Q: Why work in Online Gaming?

A: Online Gaming = Fantastic Career!

Online Gaming is a multimillion-pound, fast-paced and constantly evolving industry. Many IT, Marketing and Management professionals are attracted to careers within the challenging world of Online Gaming, and you don’t have to be a passionate gambler or gamer to build a successful career as many opportunities are open to anyone who has talent and experience. It is never too late to embark on a career in Online Gaming, as industry professionals are judged on skills and experience related to their particular role and those with a background in a broad range of commercial sectors will be considered for employment.

Online Gaming is a fantastic industry to work in for the following reasons:

Culture

Passionate, dynamic and exciting are good words to use in describing the culture within Online Gaming.

Online Gaming companies offer fast-paced, vibrant and agile working environments where no two days are the same. Employees are constantly challenged to achieve the best possible results within hard-working, yet not overly corporate, environments. Typically Online Gaming employees have a driven mentality and, if not already passionate about the products they are involved with, soon become so. Generally people who enjoy sports, sports betting, poker or casino tend to be a good culture fit for the industry. However, because of innovative marketing, cutting-edge technologies and outstanding levels of customer service, people passionate purely about their professions will also fit well culturally without necessarily having a passion for sports or betting.

Online Gaming companies tend to be very sociable places to work and all of our clients regularly organise social events and activities. In particular it is very easy to integrate into the community in Gibraltar as most employees will have personal experience of relocating abroad and consequently make a big effort to help new colleagues settle in. Gibraltar also has its own Online Gaming community which actively welcomes newcomers.

As Online Gaming is an international industry, there is often the opportunity to travel on business to other countries and experience diverse working cultures. Most companies enjoy multi-cultural environments with employees from many different parts of the world and this helps to create a fantastic working environment.

Career Progression

Online Gaming is an excellent industry to join in terms of career progression. Due to the results- driven nature of the industry, progression is based on performance and all companies see career progression as meritocratic. As Online Gaming is a relatively new industry, experts are often recruited from outside Online Gaming to introduce new technologies, international territories and processes. This can often give employees an opportunity to make a name for themselves within a company, or even across the industry. Career growth often happens faster within Online Gaming than other industries due the constant growth of Online Gaming itself (for example, the emergence of the mobile gaming market). Also, as changes in gambling law emerge, new territories are opened up. There are strong indications that Online Gaming will soon be legalised in the United States, which would have a huge positive impact on the industry as a whole and will make way for new companies to emerge.

The Online Gaming industry is therefore ideal for career-driven, focussed people who want to progress as far in their career as they possibly can.

Stability

Online Gaming can offer excellent career stability due to a number of reasons, but in layman’s terms people will always gamble! Compared to other industries, Online Gaming has not suffered during the recession and over the past 12 years has grown by an average of 23% year on year. Due to the many new ways of accessing online gambling, the market is set to continue this growth and, if the US market opens up, the percentage of growth will undoubtedly rocket. The majority of Online Gaming companies are cash-rich and turn over very healthy profit margins, meaning they are often able to increase their spend on new developments as opposed to cutting costs. In turn this allows for greater stability and exciting projects!

Financial Rewards

Online Gaming companies generally pay well in terms of basic salaries. In Gibraltar salaries mirror e-Commerce companies in the North West of England. However, with no National Insurance, lower taxes and a lower cost of living, employees are generally better off financially. As Online Gaming is a results-driven industry, many companies offer bonus schemes to incentivise staff members and, as the industry as a whole is doing well, targets are hit more often than not. Again, progression comes into the equation and, because employees can progress quicker in gaming, so can their packages. However, please be aware that Online Gaming companies do not like a candidate’s main motivation to join them to be the financial benefits - they are looking for candidates who are motivated by a challenging and all-round rewarding career.

Living Abroad

For tax reasons many Online Gaming companies are located in Gibraltar and Malta, as well as Cyprus, Dublin, the Isle of Man and elsewhere in Europe and the USA. Gibraltar is the main hub of Online Gaming, attracting many of the biggest names within the industry. Gibraltar in particular is a great place to work and many people relocate here to enter a career within the industry, swapping their life in the UK or Europe for a better lifestyle. The option of living either in Gibraltar or Southern Spain is a huge benefit as, unlike Malta, Gibraltar is not an island and is attached to mainland Europe

by road. The warm climate, relaxed and sociable way of life and low cost of living are common reasons why many people choose to make this popular life change.

= = = = = = = = = = = = = = = = = = = = = = = = = = = = =

Facts worth Knowing

Online Gaming Market Overview

Online Gaming has shown persistent growth over the past few years and is expected to continue in the same trend. 51% of the world's population take part in some form of gambling every year, thus signifying obvious financial benefits for gambling websites. With the expansion and progression of the Online Gaming industry, players have come to expect only the highest quality facilities.

New features and regular system updates are needed to maintain our clients’ sites and ensure they stay ahead in the market, meaning Online Gaming is an ever evolving and fast-paced industry to work in.

Online Gaming is composed of three main markets:

Software vendors (eg Playtech)

Online gambling business operators (eg William Hill, Mansion, Ladbrokes etc)

End customers (ie players)

Since 2003, the market has grown by an annual average of 23%. The games that currently dominate are sportsbook, casino and poker. Online Gaming is becoming more popular with its growth being driven by factors such as internet penetration, new markets opening due to regulation and new player groups.

Previously Online Gaming attracted mainly younger men, but these days it is becoming increasingly popular amongst women and older age groups.

New Groups of Players

Different types of players have different preferences and reasons for playing. Most play for entertainment, some to win money and others for relaxation. Whatever the reason, it is vital that gaming operators and developers are attentive to the various preferences of the players.

The age range of players is becoming greater as internet penetration continues to expand in our society and interest in Online Gaming increases. The traditional image of a player being a man aged between 25 and 35 is becoming much less predominant. According to research carried out by GP Bullhound, by 2009 43% of all online players 2009 were women. Female players used to show a preference for various kinds of bingo games but are now increasingly playing in other gaming segments. Surveys indicate that men and women have different gaming behaviour. Women generally play for longer but at lower stakes, while men play more frequently at higher stakes for shorter sessions. Men generally play for excitement and women for relaxation. One reason why the bingo segment is experiencing strong growth is because it offers players relaxation in a social community.

= = = = = = =

= = = = = = =

= = = = = = =

It is important to emphasize that the most popular forms of remote gambling today are traditional casino games, wagering and poker variations. However, as the popularity of different kinds of internet gambling varies greatly between the genders, it is expected that bingo type games will produce the largest rate of growth mainly because more women are getting involved in Online Gaming and, although their participation in other games is increasing, indications are that they still prefer bingo!

= = = = = = =

= = = = = = =

Revenues and Profitability

Revenues increased by USD 94.5 million to USD 300.1 million from 205.6 million in 2008, an increase of 46%. Operating profit increased to USD120.2 million from USD 87.8 million and the operating margin was 40.1% compared to 42.7% the previous year.

= = = = = = =

Online Gaming has proven to be a global phenomenon. Currently, Europe appears to be the

quickest expanding online gambling market. In 2009, European online gambling business operators

recorded almost a 44.9% increase in the total Online Gaming yield.

The second largest market in the Online Gaming industry is North America, followed by Asia and the

Middle East. US legislation presently prohibits online gambling in most of its territory and is

therefore experiencing a negative growth.

= = = = = = =

= = = = = = = = = = = = = = = = = = = = = = = = = = = = =

Thank you for taking the time to read Castle Hills’s “Online Gaming = Fantastic Career” guide. Please feel free to contact your consultant if there is any extra information which you require at this stage.

Please remember that before, during and after your relocation, Castle Hill will be here to offer information and advice.