Seasonal effects

Seasonal
The gaming business is a cyclical business where there is a direct correlation between the different seasons and the turnover of the business. Betsson is exposed to this risk and Betsson can identify that the gaming activity decreases during the summer. The correlation between season and gaming activity is more distinct in the Scandinavian countries. In other parts of Europe, especially in the south of Europe, this correlation is less distinct. However, the season effects does not have any material effect on Betsson business since Betsson is aware of the seasonal effect.

Conjuncture
The gaming industry is considered to be a consumer commodity. The gaming business is assumed to be independent of conjuncture. Betsson does not agree with this estimation. Betsson believes that when the disposable hypodermic syringe decreases the amount of money which the players can put on games and other forms of entertainment. For these reasons, Betsson does not consider itself to be independent of changes in the conjuncture.

Competition
The gaming business is a business which is highly competitive. The possibility for the gaming companies to tie a customer for a longer period of time is more or less nonexistent. The products which the companies offer the customers are very alike. For that reason, the success of each company can only be measured in their ability to procure and hold on to customers.  At Betsson this knowledge is respected in each and every decision process. By doing so, Betsson ensures that Betsson, in a sustainable manner, can provide the best a gaming experience to the customer

Staff
The staff is Betsson´s greatest asset. For that reason Betsson is exposed for risk of losing staff and therefore competence. Betsson is constantly working with creating a great entrepreneurial climate

Damage claims
Persons who become addicted to gambling may bring legal actions against companies within the Betsson group because of their addiction. Although such claims are likely to be rejected, they may result in considerable costs and also harm confidence in the Betsson group, which could eventually impair revenues. Betsson is accredited by the G4 organization which is dedicated to reducing gambling addiction, and as part of this collaboration the company has adapted its websites so as to offer complete support for the guidelines G4 has established. In addition, Betsson has set up a department for responsible gaming. Qualified, experienced personnel have been recruited in order to enable Betsson to retain its leading position within the responsible gaming area.

VAT
The interpretation of current Maltese VAT regulations has changed in 2007 and may have an effect on the Maltese subsidiaries’ expenses. Betsson took measures in 2008 to reduce the risk of additional VAT in 2008 and after. Betsson has reported to the Maltese tax authorities the tax amounts that Betsson considers to be correct and reasonable in relation to the prevailing uncertainty. These amounts may, however, prove to be insufficient, in which case the Maltese tax authorities will implement a stricter interpretation of the VAT regulations than the one performed by Betsson and which Betsson currently considers to be correct.