info-pack for the interested partiesmedia.opap.gr/vlts/infopack.pdf · info-pack for the interested...

February 11, 2015

Info-pack for the interested parties

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Contents

Gaming hall concept introduction

Questions & answers

Application, selection and allocation

Gaming hall operations

Illustrative gaming hall P&L

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Gaming hall combines modern retail design and state-of-the-art technology to provide the ultimate entertainment experience

GAMING HALL CONCEPT INTRODUCTION

▪ 130-180 m2 of design space with at least 75 m2 of gaming area, dedicated relaxation area and full amenities (bar, toilets, food and drink vending machines)1

▪ Up to 25 state-of-the-art gaming machines (VLTs) by leading manufacturers GTECH/Spielo, SYNOT, Inspired, SGI/WMS

Features

Note: GH layout is only indicative and can be adjusted for the available premises

1 Possibilities to accommodate smaller high-quality venues under discussion

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OPAP plans to open ~660 gaming halls across Greece

101 19

14

13

34

28

5

26

25

11

7

249

25

N. Aegean Ionian Islands

Crete

Central Macedonia

Western Macedonia

Epirus

Western Greece

S. Aegean

Peloponnese

Sterea Ellada

Attica

E. Macedonia & Thrace

Number of gaming halls


~100 GHs will be allocated at a later stage

Note: Indicative number of GHs per region

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Gaming hall concept is subject to strict regulatory & legal framework


NOT EXHAUSTIVE

Gaming hall – layout ▪ Required surface area

– 3 m2 per VLT – 5 m2 for 1 men’s toilet and 1 women’s toilet, with an anteroom – 10 m2 for the reception, till and waiting area for the public – 5 m2 for storage area

Operator ▪ Basic requirements for an Operator

– Between 25 and 60 years old, resides permanently in Greece, at least a secondary education, fulfilled all military service obligations, fluent in Greek

▪ Operator needs to go through the certification process with HGC

Player ▪ Only those over 21 years old are allowed to play ▪ Mandatory player card use ▪ Minimum bet per spin of EUR 0,10; maximum bet per spin of EUR 2 ▪ Maximum win of EUR 1,000 per spin incl. free spins and bonus rounds excl. jackpots ▪ Time limits: 12 hrs/week, 40hrs/month

Gaming hall – location ▪ Minimum distances

– 5 km from casino – Distance restrictions1 from schools and other gaming halls – Not allowed on the road that an entrance of a kindergarten lies until the next

crossroad

Gaming hall – operations ▪ Sale or for free provision of food, drinks and soft alcohol (beer & wine) ▪ possible via vending machines only ▪ All employees need to go through rigorous OPAP training program ▪ Smoking allowed in designated areas (up to 50% of the total space)

1 Exact distances to be published by HGC in the coming days

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Contents


Questions & answers




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The partner will operate a Gaming Hall which will be constructed under the responsibility of OPAP

▪ Search, selection and rental of locations1

▪ Design and construction of a fully functional Gaming Hall

▪ Continuous training and support when needed

▪ Providing VLT machines, game content & IT infrastructure

▪ Field service/maintenance of all technological equipment of the Gaming Hall

▪ Promoting, marketing and PR management of the VLT business

OPAP will be responsible for

▪ Receiving certification from HGC

▪ Day-to-day presence in gaming hall and its operation

▪ Ensuring ongoing regulatory compliance

▪ Customer service – generating revenue of the Gaming Hall

▪ Prudent expense management

▪ Resolving issues and incidents in the Gaming Hall

Operator is responsible for

GAMING HALL OPERATIONS

▪ In charge of partnership with OPAP (communication regarding financial and regulatory issues)

▪ Providing investment into gaming hall con-struction and operations

▪ Right to replace the operator in case of under-performance or other valid reasons

Owner is responsible for

1 Owners and/or operators are encouraged to suggest locations Note: Although the key responsibilities are mentioned here, this is not an exhaustive list of the responsibilities of neither party

NOT EXHAUSTIVE

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Organizational setup will have implications for who will be invited for the assessment

Ownership Operation Participation in assessment

Owner and operator different people

Owner and operator the same person

B

A

GAMING HALL OPERATIONS

Appoints operator who can run gaming hall after passing the assessment center

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Contents


Questions & answers




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This translates into EUR up to 1 billion market potential or EUR up to 700 thousands revenues per single GH per year

Percent

Based on markets with similar profiles as Greece, range of gaming machine spending per GDP is estimated to be 0.44%-0.53% of GDP

Evidence from other markets suggests high market potential for VLT business in Greece

0.270.27

0.35

0.47

0.560.57

0.670.69

Market

800-1,000

Single gaming hall

580-715

435-535 (75%)

145-180 (25%)

Market potential based on international benchmarks EUR million

Revenue (net drop) of a single GH w/ 25 VLTs EUR thousands

SK AU IT CZ PER FI BG ES

Operator’s share

Share of public authorities (tax), VLT vendors & OPAP

Potential estimated for 35,000 VLTs and implies net-drop of EUR 65–80 per VLT per day

Estimated range of gaming machine spending in Greece is 0.44-0.53% of GDP

ILLUSTRATIVE GAMING HALL P&L

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Illustrative Operator’s P&L for an average gaming hall ILLUSTRATIVE GAMING HALL P&L

Detailed P&L will be based on revenue potential and specific OPEX of each location

145 - 180

EUR thousands per year

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Contents


Questions & answers




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Owner and operator must fulfill the following regulatory requirements to be able to operate a gaming hall

APPLICATION, SELECTION AND ALLOCATION

1 3rd country citizen allowed under specific condition 2 Cases with the criminal record will be evaluated on a case-by-case

basis

Requirements “All interested

parties” = owner(s) Operator

▪ EU citizen1

▪ Allow Tiresias check

▪ Summit tax and social clearance

▪ No asset seizure, blocking or confiscation, bankruptcy, insolvency and failure to pay debts

▪ No legal procedures against OPAP or violation of contracts

▪ Age 25-60

▪ Secondary education

▪ Permanent residency in Greece

▪ Fluent in Greek

▪ Clear military record

▪ Clear criminal record2 Operator will also have to commit to spend significant time a day in the GH and obtain a certification from HGC

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The “right profile” of an operator will be a true entrepreneur with strong customer orientation who knows local market and VLT business

Customer orientation

Entrepre-neurial skills

Business results

orientation

Interpersonal & people

management skills

Prior knowledge of VLT business

Knowledge of local

environment

Strong service orientation

APPLICATION, SELECTION AND ALLOCATION

Owner can support the Operator with knowledge on these areas

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Contents


What’s next




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To become a gaming hall operator follow the steps below WHAT’S NEXT

Assessment center

▪ If you are eligible, you will be invited for an assessment performed by and external agency

Submit supporting documents

▪ Prepare and submit to OPAP all supporting documents as specified on the website,

Fill-out application form

▪ Go online to playopap.gr and fill in and submit the application form

▪ You can decide on preferred location and whether you will be both Operator & Owner or not

Run your own gaming hall

▪ After gaming hall completion you will be asked to pay the remaining amount of the investment

▪ Once you, your staff and your gaming hall are certified, you can start operating (first GHs planned to start in April)

Prepare for GH operation

▪ OPAP will prepare a fully functional gaming hall

▪ In the meantime you will have to find your staff, get trained and certified by HGC

Agree on the cooperation with OPAP

▪ Once you successfully complete the assessment, (that means you score well relative to the other applicants in the region) you and OPAP can agree on cooperation

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2 3

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Sign contract upon location agreement

▪ Agree with OPAP where you want to run your gaming hall

▪ Sign contract and deposit EUR 40,000

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info-pack for the interested partiesmedia.opap.gr/vlts/infopack.pdf · info-pack for the interested...

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