For further information, please contact us to: info@trustpartners.eu best regards!

1. TrustPartners Srl
TrustPartners
Confidential
OVERVIEW OF ITALIAN GAMING &
GAMBLING MARKET
October 2010

2. TrustPartners
Confidential
ABOUT TRUSTPARTNERS
TrustPartners (www.TrustPartners.eu) is a management consulting company, which
has developed a strong know-how and experience in several Italian regulated
industries – such as Gaming & Gambling, Pharmaceutical and Tobacco – as well as
Energy and Public Administration industries.
In the last few years, TrustPartners supported leading Gaming & Gambling
Operators to set up and achieve their business strategies, focusing in the online
gaming market, new games/channels launch (Poker, Skill Games, Instant Lotteries,
Scratch Card, Bingo, Sports Betting, Mobile Channels, Innovative Marketing
Technique, etc), start-up of new companies in Italy dealing with Authorities,
Technical Providers and Marketing Services Operators, in respect to the new Italian
regulations.
In late 2008, TrustPartners decided to develop the first Italian Gaming & Gambling
Market annual report, based on the national market analysis (in terms of products,
Client’s target, analysis of the most relevant competitor), with breakdown for every
single game distributed.
Today TrustPartners is considered one of the most important Italian consulting firm
operating in Gaming and Gambling sector; due to its consolidate expertise
TrustPartners can support Italian and International Clients may wish to enter in
Italian online gaming and gambling market, to:
- define its positioning and identify the most effective strategy to enter in the
market (Italian gambling licence acquisition, partnership with an Italian
gambling Operator, etc)
- obtain a license for online gambling
- design an effective concept model for the launch and the management of
gaming products and services
- select technology Partners and platform providers for online games launch and
negotiate agreements
- launch products (poker, skill games, bingo, casino games, etc)
- develop and manage Clients’ Customer Base
- identify and develop an effective multichannel strategy
Following you can find an abstract of our report, an useful instrument, in particular
for non Italian gaming companies, to preliminary evaluate the opportunity to enter
in Italian gaming market.

3. Confidential
- 2 -
TrustPartners
GAMING AND GAMBLING IN ITALY: OUR REPORT
In the last few years world gambling market’s growth rate increased constantly. It is
also expected to continue like that in the next following years.
• Italian gaming market increase, in terms of turnover, in the period 2004-
2010E, has been 15 %. The new market regulation since 2007 (Bersani’s
regulation) contributed pretty much to the national figures and trends
• 2010 turnover is expected to reach 57,4 billion €, with an increase of 5,5% in
respect to 2009; Italian ARPU level is one of the highest worldwide: Client
expenditure amount at around 1.000€ / year
• Slot Machine is the most profitable product, with around 49% of the overall
turnover; also Lotteries (instant lotteries included) and Lotto, even if in
decrease, still have a good leverage in the offline market
• Highly significant is the online channel, thanks to the Poker launch in late 2008.
2010 online turnover will be more than 4,7 billion €, with an increase of 25%
vs 2009, in terms of margin for the Operators
• Looking forward to 2011-2013, figures will increase strongly, thanks to the
‘cash game’ model (for Poker and Skill games) and new other products
launches (V7 instead of Totip, Bet Exchange, VLT)
• Interactive channel will raise up turnover thanks to the cash model for Poker (to
be launched in 2011) and overtake 9Billion € in 2013

4. Confidential
- 3 -
TrustPartners
TrustPartners
Overview
of Italian Gaming &
Gambling market
October 2010
2 TrustPartnersOMG10_PR
THE MARKET GROWTH IN ITALY – GROSS GAMBLING TURNOVER
• The Italian gambling
market growth has
registered a CAGR just bit
higher than x,x% in
2004/2010E period…
• ... particularly due to the
struggle against the illegal
Slot machines market
(today almost completely
under the AAMS control)
• The expected growth in
2010 vs 2009 will be
around of x,x%
Bil €
Lotto
Slot machines
Totalizator games
Bingo
Horse racing betting
Lotteries (including
G&V)
- + x,x% + x,x% + x,x%
Growth Year X
on Year X-1
2004 2005 20072006 2008
+ x,x%
xx xx xxxx
CAGR
‘04/’10E
+x,x%
xx
Poker & Skill
games online
Sports betting
Other *
TOTAL xx
+ x,x%
2009 2010E
+ x,x%
xx
(*) Including: Totocalcio, Totogol, Il9, Big Match,
Source: TrustPartners analysis on various sources (AAMS, Agicos, Agipronews, etc) October 2010

5. Confidential
- 4 -
TrustPartners
3 TrustPartnersOMG10_PR
GROWTH EXPECTATION OF THE ONLINE MARKET IN ITALY – GROSS MARGIN *
(**) For online Poker and Skill Games the margins have been calculated considering the different taxation between Tournament and Cash mode
Rake for Casino games equal to 8 % in line with new average values in the main European markets
(*) Margin assigned to the Licensee (after the unique tax and player pay-outs)
mln €
• The new products launch
will let the online gambling
market to reach a margin
of about vxx mln € in 2013
• Since 2009 Poker has
become the most
profitable product on the
interactive channel
• Margins of Poker are
expected to increase, even
if a lower growth rate in
respect to the Turnover
(due to a lower “Cash”
rake instead of
Tournament)
2.008 2.009 2010E 2011E 2012E 2013E
Betting
S.games **
Poker **
Gratta&Vinci
X,x% X,x% X,x% X,x%
Variation
Year X / Year X-1 -
xx xx xxxx xxTOTAL
Bingo
Superenalotto
Casino
Other
xx
X,x%
Source: TrustPartners analysis on various sources (AAMS, Agicos, Agipronews, etc) October 2010
4 TrustPartnersOMG10_PR
THE ITALIAN GAMING MARKET – ONLINE SEPTEMBER 2010 MARKET SHARE
Total mkt share
LottomaticaLottomatica
SisalSisal
OthersOthers
MicrogameMicrogame
EurobetEurobet
SnaiSnai
Player
% of GGT
X,x%
X,x
X,x%
X,x%
X,x%
X,x%
X,x%
X,x%
X,x%
Betting S.EnalottoPoker/SG
PokerstarsPokerstars
Bwin -
GiocoDigitale
Bwin -
GiocoDigitale
Instant lottery * Bingo
Just online players
Leading players in the
online Poker market
PartypokerPartypoker
(*) Market share as distributors of the unique licensed Operator, Lottomatica
Source: TrustPartners analysis on various sources (AAMS, Agicos, Agipronews, etc) October 2010

6. Confidential
- 5 -
TrustPartners
5 TrustPartnersOMG10_PR
SKILL GAMES LEGISLATION – POTENTIAL PAYMENT FOR LICENSEES
Total turnover
Max payment for the
Licensee *
Unique Tax
Minimum Jackpot value
Allocation of the turnover
• Payment for Licensee can be at the most
equal to x,x% of the overall turnover
• The unique tax is x,x% provided by the
Bersani decree in 2006
• The basic rate destined to jackpots has
been fixed at x,x% according to the
AAMS regulations
• The Cash mode game, which was
supposed to be launched in 2011,
counts on a different taxation (x,x% on
Licensee gross margin)
Data in %
(*) Included the license fee, calculated on annual base of x,x%.
Source: TrustPartners analysis on AAMS data, October 2010
6 TrustPartnersOMG10_PR
SKILL GAMES MARKET IN ITALY – EXPECTED YIELD
• The expected percentage, in
terms of margins on turnover,
for Skill games is higher than
Poker and approximately at x,x%
• The cash game launch in 2011
will cannibalize the tournament
way of playing, achieving x,x%
of total skill games margin in
2013
Yield
mln €
2009 2010E 2011E 2012E 2013E
xx xx xx xx xx
Source: TrustPartners analysis on various sources (AAMS, Agicos, Agipronews, etc) October 2010

7. Confidential
- 6 -
TrustPartners
7 TrustPartnersOMG10_PR
THE ONLINE BINGO MARKET – EXPECTED YIELD
Higher margin for the
Operators on the online Poker
and Skill games, and equal to
x,x% of the overall turnover
mln €
Yield
xx xx xx xx xx
2009 2010E 2011E 2012E 2013E
Source: TrustPartners analysis on various sources (AAMS, Agicos, Agipronews, etc) October 2010
8 TrustPartnersOMG10_PR
2005 2006 2007 2008 2009 2010E 2011E 2012E 2013E
• 2010-2011 growth rate is
generated to the cash game
launch
• Cash game is more appealing
to the players than the
tournament model and will
shortly get a relevant market
share; unfortunately the
estimated margin is lower
(x,x% vs x,x%) …
• … this will slow down the
margin’s growth rate for the
following years
Legalized gamesGaming on foreign websites
THE ONLINE POKER IN ITALY – GROSS GAMBLING MARGIN
mln €
xx xx xx
xx
xx
xx
Source: TrustPartners analysis on various sources (AAMS, Agicos, Agipronews, etc) October 2010

8. Confidential
- 7 -
TrustPartners
9 TrustPartnersOMG10_PR
THE ONLINE POKER IN ITALY – ACTIVE GAME ACCOUNTS IN MONEY GAMES *
• Poker legalization in Italy
has contributed, and is still
contributing, to reduce
drastically the number of
Italian players on foreign
websites
• This trend is completely
tied to the legalization of
‘cash’ game, main mode
present on the international
websites
Legalized gamingGaming on foreign websites
‘000 Users
2008 2009 2010E 2011E 2012E 2013E
xx
xx
xx
xx
(*) With at least one game / year
Source: TrustPartners analysis on various sources (AAMS, Agicos, Agipronews, etc…) October 2010
10 TrustPartnersOMG10_PR
MAIN EXPECTED MODIFICATIONS
Launch of new productsLaunch of new products
Description
• Launch of new products both in the online
and offline channel
Changing regarding
existing products
Changing regarding
existing products
• Changing on the existing products in terms
of game modality, taxation and winnings
maximum limit
• Activation of new game modalities for card
games, in line with the offer in Europe (cash
modality)
Monitoring of Licensees
activity
Monitoring of Licensees
activity
• Bigger Licensees responsabilization in the
activities management
Modifications
introduced by the
Abruzzo decree
Modifications
introduced by the
Abruzzo decree
Source: AAMS GU n.97 28/4/2009

9. Confidential
- 8 -
TrustPartners
11 TrustPartnersOMG10_PR
THE ABRUZZO DECREE EFFECTS – INTRODUCTION TO CASINO GAMES
• Casino games represent in the
international scene around x,x%
of the online market (considering
also card games, that – in Italy –
are part of skill games)
• In Italy, the launch of casino
games will probably have a very
steep answer curve in the first
years, following with the
experience of Poker
• At the end of 2013, it is forecasted
a relevant market share in the
online channel2009 2010E 2011E 2012E 2013E
Gross margin
mln €
- xx xx- xx
12 TrustPartnersOMG10_PR
• The game machines’ increase on
the Market will contribute to
strengthen the Slots leadership in
terms of market share on the total
turnover of game products
• It is expected that VLT will gain
Slot machine’s market at around
x,x% / year
• At the end of 2010 there will be
installed around xx VLT in Italy
and more than xx at the end of
2011
• Forecasts shows an average
revenues per VLT of about xx – xx
k€ / year
VIDEO LOTTERIES – DECREE EFFECTS ON THE SLOT MACHINE MARKET
Total market
Bil €
Source: AAMS data based on 2009 GGT
2009 2010E 2011E 2012E 2013E
xx xx xxxx xx
Slot machine VLT

10. Confidential
- 9 -
TrustPartners
INDEX OF THE REPORT
1. Gaming & gambling market in Italy P. 3
1.1 Normative context
 Law regulation description
 Operator duties analysis
 Revenues breakdown by product
1.2 Key elements
 2004-2010E Italian GGT
 2008-2013E Italian online GGT: breakdown by product
 2008-2013E Italian online GGY
 Gaming online / offline top competitor market share
1.3 Main player: detailed description
2. The online Games: Skill games market P. 45
2.1 Games description
 Products typologies
 Contents
2.2 Italian Skill games market
 Law regulation description
 Operators duties and customer target
 2009-2013E GGY
 Competitive scenario
3. The online Bingo P. 66
 2009-2013E GGY
 Offer characteristics
4. The online Poker P. 71
 2005-2013E GGY
 2008-2013E Game Accounts
 Portfolio analysis
 Offer characteristics
5. Market evolutions: key changes P. 81
5.1 Expected modifications
5.2 Impact on the market
 Impacts on Betting market
 Impacts on Poker and Skill games market
 Impacts on Slot machine market
 Launch of Casino games
6. Glossary P. 96