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ARJEL REPORTS QUARTERLY MARKET RESULTS

Friday July 27,2012 : ARJEL REPORTS QUARTERLY MARKET RESULTS
 
Sports and horserace betting fairing better than online poker
 
French online gambling authority ARJEL presented its Q2/2012 indicators and summaries on the French market this week giving an interesting insight into customer demographics and operator challenges.
 
The summary is based on data supplied by ARJEL-licenced online gaming and betting operators.
 
Key indicators for the Q2/2012 period include:
 
Overall Market:
 
-  1.3 million member accounts were active in at least one of the three regulated activities comprising online sportsbetting, online poker and horse race betting.
 
-  French online gamblers deposited Euro 263 Million in their accounts, an average of Euro 71 per player each month (Q2/2011: Euro 67)
 
-  Online operators spent Euro 55 Million in the media, 25 percent less than in the same period last year.
 
-  Payment methods are evolving with an increase in the use of prepaid cards accounting for 10 percent of player deposits, however credit cards are still the preferred method of payment.
 
Sportsbetting:
 
-  Online Sportsbetting increased to Euro 187 Million, up 28 percent compared to Q2/2011 (Euro 146 million) in terms of amounts staked.  The authority acknowledges that Euro 2012 is partly responsible for the increase but maintains that overall there has been a strong performance since the beginning of the year.
 
-  Operator turnover or gross gaming revenue (GGR) reflected Euro 35 million (Q2/2011: Euro 25 million), up 39 percent largely attributable to a lower level of rate of player return.
 
-  Average number of active player accounts per week is up sharply amounting to 120 000 compared to 87 000 in the same period last year.
 
-  The activity saw a shift in age-group over the period, losing some of its younger players and tripling accounts of players aged 55 and over.
 
-  Mobile and tablet sports bettors now account for 18 percent of the total group.
 
Horse Race Betting:
 
Online Horserace betting although maintaining its upward trend proved less dynamic than in previous quarters, the Authority reports.
 
-  Total placing of horse bets rose 9 percent to Euro 278 Million between April and June 2012 (Q2/2011: Euro 255 Million).
 
-  Operator turnover/GGR increased 20 percent to Euro 65 Million (Q2/2011: Euro 54 million).
 
-  Active player accounts increased to 144 000 (Q2/2011: 133 000).
 
-  Player rate of return remained below that of 2011.
 
-  An increase in younger players (13 percent aged 25-34), contributing to a gradual change in the profile of horse bettors.
 
-  Mobile media is a true evolution of the habits of race-goers as 14 percent are now connected via a mobile device as opposed to 8 percent in Q2 2011.
 
Online Poker:
 
-  The cash-game market lagged further delivering a decline of 6 percent to Euro 1.5 Billion (Q2/2011: Euro 1.8 Billion)
 
-  Tournament entry fees increased 24 percent to Euro 345 Million (2011: Euro 278 Million).
 
-  Active player accounts decreased to 295 000 from 301 000 in Q2/2011.
 
-  Operator GGR, affected by low cash-game activity and declining active player accounts, delivered quarterly results down 11 percent over the same period last year.
 
-  Again, the mobile platform flourished with 18 percent of poker players preferring to use their mobile device (tablet or cell phone) as opposed to traditional computer.



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