H2GC Reports The US and Sports Betting | Page 6

Approach
Over a Decade’s Experience
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H2 draws on publicly available (non-public where available) data with our detailed coverage extending to c97% of the global regulated
land-based and online gambling market.
Collecting Data
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General market data is refined and compiled via sources that include:
ü Actual published primary/secondary market and organisation data;
ü Assessment of the supply side by product vertical;
ü In house tracking of activity;
ü Opinion of users (incl. service providers and other industry analysts).
Forecasting
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Line-by-line forecasts developed based on a number of drivers including:
ü Confirmed current or future changes in regulation and taxation;
ü Maturity of product;
ü Confirmed product development;
ü Balance/Supply of land-based vs online channels;
ü GDP/broadband/mobile growth and benchmark markets.
Black Market Calculation
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Estimated working back from an ‘optimum’ fully regulated US sports betting market, before applying industry assumptions on the
proportion of players that gamble ‘illegally’, % GDP, and average spend.
Assuming full European style offer - all products, freely available both online and in land-based facilities, with a low tax rate, adopted
by every State.
UK/Italy/Spain/Germany/Sweden markets used as comparators – based on their advanced regulatory regime and relatively high
propensity for sports betting.
State by State split calculated using:
- Actual published data up to and at the point of UIGEA (Unlawful Internet Gambling Enforcement Act) 2006;
- Number and proportion of sites’ business at the time;
- State market value and other KPIs for sector product verticals;
- GDP/broadband development over the past decade.
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© H2 Gambling Capital 2017
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