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Industry Overview
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Changing regulation is expected to remain a key focus for market participants and an important driver of online gaming revenue growth over the next few years.

Recent momentum
In 2009 there has been greater momentum in many countries to engage in a discussion as to the appetite for online gaming. In Europe, a number of countries have made positive decisions as to the direction they will take and are in the process of defining legislation and regulation.

Other countries have chosen to reconfirm or tighten their existing controls or exert greater enforcement of any restrictions. For those countries contemplating regulating for an onshore market, there are a number of differing regulatory models under consideration.

These range from a liberalised market such as that in the UK to one where the state-controlled monopoly is to be the only market participant. The fiscal and economic regime is likely to be as important as the regulatory model chosen in determining whether a market is commercially attractive in the longer term. A robust balance between the interests of player, regulator and operator will make an important contribution to this goal.

Changing regulation is expected to remain a key focus for market participants and an important driver of online gaming revenue growth over the next few years.

Market participants
The online gaming market accommodates a wide range of participants and has become more specialised as it matures into a substantial global industry. At the outset and with the internet also in its infancy, they were principally entrepreneur-led start-up businesses.

These operators managed an end-to-end offering, from software and content development through to direct player marketing. As the market started to develop and more participants entered, businesses offering the ability to outsource certain elements quickly evolved.

 PAGE  07  OF 10 

In 2009 there has been greater momentum in many countries to engage in a discussion as to the appetite for online gaming.