Analysis of the Spanish tender requirements to grant the online gaming license

1. TrustPartners
Confidential
Online gaming market in Spain:
possible business opportunities
2011, October

2. Confidential
OBJECTIVE
Document purpose is to describe market opportunities, for a foreign Company, to enter in the Spanish market, though:
• An overview of the main characteristics of the on going Spanish tender, in terms of administrative, financial
and corporate qualifications to grant the distribution license and operate in the online national gaming market
• A possible support that TrustPartners may offer to our Clients during (and after) the tender license process
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3. Confidential
AGENDA
 How to enter in the online Spanish market
 Possible TrustPartners support
 Next steps
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4. Confidential
TENDER FOR NEW ONLINE LICENSES IN SPAIN
Description
• Spanish online gaming market will be legalized in the following months
Market scenario • First licenses will be available since January 2012, even with the General
government elections stated in November
• Tender key elements can be classified in the three following areas:
New tender
requirements
Characteristics of the • All the components that characterize the
tender tender
• Required qualifications focused on
Corporate and
administrative, corporate and financial item to
financial requirements
comply with
Technical and other • Requested qualifications focused on IT and
requirements procedural items to comply
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5. Confidential
TENDER FOR NEW ONLINE LICENSES IN SPAIN: CHARACTERISTICS OF THE TENDER
Description
• Deadline for the participation will be next 14th of November 2011 and length time of
Basic information concession will be 10 years
• Licenses will allow Concessionaires to distribute a list of selected online games: sports
and horse betting, exchange betting, poker and card games (black jack and baccarat),
social games, bingo and roulette) divided in two main groups: general license (for
betting, other games and competition) and singular license (in which is exploded any
general license into different products)
• Application period will be open for a limited time (between 20 and 30 days): once the
period is ended, companies that have not participated will remain out of the market until
a new public tender is opened (in principle within 18 months)
• There are no costs for the License; on the other side Operators must provide a consistent
Economics bank guarantee, in line with the single product license application
• Applicant Companies must provide a sufficient guarantee, dependent on the specific
Deposit / Guarantee general and singular license interested
• For general licenses, is required a 2mln guarantee for the first year and at least 1mln€ for
the following years
• For singular licenses, the total amount of guarantee is calculated as a % on the last year’s
gross revenues and is diversified per each product (this percentage differs from 1,5% for
sports betting, to 6,5/7,5% for exchange betting and to 8% for poker and casino)
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6. Confidential
TENDER FOR NEW ONLINE LICENSES IN SPAIN: CORPORATE AND FINANCIAL
REQUIREMENTS
Description
• Participants must (at the same time):
Main qualifications • Be located in Spain or in any other country of the European Economic Area
• Be organized as a ‘Spanish Sociedad Anónima’ (or the equivalent in other EEA
states)
• Have a minimum share capital of at least 100.000€ fully paid up (this may be
reduced to € 60,000 in case of companies applying for competitions general
licenses)
• Be focused exclusively in the organization, marketing and operation of gaming
activities
• Furthermore their financial standings must be proved by (one of the following):
• Appropriate declarations or statements made by financial institutions in order
to assure the solvency
• Annual Accounts submitted in the Companies House
• Declaration about the global turnover volume obtained in the last three years
• Statement issued by the Spanish Tax Agency accrediting the compliance with
the tax obligations
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7. Confidential
TENDER FOR NEW ONLINE LICENSES IN SPAIN: TECHNICAL AND OTHER
REQUIREMENTS
Description
• Participants must demonstrate their technical expertise and solvency through:
Main qualifications • Declaration or statement indicating the technical staff structure whether if they are
integrated or not in the applicant company
• Academic/professional qualifications of the Directors/Managers
• Declaration/statement describing the details of the technical systems and its
supporting documentation
• Facilities and means used by the company in order to ensure quality and safety
• Application must also contains a technical project that details:
• the fundamental aspects of the system for the development of gaming activities
• the components of the Central Gaming Unit and the internal control system
• Gaming system has to be submitted, approved/certified by National gambling authority
• Applicants have to include:
• The Operational Plan in which is taken into account the principle of responsible
gaming, training of employees, distribution channel used
• A request for the authorization to carry out advertising, sponsorship and any other
promotional activities that will be previously analyzed by a public commission
• The implementation process to avoid fraudulent and money-laundering activities
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8. Confidential
AGENDA
 How to enter in the online Spanish market
 Possible TrustPartners support
 Next steps
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9. Confidential
SPANISH TENDER: TRUSTPARTNERS POSSIBLE SUPPORT
Area Activities
1
• Analysis of the tender requirements (in terms of
Tender/Concession administrative, economical and technical qualifications),
requirements analysis for the Spanish market; evaluation of any possible entry
strategy for our Client
2 • Market analysis, for the Spanish tender, in order to get a
Market and product wide know-how about products value and technical
analysis features and identify the most interesting product niches
where to focus the license request (general or specific
TrustPartners possible
TrustPartners possible games license)
support
support
3
• Support our Client, during all the certification
Tender/Concession processes needed for the online license and set up of the
documentation set up technical and formal documentation for the Spanish
tender
4
• Introduction our Client to the main Spanish
Communication with stakeholders, for online gaming activities (Public
relevant Stakeholders institution, Media, eventual other Partners, etc), and
operative support to manage communication/
relationships with them
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10. Confidential
AGENDA
 How to enter in the online Spanish market
 Possible TrustPartners support
 Next steps
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11. Confidential
NEXT STEPS
• Evaluation of the entry opportunities in the Spanish online gaming market
• Identification of the most effective entry opportunities and strategies in the Spanish online gaming market
• Definition of the potential entry road map and related high priority activities to be launched
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