The Balkan Gambling Markets

• Publication date: December 2008

Report on the gambling markets in Greece, Turkey, Croatia,Bulgaria, Romania, Slovenia, Serbia, and Montenegro Summary After continental and southern Europe, the global gambling industry is now focusing on the Balkan states and Eastern Europe for its expansion. In the Balkan states most forms of gambling enjoy above-average popularity – foremost sports betting. These facts combined with the recent or impendin...

Report on the gambling markets in Greece, Turkey, Croatia,Bulgaria, Romania, Slovenia, Serbia, and Montenegro

Summary

After continental and southern Europe, the global gambling industry is now focusing on the Balkan
states and Eastern Europe for its expansion. In the Balkan states most forms of gambling enjoy
above-average popularity – foremost sports betting. These facts combined with the recent or
impending EU-membership of many states and their growing individual wealth makes the Balkan one
of the most relevant markets to be analysed.
MECN accordingly analysed the Balkan region (that is, Greece, Turkey, Croatia, Bulgaria, Romania,
Slovenia, Serbia, and Montenegro) in unprecedented detail and depth. For this study MECN worked
together with various local researchers, interviewed local operators and regulators, and surveyed a
total of 90 operators and market experts regarding their thoughts and insights.

Gambling market of currently Euro 4.5 billion and 130 million people

- Total gambling market (gross revenue) of Euro 4.5 billion - In 2007 the total Balkan market
had an estimated gross revenue (after payout of prizes) of ca. Euro 4.5 billion; the figure for
turnover/wagers came to ca. Euro 25 billion.
- Most experts see great growth potential in Balkan gambling markets - More than 60% of the
experts surveyed by MECN believe that the growth potential of the Balkan gambling market is
great or even very great. Hardly any market insiders (only 3% all surveyed experts) believe the
market has only a small growth potential.
- Betting and interactive sector drive the Balkan gambling markets.
- Most experts surveyed believe the Balkan gambling markets will be liberalised in the near
future.
- The majority of the operators surveyed are currently in the process of developing their Balkan
market strategy and evaluating whether/how to increase their investment and focus in the near
future.
- Some forerunners are paving the way - Intralot is on the way to becoming a betting
heavyweight in the region; Sportingbet is realising about 4% of its business in Bulgaria; Bwin and
Bet-at-home just recently increased their focus and investments in the region.
- 130 million people and a total GDP of Euro 1,170 billion - A total of 130 million people live in
the countries selected for MECN’s study. Together, the Balkan countries had a GDP of Euro
1,170 billion in 2007.

The report includes:

- Analysis of all sectors - The report analyses all key sectors of the gambling markets: lottery,
casino, betting, gambling machines, and interactive gambling (Internet/mobile).
- Current market figures - Comprehensive market data, such as market size and development of
sales/turnover as well as gross revenues, including 2007 and in some cases also 2008 figures.
- Legal and tax information - Detailed explanation of the current legislation and the taxes
imposed.
- Company profiles - We prepared detailed company profiles of the key market players that
include products, financial figures, and strategic approaches.
- Insights from local expert - The analyses of Balkan gambling markets need local expertise.
Therefore, we gathered some of the most renowned local market insiders and authors including
Rob van der Gaast (Turkey, www.GamblingAnalysts.eu), Georgios Togias (Greece), and MECN’s
own local experts from Croatia, …


In total, the report has 152 pages and 86 graphs/exhibits.

Companies Mentioned

3DVA
7sport.net
Admiral Casinos
Admiral Sportwetten
Aristos Global Sport Bets Partizan
Asociatia Organizatorilor Si Producatorilor (AOPJNR)
Astra Sport Bets
Atlantik company
Avea
Balkan Innovative Technology
BC Partners
Beolot Greek
Bet365
Bet-at-home
Betshop Harrahs
Betsson
BGRoom
Bilyoner Interaktiv Hizmetler
Blitz Group
Bolus
Boss Media
Bulgarian Football Union
Bulgarian Olympic Committee
Bulgarian Sport Totalizator
Bulgarian State Lottery
Bulgarian Telecommunication Company
Bulgarian Trade Association of the Manufacturers and Operators
Bwin
Calcio
Camelot
Capital Group
Carrefour Romania
Casino Bled
Casino Finance Holding Liechtenstein
Casino Ljubljana
Casino London
Casino Maribor
Casino Parentium d.d.
Casino Portoroz
Casino Riviera
Casino Technology
Casino Umag d.d.
Casinos Austria International
Centric Multimedia
ClickandBuy
Club Hotel Casino Loutraki
Cosmo Bulgaria Mobile (Globus)
Croatian Red Cross
Cubus Lux
Cukurova Holding
Demco Group
Derby
Dobitnik
Dogan Group
Dogus Holding
Don Pepino
Drzavna Lutrija Srbije
Dzek Pot
Egasa
Eldorado
Elektronik Sans Oyunlari ve Yayincilik
Empire International Game World
Euro Games Technology
Eurobank
Eurobet
Eurochance
Eurofootball
Expekt
Favorit
Fidina
FIFA
Flyer
Football Confederacy
Fortuna
Fos
Foundation for Financing Sports Organisations
Foundation for the Finance of Invalid and Humanitarian Organisations (FIHO)
Free Bet Card
Gala Coral Group
Gamebookers
Gauselmann
Gazeta Sporturilor
Germania
GfK
Gioio
Glas Slavonije
Globet
Globul Paysafecard
Glory Technology
GoalNews
Grand Hotel Adriatic
Grand Hotel Lav Casino
Group Partouche
Grupo Orenes
Hattrick
Hellenic Federation of Professional PRO-PO Agents (POEPP) Prognozi.bg
Hipodrome Beograd
Hit Alpinea
Hit Coloseum Queenco Leisure
Hit Interactive Queens Club
Hit Montenegro Regency Group
Hit Netherlands Antilles
Hotel Crna Gora
Hotel Resort Maestral
HRT
Hrvatska Lutrija
Hrvatski Telekom
Igracnica Miro d.d.
Infoquest
Inteltek Sisal
Internacional Evona
International Leisure Project
Intertop
Intracom
Intrakat
Intralot
Kapitalska druzba
King & Co
Kladionice Zderic
Koc Holding
Kongo Hotel & Casino
Korner
Kratika Laxeia
Ladbrokes
Lavovi
Libero Interakfit Hizmetler
Lob Company
Loteria Romana
Loterija Slovenije
Lottomatica/Gtech
Lutrija Beograd
Lutrija Crne Gore
Lutrija Srbije
Marfin Investment Group
Markottel
Maslinica
Master Media
Maxima Invest
Mega Game
Mellon Systems
Meridianbet
Merkur Casino
Microgaming
Milli Piyango
Mobiltel
Mobtel Serbia
Mocart
Monet
Moneybookers
Moneygram
Motoroil
Narodna Lutrija
Neteller
NFD Holding
Nove Holding
Novomatic Worldbet
ODIE
Olympic Entertainment Group
OMV
OPAP
Oyak
Özkanlar Group
P&P Marketing
Pariori.ro
Partygaming
PEPPS
Petrol AD
Piraeus Bank
Pleasure Company
Postal Service of Slovenia
Pozitron
Princess Casino Group
Pro Monte
Professional Football League of Bulgaria
Prva Sportska Kladionica
Queen Montenegro Casino
Ritzio Entertainment Group
Romanian Football Federation
Romanian Olympic Committee
Royal Casino d.d.
S.V.-RSA Bulgaria
Sabanci
Scientific Games
Serbian Red Cross
Skupina Daimond Nova Gorica
Slavija
Slovenian Olympic Committee
Slovenian Post
Slovenska odskodninska druzba (SOD)
Spor Toto
Sport Five
Sport Tip
Sportal.hr
Sportime
Sporting Group
Sportingbet
Sportna Loterija
Sportske Novosti
Srbijalot
Stanleybet
Steggos Group
Super Sport
Tankerkomerc
Tattersall
Tek Elektronik
Tele 2
Telecom Serbia
Telsim
Theros International Gaming
To To
Tobacna Ljubljana
Trekom
Turkcell
Turkish Jockey Club
Turktell
Ukash
Unibet
Unidesa
Unisystems
VBC
VIP
Vipnet
Viva! Group
Vivatel
Vivere Entertainment
Western Union
Wettpunkt
WG investment
William Hill
Yugobet
Yugolot
Zlata Moneta

Gambling Industry in Europe

Table of contents

1 Introduction – Balkan, a growing but little known market 7

1.1 Growth potential of the Balkan gambling markets 9
1.2 Legal developments – liberalisation vs. tough barriers 10
1.3 Strategies of operators for the Balkan gambling market(s) 12

2 The Greek gambling market 15

2.1 Key demographic and economic figures 15
2.2 Overview of the Greek gambling market 15
2.2.1 Structure and market size 15
2.2.2 Legal framework 17
2.3 The Greek lottery market 17
2.3.1 Legal framework 17
2.3.2 Lottery products 17
2.3.3 Market size and key figures 18
2.3.4 Retail channels 20
2.3.5 Key players in the lottery market 20
2.4 The Greek betting market 21
2.4.1 Legal framework 21
2.4.2 Betting products 21
2.4.3 Market size and key figures 22
2.4.4 Retail channels 23
2.4.5 Key players – OPAP and ODIE 23
2.5 The Greek casino market 24
2.5.1 Overview 24
2.5.2 Market size 24
2.5.3 Overview of the casinos in Greece 25
2.6 The Greek interactive gambling market 26
2.6.1 Overview 26
2.6.2 Market size 27
2.7 Recent developments and outlook 28
2.8 Key market players 30
2.8.1 OPAP 30
2.8.2 ODIE 33
2.8.3 The State Lottery – Kratika Laxeia 33
2.8.4 Intralot 33

3 The Turkish gambling market 35

3.1 Key demographic and economic figures 35
3.2 Overview of the Turkish gambling market 35
3.2.1 Market size and structure 35
3.2.2 Limited number of key players 36
3.2.3 The tax system for gambling activities 37
3.3 The Turkish lottery market 37
3.3.1 History and development 37
3.3.2 Lottery products 37
3.3.3 Market size and key figures 39
3.3.4 Sales channels 40
3.3.5 Privatisation of the national lottery Milli Piyango 40
3.4 The Turkish betting market 43
3.4.1 History and development 43
3.4.2 Betting products 43
3.4.3 Market size and key figures 45
3.4.4 Sales channels 46
3.5 The Internet/interactive gambling market in Turkey 46
3.6 Key market players 49
3.6.1 Milli Piyango – The state lottery 49
3.6.2 Spor Toto 50
3.6.3 The Jockey Club of Turkey 50
3.6.4 Interactive gambling sites in Turkey 50

4 The Croatian gambling market 52

4.1 Key demographic and economic figures 52
4.2 Overview of the Croatian gambling market 52
4.2.1 Structure and market size 52
4.2.2 Operators of games of chance 54
4.2.3 Legal overview 55
4.2.4 Profile of Croatian gamblers 56
4.3 The Croatian lottery market 56
4.3.1 History and development 56
4.3.2 Lottery products 56
4.3.3 Market size and key figures 58
4.4 The Croatian betting market 59
4.4.1 History and development 59
4.4.2 Legal aspects 59
4.4.3 Betting products 60
4.4.4 Market size and key figures 61
4.5 The Croatian casino market 62
4.5.1 History and development 62
4.5.2 Legal aspects 62
4.5.3 Market size and key figures 64
4.5.4 Relevant players 65
4.6 The Croatian gambling machine market 68
4.6.1 History and development 68
4.6.2 Legal overview 69
4.6.3 Market size and key figures 70
4.6.4 Key market players 70
4.7 Interactive gambling offers in Croatia 71
4.8 Recent developments and outlook 73
4.9 Company profiles of relevant players 73
4.9.1 Hrvatska Lutrija – Croatia’s state lottery 73
4.9.2 Prva Sportska Kladionica 75
4.9.3 Favorit/Fortuna 75
4.9.4 Stanleybet 76
4.9.5 SuperSport 77
4.9.6 Hattrick 77
4.9.7 Wettpunkt 78
4.9.8 Novomatic Group 78

5 The Slovenian gambling market 79

5.1 Key demographic and economic figures 79
5.2 Overview of the Slovenian gambling market 79
5.2.1 Market size and structure 79
5.2.2 Key players 81
5.2.3 Legal overview 81
5.2.4 The tax system and gambling activities 82
5.3 The Slovenian lottery market 83
5.3.1 History and development 83
5.3.2 Lottery products 83
5.3.3 Market size and key figures 85
5.3.4 Sales channels 85
5.4 The Slovenian betting market 85
5.4.1 History and development 85
5.4.2 Betting products 86
5.4.3 Market size and key figures 86
5.4.4 Sales channels 86
5.5 The Slovenian casino market 87
5.5.1 History and development 87
5.5.2 Guidelines for casino ownership 87
5.5.3 Market size and key figures 88
5.5.4 An overview of market players 88
5.6 The Slovenian gambling machine market 89
5.6.1 History and development 89
5.6.2 Legal aspects of gambling machine operations 89
5.6.3 Market size and key figures 89
5.6.4 Overview of gambling arcade operators/operations 90
5.7 The interactive gambling market in Slovenia 90
5.8 Recent developments and outlook 92
5.9 Key market players 93
5.9.1 Loterija Slovenija 93
5.9.2 Športna Loterija 94
5.9.3 HIT 94

6 The Serbian gambling market 96

6.1 Key demographic and economic figures 96
6.2 Overview of the Serbian gambling market 96
6.2.1 Market size and structure of Serbia’s gambling market 96
6.2.2 Legal overview 98
6.3 The tax system for gambling activities 99
6.4 The Serbian lottery market 100
6.4.1 History and development 100
6.4.2 Lottery products in the Serbian market 101
6.4.3 Market size and key figures 102
6.5 The Serbian betting market 102
6.5.1 History and development 102
6.5.2 The legal framework for betting operations 102
6.5.3 Betting products 103
6.5.4 Market size and key figures 103
6.6 The Serbian casino market 104
6.6.1 History and development 104
6.6.2 The legal framework for casino operations 105
6.6.3 Market size and key figures 105
6.6.4 Key players 105
6.7 The Serbian gambling machine market 106
6.7.1 The legal framework for gambling machine operations 106
6.7.2 Market size and key figures 106
6.8 Key market player - Drzavna Lutrija Srbija 107

7 The Montenegrin gambling market 109
7.1 Key demographic and economic figures 109
7.2 Overview of the Montenegrin gambling market 109
7.2.1 Market size and structure of Montenegro’s gambling market 109
7.2.2 The legal overview 110
7.3 The Montenegrin lottery market 112
7.3.1 History and development 112
7.3.2 Lottery products in Montenegro’s market 112
7.3.3 Market size and key figures 113
7.4 The Montenegrin betting market 113
7.4.1 The legal framework for betting operations 113
7.4.2 Betting products in Montenegro’s market 114
7.4.3 Market size and key figures 115
7.5 The Montenegrin casino market 115
7.5.1 Games of chance law – the legal basis for casino operators 115
7.5.2 Market size and key figures 116
7.6 The Montenegrin gambling machine market 117
7.6.1 The legal framework for the gambling machine market 117
7.6.2 Market size and key figures 118
7.7 Key market player - Lutrija Crne Gore 118

8 The Romanian gambling market 120

8.1 Key demographic and economic figures 120
8.2 Overview of the Romanian gambling market 120
8.2.1 Market size and structure 120
8.2.2 The legal overview 122
8.2.3 The tax system for gambling activities 124
8.3 The Romanian lottery market 124
8.3.1 History and development 124
8.3.2 Lottery products in the Romanian market 125
8.3.3 Market size and key figures 125
8.3.4 Sales channels 126
8.4 The Romanian betting market 127
8.4.1 History and development 127
8.4.2 Betting products in the Romanian market 127
8.4.3 Market size and key figures 127
8.4.4 Sales channels 128
8.4.5 Overview of private betting operators 128
8.5 The Romanian casino market 130
8.5.1 Legal overview 130
8.5.2 Market size and key figures 130
8.5.3 Overview of relevant casino players/operations 131
8.6 The Romanian gambling machine market 132
8.6.1 Legal overview 132
8.6.2 Market size and key figures 133
8.7 Recent developments and outlook 134
8.8 Key market player - Loteria Romana 135

9 The Bulgarian gambling market 138

9.1 Key demographic and economic figures 138
9.2 Overview of the Bulgarian gambling market 138
9.2.1 Market size and structure 138
9.2.2 Legal overview 140
9.2.3 Overview of legal games of chance 141
9.2.4 The tax system for gambling activities 142
9.3 The Bulgarian lottery market 143
9.3.1 History and development 143
9.3.2 Lottery products in the Bulgarian market 143
9.3.3 Market size and key figures 144
9.4 The Bulgarian betting market 144
9.4.1 History and development 144
9.4.2 Betting products in the Bulgarian market 145
9.4.3 Market size and key figures 145
9.5 The Bulgarian casino market 145
9.5.1 History and development 145
9.5.2 Legal considerations for casino operations 146
9.5.3 Market size and key figures 146
9.5.4 Overview of relevant market players 146
9.6 The Bulgarian gambling machine market 147
9.6.1 History and development 147
9.6.2 Market size and key figures 147
9.7 Interactive gambling in Bulgaria 148
9.8 Recent developments and outlook 149
9.9 Key market players 149
9.9.1 The Bulgarian Sports Totalizator 149
9.9.2 Eurofootball 150

10 Methodology 152

11 List of exhibits 153

12 About authors and contact information 155

Exhibits

Exhibit 1: Comparison of key demographic figures of Balkan states 7
Exhibit 2: Size and breakdown of Balkan gambling market in 2007 8
Exhibit 3: Per-capita gambling spending 2007 (absolute and in % of GDP) 9
Exhibit 4: Growth potential (across all sectors) of the gambling markets in the Balkan states –
Results of MECN survey 9
Exhibit 5: Most attractive Balkan gambling markets – Results of MECN survey 10
Exhibit 6: Industry sectors with the biggest growth potential in the Balkan gambling market –
Results of MECN survey 10
Exhibit 7: Balkan states that will most likely liberalise their gambling market in the near future –
Results of MECN survey 11
Exhibit 8: Balkan states with the toughest legal barriers for private/foreign gambling operators
– Results of MECN survey 12
Exhibit 9: Future (investment) strategies for each Balkan state – Results of MECN survey 12
Exhibit 10: Overview of localised offerings for Balkan states of leading Internet gambling
operators 13
Exhibit 11: Plans to apply for/purchase/… a license in one or more of the Balkan states –
Results of MECN survey 13
Exhibit 12: Plans for advertising in the Balkan states – Results of MECN survey 14
Exhibit 13: Most suitable advertising media for the Balkan states – Result of MECN survey 14
Greek gambling market
Exhibit 14: Core sectors of the Greek gambling market 15
Exhibit 15: Size and breakdown of the Greek gambling market in 2007 16
Exhibit 16: Size and breakdown of the Greek gambling market, 2005–2007 16
Exhibit 17: Examples of lottery tickets of lotto/number games 18
Exhibit 18: Examples of lottery tickets of draw/passive lottery games 18
Exhibit 19: Development and breakdown of gross revenues of the Greek lottery market – 2004
to 2007 19
Exhibit 20: Distribution of market share by player in the Greek lottery market in 2007 19
Exhibit 21: Examples of lottery retailers 20
Exhibit 22: Breakdown of betting market in different betting types – 2007 22
Exhibit 23: Development and breakdown of turnover/sales of Greek betting market, 2005 – 2007 22
Exhibit 24: ODIE sales outlets 23
Exhibit 25: Development and breakdown of gross revenues of Greek casinos, 2005 – 2007 25
Exhibit 26: Examples of Greek casinos 26
Exhibit 27: Overview of Greek casinos – no. of tables, slot machines, and ownership structure 26
Exhibit 28: Examples of Greek Internet gambling sites 27
Exhibit 29: Online advertising of Internet betting operators on Greek sports sites 30
Exhibit 30: Development and breakdown of turnover/sales of the key market players- 2001 –
2007 30
Turkish gambling market
Exhibit 31: Core sectors of Turkey’s gambling market 36
Exhibit 32: Size and breakdown of Turkey’s gambling market in 2007 36
Exhibit 33: Development and breakdown of Turkey’s gambling market – 2004 – 2007 37
Exhibit 34: Examples of lottery tickets of lotto/number games 38
Exhibit 35: Examples of lottery tickets of draw/passive lottery games 38
Exhibit 36: Examples of scratch-off tickets 38
Exhibit 37: Development and breakdown of Turkish lottery turnover/sales – Milli Piyango 2005 –
2007 39
Exhibit 38: Development of lottery gross revenues – Milli Piyango 2005 – 2007 39
Exhibit 39: Privatisation process of Milli Piyango 40
Exhibit 40: Turkish race tracks 43
Exhibit 41: Structure of the Turkish betting market 44
Exhibit 42: Development and breakdown of turnover/sales of Turkish betting market – 2005 to
2007 45
Exhibit 43: Examples of Spor Toto retailers 46
Exhibit 44: Licensed Internet gambling offers in Turkey 47
Exhibit 45: Foreign Internet gambling offer in Turkey 49
Croatian gambling market
Exhibit 46: Core sectors of the Croatian gambling market 53
Exhibit 47: Size and breakdown of Croatia’s gambling market in 2007 53
Exhibit 48: Development and breakdown of Croatia’s gambling market, 2005 – 2007 54
Exhibit 49: Examples of scratch-off tickets 58
Exhibit 50: Sales outlet of Hrvatska Lutrija 58
Exhibit 51: Number of betting shops per bookmaker in the Croatian betting market 62
Exhibit 52: Overview of casinos in Croatia 64
Exhibit 53: Number of gambling tables operated in Croatian casinos 64
Exhibit 54: Number of gambling machines operated in Croatian casinos 65
Exhibit 55: Examples of Croatian casinos 66
Exhibit 56: Examples of automat klubs – gambling halls 69
Exhibit 57: Overview of gambling hall concessionaires in Croatia 71
Exhibit 58: Online advertising of Internet betting operators on Croatian sports sites 72
Exhibit 59: Examples of Internet gambling sites targeting the Croatian market 72
Exhibit 60: Betting terminals in betting shops of Hattrick 78
Slovenian gambling market
Exhibit 61: Core sectors of Slovenia’s gambling market 80
Exhibit 62: Size and breakdown of Slovenia’s gambling market in 2007 80
Exhibit 63: Examples of lottery tickets 83
Exhibit 64: Examples of scratch tickets 84
Exhibit 65: Internet and mobile betting offer of Sportna Loterija 87
Exhibit 66: Development of casino gross revenue in Slovenia – 2001 to 2007 88
Exhibit 67: Overview of casinos in Slovenia 89
Exhibit 68: Development of gambling machine gross revenue in Slovenia – 2001 to 2007 90
Exhibit 69: Examples of foreign interactive gambling offers 92
Serbian gambling market
Exhibit 70: Core sectors of the Serbian gambling market 97
Exhibit 71: Size and breakdown of the Serbian gambling market in 2007 97
Exhibit 72: Grand Casino Beograd 105
Montenegrin gambling market
Exhibit 73: Core sectors of the Montenegrin gambling market 110
Exhibit 74: Examples of scratch tickets 113
Exhibit 75: List of betting operators and number of betting shops in Montenegro 115
Romanian gambling market
Exhibit 76: Core sectors of the Romanian gambling market 121
Exhibit 77: Development and breakdown of turnover/sales of Romanian lottery market – 2005 to
2007 126
Exhibit 78: Examples of Loteria Romana sales outlets 126
Exhibit 79: Examples of Internet betting sites targeting Romanian market 129
Exhibit 80: Example of casinos in Romania 132
Bulgarian gambling market
Exhibit 81: Core sectors of the Bulgarian gambling market 139
Exhibit 82: Examples of instant lottery products 144
Exhibit 83: Overview of casinos in Bulgaria 147
Exhibit 84: Development of turnover/sales of Bulgarian Sports Totalizator – 2003 to 2007 150