THE VALUE CHAIN FOR GAMES WITH CASH PRIZES
Gaming market analysis is based on these indicators:
- Turnover = total spending by players, i.e. all bets placed.
- Payout = the amount returned to players in the form of winnings. This is established by the regulator for each game and expressed as a percentage of turnover.
- Gross Gaming Revenue, GGR = the amount spent by Italians net of winnings. The ne plus ultra of gaming market indicators, it measures players’ real spending and is calculated as the difference between turnover and payout.
Gross expenditure is split between:
- Tax as established by law, applied to each individual game.
- Net Gaming Revenue, NGR, payable to Licensees, the distribution network (bricks and mortar and online) and suppliers of additional services.
AMUSEMENT MACHINE SUPPLY CHAIN
- Licensee: the entity selected by ADM, based on a special public procedure, to which activities and functions are assigned for the purposes of implementing and operating the online game management network by means of amusement machines pursuant to article 110, subsection 6, TULPS; the Agreement between Sisal Entertainment S.p.A. and ADM was stipulated on March 20, 2013; the License has a duration of nine years.
- Operator: the entity that, as owner or holder in any capacity of AWP machines, is engaged in a contractual relationship by the Licensee to perform activities in connection with the provision and management of the aforementioned machines.
- AWP Retailer/VLT Room Operator:
- Retailer is the owner of the venue where the AWP machines are installed (e.g. cafes, tobacconists and newsagents).
- VLT Room Operator is the owner of the specialised gaming venues where the VLTs are installed and which have been issued with licenses by local police stations as required by current legislation.