,651 313,455,559 104,970,500 5,738,915 Women 57,230,652 84,684,894 17,446,202 10,933,984 Men 107,718,170 119,020,331 34,918,389 2,550,180 Women 27,176,949 50,174,365 9,539,841 6,315,784 Men 46,142,295 44,221,435 11,093,647 1,171,119 Women 13,281,153 19,139,829 3,726,931 1,576,853 Table 34. Total participation by gambling segment, age group and gender With regard to average participation, the segment with the largest volume of participation is that of Casino in the category of men over 46 years. Segment Between 18-25 years Between 26-35 years Between 36-45 years Between 46-55 years Between 56-65 years Over 65 years Average Annual Stake ( ) Betting Casino Poker Bingo Men 3,011 3,005 3,640 134 Women 4,290 3,233 1,751 276 Men 6,890 7,285 5,837 335 Women 5,341 8,412 3,431 758 Men 10,337 13,454 5,462 742 Women 5,561 11,763 3,093 1,365 Men 9,115 19,142 4,750 1,050 Women 4,414 10,436 2,704 1,917 Men 8,631 20,475 4,486 1,170 Women 5,990 14,662 3,337 2,472 Men 11,197 20,313 4,399 1,184 Women 6,617 12,932 3,278 1,308 Table 35. Average participation by gambling segment, age group and gender REPORT ONLINE GAMBLER 2015 PAGE 79 OF 102

7 How much do gamblers spend? Spending reflects the capital variation (losses or net winnings) experienced by the gambler during the period. This chapter analyses the average annual spending of gamblers and its distribution. Illustration 46. Gambling account. Calculation of spending A gambler's spending in 2015 is calculated, as described in the Calculation of the gambler s spending on gambling section in the Methodology chapter, based on monetary flows with the exterior 13. Therefore, the capital variation experienced by a 13 Transfers between wallets recorded since 2015 in the internal control system data model are not included in spending as they are internal movements, that is to say, money transfers between different accounts belonging to the gambler. REPORT ONLINE GAMBLER 2015 PAGE 81 OF 102

gambler is obtained from the amounts of the deposits made in the period, minus withdrawals, plus the change in the balance, according to the following formula: SSSSSSSSSSSSSSSS = OOOO JJJJJJJJJJJJJJ + DDEE AAAAAAAAAAAA RREE AAAAAAAAAAAA CCCC DDDDDDDDDDDDDDDD Average annual spending The average annual spending per gambler was 293. The average annual spending by men ( 322) was more than double that of women ( 146). The average annual spending, calculated according to age and gender, peaked ( 552) in the category of male gamblers between 36 and 45. In the female category, the highest average expenditure ( 246) was in the 56 to 65 age group. Age % Gamblers / Total Average Annual Expenditure( ) Men Women Total Men Women Total Between 18-25 years 25.3% 4.2% 29.5% 113 15 99 Between 26-35 years 31.7% 5.3% 37.0% 311 160 290 Between 36-45 years 17.0% 3.4% 20.3% 552 237 500 Between 46-55 years 6.3% 2.5% 8.8% 537 159 431 Between 56-65 years 2.2% 1.0% 3.2% 438 246 379 Over 65 years 0.8% 0.4% 1.2% 510 225 407 Total 83% 17% 100% 322 146 293 Table 36. Average annual spending by gender and age REPORT ONLINE GAMBLER 2015 PAGE 82 OF 102

Illustration 47. Average annual spending by gender and age Analysed as a whole, it is clear that in all age groups the average spending of men is higher than that of women. As regards evolution by age, spending increases up to the 36-45 age range and stabilises from there onwards. Men over 36 maintain a level of spending above 500, except in the 56 to 65 age range where a slight drop can be observed. Women over 36 maintain a level of spending above 200, except in the 46 to 55 age range. Distribution of gamblers spending This section delves into the study of changes in the capital variation (losses or net winnings) of gamblers by presenting and analysing its frequency distribution. For most gamblers (75.5%) gambling led them to incur expenses or a net loss. 20.15% of gamblers had net winnings and the remaining 4.35% experienced no changes. 46.54% of gamblers recorded losses of between 0 and 100. 17.07% recorded losses of between 101 and 500. 2.78% suffered losses of more than 3,000. REPORT ONLINE GAMBLER 2015 PAGE 83 OF 102

On the other hand, it can be seen that 12.55% of gamblers recorded net winnings of between 0 and 100. 4.54% recorded net winnings of between 101 and 500. And 0.55% recorded net winnings of above 3,000. Range % No. of % No. of No. of No. of Gamb. / Range Gamb. / Gamblers Gamblers Total Gamb. Total Gamb. 0..- 100 458,606 46.5% 0.. 100 123,668 12.6% - 100..- 200 84,084 8.5% 100.. 200 20,158 2.0% - 200..- 300 41,068 4.2% 200.. 300 11,207 1.1% - 300..- 400 25,358 2.6% 300.. 400 7,506 0.8% - 400..- 500 17,762 1.8% 400.. 500 5,833 0.6% - 500..- 600 13,264 1.3% 500.. 600 4,536 0.5% - 600..- 700 10,140 1.0% 600.. 700 3,647 0.4% - 700..- 800 8,264 0.8% 700.. 800 2,738 0.3% - 800..- 900 6,804 0.7% 800.. 900 2,161 0.2% - 900..- 1000 5,865 0.6% 900.. 1000 1,877 0.2% - 1000..- 1100 5,179 0.5% 1000.. 1100 1,397 0.1% - 1100..- 1200 4,419 0.4% 1100.. 1200 1,121 0.1% - 1200..- 1300 3,876 0.4% 1200.. 1300 941 0.1% - 1300..- 1400 3,550 0.4% 1300.. 1400 769 0.1% - 1400..- 1500 3,101 0.3% 1400.. 1500 680 0.1% - 1500..- 1600 2,905 0.3% 1500.. 1600 585 0.1% - 1600..- 1700 2,497 0.3% 1600.. 1700 594 0.1% - 1700..- 1800 2,341 0.2% 1700.. 1800 496 0.1% - 1800..- 1900 2,159 0.2% 1800.. 1900 407 0.0% - 1900..- 2000 1,955 0.2% 1900.. 2000 382 0.0% - 2000..- 2100 1,869 0.2% 2000.. 2100 343 0.0% - 2100..- 2200 1,677 0.2% 2100.. 2200 321 0.0% - 2200..- 2300 1,473 0.1% 2200.. 2300 288 0.0% - 2300..- 2400 1,455 0.1% 2300.. 2400 266 0.0% - 2400..- 2500 1,394 0.1% 2400.. 2500 298 0.0% - 2500..- 2600 1,270 0.1% 2500.. 2600 217 0.0% - 2600..- 2700 1,110 0.1% 2600.. 2700 195 0.0% - 2700..- 2800 1,080 0.1% 2700.. 2800 190 0.0% - 2800..- 2900 963 0.1% 2800.. 2900 172 0.0% - 2900..- 3000 1,034 0.1% 2900.. 3000 148 0.0% Less than de - 3000 27,383 2.8% More than 3000 5,380 0.5% Total 743,905 75.5% Total 198,521 20.1% Neither Profit nor Loss 42,907 4.4% Table 37. Distribution of gamblers according to annual losses/net winnings REPORT ONLINE GAMBLER 2015 PAGE 84 OF 102

Table 37. Distribution of gamblers according to annual losses/net winnings This shows the distribution of gamblers according to their average spending on gambling in 2015. The table contains the following columns divided into losses and net winnings: Range: Reflects the spending range. For example, - 300..- 400 represents losses of between 300 and 400. No. of gamblers: Number of gamblers whose annual spending is in the range. % No. of gamblers / Total gamblers: Percentage of the total number of gamblers th t i th Illustration 48. Distribution of gamblers according to annual losses/net winnings REPORT ONLINE GAMBLER 2015 PAGE 85 OF 102