Effect of simulcast on betting turnover Harald Drum

Effect of simulcast on betting turnover Harald Dørum, CEO Norsk Rikstoto 051009 IFHA 2009 1

Norway – racing & betting with 4, 7 million people 5500 starters 625 race meetings Mostly trotting 051009 IFHA 2009 2

Wide distribution via modern technology INFO e- agents Mobile phones Internet Cash register in grocery stores INFO MMS 1300 online outlets INFO Central data systems 12 racetracks 051009 IFHA 2009 Digital Signage, Teli. Text &TV 3

Norwegian gambling is regulated by the Authorities 30, 000 25, 000 20, 000 Video Lottery Terminal 15, 000 Norsk Tiping (incl. extra) 10, 000 Rikstoto Other Games (incl. www) 5, 000 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Video Lottery Terminal Norsk Tiping (incl. extra) Rikstoto Other Games (incl. www) Total 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 7 000 7 836 8 958 15 426 22 789 26 300 27 100 18 970 10 440 0 8 042 8 277 8 607 9 734 9 743 9 617 9 204 9 480 9 951 10 579 2 330 2 572 2 626 2 479 2 415 2 622 2 781 2 800 3 163 3 710 2 628 2 013 2 220 2 510 4 063 4 274 5 615 7 388 8 378 10 800 20 000 20 698 22 411 30 149 39 010 42 813 44 700 38 638 31 932 25 089 The Norwegian Government has actively regulated the market, with significant effect on national gambling. 051009 IFHA 2009 4

Digital signage in all outlets The typical outlet (”Agent”) Signage screen in the shop Information touch screens All outlets have live betting information (odds etc. ) plus screens promoting the betting with commercials (“Digital Signage”) 051009 IFHA 2009 Signage screen at the terminal 5

Online betting information proves boosting sales All 1300 outlets get online information: - race cards - odds - non runners - rankings - results - etc 500 shows live racing 051009 Touch screen to select info IFHA 2009 6

International betting has high growth 80000000 16, 4% of total turnover 2009 70000000 60000000 50000000 40000000 30000000 20000000 10000000 € 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 +25% Increase in offering live racing throughout the day (Lunch, International), has partly compensated for the effect of the Finance Crises 051009 IFHA 2009 7

Bets are sold throughout the day, and if racing is live, it is a plus Live racing periods throughout the day % of betting versus time of day Weekday Time The new, busy customers must be able to buy our entertainment offer at any time & place 051009 IFHA 2009 8

Age distribution by sales channel AGE RECRUITMENT Average punter age is decreasing the more “modern” the sales cannel is. 051009 IFHA 2009 9

More customers Rikstoto´s registered customer base 900000 800000 43 000 + since 2007 700000 600000 500000 400000 300000 Today 200000 Goal 100000 0 2009 1 2015 2 • 43 000 new customers since 01/01 -2008 • 50% of the “lunch-is-my-favorite” players are among this new customers • They are 5 years younger than average 051009 IFHA 2009 10

Rikstoto´s growth in betting last years has been very good 500 mill € 400 300 200 Utilizing modern technology in distribution and information 100 National growth has been even better than international growth 051009 IFHA 2009 11

Rikstoto simulcast every day to • 500+ outlets • all tracks • and via WEB & Canal Digital No e bett ffect o i with ng turn n over out simu lcast ! 051009 IFHA 2009 12

Thank you for you attention. Harald Dørum, CEO Norsk Rikstoto 051009 IFHA 2009 13