OGQ Winter

Winter 23/24 Edition January 2024

Q3 2015

Online Gambling Quarterly - Winter Edition Trends, opinions, and data-driven analyses of the online gambling industry

Western Europe focus

Specials of Winter Edition Western Europe focus Detailed US analyses In-depth affiliate and SEO analyses Q4/2024 business climate Financial analyses of Q3/2023

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Contents

In the recent quarters of 2023, the industry climate has not changed much and has remained on a low(er) level without major changes. In Q3/2023, we believed optimism was slowly returning. However, the Q4/2023 survey results revealed the opposite with one of the lowest "good" estimate levels we have ever measured.

Editor Martin Oelbermann editor@OG-Q.com

Trends

Also, the outlook for 2024 seems dull even though significant sports events are scheduled, such as the UEFA EURO. Stricter regulations in Western Europe and the consolidation in the US seem to outweigh the positive impact of growth markets such as LatAm.

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• Current business climate – 24% of the experts consider the current climate as "good". 76% of the surveyed experts and market insiders assess the current business climate of the online gambling industry as "satisfactory" or "poor".

• Revenue growth YoY – In Q3/2023 Bally's Interactive N. America led revenue growth (YoY) with an increase of +114%; the avg. YoY growth in the quarter of all companies analyzed was +16%.

• Revenue growth QoQ – On average, the revenues changed in Q3/2023 (compared to the previous quarter QoQ) by -4%. Raketech and Genius Sports Betting are leading the QoQ ranking.

• The operators Bet365 and Betway are the top advertisers on affiliate websites in Western Europe.

• Across the analyzed markets in Western Europe, 888sport is most successful when it comes to betting-related SEO marketing. 888casino has the top spot for casinorelated SEO marketing.

Best regards,

Martin Oelbermann

Advertising Ursula Vogel ursula.vogel@mecn.net

Copyrights The content in the free version of the Online Gambling Quarterly (www.og-q.com) is made available under the Creative Commons License CC BY-ND 4.0 - more info on www.cr2.mecn.net.

Disclaimer The facts provided are believed to be correct at the time of publication but cannot be guaranteed. Data, findings, and recommendations are based on the best available information at the time of publication and are subject to change over time.

This content has been prepared by MECN GmbH by using the information and data obtained from sources that are reasonably believed to be trustworthy. MECN does not guarantee that the information contained herein is true, accurate, and unchangeable. Thus, readers are advised to have the accuracy of the information provided confirmed before acting by relying on such information.

MECN shall not in any case be responsible for incompleteness and inaccuracy of the information. Furthermore, the personnel and consultants of MECN shall not have any responsibility in any case for direct or indirect damage caused by such information.

♦ Online gambling industry climate ♦ Future “winners” in the online gambling market ♦ Key trends and topics ♦ Mobile gambling app ranks ♦ Share development and market caps ♦ Analyst recommendations

Financial Figures and KPIs ♦ Total revenue ♦ Betting revenue ♦ Casino revenue

Marketing Analyses

♦ Marketing cost benchmark ♦ Social marketing benchmarks – Western Europe focus ♦ SEO benchmarking – Western Europe focus ♦ Affiliate marketing benchmarking – Western Europe focus ♦ US SEO and affiliate analyses

Product Analyses

♦ Betting offers – Western Europe focus ♦ Casino games/offers – Western Europe focus ♦ US betting and casino analyses ♦ US live betting analyses

For more data, visit the online edition on www.quarterly.og-q.com Online Gambling Quarterly – Winter 23/24 Edition

Trends

Trends Content of Trends

Business climate

♦ Online gambling industry climate ♦ Key trends and topics ♠ Winners – which operators have the highest growth potential ♠ Hot product trends ♦ Mobile gambling KPIs - revenue share, app ranking, ... ♦ Share developments

5%

9%

Future outlook of business climate 9%

58%

58%

67%

♦ Analyst recommendations

Mobile betting leads the

According to experts following companies will have the biggest revenue growth within the next 12 months:

Stake.com and Betano (Kaizen).

31%

"Good" December 2023

"Good" December 2024

24% of experts believe the current business climate to be "good" - a figure that is expected to change to 31% within the next 12 months.

The mobile business Average of total revenue via mobiles

Product with the highest growth potential ranking with market participants convinced that it has the largest growth potential within the next 12 months. Live casino had the lowest decrease in growth potential compared to the past quarter.

24%

37%

32%

24%

78% Best practices

June 23

Sep. 23

Dec. 23

Good

Satisfactory

Poor

SHARE DEV WINNER

Svenska Spel 83%, Betsson 82%

Top 5 betting apps in Germany: Tipico, Bet365, Bwin, Betano, Interwetten

1

Zeal/Tipp24 received the

DraftKings +58% share increase in Q4/2023.

Top 5 betting apps in the UK: Bet365, Paddy Power, Sky Bet, William Hill, BetVictor

best recommendation by analysts.

Online Gambling Quarterly – Winter 23/24 Edition

Trends

Online gambling industry climate A key part of our quarterly analyses is a survey of industry participants regarding the current and future business climate of the online gambling industry. Our approach is similar to analyses of general industry/business climates, such as the Business Climate Indicator of the European Commission. Key aspects of the analysis of the online gambling industry index are:

The current and future business climate of the online gambling industry – Survey results Q4/2023 Future business climate ( Q4/23 + 12 months)

Current business climate - Q4/23 Survey question: Please give your assessment of the CURRENT business situation of the online gambling industry.

Survey question: Please give your assessment of the FUTURE business situation (in 12 months) of the online gambling industry.

Q4/23 Poor 13%

Poor 9%

● Survey of participants of the online gambling industry – The industry experts are asked to give their assessments of the current business situation and their expectations for the next 12 months. We took care to choose participants from different parts of the industry and to include private operators and state lotteries as well as IT/service providers, investors, … For this edition, we gathered the estimates and insights of 135 market insiders and experts, including a large number of C-level executives.

Good 24%

Satisfactory 67%

Satisfactory 55%

Good 31%

● Development over time – Due to the regular updates, this survey can be used as an "industry barometer" for the overall industry climate.

Overall current industry climate From the analyses pictured in the charts on this page we can derive the following insights: ● Current business climate – 24% of the experts consider the current climate as "good". 76% of the surveyed experts and market insiders assess the current business of the experts believe the climate of the online gambling business climate to be "good". industry as "satisfactory" or "poor".

24%

● Industry climate development – In the chart at the bottom of this page, we compare the assessments of the current business climate at the various quarters when we conducted the surveys. At the beginning of 2023, we saw a significant drop in the industry climate. Since this drop, the industry climate has not changed much but has remained on a low(er) level without major changes. Still, in Q3/2023, we believed optimism was slowly returning. However, the Q4/2023 survey results revealed the opposite with one of the lowest "good" estimate levels we have ever measured.

Note: n= 135; sum may not = 100% due to rounding; date of survey: December 2023 Source: Online Gambling Quarterly; copyright protected - if you want to use the graph go to www.cr2.mecn.net for more info

Development of the assessment of the current industry climate – Survey results Q4/2023 5%

11%

7%

7%

6%

47%

38%

49%

48%

51%

2%

7%

12%

9%

60%

55%

58%

50%

5%

58%

9%

67%

Poor Satisfactory

48%

June 21

51%

Sep. 21

Good

44%

46%

Dec. 21

March 22

43%

48%

June 22

Sep. 22

33%

33%

32%

37%

Dec. 22

March 23

June 23

Sep. 23

24% Dec. 23

Survey date Note: n= 135; sum may not = 100% due to rounding; date of survey: December 2023 Source: Online Gambling Quarterly; copyright protected - if you want to use the graph go to www.cr2.mecn.net for more info

Online Gambling Quarterly – Winter 23/24 Edition

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Trends Future business climates Regarding the outlook for the future business climate of the next 12 months, we see the following: ● Future outlook – Regarding the future business climate (in the next 12 months), 31% of the experts surveyed believe that the industry climate will be "good", an increase compared to the current "good"-share of 24% - see the chart at the top of the preceding page. ● Setback for future outlook – In the chart on the right, we compare the assessments of the future business climate at the various times/months when we conducted surveys. Just like the current business climate estimate, the assessment of the future industry climate dropped in the first half of 2023 but saw some optimism in Q3. But after an increase in "good" estimates to 51%, this figure dropped to 31%, one of the lowest estimates we have ever measured. The drop is a bit of a surprise as 2024 will see many significant sports events (e.g., UEFA EURO). Many survey participants mentioned unfavourable regulations and unlicensed competition as reasons for their pessimistic estimates.

Development of the assessment of the future industry climate – Survey results Q4/2023 6%

2%

8%

38%

44%

31%

5%

8%

43%

39%

11% 43%

18%

13%

14%

40%

53%

47%

8%

13%

41% 55%

Poor Satisfactory

56%

54%

62%

52%

45%

54%

42%

34%

40%

51%

Good

31%

June 21 + 12 Sep. 21 + 12 Dec. 21 + 12 March 22 + June 22 + 12 Sep. 22 + 12 Dec. 22 + 12 March 23 + June 23 + 12 Sep. 23 + 12 Dec. 23 + 12 months months months 12 months months months months 12 months months months months

Survey date + 12 months (future) Note: n= 135; survey date = date when the survey was conducted asking for an assessment of the business climate 12 months in the future; sum may not = 100% due to rounding; date of survey: December 2023 Source: Online Gambling Quarterly; copyright protected - if you want to use the graph go to www.cr2.mecn.net for more info

The percentage of experts considering the future industry climate as “good” is 31%, an increase compared to the "good"-share of 24% today.

Trend analyses For a better comparison of the changes mentioned above, we also calculated an average "rating" of the business climate assessments on a scale from 1 (poor) to 2 (satisfactory) and 3 (good): ● Until fall 2022, we saw a stagnant trend for the current business climate.

But then growing inflation, political turmoil, ... started to affect the online gambling industry. In Q3 we saw an upturn in the assessment of the current climate followed by a significant drop. ● The assessment of the future business climate (in 12 months) also saw a downward trend at the end of 2022. After a stable phase and the upturn in Q3, the future outlook suffered the same drop as the current industry climate. ● The estimate of the future business climate (2.18) is higher than of the current business climate (2.16).

Development of the online gambling business climate – Survey results Q4/2023 Good 3.00

2.50 Satisfactory 2.00

2.50 2.43

2.52 2.41

2.54 2.37

2.39

2.47

2.34

2.37

2.46 2.46

2.22

2.26

2.24

2.21

2.23

2.43 2.18 2.32

2.16

Current business climate Future business climate (in 12 months)

1.50 Poor 1.00

2.25

June 21

Sep. 21

Dec. 21

March 22

June 22

Sep. 22

Dec. 22

March 23

June 23

Sep. 23

Dec. 23

Survey date Note: average rating on a scale: "good" (=3), "satisfactory" (=2); "poor" (=1) Source: Online Gambling Quarterly; copyright protected - if you want to use the graph go to www.cr2.mecn.net for more info

Online Gambling Quarterly – Winter 23/24 Edition