Latin America

Latin America Cultural and National Trends

Latin America

Marcelo D’Amato

President Chilean Casino Association

Antonio Sabaj

Marketing and CRM Sun International

Carlos Sanz

Technology Officer Codere Mexico

Alex Cohen

CPO AKAMON

Peter Nolte

CEO BETMOTION


•  Market Size & AGR •  Regulatory Status •  Up & Coming Markets Marcelo D’Amato President Chilean Casino Association [email protected] https://www.dropbox.com/s/ppxcukn1y9y2u0q/1%20G2E15_Latin_America_v205.ppt?dl=0


•  PwC –PricewaterhouseCoopers PwC’s Global Gaming Industry Regulatory Frameworks PwC’s Global Gaming Outlook to 2015

•  Gaming Technologies Association •  The World Bank •  Regulatory Agencies •  iGamingCo, Ltd. •  SAGSE


Market Size (World)

FOUR REGIONS •  Asia – Pacific •  Latin America •  North America •  EMEA

Casino Gaming Revenue in 24 Selected Countries Source: PwC – millions of USD


Market Size (World)


Market Size & AGR (World)

Asia - Pacific

Latin America

North America

EAEA

$ 79,266M

$ 5,614M

$ 79,550M

$ 18,343M

•  Macau

•  Argentina

•  USA

•  FR, DE

•  Singapore

•  Chile

•  Canada

•  UK, ZA

•  Australia

•  Mexico

Source: PwC – millions of USD, AGR based on data 2006 - 2015


Market Size (World)

43%

North America 44%

10%

Asia Pacific EMEA Latin America

3%


Latin America Casino Market Size (by Revenue)


Latin America Market Size (by Population) #

Country

1 2 3 4 5 6 7 ! 19 20

"Brazil "Mexico "Colombia "Argentina "Peru "Venezuela "Chile ! "Panama "Uruguay

Population

1

204.519 121.006 48.218 43.132 31.153 30.620 18.006 ! 3.764 3.310 612.707

Average/ /Market/ Sum/ 4 Revenue/ Casinos6 2 3 Revenue Size Total/% GR/%5 33.38% 33.38% """""""""""2 """"""""""2 """"""""""2 19.75% 53.13% """"""""""662 """"""""3.10 """""""""313 7.87% 61.00% """"""""""548 """"""""2.70 """""""""""82 7.04% 68.04% """"""2,894 """"""""8.60 """""""""129 5.08% 73.12% """"""""""""88 """"""""""2 """""""""729 5.00% 78.12% """"""""""""""4 """"""""5.90 """""""""""""8 2.94% 81.06% """"""""""649 """"""19.80 """""""""""23 ! ! ! ! ! 0.61% 99.46% """""""""""2 """"""""""2 """""""""""49 0.54% 100.00% """""""""""2 """"""""""2 """""""""""34 100%

4,865

Source: PwC – Population in thousands, Revenue in millions of USD

8.10

1,537

Slots7 """"""""""2 """"90,000 """"12,224 """"25,619 """"76,278 """"""1,208 """"12,519 ! """"""5,865 """"""5,794 243,372

Avg/ 9 8 Tables WPD """""2 """""2 """"""40 """"150 """"""40 """""2 """"107 ! """""2 """""2

""""""2 """"""2 """"""2 ""1,018 ""1,624 """"""2 """""465 ! """"""2 """"""2 3,126


Latin America GDP GR% (WDB Data) 1 2 3 4 5 6 7 ! 19 20 Ref

Country(Name

2009

2010

2011

2012

2013

2014

Brazil Mexico Colombia Argentina Peru Venezuela Chile ! Panama Uruguay UnitedHStates

>0.2 >4.7 1.7 0.1 1.0 >3.2 >1.0 ! 4.0 4.2 >2.8

7.6 5.1 4.0 9.5 8.5 >1.5 5.8 ! 5.9 7.8 2.5

3.9 4.0 6.6 8.4 6.5 4.2 5.8 ! 10.8 5.2 1.6

1.8 4.0 4.0 0.8 6.0 5.6 5.5 ! 10.2 3.3 2.3

2.7 1.4 4.9 2.9 5.8 1.3 4.2 ! 8.4 5.1 2.2

0.1 2.1 4.6 0.5 2.4 >4.0 1.9 ! 6.2 3.5 2.4

Data:%World%Development%Bank *%Forcast

2015* 2016* >2.4 2.4 3.0 0.6 2.9 >6.6 2.2 ! 6.2 2.6 2.7

HH>H2.0 HHH2.5 HH0.3 3.0 3.0 1.2 3.8 >2.9 2.8 ! 6.4 2.6 2.8


Latin America Regulatory Status

Stats: Population: 613 Million Market Size: 5.8 Billion Growth Rate: 8.1% Stagnant:

46%

Initiated:

26%

Dynamic:

28%


Latin America Regulatory Status Stagnant •  Casinos are currently illegal or •  Legislation has been slow, regressive, prohibitive or unclear

Initiated •  Legislation is in the works or

Dynamic •  Legislation is current •  There is market growth

•  Some advances •  There are clear have been made, rules but have yet to •  Regulatory issues make the are dealt with and necessary not ignored impact


Latin America Regulatory Status Stagnant

Initiated

Dynamic

•  Brazil

•  Mexico

•  Colombia

•  Venezuela

•  Guatemala

•  Argentina

•  Ecuador

•  Haiti

•  Cuba

•  Honduras

•  Bolivia

•  Nicaragua

•  Paraguay

•  El Salvador

•  Costa Rica

•  Panama

•  Peru •  Chile •  Dominican Rep.


Latin America Regulatory Status # Country

Average) )Market) Sum) Legislation) OnELine) 4 Revenue) Regulator 10 Law)#11 2 3 Revenue Size Total)% Type13 Gaming 14 5 GR)% 33.38% 33.38% """""""""""B """"""""""B CAIXA Illegal" Stagnant N 19.75% 53.13% """"""""""662 """"""""3.10 DGJS DOF"31B12B1947 Initiated Y 7.87% 61.00% """"""""""548 """"""""2.70 COLJUEGOS 643 Dynamic N 7.04% 68.04% """"""2,894 """"""""8.60 LNSE"B"IJACBA 13063 Dynamic Y 5.08% 73.12% """"""""""""88 """"""""""B DGJC "27153"/"28945" Dynamic N 5.00% 78.12% """"""""""""""4 """"""""5.90 CNC LCC Stagnant Y 2.94% 81.06% """"""""""649 """"""19.80 SCJ "19.995"/"20856 Dynamic N ! ! ! ! ! ! ! ! 0.61% 99.46% """""""""""B """"""""""B JCJ 2 Dynamic Y 0.54% 100.00% """""""""""B """"""""""B ANCJAE 1485 Dynamic N

1 2 3 4 5 6 7 ! 19 20

"Brazil "Mexico "Colombia "Argentina "Peru "Venezuela "Chile ! "Panama "Uruguay

14:

“Y” = Some Type(s) of On-Line Gaming is Allowed


Up and Coming Markets # Country

)Market) Sum) Size2 Total)%3

R4

Avg) Legislation) OnELine) 2015* 2016* WPD 8 Type13 Gaming14

Tax)Rate

1 "Brazil

33.38%

33.38% """"""B

""""B

Stagnant

N

B2.4

B0.3

N/A

2 "Mexico

19.75%

53.13% """""662

""""B

Initiated

Y

2.4

3.0

30%"GGR

3 "Colombia

7.87%

61.00% """""548

"""""40

Dynamic

N

3.0

3.0

4 "Argentina

7.04%

68.04% "2,894

"""150

Dynamic

Y

0.6

1.2

5 "Peru

5.08%

73.12% """""""88

"""""40

Dynamic

N

2.9

3.8

12%"GGR"+"VAT

6 "Venezuela

5.00%

78.12% """""""""4

""""B

Stagnant

Y

B6.6

B2.9

N/A

7 "Chile

2.94%

81.06% """""649

"""107

Dynamic

N

2.2

2.8

20%"on"GGR"+"VAT"+"Entrance" Fee"+"Fixed"Yearly""Licence"Fee"

!

!

!

!

!

!

!

!

"""""55

Dynamic

Y

6.2

6.4

18%"GGR"on"Machines"+"12%" GGP"on"Tables"+"5.5%"at"Cashout

""""B

Dynamic

N

2.6

2.6

!

!

!

19 "Panama

0.61%

99.46% """"""B

20 "Uruguay

0.54% 100.00% """"""B

12%"on"GGR"or"Minimum"per" Slot/Table 12"B"22%"GGR"+"State"and" Federal"Income"Tax


Up and Coming Markets BRAZIL: CHILE: Legislation is being fueled by the We can expect need for tax dollars during an an expensive ARGENTINA: public bid process to begin during PERU: importantIs economic slow down, theMEXICO: strongest Legal Market Dec 2015. COLOMBIA: In country's 2006, 95% ofPANAMA: the Peruvian but theLegislation large many New in the works, today, butisthe challenges in Seven (7), 15 year concessions The country is a positive gaming market was illegal, theytax on A newly appointed but many I’ve interviewed are interests have a way ofon slowing Argentina are always two: 5.5% will be awarded some time next dynamic… have turned and Cash-out's has hit hard an skeptical of it's end this result. down. A)things understanding the around rules; and year. The risks Chile are two: today it predicted is a positive example already struggling and SportsB) Betting is toincomplex trying to work within /forover A.) saturated Pending reform the the region. casinotomarket. come on the scene first. economic constraints Smoking Ban; B.) The Illegal Slot Market