Former divisional leader at Tipico Co Ltd
- Implementation and operational effects of regulation in Germany
- Top-line impacts from regulation and coronavirus
- Retail network outlook and franchise relationships
- EBITDA generation expectations
- US and European expansion outlook
Could you outline online gambling regulations in Germany, highlighting the potential changes when new regulations will supposedly come into force from July 2021?
Could you elaborate on which parts of the proposed regulations you expect to be contested in the courts?
Are any other regulations around sports betting, casino or slots being contested?
You said this is the first stage of regulation. How long do you think this stage will last?
What conditions would need to be met to proceed to the second stage of regulation, where live casino is allowed?
Sports betting contributes the majority of Tipico’s GGR [gross gaming revenue] and you mentioned that the new regulation allows only two markets to be open per football match. How does that compare to existing regulation, where it is a bit of a grey area?
How could the new regulations impact profitability or GGR for sports betting?
What percentage does casino gambling contribute to Tipico’s total GGR?
How are the limits on spin time likely to affect user experience or play more broadly?
What percentage of GGR is typically generated through stakes above the proposed limit of EUR 1?
How important are VIPs to Tipico? Does anything indicate that a small percentage of VIPs drive a significant percentage of GGR?
You referenced parallel gaming, which is where a customer uses multiple games at once. To what extent can participation in parallel gaming be restricted, considering it is a component of the new regulation?
You suggested that new regulations could push customers to the black market. How concerned is the regulator with the black market? Implementing regulation that leads to more harmful gambling seems counter-intuitive.
You said that 49% of customers could migrate to the black market. What are the opportunities to attract these customers to the legal market and above-the-board sports betting and gaming?
What are the opportunities for Tipico to offset regulation-induced GGR declines?
How do you think regulation will impact the competitive landscape? You alluded to Tipico potentially being a beneficiary. Could you specify the changes you expect?
Could you estimate the total GGR impact of the proposed regulation for an operator such as Tipico, given the 80/20 split for casino vs sportsbook that you mentioned?
Tipico has been a beneficiary of coronavirus due to its high online market share, but what is the risk of prolonged lockdown restrictions in Germany impacting its top line?
What is the regulator basing these restrictions on? Is there data from the German market that suggests harmful gambling?
How has coronavirus impacted Tipico’s franchisee network?
You said that Tipico’s franchisee network could consolidate. Does that present risks from certain groups having consolidated power?
To what extent do customers migrate to the next available shop when a shop is closed? You mentioned that there are sometimes several stores on one street and customers could migrate online.
Tipico’s coronavirus-related cost reductions have improved its margins by 400bp. To what extent can a leaner operating model be sustained post-pandemic?
Could you outline the changes in tax regulation, including the potential impact on Tipico?
When do you think Tipico’s GGR will recover to 2019 levels, considering the regulatory and coronavirus factors?
Tipico has always been highly concentrated on Germany but there have been some attempts at US expansion, which is obviously a huge opportunity for sports bettors. How confident are you in Tipico’s ability to grow in the US?
How realistic are Tipico’s aspirations to acquire an additional 5-10 new licenses?
Do you think Tipico could acquire 5-10 new licenses without a US partnership?
Why do you think partnering with a US operator would make sense for Tipico, considering there is a limited pool of remaining operators because a lot of partnerships are taking place?
Could you outline the investment requirements for entering and succeeding in the US?
How do bettors typically ramp up marketing spend to acquire customers in a new market?
How do margins compare at scale in the US vs Germany? Once a bettor enters the US, it acquires a license and potentially an affiliated marketing partner.
What are Tipico’s most interesting expansion opportunities outside of Germany and the US?
Who else do you think would be interested in acquiring William Hill’s UK business, if not Tipico?
Could other operators bid on the William Hill European assets? Could there be PE interest?
What larger groups do you think could be interested in purchasing Tipico and its sports betting experience?
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