sportingbet plc annual report 2011
sportingbet plc
4th floor 45 moorfields
london ec2y 9ae
tel 44 20 7184 1800
email investorsportingbetcom
wwwsportingbetplccom
sportingbet plc  annual report 2011
overview
01 highlights
02 chairman’s statement
04 geographic diversity
06 group chief executive’s qa
08 bestinclass products
10 key performance indicators
12 building on our core strengths
14 regulation in brief
16 building from external   
growth drivers
business review
18 overview
20 europe and australia
22 corporate social responsibility
25 financial review
26 management of principal risks
30 board of directors
governance
32 corporate governance statement
36 directors’ report
39 remuneration report
45 regulatory developments
financials
48 independent audit report 
49 consolidated statement of 
comprehensive income
50 consolidated balance sheet
51 consolidated statement of changes 
in equity 
52 consolidated cash flow statement
53 notes to the financial statements
78 parent company independent 
auditor’s report
79 parent company balance sheet
80 notes to the parent company 
financial statements
85 shareholders’ information
87 financial summary
88 corporate directory sportingbet plc annual report 2011
sportingbet plc
4th floor 45 moorfields
london ec2y 9ae
tel 44 20 7184 1800
email investorsportingbetcom
wwwsportingbetplccom
sportingbet plc  annual report 2011
overview
01 highlights
02 chairman’s statement
04 geographic diversity
06 group chief executive’s qa
08 bestinclass products
10 key performance indicators
12 building on our core strengths
14 regulation in brief
16 building from external   
growth drivers
business review
18 overview
20 europe and australia
22 corporate social responsibility
25 financial review
26 management of principal risks
30 board of directors
governance
32 corporate governance statement
36 directors’ report
39 remuneration report
45 regulatory developments
financials
48 independent audit report 
49 consolidated statement of 
comprehensive income
50 consolidated balance sheet
51 consolidated statement of changes 
in equity 
52 consolidated cash flow statement
53 notes to the financial statements
78 parent company independent 
auditor’s report
79 parent company balance sheet
80 notes to the parent company 
financial statements
85 shareholders’ information
87 financial summary
88 corporate directory business 
fundamentals
01
geographic 
diversity
regulatory and gaming risk 
exposure minimised by a highly 
tailored local market offering
see page 4
02
bestinclass  
product suite
a sportsbook product that  
is increasingly valuable and 
difficult to replicate
see page 8
03
building on our  
core strengths
providing an enhanced and 
unique customer experience 
through enterprise and 
innovation
see page 12
04
benefit from external  
growth drivers
positive market trends indicate 
significant potential to expand
see page 16 business 
fundamentals
01
geographic 
diversity
regulatory and gaming risk 
exposure minimised by a highly 
tailored local market offering
see page 4
02
bestinclass  
product suite
a sportsbook product that  
is increasingly valuable and 
difficult to replicate
see page 8
03
building on our  
core strengths
providing an enhanced and 
unique customer experience 
through enterprise and 
innovation
see page 12
04
benefit from external  
growth drivers
positive market trends indicate 
significant potential to expand
see page 16 sportingbet plc annual report 201 1 01
gross gaming revenue by product – 2011
 2011 2010
sports  71 69
casino and games 21 21
poker 8 10
 2011 2010
football  587 617
australia horseracing 215 159
tennis 44 44
basketball 42 33
multiples 38 45
horseracing 09 10
other 64 92
sports revenue breakdown – 2011
ngr by domain – 2011
 2011 2010
turkey 224 176
australia 179 155
greece 142 182
spain 132 149
emerging markets 51 32
germany 48 32
uk 45 47
poland 36 47
czech republic 31 32
bulgaria 28 28
scandinavia 15 33
other europe 69 103
overview
overview
highlights
financial highlights for the year
2011 2010
amounts wagered 20539 19713
total revenue 2063 2075
ebitda

514 465
adjusted operating profit

381 354
group operating profit 244 71
adjusted diluted eps

 p 63 62
diluted eps p 39 07
 excluding discontinued territories and at constant currency
 adjusted to exclude exceptional items of £108m 2010 £245m share option charge and amortisation of other 
intangible assets
  integration of centrebet proceeding well and in line with expectations
  ebitda for the year up 11 to £514m
  amounts wagered up 4 year on year to £2054m with ngr up 1

  amounts wagered online in australia up 62 
  inplay continues to perform strongly – now 67 of european amounts 
wagered 2010 61 at an industry leading margin of 97
  final dividend of 11p making a total of 17p 2010 16p
  solid start to new financial year ngr up 17 in first two months 02 sportingbet plc annual report 201 1
overview
chairman’s statement
“our longterm trading 
strategy has been 
consistently executed 
leveraging our proprietary 
bestinclass trading 
technology which  
has enabled us to  
deliver an outstanding 
trading performance”
peter dicks chairman
this has been a year of significant 
progress for the group both in terms 
of financial performance and corporate 
developments agreement with the us 
department of justice in september 
2010 was followed in august 2011 by 
the acquisition of centrebet in australia 
and the passing of regulations in two of 
our largest markets greece and spain 
sportingbet is now well positioned to 
maximise the growth opportunities 
available to it as the global online gaming 
market continues to develop we already 
have market leadership in around 50 
of the territories in which we operate
i am pleased to announce a strong set of 
financial results for the year with ebitda 
increasing 11 to £514m the benefits 
of operating across a broad geographical 
base were demonstrated with strong 
growth in our emerging markets division 
australia and some of our european 
countries offsetting the economic 
weakness in two of our largest markets 
greece and spain this limited the overall 
decrease in revenue to 1 although the 
comparative period did benefit from the 
football world cup which is estimated to 
have benefited last year’s ngr by £85m 
the decrease in revenue was more than 
compensated for at the profit level by 
tight cost control in addition to the 
cost synergies being realised following 
the centrebet acquisition the focus on 
adjusting the cost base to reflect the 
economic conditions and the increased 
cost of newly regulated markets will 
continue over the coming periods 
our overall strategy of providing a first 
class sports betting product offering 
customers an unprecedented number of 
betting opportunities at all times of the 
day remains unchanged sports betting 
is our focus as it offers the greatest 
scope to differentiate our product from 
competitors and provides significant 
barriers to new entrants our longterm 
trading strategy has been consistently 
executed leveraging our proprietary 
bestinclass trading technology which 
has enabled us to deliver an outstanding 
trading performance this success has 
been clearly demonstrated by an inplay 
margin of nearly 10 compared to 5 
or less for our competitors to provide 
a comprehensive suite of products for 
our customers we supplement the 
core sports offering with casino games 
and poker products bought in from 
the leading suppliers in the industry 
as the online gaming industry matures 
governments across the world are 
recognising the significant potential 
contribution from online gaming tax 
revenues as a means to replenish 
national budget deficits and the need 
to bring in regulation to protect the 
consumer and provide a stable trading 
environment we welcome these 
moves and have been exploring ways 
of increasing the percentage of our 
revenue derived from regulated markets  sportingbet plc annual report 201 1 03
overview
in line with this strategy we recently 
acquired centrebet international 
limited a business which predominantly 
operates in the regulated australian 
market this acquisition has raised the 
percentage of the group’s proforma 
revenue derived from regulated 
markets to over 32 for the 201011 
financial year following completion 
of the acquisition on 31 august 2011 
the integration of centrebet with our 
existing australian sportsbook business 
is progressing well and the enlarged 
operation has a market leading position 
with over 30 share in what is a fast 
growing and dynamic online sports 
betting market the acquisition will 
be earnings enhancing excluding 
amortisation of intangible assets in the 
first full year post acquisition 201213
the percentage of revenue from 
regulated markets is also expected 
to increase significantly over the 
coming year as countries introduce 
online gaming legislation two of our 
largest markets spain and greece 
which account for 27 of the group’s 
revenue have passed laws regulating 
their markets from the beginning of 
january 2012 in addition several of 
the other smaller markets in which 
we operate are moving quickly in the 
same direction the group is currently 
paying tax in spain and intends to pay 
tax in greece when the bill is finally 
passed into law the group expects to 
apply for a licence in both countries
based on our experience in the regulated 
australian market while in the short 
term regulation and the implementation 
of the associated tax regimes are 
expected to reduce profitability there 
is an opportunity to grow profits in the 
medium term despite the greater cost 
base the opportunities represented 
by the increased ability to advertise 
improved trustworthiness from being 
licensed and better payment processing 
efficiency combined with an existing 
strong brand presence provide a 
platform for medium term profit growth 
in the australian case it took three years 
to recover profitability with the high 
growth rates experienced during this 
period continuing up to the present time 
the rollout of the group’s mobile phone 
offering has been very encouraging 
since its launch last year actives now 
account for 15 of total customers 
in our largest markets the rollout has 
gathered momentum in the last six 
months with a total of 11 countries 
now covered the take up of the mobile 
product is expected to continue to grow 
significantly over the next three years 
as smart phone and tablet penetration 
a key driver of uptake is expected to 
exceed 50 in the markets we serve 
finally i am pleased to announce that 
the board has proposed a final dividend 
of 11p 2010 11p this brings the total 
dividend for the year to 17p 2010 16p 
an increase of 6 year on year and 
reflects the considerable progress the 
group has made recently if approved 
by shareholders the dividend will be 
payable on 12 january 2012 to ordinary 
shareholders registered as of the close 
of business on 16 december 2011
closecontrol 04 sportingbet plc annual report 201 1
business fundamentals
geographic diversity
the world’s best online betting service 
with markets in 28 countries and over 
700000 active customers worldwide sportingbet plc annual report 201 1 05
global strategy local execution
our customers across the world 
live and breathe sport and our 
ability to offer a global service that 
reflects their culture and passions 
is a cornerstone of our business 
betting behaviour is different around 
the world in south american cultures 
they bet less frequently but the stakes 
are higher in nordic countries bets are 
smaller more considered ice hockey is 
only popular in russia and other eastern 
european countries and the europeans 
are ardent basketball fans our skill 
lies in understanding and reflecting 
these different sporting cultures in 
the 28 countries where we operate
a leading international player
we are a major force in europe handling 
around 79 million bets during the 
year from over 400000 active sports 
enthusiasts horseracing fans dominated 
the buoyant australian market placing 
part of the 29 million bets in australia 
and following the centrebet acquisition 
sportingbet will be the leading player 
in this fastpaced market increasing 
our football and internet coverage
we are making good inroads in markets 
where traditional betting routes are not 
wellestablished allowing the internet 
to become the de facto standard 
from the start football is a national 
obsession in emerging markets – asia 
south america and south africa in 
particular – making these attractive 
longterm prospects for growth
reducing risk
the depth and breadth of our 
geographic cover spreads our economic 
risk diversifies our exposure to high 
profile matches and spreads the load 
on our systems as activity moves across 
the different time zones around the 
globe it delivers economies of scale 
and puts our brand in front of circa 
50000 active players every day  06 sportingbet plc annual report 201 1
andrew mciver  
group chief executive 
discusses the key events 
of the year and looks 
forward to 2012
how would you summarise 
sportingbet’s year
despite economic pressure in two of 
our biggest markets greece and spain 
we delivered a robust performance 
and hit our profit target of £381m we 
benefited from a good performance in 
australia and our emerging markets – a 
clear demonstration of the benefits of 
having a geographically diverse business
i was pleased that we finally settled 
with the us department of justice in 
september 2010 this has been a long 
and arduous process so it was good to 
reach a conclusion and give shareholders 
certainty on the potential liability we 
could now reenter the us subject to 
the prevailing regulation if we felt it 
was appropriate to do so more recently 
the successful acquisition of centrebet 
secured our market position in the 
buoyant australian market and gave 
a welcome boost to performance 
how will the centrebet acquisition 
generate shareholder value
the acquisition of centrebet brings a 
number of benefits firstly it consolidates 
our position as the leading fixed 
odds bookmaker in the fast growing 
australian market and it puts us in 
prime position to benefit from any 
future regulation changes in online 
casino poker and inrunning products
secondly we will be able to extend 
our capabilities in the wider sports 
and internet arena where centrebet 
is particularly strong complementing 
our leading presence in horseracing 
and telephone betting
finally we expect to deliver significant 
cost savings as we merge operations and 
this integration is progressing well so far
overview
group chief executive’s qa
wellpositioned sportingbet plc annual report 201 1 07
overview
how do you view increased 
regulation in your markets
very positively we welcome regulation 
because it provides certainty over 
revenues and profit streams our 
experience in australia suggests that 
after an initial profit hit as we began 
to pay tax within three years profits 
recovered and growth returned this 
demonstrates the positive impact of 
being able to market products more 
widely and with the acquisition of 
centrebet we have taken a major step 
along the regulatory path in that market 
we are following moves towards 
regulation in spain and greece closely 
and expect this trend to continue – 
look at the developments in italy and 
even germany we meet extensively 
with licensing authorities to put our 
views forward – they are often well 
received – and we are very happy to 
contribute to the regulatory debate
what is unique about sportingbet’s 
customer proposition
i think the clue is in the name we are 
focused on delivering an industry leading 
sports betting proposition built on our 
fast growing inrunning product an 
unrivalled selection of bets and a well 
thoughtout customer engagement 
model we expect our staff to have a 
passion for sport and support almost 
anything sporting this is underpinned 
by a significant investment in customer 
service we recruit multilingual staff 
and train them to understand betting 
and how our products work and 
even to acquire another language 
if they want to extend their skills 
why is inrunning betting so popular 
and what is its impact on revenue
inrunning betting took off as soon 
as it became technically possible 
because it dramatically increases the 
level of involvement in a sports event 
maintaining the excitement throughout 
from the constraints of the win lose 
draw starting point we now offer up 
to 200 possible bets during a match 
from our point of view we have seen 
revenues for our inplay product rise to 
67 of european amounts wagered 
within a very short period of time
do you see mobile betting as a key 
area of growth
yes certainly mobile currently represents 
about 15 of our actives and this 
is growing at a steady 150 year 
on year there are some key market 
drivers dictating pace and momentum 
in ‘new technologies’ in general 
smart phone penetration and flat 
data packages are growing strongly 
and demographics are working in our 
favour in addition with the advent of 
platforms like google ppc facebook 
and the apple app store who have 
all recently begun to regulate mobile 
accessibility and activity is set to increase 
what will management focus  
on over the next few years
customer retention remains key 
to the future so we will continue 
investing in our products to give the 
customer a richer more rewarding 
experience alongside expanding 
our mobile capabilities
in the shortterm bedding in centrebet 
will be a key priority alongside ensuring 
we compete effectively in the newly 
regulated markets like spain and greece 
and keep a watching brief on other 
countries on the regulatory path 
growth will remain top of the agenda 
as we expand our international presence 
but this will be combined with an 
increased focus on cost management 
as we tackle the challenge of the 
harsh economic conditions facing 
european markets together with the 
incoming cuts that regulation brings 
wellpositioned 08 sportingbet plc annual report 201 1
business fundamentals
bestinclass products
offering sports fans everywhere an 
unrivalled range of betting opportunities 
every minute of every hour of every day  sportingbet plc annual report 201 1 09
sportsbook
representing 71 of our revenues this 
is where we lead the field with 8000 
different betting opportunities every 
single day football tops the popularity 
league but tennis and basketball each 
now represent 4 of amounts wagered
inplay
now accounting for 67 of our 
sportbook stakes inplay has captured 
the imagination of sporting fans adding 
up to 200 live betting opportunities 
to raise the excitement of the game 
customers can now bet on who will 
get the next corner freekick throw
in goal kick and card our unique 
inhouse technology means we can run 
over 40 simultaneous inplay markets 
at any given time on a single game
live streaming
over 8500 premium events are now 
avidly watched by our customers across 
the world with the exception of those 
based in the uk and scandinavia 
engaging them in the live game as they 
bet on an extensive range of events from 
european asian and south american 
football to horseracing basketball 
snooker darts and many others
paradisepokercom
with up to 10000 concurrent players 
paradisepokercom is one of the world’s 
best known online poker rooms the 
software is run by leading gambling 
software specialist gtech g2 on the 
international poker network “ipn” our 
flagship promotion the paradisepoker 
tour is now in its second season 
attracting poker aficionados from 
all over europe to sellout events
casino
we offer over 300 games from industry
leading games providers that include 
roulette blackjack slots and live dealer 
tables our live dealer casino from the 
pioneer of videostreamed live dealer 
gaming evolution includes local 
language dealers putting us at the 
cutting edge of the online casino market 10 sportingbet plc annual report 201 1
overview
key performance indicators
key performance indicators “kpis” 
enable us to understand what is 
driving our financial performance  
and give us a better understanding  
of how customers are engaging 
with us 
number of sports bets 
the number of sports bets is a simple 
kpi showing us how many bets are 
placed during a given period we can 
then break these results down to track 
number of bets per active per country 
and per product such analysis allows us 
to monitor engagement ensuring our 
customer interaction is second to none 
europe and emerging markets 
million
0 20 40 60 80
201011
200910
200809
200708
sports bets have seen a steady 
increase year on year as a result of 
our continual improvement of our 
product offering especially inplay 
combined with an increase in our 
investment in both marketing across 
all our european domains and 
investment in mobile betting
australia million
0 5 10 15 20 25 30
201011
200910
200809
200708
australia has seen a significant increase 
in sports bets numbers as the benefits of 
mobile betting tv advertising and other 
marketing campaigns were implemented 
post the relaxation on advertising 
regulations in september 2008
percentage of sports net gaming 
revenue “ngr”
ngr is the amount retained by sportingbet 
from bets placed by our customers net of 
promotional bonuses being able to see our 
ngr percentage year on year for each of 
our individual products allows us to make 
decisions on how best to develop these 
products and the customer experience 
europe and emerging markets million
0 2 4 6 8 10
201011
200910
200809
200708
our world class trading team has 
continued to provide an industry 
leading net gaming revenue percentage 
across europe and emerging markets 
their expertise combined with our 
sole ownership of our technology sets 
us apart from the competition 
australia 
0 1 2 3 4 5
201011
200910
200809
200708
the shift in numbers over the last 
four years reflects the move from 
telephone to internet and mobile 
betting in the australian market this 
move has brought with it a large and 
diverse base of lower stake bettors 
as internet and mobile operations have 
taken over the majority of the australian 
business it is no surprise that sports 
net gaming revenue percentage has 
increased moving the australian business 
away from its traditional higher but less 
frequent staking telephone customers to 
more low but frequent staking bettors 
at sportingbet our board of directors 
monitor a series of selected customer 
kpis to ensure that we as a company 
are doing everything in our power to 
make our shareholder’s investment 
worthwhile  sportingbet plc annual report 201 1 11
overview
game     plan
sports yield per active
a good indicator of how much our 
customers bet and the amount of 
profit we make once their winnings 
have been paid essentially sports 
yield is the net gaming revenue per 
active sports betting customer 
europe and emerging markets £ 
0 50 100 150 200 250 300
201011
200910
200809
200708
as the inplay product develops we 
find our customers are more loyal to 
our brand they are more engaged 
they stay longer on our website and 
the frequency of their betting has 
increased the combination of all these 
factors has resulted in a year on year 
increase in sports yield per active across 
europe and the emerging markets 
and will continue to improve as we 
add more inplay events and markets 
active sports customers
this is simply the number of 
customers placing at least one real
money sports bet in the period 
australia
0 20000 40000 60000 80000
201011
200910
200809
200708
the rise in active sports customers is 
a measure of our success at recruiting 
and retaining customers the significant 
increase in 2011 reflects the benefits 
of tv advertising which began in the 
second half of the 200910 financial year 
along with the accessibility created by 
improvements in both online and mobile  12 sportingbet plc annual report 201 1
business fundamentals
building on our  
core strengths
a powerful combination of indepth 
market knowledge and our bespoke it 
platform gives us the competitive edge sportingbet plc annual report 201 1 13
wide geographical spread
our ability to spread our risk across 
multiple territories not only reduces 
our economic and trading exposure 
but also gives us economies of 
scale as we capture the rising 
global passion for international 
sporting events and iconic teams
an industryleading trading team
underpinning our performance is the 
best risk management team in the 
business over 100 specialists who 
deliver industry leading margins 
highly respected for their knowledge 
they bring experience creativity 
and inspiration to our game
unique trading technology
owning our core technology gives us 
the agility to respond to changes in 
markets and regulations at the pace
speed we dictate developed inhouse 
over a number of years our technology 
is unique and enables us to trade 247 
across 28 countries simultaneously
strong brand awareness
one of our most valuable assets our 
brand awareness is well ahead of the 
pack in our key markets australia 
spain and greece supported by 
innovative sponsorship deals and blue 
chip partnerships we continue to invest 
in our brand to drive customer loyalty 
attract new people to betting and lower 
the cost of customer acquisition 
award winning customer service
winning the prestigious gold award 
for the best mediumsized call centre 
emea in the contact centre world 
awards for 2011 puts our 180strong 
customer service team firmly in a league 
of their own based in dublin they 
support customers in 28 countries 24 
hours a day 7 days a week 365 days 
a year in 34 different languages
regulatory expertise
licensing regimes around the world 
are evolving and our dedicated team 
contributes to the regulatory debate 
they ensure we are primed and  
ready to exploit the opportunities  
that emerge as standards change –  
putting us in pole position to 
move into new markets swiftly 14 sportingbet plc annual report 201 1
overview
regulation in brief
the speed of regulation has increased  
dramatically in the last twelve months
this time last year operators were 
reeling from the regulation of the 
french market the introduction of 
a new tax regime together with our 
low market share and the cost of the 
it work required to obtain a licence in 
france led us to conclude that it was 
economically unviable and we therefore 
chose to withdraw from the french 
market in may 2010 since then we have 
blocked all services to french citizens 
italy was next with its updated gambling 
bill permitting a number of non
italian bookmakers to obtain licences 
to operate online in july 2011 italy 
extended its licensable offerings to 
include cash ring games for poker and 
other casino games whilst the technical 
requirements are unique and complex 
the basic economics of the approach 
are heading in the right direction for 
both operators and customers alike
since then we have seen both spain and 
greece publish gambling bills although 
they are still yet to issue licences spain 
is due to start its licence application 
process in november 2011 with the first 
licences expected during december as 
for greece we await the announcement 
of the new licensing regime amidst 
news that tax may be payable during 
the period prior to this announcement 
further north and we had high hopes 
for regulation in denmark unfortunately 
the process has recently been postponed 
pending input from the eu commission 
we expect a decision imminently 
we are confident that in the new 
financial year we will have licences 
in denmark italy and spain we will 
continue operating in a regulated 
greek market with our successful 
greek business however it is 
unclear if the greek regulator will 
have resolved its licencing process 
during this financial year
the european union recently 
published a “green paper” which 
called on all member states in the 
eu to consider all the potential 
issues in relation to online gambling 
including a form of harmonisation 
given the timescales involved in 
implementing this green paper compared 
with the rate at which eu members 
are moving towards regulation such 
harmonisation is unlikely to occur in 
the shortterm and the most likely 
trend to continue is for jurisdictions 
to introduce licensing regimes which 
may or may not be tempered by 
european commission intervention 
here in the uk the government 
announced in july 2011 its intention to 
proceed with plans regarding a system 
for the regulation of remote gambling 
in the uk this will also look at whether 
operators who advertise in the uk 
should face new regulatory requirements 
– which would attract consequential 
licence fees – to ensure a more even 
financial treatment of both uk and non
uk operators who target this market 
further afield and in australia we 
have begun to see a growing trend to 
impose product fees eg race fields 
and sporting fixtures which essentially 
add an additional tax to that paid by 
the operator in the state in which the 
operator is licensed we continue our 
discussions regarding the provision 
of our other products casino games 
and poker as well as inplay which 
remain prohibited in australia 
the united states continue to prohibit 
online gambling following our 
settlement with the department of 
justice in september 2010 we believe 
we can now draw a line under our 
previous activities in the united states 
as for asia we have no operations or 
activities due to the prohibitive regulatory 
regimes in many asian countries 
the sportingbet group continues 
to provide its services only from 
jurisdictions where is it licensed and 
regulated and therefore the position 
in its place of supply and where its 
regulator and applicable local laws 
deem the gambling transaction to 
take place is explicitly legal 
in order to provide our worldwide 
gambling service the sportingbet group 
currently maintains licences in alderney 
antigua and barbuda australia curaçao 
malta south africa and the uk  sportingbet plc annual report 201 1 15
overview
case study – spain
we currently find ourselves in a 
transition period between the 
passing of the parliamentary bill 
in july and the award of licences 
before christmas during this 
period we continue to operate 
in spain with the consent of 
the regulator providing we pay 
25 gross profit tax during 
this period failure to pay this 
tax would invalidate any licence 
application later in the year
the spanish regulator is taking 
an approach between that of 
france and denmark with a 25 
gross profit tax on fixed odds 
betting sports betting is allowed 
with an approved catalogue 
of markets poker roulette 
backgammon and baccarat are 
also all allowed slots lottery and 
scratch cards are not allowed
whilst there is no certainty on 
the overall impact of regulation 
on spanish profitability in the 
shortterm we are confident that 
the sportingbet group will be 
able to overcome the immediate 
increases in operating costs 
from both tax and increased 
marketing activities as we have 
proven in the australian market 
spain represents one 
of our largest markets 
accounting for 13 of 
net gaming revenue 
with the passing of a 
new online gambling 
bill earlier this year we 
expect the application 
and licensing process 
to commence in 
november 201 1
goaldifference
a more detailed review of how 
regulation has impacted our 
business over the last twelve 
months is given in regulatory 
developments on pages 45 to 47 16 sportingbet plc annual report 201 1
business fundamentals
building from external 
growth drivers sportingbet plc annual report 201 1 17
smart phone take up
the take up of our mobile product 
is expected to continue to grow 
significantly over the next three years 
as smart phone and tablet penetration 
is expected to exceed 50 in the 
markets we serve worldwide 3g 
subscriptions were above 900 million 
in 2010 as consumers continued to 
demand anytime anywhere access 
to applications and services
broadband penetration
our growth strategy continues to take 
advantage of ever increasing global 
broadband penetration allowing 
customers to benefit from improved 
connection speeds with data travelling 
at a faster rate the user experience 
is enhanced and product innovation 
can take advantage of improvements 
to the distribution channel
global sports
sports have now become established 
as global brands as individual 
teams leagues and sports become 
supported in areas well outside 
their traditional heartlands
the english football premier 
league now broadcasts in over 200 
territories with a global audience 
of around 500 million people 
confidence in internet transactions
the rise in secure online transactions 
reflected in the continued increase 
in internet banking online shopping 
and other ecommerce activities 
leaves us well placed as the betting 
community becomes increasingly 
accustomed with the internet as a 
purchasing tool in everyday life 18 sportingbet plc annual report 201 1
business review
overview
this has been a year of significant 
progress for the group both in terms 
of financial performance and corporate 
developments we have delivered a 
strong set of financial results with 
ebitda increasing 11 to £514m the 
benefits of operating across a broad 
geographical base were demonstrated 
with strong growth in our emerging 
markets division australia and some of 
our european territories offsetting the 
economic weakness in greece and spain
with the acquisition of centrebet in 
australia and the passing of regulations 
in two of our largest markets 
greece and spain sportingbet is 
now well positioned to maximise the 
european opportunities available to 
it as the global online gaming market 
continues to develop and regulate
our overall strategy of providing a first 
class sports betting product offering 
customers an unprecedented number 
of betting opportunities at all times of 
the day remains unchanged this is 
underpinned by our proprietary best
inclass inplay offer superb trading 
team and focus on giving customers 
what they want especially in new 
growth areas such as mobile
the group has had a solid start to 
the new financial year with ngr in 
the first two months 17 above 
the same period last year
runawayleader
sportingbet group
sportingbet is one of the world’s leading 
online gaming operators with divisions 
focused on europe which includes 
emerging markets in africa and south 
america and australia the european 
operation is based in the channel islands 
operating under a licence provided 
by the alderney gambling control 
commission this is supported by an 
operational centre in dublin providing 
customer services and administrative 
support the group’s australian division 
is based in darwin operating under 
a licence provided by the northern 
territory government in total the 
group now employs over 600 people 
betting on sports is at the heart of the 
sportingbet business accounting for 
71 2010 69 of group gross gaming 
revenue the growth in sports betting 
of 46 has primarily been driven by 
bets placed whilst the game is ‘inplay’ 
which accounts for 67 of european 
amounts wagered our inplay product 
has been growing strongly at 24 per 
annum over the last three years and 
with an inplay margin of 97 2010 
93 we continue to be the industry 
leader in addition inplay traded in 
450 out of the 500 distinct football 
divisions we offered in 201011 and 
we currently trade between 800900 
football matches inplay per week sportingbet plc annual report 201 1 19
business review
although football is our core product 
accounting for 42 of gross gaming 
revenue the group offers betting 
markets on all major global sports 
we have successfully implemented our 
internally developed football and tennis 
derivatives programmes and taken our 
inplay service on these two sports to a 
higher level of differentiation both on 
pricing and market types as an example 
we have implemented our internally 
developed football instants market 
offering next corner next free kick and 
next throwin on more than 75 of all 
inplay football matches offered the 
breadth of our sports coverage with 
football tennis and basketball through 
to local sports such as ice hockey and 
handball is now firmly established 
while sports betting remains the 
focus of the business we provide 
a complete range of other gaming 
products to our customers including 
casino games and poker casino and 
games contribute 21 of group gross 
gaming revenue whilst poker makes up 
the remaining 8 these products are 
not offered to our australian customers 
due to regulatory constraints 
the group achieved an operating 
margin of 185 excluding exceptional 
items share option charge and 
amortisation of intangible assets 
during the year which was above the 
prior year’s 171 due to savings in 
payment processing and staff costs 
outlook
the group has had a solid start to the 
new financial year with ngr in the first 
two months 17 above the same period 
last year and in line with expectations
with regulatory change well under way 
in europe we are confident that the 
increased advertising opportunities 
improved payment processing and stable 
business platform this provides will drive 
profitable growth in the mediumterm
whilst the economic outlook remains 
challenging our diversified business 
model across the different economic 
cycles of europe australia and 
south america gives us confidence 
for the current financial year 
leadingedge 20 sportingbet plc annual report 201 1
business review
europe and australia
europe
the european business incorporating 
the financial results for the emerging 
markets division performed well in 
difficult economic conditions the 
gross amount wagered pre bonus 
adjustment on sports increased by 
08 to £11840m 2010 £11749m 
generating gross gaming revenue of 
£1189m 2010 £1214m down 21 
underlying gross gaming revenue at 
constant currency increased by 15 
two of our largest markets greece and 
spain were affected by particularly 
challenging economic conditions and as 
a result we saw amounts wagered fall by 
22 and 2 respectively this impacted 
the number of sports actives which fell 
by 10 however by providing markets 
to bet on every minute of every day we 
saw the number of sports bets placed 
rise by 41 to 789m 2010 757m 
and the number of bets per customer 
increased to 184 2010 159 although 
the average bet size decreased marginally 
to £1501 2010 £1551 yield per sports 
customer increased from £254 to £277
once again the european business 
produced an industry leading sports 
margin of 100 2010 103 
inplay betting in our european 
business accounted for 67 of 
the value of bets placed during the 
year and amounts wagered on live 
betting increased 90 year on year 
generating total ngr of £764m and 
equating to a gross margin of 97
the emerging markets division again 
saw strong ngr growth up 56 driven 
by our brazilian operation and our 
regulated south african operation
the continued increase in smart phone 
penetration has driven mobile usage 
to an average of around 15 in our 
more mature domains with the take up 
varying widely from country to country 
those customers using smart phones 
tend to spend more across both online 
and mobile channels next year will 
see the introduction of mobile casino 
and games which is expected to 
incrementally increase mobile revenues 
by the end of the financial year
regulation offers new marketing 
opportunities in the mobile marketing 
space as google’s pay per click apple’s 
app store and social media sites such 
as facebook with their strong mobile 
following 44 of online users350m 
mobile users open up their doors 
to betting and gaming companies 
where they were previously closed
casino and games gross revenue fell 
by 15 to £475m 2010 £482m 
our industry leading product range 
led to a 16 increase in the number 
of bets but the difficult economic 
conditions in markets such as spain 
and in particular greece caused a 
14 decrease in the average bet size 
poker gross revenue decreased to £177m 
2010 £217m in challenging market 
conditions despite the closure late in our 
financial year of the us facing businesses 
of some of our competitors our casino 
and games and competitive poker 
product remain an essential part of our 
offering creating a ‘one stop shop’ which 
has proven to increase customer loyalty 
2011 2010 –
sports actives 429154 477234 –10
sports bets 789m 757m 41
sports betsactive 184 159 160
sports bet size £1501 £1551 –32
yield per sports active £277 £254 90
casino and games bets 5814m 4996m 160
casino and games bet size £243 £282 –140 sportingbet plc annual report 201 1 21
business review
australia
gross amounts wagered in australia 
increased by 11 from £7453m to 
£8250m resulting in a pretax margin 
of £500m 2010 £455m gambling 
taxes in australia amounted to £98m 
in the period 2010 £105m after 
accounting for these taxes the post tax 
margin increased by 15 from £350m 
to £402m after bonuses ngr increased 
by 11 from £336m to £372m 
the sports margin in australia was 
well above the long term average 
in the year at 49 2010 47 
as certain horseracing results 
favoured the bookmaker 
in line with our strategy of expanding 
the higher margin internet business 
the online operations performed very 
strongly with the number of actives up 
64 and the number of bets up 53 
the internet business now accounts for 
77 of the gross margin compared to 
52 in the prior year not surprisingly 
the traditional high roller telephone 
business was affected by difficult 
economic conditions causing active 
telephone customer numbers to decrease 
by 27 with the amount wagered 
on the telephone down by 20 
our australian mobile platform was 
successfully launched last year the 
proprietary owned product continued 
to perform strongly this year with 
ngr up substantially to over 5 of 
divisional ngr as in other countries 
the mobile product is increasing 
the frequency of customer bets and 
producing a higher margin as it tends 
to have been used to supplement 
existing betting opportunities 
in common with other australian 
based gaming operators sportingbet 
has made a claim to recover gst 
from the australian tax office 
relating to overseas wagers based on 
recent court judgements the group 
believes that the aus91m £56m 
being claimed will be recovered 
many of the product fee issues created 
when the australian states liberalised 
their regulations in september 2008 
have been satisfactorily resolved to 
date however new south wales fees 
remain the subject of a court case 
which is expected to be resolved in 
late 2011 as sportingbet has always 
paid the required fees a finding in our 
favour would result in a repayment 
of around aus13m £104m and 
probably lower ongoing fees
2011 2010 –
internet
sports bets 264m 173m 53
sports betactive 341 326 45
sports bets size a26 a28 –92
sports margin post tax 68 65 40
telephone
sports bets 14m 16m –10
sports betactive 77 107 –27
sports bets size a427 a535 –20
sports margin post tax 25 35 –27
the acquisition of centrebet was 
completed on 31 august 2011 following 
the year end although it is relatively 
early in the integration process the signs 
are very promising our intention remains 
to keep both brands operating on one 
platform thereby targeting maximum 
revenue upside through diversification 
whilst also extracting the largest 
possible cost savings from synergies 
the combined business has around 
one third of the australian internet 
gambling market which is regulated 
taxed and fast growing in addition 
there is the medium term possibility of 
significantly increasing the profitability 
of the company if the australian 
government regulate to allow betting 
inplay online casino games and poker 22 sportingbet plc annual report 201 1
business review
corporate social responsibility
the company’s objective is to provide a ‘protected 
entertainment environment’ in which our customer care 
programmes give responsible adults the confidence of 
knowing that their money is safe whilst providing the 
company with the confidence that all reasonable steps  
are being taken to protect the vulnerable
social responsibility committee
the committee is chaired by non
executive director brian harris and 
its other members are nonexecutive 
director sean o’connor and the 
company’s general counsel daniel 
talisman who also acts as the 
committee’s secretary sean o’connor 
has resigned as a director from the board 
and from his committee memberships 
of which the social responsibility 
committee is one with effect from 16 
december 2011 the board intends to 
review the composition of all committees 
including the social responsibility 
committee following the release of 
the company’s financial year results on 
5 october 2011 the committee met 
five times during the last financial year 
the head of compliance and the group 
head of human resources attend its 
meetings and the group chief executive 
is appraised of the committee’s work 
at least twice in the course of the year
the committee is responsible for 
reviewing the company’s policies on 
corporate social responsibility and 
stimulating groupwide best practice 
on matters including age verification 
fraud money laundering responsible 
gaming selfexclusion and privacy
appropriate recommendations are 
made to the company’s board 
terms of reference can be viewed 
on wwwsportingbetplccom and are 
available in writing on request
customers
as a service business the core of 
sportingbet’s policies on social 
responsibility lies in our approach 
to our customers all employees are 
committed to winning and retaining 
the trust and loyalty of our customers
the guiding principle behind 
sportingbet’s policies can be  
summarised as ‘know your customer’ 
procedures to achieve this mean 
far more than merely collecting 
documentary evidence of people’s 
identities it is about understanding their 
individual requirements appreciating 
concerns and closely researching 
their patterns of behaviour
knowing one’s customers and creating 
profiles of their activities and preferences 
leads to targeted and appropriate 
marketing strategies this lies at the 
heart of the company’s customer 
relationship management polices
the way different customers spend 
money and what they spend it on 
provides an overall understanding of 
their motivation for almost all of the 
company’s customers online gambling 
is an entertainment pastime and 
sportingbet’s products promotions and 
culture make their relationship with the 
company an enjoyable experience
it is the small minority however who 
may be potential fraudsters underage 
gamblers or problem players that result 
in the need for comprehensive systems 
and procedures to protect the company 
and often the customer of course 
nothing can ever be entirely secure 
against determined offenders but the 
company commits much time and 
investment to finding organisational and 
software driven approaches to excluding 
the vulnerable and identifying fraud
with multiplayer environments such as 
poker the company is particularly vigilant 
about the risk of collusion or irregular 
fund movements between participants 
systems have been designed to highlight 
unusual or concerning patterns of play
sportingbet has selected uru and 
aristotle as independent third party 
suppliers to provide online age and 
identity verification services customers’ 
registration details are verified against 
third party suppliers’ databases to  
ensure that they are over 18 years old 
these databases utilise data harvested 
from a variety of global governmental 
and corporate official records containing 
known individuals aged over 18 only 
employees
the board of sportingbet is of the firm 
belief that the company’s success is 
due to the quality and commitment 
of its workforce the company’s 
employee management priorities 
including its remuneration strategies 
are based on recruiting and retaining 
the best people in the industry and on 
encouraging working practices that 
improve productivity reduce costs 
develop talent and give job satisfaction
the board recognises the need for 
communication with employees at 
every level weekly sales notes and all 
quarterly results announcements are 
circulated to employees and copies of 
the annual report and accounts are 
also made available the company 
is committed to developing ongoing 
communication with all of its employees 
this is achieved through a variety of 
channels including the group’s intranet 
to ensure that everyone is informed of 
the group’s progress and recognises 
the key roles that they as employees 
play in sportingbet’s success 
sportingbet has conducted two 
employee engagement surveys to date 
in february 2010 and february 2011 
measuring employee engagement across 
ten key areas specific to sportingbet  sportingbet plc annual report 201 1 23
business review
the results of these surveys are used 
throughout the year in order to raise 
sportingbet’s engagement with staff
the group is committed to a policy of 
equal opportunity in matters relating 
to employment training and career 
development of employees and is 
opposed to any form of less favourable 
treatment afforded on the grounds of 
age disability sex marital status sexual 
orientation nationality race or religion
health and safety policy
sportingbet is committed to providing 
safe and healthy working conditions 
for our employees and has adopted a 
health and safety policy to implement 
this ambition the policy covers
•	 identifying hazards in the workplace 
assessing the risks associated with 
them and implementing appropriate 
preventive and protective measures 
•	 safeguarding the health and safety 
of visitors contractors and of any 
members of the general public who 
could be affected by our activities 
•	 ensuring the workplaces under our 
control are maintained in a safe 
condition without risks to health 
and with safe means of access 
•	 providing and maintaining safe 
equipment with procedures in place 
for reporting faulty equipment
•	 providing all employees with 
sufficient information instruction 
and training to enable them to work 
safely and to raise standards of 
health and safety in the workplace 
for themselves and their colleagues
•	 establishing and implementing 
safe methods of work
•	 maintaining procedures to be followed 
in the event of an emergency and
•	 ensuring adequate resources are 
made available to fulfil this policy 
the board is ultimately responsible 
for health and safety specific local 
managers have delegated responsibilities 
for the day to day operation of the health 
and safety policy in their own locations
group finance director jim wilkinson is 
responsible for ensuring compliance with 
this policy and for health and safety in all 
the company’s offices he is competent 
to advise and assist the board in the 
discharge of their duties under this policy 
trade and charitable organisations
the company recognises the 
obligation upon the gaming industry to 
demonstrate its commitment to self
regulation the company is supportive 
of the role that the industry’s trade 
associations can play in this regard 
and sportingbet is an active member 
of the remote gambling association 
rga holding a seat on its executive 
committee and being represented 
on various rga subcommittees
the company has signed up to the 
rga’s codes on social responsibility 
and age verification the provisions 
of which the company endorses
sportingbet invests time and resources 
in meeting and communicating with 
officers and politicians of governments 
and national online gaming licensing 
authorities the company’s management 
remains committed to playing its part in 
promoting the value of legislation that 
will lead to a regulated approach to the 
industry not least as a mechanism for 
protecting the vulnerable elements of 
society from unscrupulous operators
powerplay 24 sportingbet plc annual report 201 1
business review
corporate social responsibility
recognising that some customers may 
be affected by gambling dependency 
the company has continued to 
provide funding in the uk to the 
great foundation formerly known 
as the responsibility in gambling 
trust the company has also made 
donations to the following organisations 
and charities the island academy 
international school in antigua heros 
homing exracehorses organisation 
scheme friends of israel sport centre 
for the disabled and sponsorship of 
a lords taverners’ celebrity cricket 
event in the channel islands 
community liaison
in order to encourage a socially 
integrated work environment the 
company has placed an emphasis on 
investing in the local communities in 
which it operates in guernsey where 
the company’s primary licence and 
operations are based the company has 
invested a significant amount of time 
and money into the local community 
including sponsoring the guernsey 
football club the rising stars fund 
that supports guernsey’s elite athletes 
guernsey table tennis the channel 
islands athletics club and local events 
such as the sportingbet channel 
islands sports personality of the year 
awards and the inaugural guernsey 
community foundation awards which 
celebrates individuals and companies that 
contribute to the guernsey community
in antigua where the group has held 
sports betting and gaming licences for 
many years the company continues 
to donate a significant sum of money 
to the island academy international 
school to fund bursaries for a number 
of less privileged local children
in the united kingdom sportingbet 
supports the home office funded 
scheme tackling knives action 
programme in the west midlands this 
programme has been implemented 
through “braveheart” – a scheme which 
takes youth leaders policemen former 
gang members and community workers 
into the scottish islands for a week 
to improve their leadership skills self 
reliance and confidence in conjunction 
with the wolverhampton wanderers 
fc community trust sportingbet has 
sponsored three of its employees to act 
as members and to join youth leaders on 
this scheme and is working with west 
midlands police and community groups 
in the area to encourage other companies 
to join the “braveheart” programme
environmental management
sportingbet as with many online 
businesses causes a relatively low 
level of environmental damage 
nevertheless the company monitors 
its effects on the environment 
where an environmental impact does 
occur for eg through transport and 
certain areas of consumption and 
waste management the company 
is committed to bringing about 
continuous improvement in reducing 
its adverse environmental impact 
sportingbet’s environmental 
policy includes
•	 complying with all relevant 
national and regional legislation 
as a minimum standard
•	 complying with codes of practice 
and other requirements such as 
those specified by regulators
•	 promoting practical energy efficiency 
and waste minimisation measures
•	 requiring each office to recycle its 
paper waste
•	 encouraging the use of public 
transport and environmentally 
friendly modes of transport 
where this is practicable and
•	 providing a shared interoffice 
it network and communications 
technology that reduces the 
need for business travel 
in order to achieve this sportingbet
•	 ensures employees are trained 
and motivated to conduct their 
activities in an environmentally 
responsible manner
•	 reviews the policy on a regular 
basis to take into account 
any new developments in 
environmental management and
•	 allocates sufficient management 
resources to ensure effective 
implementation of the 
environmental policies
facilities for recycling office waste 
are in place at our offices during 
20102011 our offices recycled waste 
paper spent toner and ink cartridges 
obsolete computer hardware 
printers and mobile phones
the head of compliance is responsible 
for the implementation and monitoring 
of the environmental policy the 
environmental policy is reviewed by 
the social responsibility committee sportingbet plc annual report 201 1 25
business review
business review
financial review
trading summary
amounts wagered for the year ended 31 
july 2011 grew by 42 to £20539m 
2010 £19713m earning net gaming 
revenue “ngr” of £2040m 2010 
£2075m down 17 on the prior 
year at constant currency and taking 
into account our exit from france and 
norway in the prior year ngr was 
up 12 on a like for like basis
amounts wagered on sports betting 
in europe incorporating the financial 
results for the emerging markets 
division grew by 08 to £11746m 
2010 £11651m earning ngr of 
£1095m 2010 £1116m down 19 
year on year on a like for like basis 
european sports ngr was up 39 
casino and gaming contributed a 
further £440m and poker £133m 
to both amounts wagered and ngr 
2010 £449m and £174m 
amounts wagered on australian 
sports betting grew by 105 to 
£8220m 2010 £7439m earning 
post betting tax ngr of £372m 
2010 £336m this growth excludes 
the centrebet acquisition which was 
completed following the year end
as a percentage of amounts wagered 
the european and australian sports 
ngr were 93 and 45 respectively 
2010 96 and 45 however 
amounts wagered and ngr are stated 
after a deduction for customer bonuses 
of £203m 2010 £188m without 
the bonus deduction the equivalent 
numbers would have been 100 
and 49 2010 103 and 47
costs excluding exceptional items 
share option charge and amortisation 
in the year were £1682m 2010 
£1721m accounting for 815 
of total revenue 2010 829
operating profit before exceptional 
items share option charge and 
amortisation for the year increased 
8 to £381m 2010 £354m 
earnings before interest tax depreciation 
and amortisation before exceptional 
items and share option charge increased 
11 to £514m 2010 £465m 
operating profit after the exceptional 
costs of £108m 2010 £245m 
share option charge of £12m 2010 
£20m and amortisation of other 
intangible assets of £17m 2010 
£18m was £244m 2010 £71m
net finance cost was £06m 
2010 £02m 
corporation tax increased to £31m 
2010 £30m due to the increased 
profitability of our australian business 
exceptional costs totalled £108m 
2010 £245m these costs relate 
mostly to the acquisition of centrebet 
international limited and the possible 
disposal of the turkish language website 
adjusted basic earnings per share before 
exceptional items share option charge 
and amortisation was 66p 2010 
65p diluted earnings per share before 
exceptional items share option charge 
and amortisation was 63p 2010 
62p basic group statutory earnings 
per share was 39p 2010 08p
as at 31 july 2011 the group had 
£1802m 2010 £589m of cash and 
liquid resources on its balance sheet 
after taking into account £1236m 
held in respect of the acquisition of 
centrebet £227m 2010 £182m 
of customer liabilities £40m 2010 
£40m of bank loans secured on 
residential properties in the channel 
islands and £31m 2010 £25m of 
finance leases net cash at the period 
end stood at £268m 2010 £342m 
treasury management
the group’s treasury function provides 
a centralised service for the provision of 
finance and the management and control 
of liquidity foreign exchange and interest 
rates the function operates as a cost 
centre and manages the group’s treasury 
exposure to reduce risk in accordance 
with policies approved by the board 
it is not the policy of the group to 
trade in or enter into speculative 
transactions authorities procedures 
and reporting responsibilities are 
documented and regularly reviewed 
due to the international nature of its core 
activities the group’s reported profits 
net assets and cash flows are all affected 
by foreign exchange rate movements 
operations are financed by a mixture of 
retained profits bank borrowings and 
longterm loans in addition various 
financial instruments such as trade 
receivables and trade payables arise 
directly from the group’s operations 
certain customers in the australian 
region are allowed to place bets on 
credit the group’s policy of respect of 
credit risk is to require that appropriate 
credit checks are made on potential 
customers before bets are placed 
and credit limits set accordingly 
the group continues to use 
forward currency contracts to 
manage foreign currency risks 
frontrunner 26 sportingbet plc annual report 201 1
business review
management of  
principal risks
legal and regulatory
risk description mitigation
increasing regulation 
in online gambling
the regulatory position on online gaming is 
changing rapidly many countries are reviewing 
their position especially in europe and are 
drafting new legislation these will affect the 
tax paid in many jurisdictions however it will 
also have the potential to open the market 
to a greater number of customers there is 
a risk that the new regulations could inhibit 
revenues or result in having to withdraw from 
markets to avoid breaching regulations
we are working to identify countries that 
are looking to introduce new regulations 
and where possible we become actively 
involved in shaping their new regulations 
and educating them in the technicalities 
of implementing gaming bills at the same 
time we are aligning our internal processes 
and infrastructure to ensure we are well 
placed to meet the requirements of the new 
regulatory regimes we are also monitoring 
our global strategy on a country by country 
basis to ensure the group’s balanced portfolio 
remains so in the face of these changes in 
addition the group limits its regulatory risk 
from any one country by accepting wagers 
from a large numbers of jurisdictions
risk description mitigation
dependence on 
regulatory licences
there can be no assurance that any jurisdiction 
in which licences are held by or on behalf 
of the group will not change its licensing 
requirements including the terms and conditions 
to which the licences and approvals currently 
held by or on behalf of the group are subject 
if the regulatory scheme of any jurisdiction in 
which the group operates were to change 
its licensing requirements the group may 
be required to expend significant capital or 
other resources in order to comply with the 
new requirements andor may not be able 
to meet the new requirements either or a 
combination of which could have a material 
adverse effect on the group’s business 
financial condition and results of operations
the group has diversified its risk by obtaining 
multiple licences betting activities are 
licensed in alderney antigua and barbuda 
australia northern cyprus south africa 
and the uk the board believes the group 
has a good relationship with the relevant 
regulatory authorities but there can be no 
guarantee that these licences will be renewed 
or that they will not be terminated early
risk governance and responsibilities
the board has overall responsibility 
for risk management and considers 
the risk process as an integral 
part of strategic planning 
the executive directors make 
recommendations on the overall approach 
to risk management and identify the 
principal risks and uncertainties
the audit committee is responsible for 
assessing the scope and effectiveness 
of the process established to identify 
assess manage and monitor risks
risk management process
the board routinely monitors risks 
that could materially and adversely 
affect the group’s ability to achieve 
strategic goals financial condition 
and results of operations
the board considers the following 
impact areas in assessing risks
•	 legal and regulatory
•	 marketplace
•	 technology
•	 customers
•	 reputation
•	 employees
the board is supported by executive 
management personnel within the 
above mentioned areas of the business 
who collectively play a key role in risk 
management and regularly report 
to the board through the audit 
committee the risk management 
processes are reviewed formally by 
the audit committee annually
principal risks and uncertainties
the risks outlined here are those 
principal risks and uncertainties that the 
executive directors consider material to 
the group they are not presented in 
any order of priority additional risks and 
uncertainties not currently known to the 
directors or that the directors currently 
consider immaterial may also adversely 
affect the group’s business results of 
operations or financial condition sportingbet plc annual report 201 1 27
business review
marketplace
risk description mitigation
competition
the online betting market is highly 
competitive the group competes with 
a number of companies some of which 
have greater financial marketing and other 
resources as a result these companies 
may adopt more aggressive pricing policies 
or undertake more extensive marketing 
and advertising campaigns this may have 
a negative impact on revenues or profit 
margins achieved by the group in the 
future the group would face an increase 
in competition if competitors expanded or 
focused more on online sports betting or if 
there were new entrants in the market
the group closely monitors competition within 
the online gambling industry and has a long 
term approach to improving its products 
marketing and it infrastructure in addition 
the group has a diversified geographical 
base which spreads the competitive risk 
technology
risk description mitigation
dependence on 
advanced information 
systems technology 
changes
the group’s operations are highly dependent 
on technology and advanced information 
systems and there is a risk that such 
technology or systems could fail in addition 
to such failure there can be no assurance 
that such technology or systems will not be 
subject to damage or interruption caused by 
human error unauthorised access computer 
viruses distributed denial of service ddos 
attacks increase in volume in usage of online 
services sabotage natural hazards or disasters 
or other similarly disruptive events including 
other security breaches or will be able to 
support a significant increase in online traffic 
or increased customer numbers any failure 
or disruption of or damage to the group’s 
technology or systems could have a material 
adverse effect on the group’s business 
financial condition or results of operations 
the group has in place data recovery and 
systems recovery procedures security 
measures and business continuity plans in the 
event of failure or disruption of or damage 
to the group’s technology or systems 28 sportingbet plc annual report 201 1
business review
management of  
principal risks
technology
risk description mitigation
overreliance on 
third parties
the group has relationships with a number 
of key third party suppliers who provide 
products and services to the group 
infrastructure suppliers network and 
telecommunication suppliers and application 
service providers are longterm partners in 
providing an infrastructure which seeks to 
ensure the delivery of sophisticated high 
performance transaction processing systems 
however the group exercises little control 
over many of these third party suppliers 
and is reliant on them to perform their 
services in accordance with the terms of 
their contracts which increases vulnerability 
to problems with the products and services 
they provide any adverse event affecting 
the group’s relationship with key suppliers 
could have a material adverse effect on 
the group’s reputation business financial 
condition and results of operations
the group is increasing the number 
of third party suppliers to reduce the 
dependency on the current suppliers and is 
performing a number of functions internally 
previously undertaken by third parties
customers
risk description mitigation
fraud
as an online business the group experiences 
fraudulent activity on customer accounts in 
the form of deposits from stolen credit cards 
and debit cards these amounts are written off 
as a loss to the business although the direct 
financial impact of these transactions is small 
well under 1 of total deposits from cards 
we are at risk of temporarily losing the ability 
to process credit  debit card transactions in 
some territories if the percentage of disputed 
transactions there exceeds the thresholds that 
are laid down by the card schemes losing the 
ability to process card transactions can reduce 
our ability to acquire and retain customers 
the group has a risk management 
department whose role is to monitor 
transactions for signs of fraudulent activity 
and to carry out knowyourcustomer 
procedures fraud detection and prevention 
software is used by the risk management 
team the group sources multiple payment 
service providers to mitigate the risk of 
losing any single funding channel sportingbet plc annual report 201 1 29
business review
customers
risk description mitigation
money laundering
as an online business that has no facetoface 
contact with customers the group faces the 
possibility of reputational damage if there 
was a serious incident of a customer using 
our service to carry out money laundering 
or terrorist financing such an incident could 
have a damaging effect on the brand and 
on the attitudes of customers regulators 
and business partners towards the group
the group’s risk management department 
monitors customer activity for signs of 
money laundering and carries out know
yourcustomer procedures in order to 
minimise the risk of money laundering
reputation
risk description mitigation
brand reliance
the group’s success depends on a strong 
brand and if the group is not able to maintain 
and enhance its brand its ability to expand 
its base of customers advertisers and 
affiliates will be impaired and its business 
and operating results will be harmed the 
directors anticipate that as the group’s 
market becomes increasingly competitive 
maintaining and enhancing the group’s 
brand may become increasingly difficult
the directors believe that the brand identity 
that the group has developed has significantly 
contributed to the success of its business 
the group spends more than 30 of net 
gaming revenue on marketing and reviews 
and monitors the success of all marketing 
and sponsorship expenditure the group 
intends to continue to acquire domain 
names as suitable opportunities arise
employees
risk description mitigation
loss of key personnel 
retention
sportingbet is positioned in the very 
competitive b2c space many of our 
employees have skill sets which are very 
attractive not only to our competitors 
but in the “e” space in general 
being a relatively small organisation it is easier 
to identify key retention issues by employee 
a range of solutions are in place to manage 
such risks interventions for specific risks 
range from braveheart type initiatives to 
increased responsibilities key projects as well 
as ensuring that base pay is competitive 
risk description mitigation
failure to attract quality 
staff acquisition
given the industry sector we operate in 
approximately 20 of potential candidates 
for jobs will decide the gaming sector is not 
for them our business activities in turkey 
on occasion make us less attractive as an 
employer than some of our competitors
our head of resourcing has built up excellent 
relationships with key headhunters and 
recruitment agencies as a result they 
work hard on our behalf when looking 
for candidates even with the threat of 
acquisition many candidates see this as a 
career advancing opportunity by learning 
new skills in the event of a takeovermerger 
in the absence of equity we are being creative 
in relation to notice periods and exclusivity 
clauses to ensure offers are converted to 
acceptances in the current climate  30 sportingbet plc annual report 201 1
business review
board of directors
peter dicks
chairman and  
nonexecutive director
peter dicks aged 69 joined 
the board of sportingbet as 
chairman in january 2000 he 
resigned in september 2006 and 
rejoined in february 2008 as a 
result of us related matters peter 
was cofounder of abingworth 
plc and is currently a director of a 
number of quoted and unquoted 
companies including graphite 
enterprise trust plc polar 
capital technology trust private 
equity investor mears group 
and standard microsystems a 
us nasdaq quoted company 
peter is also a director of daniel 
stewart and company
andrew mciver
group chief executive
andrew mciver aged 48 
formerly group finance 
director took over as group 
chief executive in october 
2006 andrew qualified as a 
chartered accountant with 
arthur andersen following 
two years in the corporate 
finance department at dresdner 
kleinwort wasserstein he held 
senior finance positions at signet 
group plc ladbrokes group plc 
and british telecom’s internet 
division he was director of 
finance with house of fraser 
plc for four years before joining 
sportingbet in december 2001
jim wilkinson
group finance director
jim wilkinson aged 45 joined 
sportingbet plc as group 
finance director in february 
2008 prior to which he held 
the same positions at johnson 
services group plc 2004–
2007 and informa group plc 
1998–2004 jim qualified 
as a chartered accountant 
with touche ross london
 
brian harris
senior independent  
nonexecutive director
brian harris aged 65 joined 
sportingbet as a nonexecutive 
director in 2003 the founder 
and senior partner of a london 
law firm with an international 
clientele he has acted for foreign 
governments multinational 
corporations national airlines 
high net worth individuals and 
privately owned companies he 
is actively involved in sporting 
charity work for the disabled sportingbet plc annual report 201 1 31
business review
sean o’connor
nonexecutive director
sean o’connor aged 62 joined 
sportingbet as a nonexecutive 
director in 2000 was acting 
chairman of sportingbet plc from 
september 2006 to february 
2008 during the year to july 
2011 he was the chairman of 
cape plc and springboard 
urban he was also a director 
of a number of public and 
private companies including the 
graphite enterprise trust plc 
and crow tv he was previously 
chairman of the stoves group 
plc and of mediakey plc
sean o’connor will resign 
from the board of directors 
on 16 december 2011
nigel payne
nonexecutive director
nigel payne aged 52 joined 
sportingbet in 2000 and is 
now a nonexecutive director 
he was group chief executive 
between 2001 and 2006 nigel 
was the group financial director 
of polestar magazines and has 
held directorships at scottish 
 newcastle and brann direct 
marketing nigel is a partner in 
merlin financial advisors llp 
and is a director of mucky pups 
childcare limited bettor logic 
limited golfbidder limited 
and hangar8 plc nigel is a 
qualified chartered accountant
nigel payne will resign from 
the board of directors on 
16 december 2011 
rory macnamara
nonexecutive director
rory macnamara aged 56 
joined sportingbet as a non
executive director in june 
2011 rory qualified as an aca 
with price waterhouse before 
joining morgan grenfell later 
deutsche morgan grenfell in 
1981 as an investment banker 
over the following 17 years 
he advised clients on a wide 
range of corporate finance 
issues and became head of 
the advisoryma division in 
1995 and deputy chairman the 
following year in 1999 rory 
joined lehman brothers as head 
of uk coverage and led teams 
advising a number of major uk 
and international clients in 2001 
he became an independent 
consultant working with lehman 
brothers on ma projects 
and with other companies on 
their business development 
and financial and acquisition 
strategies besides this extensive 
corporate finance experience 
he also brings to sportingbet 
a significant understanding of 
public company management 
from the many boards he has 
joined over the last 10 years
chris moss
nonexecutive director
chris moss aged 57 joined 
sportingbet as a nonexecutive 
director in september 2011 chris 
has over 25 years’ marketing 
brand and product management 
experience he started his 
marketing career at virgin 
atlantic in 1985 and rose to the 
position of marketing director 
he then joined microtel and 
was responsible for founding 
and launching the orange 
brand name subsequent to this 
role he joined lloyds bank and 
tsb as brand director more 
recently as ceo he launched 
118118 he also runs a brand 
consultancy called famoss 
and is chairman of untapit a 
notforprofit social enterprise 32 sportingbet plc annual report 201 1
compliance
the company recognises the importance of the principles of 
good corporate governance and the board is pleased to report 
its continued commitment to achieving high standards 
throughout the year the board complies with the provisions  
of the uk corporate governance code “code” issued by the 
financial reporting council other than as set out below and  
in the section headed “audit committee”
all the nonexecutive directors other than nigel payne and 
sean o’connor are considered by the board to be independent 
of management and free of any relationship which could 
materially interfere with the exercise of their independent 
judgement given nigel payne’s previous position as an 
executive director and the fact that sean o’connor has  
served on the board for more than nine years they are not 
considered to be independent as defined by the code however 
following the board refreshment process described in more 
detail below both have resigned as directors with effect from 
16 december 2011
sean o’connor’s length of service related in part to the complex 
regulatory environment in which the group operates and the 
issues associated with its historic us business the threat of 
prosecution in the us made it more challenging for the 
company to attract nonexecutive directors of suitable quality 
and experience generally and this contributed to the length of 
service of some of the board members these issues have been 
resolved with the recent settlement between the company and 
the us department of justice
the board recognises that there are areas of code non
compliance first that at least half of the board is not currently 
made up of independent nonexecutive directors provision 
b12 of the code secondly that the nomination committee  
is not made up of a majority of independent nonexecutive 
directors provision b21 of the code and thirdly that the 
audit committee does not consist of three independent 
nonexecutive directors provision c31 of the code 
therefore the board has been engaged in a detailed process 
with external consultants to appoint suitably qualified 
independent nonexecutive directors to the board as a result 
rory macnamara was appointed to the board with effect from 
27 june 2011 rory macnamara brings considerable experience 
and expertise and is also suitably qualified to act as chair of the 
audit committee as he has recent and relevant financial 
experience he was therefore appointed chairman of the audit 
committee on 27 june 2011 and since his appointment has 
been fully involved in the audit committee process for the 
financial year ended 31 july 2011
in addition to rory macnamara the board identified chris moss 
who joined the board on 6 september 2011 as a further 
independent nonexecutive director therefore after sean 
o’connor and nigel payne have left the board on 16 december 
2011 twothirds of the board will be independent for the 
purposes of the code the board refreshment process will 
continue and the company hopes to identify a suitable 
corporate governance statement
replacement for brian harris during 2012 as he will cease to  
be independent for the purposes of the code due to his  
length of service on the board with two new independent 
nonexecutive directors the board is now able to revisit the 
composition of the audit remuneration and nomination 
committees in order to comply with the code and intends  
to do so following the release of the company’s financial  
year results on 5 october 2011 
the board is accountable to the company’s shareholders for 
good governance and the statement set out below describes 
how the principles identified in the code are applied by 
the group
the board constitution and procedures
as referred to above the issues associated with the company’s 
historic us business made it more challenging for the company 
to attract nonexecutive directors of suitable quality and 
experience the nomination committee has undertaken a 
comprehensive review of board composition and performance 
and as a result rory macnamara and chris moss have been 
appointed nonexecutive directors and brian harris replaced 
sean o’connor as senior independent director as announced by 
the company on 24 march 2011 the process is ongoing as the 
nomination committee will continue to look for suitably qualified 
and experienced individuals in line with code provision b2 
previous annual reviews have consistently found that the size 
composition and expertise of the company’s nonexecutive 
directors have been appropriate for the company’s requirements 
this financial year’s review took into consideration two new 
factors which were not present during the previous review i the 
company’s move from the aim market to the official list of the 
london stock exchange and its inclusion in the ftse 350 earlier 
this year and ii that in september 2010 the company entered 
into a nonprosecution agreement with the us attorney for the 
southern district of new york acting on behalf of the us 
department of justice following these events the nomination 
committee concluded that the board would be strengthened 
with the addition of new nonexecutive directors and rory 
macnamara and chris moss were appointed the company 
anticipates that it will reenter the ftse 350 following the 
acquisition of centrebet international limited and so in order  
to comply with the requirements placed on ftse 350 companies 
by the code the nomination committee will continue its board 
review process during the forthcoming financial year
the company is controlled through the board of directors 
which at the end of the financial year comprised two executive 
and five nonexecutive directors
all nonexecutive directors other than nigel payne and sean 
o’connor are considered by the board to be independent of 
management and free of any relationship which could materially 
interfere with the exercise of their independent judgement
the chairman is primarily responsible for the running of the 
board and ensures that all directors receive all relevant 
information on financial business and corporate issues prior  sportingbet plc annual report 201 1 33
governance
to meetings the group chief executive’s responsibilities focus 
on coordinating the company’s business and implementing 
group strategy
a formal schedule of matters is reserved for consideration by 
the board which met 11 times during the year the board 
is responsible for overall group strategy acquisition and 
investment policy approval of major capital expenditure 
projects and consideration of significant financing matters it 
reviews the strategic direction of individual trading subsidiaries 
their codes of conduct their annual budgets their progress 
towards achievement of these budgets and their capital 
expenditure programmes in addition the directors have access 
to the advice and services of the company secretary and all 
directors are able to take independent professional advice in 
the furtherance of their duties if necessary
all new directors receive a full formal and tailored induction  
on joining the board as well as training and advice on their 
responsibilities as necessary all directors in accordance with 
the code submit themselves for reelection and new directors 
are subject to a transparent and rigorous appointment process 
including submitting themselves for reelection at the first 
annual general meeting after their appointment 
the company secretary is responsible for ensuring board 
processes and procedures are appropriately followed and 
support effective governance and decision making
board committees
the board delegates clearly defined powers to its audit 
remuneration and nomination committees whilst the 
company’s social responsibility committee as reported on 
pages 22 to 24 is responsible for reviewing the company’s 
policies on corporate social responsibility and making 
appropriate recommendations to the board the minutes of 
each committee are circulated to and reviewed by the board
audit committee
the audit committee is currently chaired by rory macnamara 
who has recent and relevant financial experience for this role 
as indicated on page 31 its other members are nigel payne 
who was chair of the audit committee until rory macnamara’s 
appointment peter dicks and sean o’connor the company 
recognises that nigel payne is not considered to be independent 
but believes that the committee will benefit from his continued 
presence while the new chairman familiarises himself with the 
role both nigel payne and sean o’connor will resign from the 
board and the audit committee on 16 december 2011
the company believes that an audit committee with a 
membership of three independent nonexecutive directors 
reflects the size and needs of the business as defined by the 
code going forward the company recognises that it does not 
comply with provision c31 in that not all the members of the 
committee are independent nonexecutive directors as 
defined by the code and as explained above the appointment 
of rory macnamara on 27 june 2011 reflects the steps taken by 
the company to comply with this provision the resignations  
of nigel payne and sean o’connor and the ongoing board 
refreshment process is intended to result in full compliance  
with the code provision c31 namely that all three members  
of the audit committee should then be independent 
the audit committee meets at least twice a year and met 
twice during the last financial year and normally invites a 
representative of both the auditors and the executive directors 
to attend its meetings the latter usually being the group 
finance director the committee’s secretary is daniel talisman 
the company secretary at the end of each meeting the 
auditors are invited to meet with the committee with no 
executive or staff members present the terms of reference of 
the committee include monitoring the integrity of the financial 
statements monitoring the internal and external audit function 
and reviewing accounting policies financial controls and 
financial reporting procedures the audit committee is also 
responsible for assessing the objectivity and independence of 
the external auditors where they also provide nonaudit services 
to the company in the current financial year nonaudit fees 
totalling £08m were paid to the external auditors this was due 
to the number of major transactions the company undertook 
during the last financial year these included the acquisition of 
centrebet international limited and the convertible bond issued 
by the company in june 2011 the audit committee’s view was 
that the current auditors were the most suitable supplier of the 
nonaudit services due to the skills and experience of the 
auditors the committee considers that there are appropriate 
safeguards in place to ensure the continued objectivity and 
independence of the company’s auditor the committee also 
has responsibility for reviewing the effectiveness of the group’s 
internal control and risk management systems described in 
more detail later in this section during the year the committee 
received presentations from senior management on the key 
risks and control issues in their respective business areas and 
reviewed risk mitigation plans for critical risks terms of 
reference for the committee can be viewed on the company’s 
website and are available in writing on request 
remuneration committee
the remuneration committee is chaired by peter dicks brian 
harris sean o’connor and nigel payne appointed on 25 
october 2010 are its other members the committee’s 
secretary is daniel talisman the company secretary the 
company recognises that having the chairman of the company 
as chairman of the remuneration committee does not comply 
with provision of d21 of the code and that this provision also 
requires the committee to be made up of three independent 
nonexecutive directors as noted above sean o’connor and 
nigel payne will resign on 16 december 2011 with two new 
independent nonexecutive directors the board is now able  
to revisit the composition of the audit remuneration and 
nomination committees in order to comply with the code  
and intends to do so following the release of the company’s 
financial year results on 5 october 2011 the remuneration 
committee meets when necessary during the year and met 
eight times during the last financial year and considers the  34 sportingbet plc annual report 201 1
terms of employment and overall remuneration for the 
executive directors including pension rights and any 
compensation payments further the committee makes 
decisions regarding grants or awards under share plans salaries 
and incentive compensation the executive directors appraise 
the remuneration committee on the level and structure of 
remuneration set for senior management terms of reference 
for the committee can be viewed on the company’s website 
and are available in writing on request
the remuneration of nonexecutive directors is determined by 
the executive directors
nomination committee
the nomination committee is chaired by sean o’connor who 
will resign on 16 december 2011 and its other members are 
peter dicks nigel payne who will resign on 16 december 2011 
and brian harris with two new independent nonexecutive 
directors the board is now able to revisit the composition of 
the audit remuneration and nomination committees in order 
to comply with the code and intends to do so following the 
release of the company’s financial year results on 5 october 
2011 the intention is that the committee will consist of three 
independent nonexecutive directors as required by provision 
b21 of the code
the committee’s secretary is daniel talisman the company 
secretary the committee sits formally at least twice a year and 
met three times during the last financial year the terms of 
reference for the committee including the terms and 
conditions of appointment of directors can be viewed on the 
company’s website and are available in writing on request
the committee is responsible for monitoring and formally 
reviewing the performance composition balance and expertise 
of the board as a whole and making an appraisal of the 
contribution of individual directors including a review of their 
time commitment and attendance records the committee 
also considers succession planning for the board and group 
senior management the annual review process carried out by 
the board and the new appointment made during the course 
of this financial year and referred to in more detail above 
were designed to ensure the committee is meeting these 
responsibilities when necessary the committee prepares a 
description of the role to be filled and engages external 
consultants to administer a detailed search and the generation 
of a shortlist any recommendations for appointments or 
replacements are brought before the board
evaluation
the board continued its ongoing evaluation processes of itself 
and its committees to assess their performance and identify 
areas in which their effectiveness policies and processes might 
be enhanced as part of this process the board continues 
to comply with the institute of chartered secretaries and 
administrators’ code of good boardroom practice the 
performance of individual directors has been considered by 
the chairman and group chief executive in discussion with 
other nonexecutive directors the nonexecutive directors 
considered the performance of the chairman taking into 
account the views of the executive directors
communication with investors
the group places considerable importance on communication 
with its institutional and private shareholders and responds 
quickly to all queries received there is regular dialogue with 
institutional shareholders as well as general presentations after 
each quarter end and the issue of preliminary results
all shareholders have at least 20 working days’ notice of the 
annual general meeting at which all directors are introduced 
and available for questions the executive directors endeavour 
to meet the company’s larger institutional shareholders at 
the time of the company’s quarterly results announcements  
and the senior independent director sean o’connor up to 
24 march 2011 and brian harris since 24 march 2011 have 
been available to shareholders throughout the year
accountability and audit
a internal control
the group has complied with provision c21 of the code and 
the turnbull guidance for the year ended 31 july 2011 and up 
to the date of approval of the annual report and financial 
statements the board has ensured that there has been an 
ongoing process for identifying evaluating and managing the 
significant risks faced by the group this process has been 
regularly reviewed by the board
whilst acknowledging the overall responsibility for the system 
of internal control and for reviewing its effectiveness the board 
is aware that the system is designed to manage rather than 
eliminate the risk of failure to achieve business objectives and 
can only provide reasonable but not absolute assurance 
against material misstatement or loss
the group’s internal control procedures continue to be 
reviewed progressively developed and formalised to ensure that 
they sufficiently meet the requirements of the group executive 
members of the board are involved daily in all aspects of the 
business and they attend regular management meetings at 
which performance against plan and business prospects are 
reviewed additionally the board seeks to continually 
strengthen the internal control system where this is consistent 
with improving the relationship between risk and reward
corporate governance statement sportingbet plc annual report 201 1 35
governance
other key features and the processes for reviewing effectiveness of the internal control system that the committee has applied 
during the current financial year are described as follows
•	 monthly management information including financial accounts and key performance indicators have been defined and are 
produced on a timely basis for review by the board
•	 a detailed formal budgeting process for all group businesses culminates in an annual budget which is reviewed and approved by 
the board results for the group and for its main constituent businesses are reported monthly against the budget to the board 
and revised forecasts for the financial year are considered each quarter
•	 a comprehensive financial and accounting package sets out the principles of the minimum standards required by the board for 
effective financial control this package sets out the financial and accounting policies and procedures to be applied throughout 
the group compliance with the policies and procedures set out in this package is reviewed regularly formal reports for the 
board are prepared by the senior management on the operation of those elements of the system for which they are responsible
•	 the company has clearly defined guidance for capital expenditure these include annual budgets detailed appraisal and review 
procedures levels of authority and stringent due diligence requirements where businesses are being acquired
external audit
the audit committee meets periodically to review the adequacy of the group’s internal control systems accounting policies and 
compliance with applicable accounting standards and to consider the appointment of external auditors and audit fees the group’s 
auditors are invited to attend its meetings the audit committee is authorised by the board to investigate any activity within its 
terms of reference and obtain outside legal or other independent professional advice as necessary the auditors and individual 
board members are afforded the opportunity for separate meetings with the audit committee the audit committee consists 
wholly of nonexecutive directors
the award of nonaudit work to the auditors is subject to preclearance by the audit committee if the fee exceeds specified 
thresholds as a matter of best practice and in accordance with the international standard on auditing 260 the auditors have held 
discussions with the audit committee on the subject of auditor independence and have confirmed their independence in writing
board and committee attendance
possible  
meetings number
meetings 
attended
peter dicks board 11 11
audit 2 2
remuneration 8 8
nomination 2 2
brian harris board 11 11
remuneration 8 8
nomination 2 2
andrew mclver board 11 11
sean o’connor board 11 11
audit 2 2
remuneration 8 8
nomination 2 2
nigel payne board 11 11
audit 2 2
remuneration 6 6
nomination 2 2
jim wilkinson board 11 11
rory macnamara board 2 1
audit 1 1 36 sportingbet plc annual report 201 1
directors’ report
the directors submit their annual report and financial 
statements of the group for the year ended 31 july 2011
principal activities
the principal activities of the group are the operation of 
interactive licensed betting and gaming operations over the 
internet in australia only interactive betting is conducted over 
the internet and telephone
results and dividends
the results of the group for the year are set out on page 49 
and show a profit after taxation for the year of £207m 2010 
£39m the directors recommend payment of a final dividend 
of 11p per ordinary share 2010 11p an interim dividend of 
06p 2010 05p was paid on 31 march 2011 meaning a total 
dividend for the financial year of 17p 2010 16p
review of the business and future developments
a more detailed review of the business and future 
developments is given in the business review on pages 
18 to 21
directors
the following directors have held office during the year and 
subsequently 
p dicks  chairman and nonexecutive
a mciver  executive
j wilkinson  executive
n payne  nonexecutive
s o’connor senior independent nonexecutive
b harris  senior independent nonexecutive  
r macnamara nonexecutive
c moss  nonexecutive
 up to 24 march 2011
 from 24 march 2011
all directors will retire by rotation at this year’s annual general 
meeting and will each seek reelection being eligible
the interests of the directors in the shares of the company and 
options for such shares were as shown on pages 39 to 44 both 
reflecting the year end figures and any subsequent changes no 
director has any interest in any other group company details of 
the directors’ remuneration and service contracts appear on 
pages 39 to 44
auditor
the auditor grant thornton uk llp is willing to continue in 
office and a resolution to reappoint grant thornton uk llp will 
be proposed at the forthcoming annual general meeting
related party transactions
transactions with related parties are disclosed in note 22 of the 
group financial statements
corporate governance
the board’s statement on corporate governance appears on 
pages 32 to 35 and policies in relation to employees appear on 
pages 22 to 23
charitable donations
during the year the group donated approximately £240000  
to a number of charities this figure includes donations to the 
great foundation formerly the responsibility in gambling 
trust the island academy international school antigua heros 
homing exracehorses organisation scheme included in this 
total was a donation of £16500 to the friends of israel sport 
centre for the disabled of which brian harris is the founder
directors’ indemnity
details of the directors’ indemnity insurance can be found in 
the remuneration report
purchase of own shares
the company was granted authority at the extraordinary 
general meeting in december 2010 to purchase its own shares 
up to a limit of 10 of its issued ordinary share capital no 
shares were purchased during the year under review
share capital
the issued share capital of the company is comprised of 
ordinary shares of 01p each each share carries the right to one 
vote per share on a poll the liability of members of the 
company is limited to the amount unpaid if any on the shares 
held by them all issued shares of the company are fully paid
changes to the company’s share capital are set out in note 19 
at 4 october 2011 the issued share capital stood at 
660831780
there are no specific restrictions on the size of a holding nor  
on the transfer of shares no person has any special rights of 
control over the company’s share capital and all issued shares 
are fully paid 
during the last year the company did not purchase any shares 
as treasury shares
use of financial instruments
information on the use of financial instruments by the group  
is contained in note 18
policy and practice of payment of suppliers
in respect of the group’s next financial year it is the policy of 
the group that each company within the group should agree 
appropriate terms and conditions for its transactions with 
suppliers by means ranging from standard written terms to 
individually negotiated contracts payments are to be made in 
accordance with these terms and conditions at 31 july 2011 
the company had a trade creditor balance of £nil 2010 £nil 
group trade payables represented 28 days of purchases  
2010 18 days sportingbet plc annual report 201 1 37
governance
substantial shareholdings
as at the opening of dealing on 4 october 2011 the following shareholders hold or control interests in 3 or more of the 
company’s voting rights
number  
of shares
voting rights 

majedie asset management 64428737 975
ubs global asset management 60122159 910
marathon asset management 58188349 881
paradise poker 44497096 674
dbs advisors ltd 35857703 543
legal  general investment management 35577364 539
henderson global investors 24769237 375
fidelity investments 23861250 361
blackrock 21212883 321
credit suisse as principal 21203858 321
treasury management
the board has laid out its policy on treasury management in the financial review on page 25
going concern
the directors have considered the implications of the potential impact of regulatory uncertainties discussed in note 21 the 
directors have reviewed the cash flow projections for the group in light of these uncertainties and have considered the financial 
resources available to the group accordingly the directors have a reasonable expectation that the group and the company have 
adequate resources to continue operations for the foreseeable future for this reason they continue to adopt the going concern 
basis in preparing the financial statements
annual general meeting
the annual general meeting will be held on 16 december 2011 the notice of the meeting is set out in a separate explanatory 
circular the notice contains special business including the renewal of authority to the board to allot shares and the disapplication 
of statutory preemption rights on equity issues for cash – both in accordance with abi and napf guidelines shareholders should 
complete the proxy form accompanying the notice of meeting in accordance with the notes contained in the notice of meeting
significant agreements
the companies act 2006 requires the company to identify those significant arrangements to which the company is party that take 
effect alter or terminate upon a change of control of the company following a takeover offer becoming fully unconditional and 
the effects of any such agreements 
ioesl and interactive sports ci limited together the “sportingbet party” have entered into an agreement with see sports 
limited and flyer international sa “flyer” in relation to the provision of online gaming services in greece the “joint venture 
agreement” clause 125 of the joint venture agreement provides that if any third party or series of connected third parties acquires 
the ownership or control of more than 50 of the beneficial andor legal shareholding andor legal voting rights of a sportingbet 
party and the sportingbet brand ceases to exist as a separate standalone brand or be supported by such third party flyer shall be 
entitled to terminate the joint venture agreement with immediate effect
statement of directors’ responsibilities
the directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and 
regulations
company law requires the directors to prepare financial statements for each financial year under that law the directors have elected  
to prepare financial statements in accordance with international financial reporting standards as adopted by the european union 
“ifrss” and the parent company financial statements in accordance with united kingdom accounting standards united kingdom 
generally accepted accounting practice 38 sportingbet plc annual report 201 1
under company law the directors must not approve the financial 
statements unless they are satisfied that they give a true and fair 
view of the state of affairs of the group and the company and of 
the profit or loss of the group for that period in preparing these 
financial statements the directors are required to
•	 select suitable accounting policies and then apply  
them consistently
•	 make judgements and estimates that are reasonable  
and prudent
•	 state whether applicable accounting standards have been 
followed subject to any material departures disclosed and 
explained in the financial statements and
•	 prepare the financial statements on the going concern basis 
unless it is inappropriate to presume that the company will 
continue in business
the directors are responsible for keeping adequate accounting 
records which disclose with reasonable accuracy at any time the 
financial position of the group and the company and enable 
them to ensure that the financial statements comply with  
the companies act 2006 they are also responsible for 
safeguarding the assets of the group and hence for taking 
reasonable steps for the prevention and detection of fraud  
and other irregularities
the directors are responsible for the maintenance and integrity 
of the corporate and financial information included on the 
company’s website legislation in the united kingdom 
governing the preparation and dissemination of financial 
statements may differ from legislation in other jurisdictions
disclosure of information to the auditors
so far as each of the directors is aware there is no relevant 
audit information of which the company’s auditors are 
unaware each of the directors has taken all the steps that he 
ought to have taken as a director in order to make himself 
aware of any relevant audit information and to establish that 
the company’s auditors are aware of that information
to the best of my knowledge
•	 the financial statements prepared in accordance with the 
applicable set of accounting standards give a true and fair 
view of the assets liabilities financial position and profit or 
loss of the company and the undertakings included in the 
consolidation taken as a whole and
•	 the management report includes a fair review of the 
development and performance of the business and the 
position of the company and the undertakings included 
in the consolidation taken as a whole together with a 
description of the principal risks and uncertainties that 
they face
on behalf of the board
a mciver
director
4 october 2011
company registration number 3534726
directors’ report sportingbet plc annual report 201 1 39
governance
remuneration report
information subject to audit
1 directors’ emoluments
£000 notes 
salary
fees bonuses
share 
options
ltip benefits
total
emoluments
2011
pension
2011
total
emoluments
2010
pension
2010
executive directors
andrew mciver 1 2 8 537 – 310 8 855 83 3113 100
jim wilkinson 2 8 315 – 125 1 441 51 1555 45
nonexecutive directors
peter dicks 4 5 6 7 8 160 – – – 160 – 160 –
brian harris 3 5 6 7 8 120 – – – 120 – 120 –
sean o’connor 3 4 5 6 7 8 10 90 – – – 90 – 130 –
nigel payne 4 5 6 7 8 10 88 – – – 88 – 128 –
rory macnamara 4 9 6 – – – 6 – – –
 1316 – 435 9 1760 134 5206 145
1 aggregate emoluments for andrew mciver as the highest paid director excluding pension contributions amounted to £855227 2010 £3113315 
2 the average total emoluments of the executive directors was £648522 2010 £2333925 the average total emoluments of nonboard employees was £58406 
2010 £62650 the ratio between the two averages was 111 2010 371 the average total emoluments of the executive directors excluding share options was £430598 
2010 £936619 the ratio to nonboard employees was 81 2010 151
3 member of the social responsibility committee 
4 member of the audit committee 
5 member of the remuneration committee 
6 member of the nomination committee
7 included within salaryfees is an annual share award valued at £40000 which forms part of the nonexecutive remuneration
8 the long term incentive plan “ltip” awards relate to the final payments in the previous financial year of a scheme put in place in 2006 following the group’s withdrawal  
from the us
9 rory macnamara is paid salaryfees of £75000 as he was appointed on 27 june 2011 the figure above has been prorated accordingly
10 sean o’connor and nigel payne were paid consultancy fees in addition to their emoluments details of which are available at note 22 to the financial statements
2 interests of directors in share options and share plans of the company
notes
no of
options at
1 august 
2010
no of
options at
31 july 
2011
date of
grant
exercise price 
p
earliest
exercise
date
expiry of
exercise
period
executive directors
andrew mciver 1 1959566 1567652 200109 – 011111 011212
jim wilkinson 1 1077760 862208 200109 – 011111 011212
nonexecutive directors
peter dicks – – – – – –
nigel payne – – – – – –
sean o’connor – – – – – –
brian harris – – – – – –
rory macnamara – – – – – –
1 share awards granted under the sportingbet restricted share plan 2009 during the financial year andrew mciver surrendered 391914 awards under this plan in consideration 
of receiving an equivalent cash sum and 215552 shares were released to jim wilkinson
2 3496788 awards were exercised during this financial year 2010 18158451 of which 391914 awards were surrendered and 215552 exercised by directors of the company 
2010 2999932 the market price of shares at 31 july 2011 was 555p and the range during the financial period was 4025p to 7985p a summary of the performance 
criteria upon which awards or options may be exercised is set out below  40 sportingbet plc annual report 201 1
3 interests of directors in shares in the company
notes 2011 2010
executive directors
andrew mciver 1 2834481 4234481
jim wilkinson 2 972787 1517166
nonexecutive directors
peter dicks 3 416878 581308
sean o’connor 4 441873 593685
brian harris 5 294031 378461
nigel payne 6 111398 176398
1 andrew mciver sold 1400000 shares on 8 october 2010
2 jim wilkinson sold 650000 shares on 8 october 2010 jim wilkinson received an interest in 215552 shares on 24 november 2010 following the release of an award under  
the 2009 share plan 109931 shares were sold to meet the tax liability of this award 
3 peter dicks received an interest in 35570 shares on 2 august 2010 forming part of his nonexecutive remuneration peter dicks sold 200000 shares on 8 october 2010
4 sean o’connor received an interest in 35570 shares on 2 august 2010 forming part of his nonexecutive remuneration sean o’connor sold 200000 shares on 8 october 
2010 sean o’connor received an interest in 7502 shares on 11 january 2011 and in 5116 shares on 31 march 2011 pursuant to the company’s dividend reinvestment 
plan “drip”
5 brian harris received an interest in 35570 shares on 2 august 2010 forming part of his nonexecutive remuneration brian harris sold 120000 shares on 8 october 2010
6 nigel payne received an interest in 35570 shares on 2 august 2010 forming part of his nonexecutive remuneration all of which he subsequently gifted nigel payne sold 
65000 shares on 8 october 2010
remuneration policy
historic
the company’s remuneration policy has been heavily influenced by both the group’s and the industry’s history – in particular the 
exit from the market in the united states as a result the central principle of the group’s historic remuneration policy has been 
retention in order to deliver stability during the group’s postus “turnaround” period that period culminated in the settlement 
between the company and the us department of justice with the “turnaround” successfully achieved
policy review
the company’s strategy is to continue to operate in both licenceissuing markets and markets which are yet to issue online licences 
within a regulated nondiscriminatory framework “nonlicence issuing markets” this means that the group continues to face 
regulatory and operational risks in the nonlicence issuing markets served by the group’s european and emerging markets 
divisions the company has increased the proportion of its overall business generated from licenceissuing competitive markets  
and plans to continue this approach in the future as a result the risks facing the group today are not on the same scale as in 2007 
immediately postus exit or 2005 the point at which the group had reached a pinnacle in terms of its growth and success prior  
to the us legislative changes which led to the group’s enforced withdrawal from the us market
following a review undertaken by the company’s external remuneration consultants mmk the committee has agreed upon a 
policy shift from “retention” to “value creation” – essentially shareholders and directors share in the added valued generated from 
the successful implementation of the company’s strategy
as recommended by the consultants the group’s policy will be
a to continue to pay at or about market upper quartile levels in order to attract and retain key management talent and to reflect 
the risks associated with operating a global online betting and gaming business in both licenceissuing competitive markets and 
nonlicence issuing markets
b to ensure all incentive remuneration shortterm and longterm is wholly performance related and linked to demanding 
performance criteria and
c to allow remuneration arrangements which predated the company’s move to the official list in 2010 and which may not have 
been compliant with the combined code on corporate governance as was then in force to be honoured up to 31 july 2012 
this date coincides with the expiration of the restricted share plan 2009
remuneration report
information subject to audit sportingbet plc annual report 201 1 41
governance
remuneration committee
the remuneration committee is chaired by peter dicks and its 
other members are brian harris sean o’connor and nigel 
payne both sean o’connor and nigel payne will resign on 16 
december 2011 the company recognises that having the 
chairman of the company as chairman of the remuneration 
committee does not comply with the provision of d21 of the 
uk corporate governance code “code” and that this 
provision also requires the committee to be made up of three 
independent nonexecutive directors from 16 december 2011 
sean o’connor will be replaced by rory macnamara and nigel 
payne will be replaced by chris moss both of whom are 
independent for the purposes of the code the board intends 
to revisit the composition of the remuneration committee in 
order to comply with the code and intends to do so following 
the release of the company’s financial year results on 5 october 
2011 in line with the policy shift to “value creation” the 
remuneration committee seeks to structure total benefits 
packages including base salaries which align the interests  
of shareholders and senior management with particular 
importance weighted upon the performancerelated elements 
of such total remuneration
the remuneration committee aims to seek and retain the 
appropriate calibre of people and recommends fee levels to the 
board consistent with prevailing market conditions peer group 
companies and directors’ roles and responsibilities
specifically when considering adoption of the sportingbet 
restricted share plan 2009 the remuneration committee 
assessed the needs of the company for the period through to 
2012 compared to the company’s needs when the sportingbet 
2006 restricted share plan was introduced in november 2006 
immediately following the enactment of the unlawful internet 
gambling enforcement act 2006
directors’ remuneration will continue to be the subject of 
regular review in accordance with the new remuneration policy 
in the next financial year 
terms of reference
the terms of reference of the remuneration committee include
•	 to determine the remuneration and benefits including 
incentive arrangements of the executive directors the 
directors of divisional companies and other employees of 
similar status
•	 to set targets for performancerelated pay elements of 
remuneration packages
•	 to review recommendations from the board on the overall 
remuneration and benefits policy of the group with the 
power and authority to amend it if appropriate
•	 to have regard to the provisions of the combined code and 
associated guidance in its decisionmaking
the directors intend that the company’s remuneration policy 
will be set by the remuneration committee in accordance with 
the terms of reference set out above for the following financial 
year and subsequent financial years
salary review – ceo and cfo
following an external benchmarking exercise to assess the 
salaries of both chief executive officers and chief financial 
officers across the company’s peer group
1
 jim wilkinson was 
awarded a salary increase of 6 to £315000 on 1 august 
2010 as has been the case since andrew mciver became 
group chief executive in 2006 andrew mciver was not 
awarded an increase in salary for the 2010–2011 financial year 
following a change in the taxation of pension contributions 
andrew mciver elected to receive the sum of £16667 from  
his pension contribution as salary instead the remuneration 
committee has decided that there will be no increase in 
directors’ salaries in the 2011–12 financial year
service contracts
the company’s policy on the duration of directors’ contracts  
is that for both executive and nonexecutive directors notice 
periods will be no more than one year served by the company 
or the director
andrew mclver and jim wilkinson have service contracts dated 
18 january 2006 and 21 january 2008 respectively which provide 
for 12 months’ notice by the company or the director and  
contain noncompete obligations there are no payments or 
compensation on early termination of the contract save that 
where a payment is made in lieu of notice and the executive 
commences new employment during such a period they are 
under an obligation to repay the company any prorated amounts
in the event of termination or constructive dismissal following  
a sale or reconstruction of sportingbet each of the executive 
directors is entitled to the equivalent of 24 months’ salary 
bonus pension contributions and other benefits payable under 
his respective service contract
peter dicks brian harris sean o’connor and nigel payne each 
of whom is a nonexecutive director has a contract for services 
with a termination period of 12 months’ notice it is  
the company’s policy that a proportion of their fee is paid in 
sportingbet shares which are to be retained until they cease  
to be a director of the company in line with the policy of the 
remuneration committee the company has agreed that this 
arrangement whereby the proportion of their fee is paid in 
sportingbet shares shall terminate on 31 july 2012 given that 
sean o’connor and nigel payne will resign on 16 december 
2011 it is anticipated that this arrangement will only apply to 
peter dicks and brian harris it is the company’s policy that this 
arrangement shall not apply to new nonexecutive directors
remuneration report
information not subject to audit
1 peer group by size and activity
 888 holdings plc asos plc autonomy corporation plc aveva group plc 
betfair group plc betsson ab blinkx plc bwin interactive entertainment ag 
centrebet international limited fidessa group plc innovation group the plc 
kofax plc micro focus international plc moneysupermarketcom group plc 
paddy power plc phoenix it group plc playtech ltd rank group the plc 
rm plc sdl plc sportingbet plc unibet group plc
 
 the peer group by size and activity was compiled by the company’s external 
remuneration consultants mmk as part of their review 42 sportingbet plc annual report 201 1
by way of a variation agreement dated 17 january 2007 between sportingbet and sean o’connor and by way of a side letter dated 
8 january 2007 from sportingbet to peter dicks in the event of the sale or reconstruction of sportingbet or any sportingbet group 
company both sean o’connor and peter dicks are entitled to be paid a sum in cash equivalent to the difference between £044 
and the price per ordinary share in sportingbet agreed at completion of such sale or reconstruction of sportingbet multiplied  
by 500000
in december 2006 and in the case of jim wilkinson on 1 february 2008 and on 14 september 2011 in the case of rory macnamara 
and chris moss sportingbet plc granted rolling indemnities to all of its directors and the company secretary uncapped in amount 
in relation to certain losses and liabilities which they may incur in the course of acting as directors and company secretary of 
sportingbet plc or of one or more of its subsidiaries these indemnities replace those previously granted on similar terms and 
continued to be in place as at 31 july 2011 or the date of grant if later
bonuses
the company operates a bonus incentive scheme which applies at differing rates to the employment terms of the executive 
directors and members of senior management any payments under the scheme are subject to i operating profit targets for the 
group being achieved and ii the discretion of the board 100 of annual salary can only be paid if stretch targets are achieved 
the financial results for the last financial year did not reach the targeted bonus level and as a result no bonuses were paid
the remuneration committee reviews the packages and varies individual elements when appropriate from year to year  
the remuneration committee has policies and procedures in place to monitor the size of potential rewards
bonuses are included in termination payments on a case by case basis as determined by the remuneration committee
pensions
the company makes employer contributions of 20 of andrew mciver’s salary and 17 of jim wilkinson’s salary to their personal 
pension schemes there are no company pension arrangements in place
share incentive schemes
scheme name
current
scheme
or date of 
scheme 
cessation
outstanding
at the 
beginning
of the year
p
granted
during
the year
p
forfeited 
during
the year
p
exercised 
during
the year
p
lapsed
during
the year
p
total
awards 
outstanding
at the
end of
the year
p
exercisable
at the
end of
the year
p
unapproved share  
option scheme the 
“unapproved share 
option scheme”
closed on 
1 november 
2005
1215000 – – – – 1215000 1215000
sportingbet plc company 
share option plan the 
“ir approved scheme”
closed on 
1 february 
2010
– – – – – – –
sportingbet plc executive 
share option scheme 
the “executive scheme”
closed on 
1 february 
2010
784375 – – – – 784375 784375
sportingbet long term 
retention plan 2005  
the “2005 share plan”
closed on 
31 july 
2008
22250 – – – – 22250 22250
sportingbet 2006 
restricted share plan 
the “2006 share plan”
closed on 
31 july 
2009
1626802 217391 – 891323 50385 902485 –
sportingbet restricted 
share plan 2009 
the “2009 share plan”
current 15532800 1272274 – 3106555 558750 13139769 –
totals 19181226 1489665 – 3997878 609135 16063878 2021625
 
remuneration report
information not subject to audit sportingbet plc annual report 201 1 43
governance
the 2009 share plan
share options are now only granted under the 2009 share plan the 2009 share plan was adopted on 22 july 2008 and awards 
were granted under the 2009 share plan to the executive directors and the group’s senior management team on 20 january 2009 
the company’s policy to grant awards under the 2009 share plan is at the remuneration committee’s discretion as and when 
considered appropriate
entitlements under the 2009 share plan comprise a loyalty element and a performance element in equal proportions 
year of plan
proportion of 
total award to 
be released
maximum 
award   
12 x salary conditional upon
1 10 loyalty
10 performance
2 15 loyalty
15 performance
3 25 loyalty
25 performance
shares comprised within the loyalty element of the award may only vest and be released if the participant remains employed by the 
company as at 31 july 2010 31 july 2011 and 31 july 2012 respectively shares comprised within the performance element of the 
award may only vest and be released if a the participant remains employed by the company as at 31 july 2010 31 july 2011 and 
31 july 2012 respectively and b certain performance conditions are satisfied 
the performance condition is based on the extent to which growth in the company’s earnings before interest tax and amortisation 
“ebita growth” exceeds rpi growth over a financial year of the company
for the performance award to be exercisable in full ebita growth must exceed rpi growth by 15 per financial year compound 
the proportion of the performance award exercisable increases on a straightline sliding scale between 0 and 100 if ebita 
growth exceeds rpi growth by any margin in excess of 5 over a financial year the remuneration committee believes that in 
relation to the 2009 share plan ebita growth in excess of rpi growth is the appropriate measure for determining the increase in 
value delivered to shareholders by the company’s executive directors and other senior executives for the period 2009–2012 the 
remuneration committee reviews the appropriateness of the performance measure and the specific target set when considering 
each new grant of performance awards
during the current financial year the company has undertaken a remuneration and benchmarking study using industry 
consultants mmk the remuneration committee has resolved to follow the recommendation of their report including that 
payments due under existing incentive plans introduced in good faith as part of the company’s historical remuneration policy 
should be honoured this means that the 2009 share plan under its current terms will expire in july 2012 with final awards being 
released in november 2012 
following its admission to the official list the company intends to introduce a new share plan to replace the 2009 share plan 
which expires on 31 july 2012 such share plan will be exclusively performance based
cashbased longterm incentive plan
in 2008 the remuneration committee reviewed the remuneration and benefits packages of certain key employees as a result 
a cashbased longterm incentive plan “ltip” was established and offered to the executive directors and a small number of key 
employees in order to retain such individuals the ltip pays a cash sum in august 2012 based on the relevant employee’s gross 
salary in line with the advice received from the specialist external consultants mmk awards made prior to the company’s move 
to the official list in good faith will be honoured in order for the employee to receive such payment under the ltip they need to 
be in employment up to and including 31 july 2012 
following the recommendations of the external remuneration consultants mmk and to ensure compliance with the code and 
investor protection group guidelines the company will not adopt similar schemes in the future 40
50
60
70
80
90
100
110
120
130
jul 11 jun may apr mar feb jan 11 dec nov oct sep aug jul jun may 10
sportingbet ftse 250 index ftse 250 leisure and travel index 
sportingbet – tsr analysis
44 sportingbet plc annual report 201 1
total shareholder return “tsr”
the following graph charts the movement in total cumulative shareholder return assuming reinvestment of dividends of the 
company for the period from 14 may 2010 to 31 july 2011 compared with 
1 total shareholder return relating to the ftse 250 index and
2 total shareholder return relating to ftse 250 leisure and travel index  
chosen as the company has been a constituent of both indices for a period of time since its admission to the official list  
on 14 may 2010
by order of the board
d talisman llb hons fcis
company secretary 
4 october 2011
remuneration report
information not subject to audit sportingbet plc annual report 201 1 45
governance
the supply of betting and gaming services continues to be 
subject to a complex inconsistent and often protectionist 
approach by jurisdictions worldwide however action to 
address this by international trade bodies such as the world 
trade organisation and the european commission has resulted 
in the censuring of certain nations and increasingly the 
introduction of regulatory regimes for the activity
the group continues to provide its services only from 
jurisdictions where it is licensed and regulated and therefore 
the position in its place of supply and where its regulator and 
applicable local laws deem the gambling transaction to take 
place is explicitly legal 
in order to provide its worldwide gambling service the group 
currently maintains licences in alderney antigua and barbuda 
australia curaçao malta south africa and the uk 
major issues of note in the last 12 months all of which have 
been widely reported include
a the possibility that the uk will impose regulatory 
requirements which will attract licence fees on offshore 
operators who target the local gambling market 
b the continued move towards regulation of the gambling 
sector in a number of eu jurisdictions including denmark 
greece and spain and a maturing of the licensing regimes 
in france and italy
c reduced european commission “commission” pressure on 
eu and efta member states principally norway to justify 
their national gambling regimes including proposed new 
regulatory regimes despite the free trade requirements of 
the treaty on the functioning of the european union the 
“tfeu” also reflected in the protectionist judgments of the 
european court of justice the “ecj” albeit the impact of 
these judgments has been tempered to a degree by the 
carmen media and others case in germany and by the  
fact the continued trend seems to favour local licensing 
regimes and
d increasing attempts to impose indirect taxes via “product 
fees” on gambling operators by certain states in australia 
and similar debates in the uk given that the horseracing  
levy the “levy” is due to be replaced with another form  
of payment
the european union “eu” 
eu member states are subject to scrutiny from the commission 
and as “guardian” of the tfeu it closely monitors existing and 
developing legislation in the eu the principal method by which 
the commission has applied pressure on member states is 
through the use of “infringement proceedings” against eu 
member states in contravention of eu law through such 
proceedings the commission has asked a number of states to 
amend their laws restricting the free movement of gambling 
services the ongoing pressure from the commission and in 
some cases national court decisions declaring domestic 
legislation to be incompatible with eu law has led to a 
domestic review of prohibitive legislation in a number of 
jurisdictions including france and italy 
however the ecj has in the course of the last two years 
delivered a series of judgments which ostensibly have found 
in favour of the national monopolies in addition where 
jurisdictions have or are in the process of implementing licensing 
regimes the ec has been content to approve licensing systems 
which are discriminatory both in terms of the barriers to entry 
and in relation to the level of tax or bond security licensees 
are expected to pay france and spain are in this category both 
jurisdictions may yet be challenged at an ec level but in the 
meantime whilst the introduction of a licensing regime seems 
to be the necessary salve to ward off infringement proceedings 
there appears to be no obvious blueprint for a licensing regime 
that will pass muster with the ec therefore jurisdictions will 
clearly incline towards creating regimes which will result in as 
much economic upside for them without paying heed to the 
fact that the reduced margins for operators will result in poorer 
consumer choice particularly where the licensing regime in 
question has not addressed the potential scope for creating vast 
jurisdictional liquidity which is particularly important for the 
poker market
what is clear is that despite the ec green paper of last year 
which called upon member states to consider all the potential 
issues in relation to online gambling including a form of 
harmonisation such harmonisation is unlikely to occur in the 
shortterm and that the most likely trend to continue is for 
jurisdictions to introduce licensing regimes which may or may 
not be tempered by ec intervention
spain
as a result of the uncertainty over the legality of the provision 
of online gambling which is not expressly prohibited by spanish 
law spain has historically adopted a tolerant approach to the 
supply of foreign gambling services into the jurisdiction
madrid and the basque region have both introduced licensing 
regimes for online betting which has led to the spanish 
government implementing a nationwide system of regulation 
which will permit operators to obtain a spanish gambling 
licence the application process is due to commence in 
november 2011 with the first licences expected to be granted 
during december amidst concerns about maximum spending 
obligations of players
united kingdom
the group holds a licence granted by the alderney gaming 
control commission and is therefore permitted to advertise 
in the uk under the gambling act 2005 which permits uk 
advertising for alderney licensees on the back of alderney’s 
“whitelisted” status 
in march 2010 the department for culture media and sport 
“dcms” initiated a consultation regarding a system for the 
regulation of remote gambling in uk the consultation also 
looked at whether operators who advertise in the uk should 
face new regulatory requirements attracting consequential 
licence fees to ensure a more even financial treatment of uk 
operators and nonuk operators who target the uk market 
regulatory developments 46 sportingbet plc annual report 201 1
the uk government announced its intention to proceed with 
these plans in july 2011 and the treasury is currently canvassing 
input from stakeholders on the implications of a new gambling 
tax to capture all gambling with uk customers
france 
france has historically been a staunch opponent of the provision 
of online gambling services by operators without a french 
licence which attitude has hardened in light of the introduction 
of an online gambling regime
the group now blocks frenchdomiciled customers by 
residential address at registration and by ip address 
germany
despite criticism from the commission the interstate gambling 
treaty the “treaty” remains in force in germany the treaty 
effectively provides that all forms of online gambling are 
unlawful where they are targeted at german residents 
however in the period prior to its expiry there has been wide 
debate in germany as to whether an online licensing regime 
was necessary or desirable
the current state of flux was brought about as a consequence 
of the ecj cases including carmen media all of which 
determined that there was an incompatibility between 
germany’s tfeu obligations and its domestic gambling laws 
certainly in relation to betting this led to wide speculation 
about the enforceability of the treaty and prompted the review 
of the licensing regime 
currently the ec does not accept that the proposed regime 
which severely limits the number of licences available is 
compatible with its tfeu obligations and whilst the german 
states the länder’s have to revert to the ec with their counter
proposals this is not expected until late october 2011
on 14 september 2011 parliament of the state of schleswig
holstein passed the schleswigholstein gambling act which 
comes into force on 1 january 2012 applications for licences 
may be made as of 1 january 2011 but will not become 
effective before march 2012 it is possible that schleswig
holstein passed its gambling act before october in order to 
put political pressure on the other federal states to pass an 
interstate treaty that is identical or at least contains similar 
provisions to the schleswigholstein gambling act schleswig
holstein have reserved the right to become signatory to the 
interstate treaty on gambling in which case the schleswig
holstein gambling act will be abolished
greece
greece has been the subject of several challenges by the 
commission and has previously been steadfast in defending the 
monopoly providers’ position opap and odie however in 
july 2010 the minister of economy proposed a draft bill which 
would make several changes to the way in which gambling is 
regulated in greece in july 2011 the new law was implemented 
in greece which envisages the licensing of online gambling 
whilst all the underlying regulations have yet to be promulgated 
operators wishing to obtain a licence must register to pay tax 
during the period prior to the licensing regime being initiated 
again this proposal may be subject to challenge
italy
italy has changed its monopolyorientated stance on online 
gambling and has started to permit a number of nonitalian 
bookmakers to obtain licences to operate online enabling betting 
offerings from certain outlets such as newsagents bars and 
cafes the incentivi decree recently extended licensable offerings 
to include cash ring games for poker and other casino games 
the ec also approved italy’s abruzzo law on 5 may 2010 and 
announced that it had closed proceedings against italy the 
abruzzo law allows gambling operators offering their services 
in italy to have web servers and a registered company outside of 
italy as long as they are still within the european economic area 
or a country that has a bilateral agreement with italy also cash 
poker and casino games have now been introduced
norway
norway implemented legislation which became effective in 
2010 which established that processing of payments for 
unlicensed gambling where such gambling is unlicensed in 
norway is an accessory offence for financial services providers 
the group has ceased taking business from norwegian citizens 
it plans to close centrebet’s norwegian operations unless a sale 
can be completed by late october 
denmark
in line with the group’s desire to only operate in regulated 
markets denmark remains a territory of potential interest to 
the group 
the implementation of the new danish act on gaming which 
will liberalise part of the danish gambling market by introducing 
a licensing system for certain online gambling activities has 
been postponed due to a decision by the eu commission 
to open a formal state aid investigation the investigation 
followed a challenge made in december 2010 by the danish 
gambling machine trade and a danish land based casino that 
the different levels of tax to be applied to land based gaming 
activities and gambling offered online were discriminatory and 
amounted to state aid the danish tax ministry skatteminister 
and the european commission have confirmed that a decision 
on this state aid investigation will be received imminently 
rest of the world
turkey
provision of gambling services in turkey is generally prohibited 
by article 228 of the turkish criminal code in addition the 
law no 7258 regarding provision of betting and luck games 
in football and other sportive competitions “law 7258” 
explicitly bans offshore originated online gambling conducted 
without a local authorisation whether the operator is based in 
or outside turkey
regulatory developments sportingbet plc annual report 201 1 47
governance
turkish law asserts jurisdiction over any act that violates the 
laws of turkey if the result of such act occurs within turkey 
irrespective of the location of the offender accordingly the 
activities of the group in taking online gambling custom from 
turkey are considered illegal under turkish law
in addition article 8 of law no 5651 regarding regulation  
of broadcasts in internet environment and prevention of 
committed by broadcasting “law 5651” permits the turkish 
authorities to block online gambling if “satisfactory suspicion 
regarding gambling services arises in such broadcasting”
turkey is not a member of the eu nor has it included online 
gambling in its wto free trade commitments
the group relies on the argument that a country’s domestic law 
cannot make illegal a supply remotely and lawfully made from 
another jurisdiction it remains legal for customers to transact 
with offshore online operators although customers may be 
subject to administrative rather than criminal enforcement 
under turkish law the group continues to accept bets from 
turkish residents although it does not have employees nor 
does it conduct advertising activity from within the territory  
in the summer of 2011 it announced that it may consider  
exiting the turkish market by a disposal
australia
the group holds sports betting licences in australia in the 
northern territory and provides services from the northern 
territory to other states the group blocks australians from 
accessing any of the group’s other products it has been held 
as a result of various court cases to which the group and others 
have been a party that holding a sports betting licence in one 
state entitles the licensee to advertise and supply in another 
however there has been a growing trend in relation to payment 
of fees for the use of “sports products” eg race fields and 
sporting fixtures which is levied against betting operators in 
australia such fees are levied on operators licensed in australia 
in addition to taxes they pay in their licensing state 
race fields legislation exists in every australian state except the 
northern territory the race fields legislation however is subject 
to ongoing legal challenge principally on the basis that there 
exists anticompetitive discrimination between bookmakers and 
the tote incumbent monopolies the productivity committee 
tasked with reevaluating the gambling industry has taken the 
view that there may be merit in such fees being dealt with on a 
national basis via some form of national statutory scheme but 
this and other recommendations it made will not be taken up by 
the australian federal government despite this the government 
announced in august 2011 that it would again review the 
interactive gambling act to assess the adequacy of the 
prohibition on gaming a report is expected in the early part 
of 2012 the report may highlight the importance too of 
continuing to ban inrunning sports betting which is currently 
also precluded except for horseracing 
unlike race fields and with the exception of victoria no state  
or territory has legislation that specifically requires betting 
operators to pay fees for the use of sporting fixture information 
moreover in the summer of 2011 victoria announced it was 
planning to toughen penalties for any infractions more 
generally however a practice has developed under which 
corporate bookmakers enter into direct commercial agreements 
with the national administrative bodies for each sport such 
agreements typically provide for a fee equivalent to 5 of 
revenue to be paid to the administrative bodies
united states
the us continues to prohibit online gambling 
despite the current prohibitive position there have been 
suggestions that in light of the economic downturn in the  
us and the resultant loss of revenue for landbased casino 
operators liberalisation may occur in the online gambling 
market increasing pressure from consumers and lobby groups 
has also resulted in legislative proposals to date these have  
not amounted to a change in the existing prohibitive regime 
although several state bills are gaining momentum particularly 
in new jersey albeit that there is concern that a federal bill if 
introduced which on the face of it may look ideal may only 
favour certain states such as nevada
on 20 september 2010 the group entered into a non
prosecution agreement the “agreement” with the office of the 
united states attorney for the southern district of new york 
“sdny” acting on behalf of the united states department  
of justice with respect to the group’s previous activities in the 
united states under the terms of the agreement sdny will 
not seek to prosecute the group for activities related to its 
internet gambling business with customers in the united states 
from 1998 to 2006 the group ceased to offer online gambling 
to united states customers on 12 october 2006
as part of the agreement the group has agreed to pay a total 
of 33m £213m to sdny payable in three instalments i 
15m £97m payable no later than 30 september 2010 ii 
12m £77m no later than 30 september 2011 and iii 6m 
£39m no later than 31 march 2012
in addition to the above the group has agreed to cooperate 
with sdny and disclose information to sdny relating to the 
group’s former internet gambling business in the united states 
and adhere to certain further obligations from the date of the 
agreement with respect to its future conduct in the united 
states the group has also acknowledged and accepted certain 
details regarding its former business activities in the united 
states which are set out in the statement of facts which form 
part of the agreement
the group believes that this settlement enables a line to be 
drawn under its previous activities in the united states 
asia
the regulatory regime in many asian countries is currently 
prohibitive and at present the group has no operations  
or activities in asia 48 sportingbet plc annual report 201 1
independent audit report
for the year ended 31 july 201 1
independent auditor’s report to the members of 
sportingbet plc
we have audited the group financial statements of sportingbet 
plc for the year ended 31 july 2011 which comprise the 
consolidated statement of comprehensive income consolidated 
balance sheet consolidated statement of changes in equity 
consolidated cash flow and the related notes the financial 
reporting framework that has been applied in their preparation 
is applicable law and international financial reporting standards 
“ifrs” as adopted by the european union 
this report is made solely to the company’s members as a body 
in accordance with chapter 3 of part 16 of the companies act 
2006 our audit work has been undertaken so that we might 
state to the company’s members those matters we are required 
to state to them in an auditor’s report and for no other purpose 
to the fullest extent permitted by law we do not accept or 
assume responsibility to anyone other than the company and 
the company’s members as a body for our audit work for this 
report or for the opinions we have formed 
respective responsibilities of directors and auditor
as explained more fully in the statement of directors’ 
responsibilities set out on page 37 the directors are responsible 
for the preparation of the group financial statements and 
for being satisfied that they give a true and fair view our 
responsibility is to audit and express an opinion on the group 
financial statements in accordance with applicable law and 
international standards on auditing uk and ireland those 
standards require us to comply with the auditing practices 
board’s “apb’s” ethical standards for auditors 
scope of the audit of the financial statements
a description of the scope of an audit of financial 
statements is provided on the apb’s website at  
wwwfrcorgukapbscopeprivatecfm
opinion on financial statements
in our opinion the group financial statements
•	 give a true and fair view of the state of the group’s affairs as 
at 31 july 2011 and of its profit for the year then ended
•	 have been properly prepared in accordance with ifrs as 
adopted by the european union and
•	 have been prepared in accordance with the requirements of 
the companies act 2006 and article 4 of the ias regulation
opinion on other matters prescribed by the 
companies act 2006
in our opinion
•	 the information given in the directors’ report for the financial 
year for which the group financial statements are prepared is 
consistent with the group financial statements and
•	 the information given in the corporate governance 
statement set out on pages 32 to 35 with respect to internal 
control and risk management systems in relation to financial 
reporting processes and about share capital structures is 
consistent with the financial statements 
matters on which we are required to report by exception
we have nothing to report in respect of the following
under the companies act 2006 we are required to report to 
you if in our opinion
•	 certain disclosures of directors’ remuneration specified by 
law are not made or
•	 we have not received all the information and explanations 
we require for our audit or
•	 a corporate governance statement has not been prepared 
by the company 
under the listing rules we are required to review
•	 the directors’ statement set out on page 37 in relation to 
going concern and
•	 the part of the corporate governance statement relating to 
the company’s compliance with the nine provisions of the 
june 2008 combined code specified for our review and
•	 certain elements of the report to shareholders by the board 
of directors’ remuneration 
other matter
we have reported separately on the parent company financial 
statements of sportingbet plc for the year ended 31 july 2011 
and the information in the directors’ remuneration report that 
is described as having been audited 
paul etherington bsc fca cf
senior statutory auditor
for and on behalf of grant thornton uk llp
statutory auditor chartered accountants
london
4 october 2011 sportingbet plc annual report 201 1 49
financials year ended
continuing operations notes
31 july 2011
£m
31 july 2010
£m
amounts wagered 3 20539 19713
net gaming revenue 2 2040 2075
other operating revenue 23 –
total revenue 3 2063 2075
administrative expenses before exceptional items share option charge and amortisation 
of other intangible assets 1682 1721
group operating profit before exceptional items share option charge and 
amortisation of other intangible assets 3 381 354
other administrative expenses
exceptional items 4 108 245
share option charge 6 12 20
amortisation of other intangible assets 12 17 18
total administrative expenses 1819 2004
group operating profit 244 71
finance income 8 05 04
finance costs 8 11 06
profit before taxation 5 238 69
taxation 9 31 30
group profit for the year 207 39
profit attributable to the owners of the parent 207 39
other comprehensive income
amounts initially taken to equity as a result of applying hedge accounting 04 03
amounts recycled to the statement of comprehensive income to match the hedged items 12 03
exchange differences on translation of foreign operations 19 15
total comprehensive income for the period attributable to the owners of the parent 210 60
profit per ordinary share
basic 10 39p 08p
diluted 10 39p 07p
the notes on pages 53 to 77 form part of these financial statements
consolidated statement of comprehensive income
for the year ended 31 july 201 1 50 sportingbet plc annual report 201 1
as at
notes
31 july 2011
£m
31 july 2010
£m
noncurrent assets
goodwill 11 418 415
other intangible assets 12 332 218
property plant and equipment 13 262 271
deferred tax asset 9 12 20
1024 924
current assets
trade and other receivables 14 163 126
cash and cash equivalents 15 1802 589
derivatives 18 – 13
1965 728
current liabilities
trade and other payables 16 604 544
interest bearing loans and borrowings 16 60 53
derivatives 16 02 –
666 597
net current assets 1299 131
noncurrent liabilities
trade and other payables 16 – 116
interest bearing loans and borrowings 16 538 12
538 128
net assets 1785 927
equity
issued share capital 19 07 05
share premium 600 599
reserves 1178 323
total equity 1785 927
the notes on pages 53 to 77 form part of these financial statements these financial statements were approved by the board and 
authorised for issue on 4 october 2011
a mciver
director
consolidated balance sheet
for the year ended 31 july 201 1 sportingbet plc annual report 201 1 51
financials consolidated statement of changes in equity
for the year ended 31 july 201 1
issued  
share  
capital
£m
share 
premium 
account
£m
other 
reserves 
£m
equity  
portion of 
convertible 
bond 
£m
profit  
and loss 
account
£m
foreign 
exchange 
reserve
£m
total
£m
as at 1 august 2009 05 594 – – 333 – 932
employee share options – 05 – – 06 – 01
share option charge – – – – 11 – 11
dividends paid – – – – 75 – 75
profit for the year – – – – 39 – 39
hedge accounting – – – – 06 – 06
foreign currency exchange – – – – – 15 15
as at 1 august 2010 05 599 – – 308 15 927
employee share options – 01 – – 07 – 06
issue of shares 02 – 623 – – – 625
equity portion of convertible bond – – – 103 – – 103
share option charge – – – – 12 – 12
dividends paid – – – – 86 – 86
profit for the year – – – – 207 – 207
hedge accounting – – – – 16 – 16
foreign currency exchange – – – – – 19 19
as at 31 july 2011 07 600 623 103 418 34 1785
the increase in group equity of £858m 2010 decrease of £05m is wholly represented by the movements shown in equity 
reserves and share capital in note 19 and the statement above 
other reserves represent amounts relating to the premiums arising on the issue of shares under the provisions of section 612 of the 
companies act 2006
the equity portion of the convertible bond reserve represents the equity portion of the £65m fixed rate 7 convertible bond 
note 16 after deduction of transaction costs of £05m attributable to the equity component
all group equity is attributable to the owners of the parent 52 sportingbet plc annual report 201 1
year ended
notes
31 july 2011
£m
31 july 2010
£m
group profit after taxation 207 39
depreciation 52 54
software amortisation 81 57
other amortisation 17 18
share option charge 12 20
finance cost 06 02
taxation 31 30
operating cash flows before movements in working capital 406 220
increasedecrease in receivables 09 08
decreaseincrease in payables 87 250
cash generated by operations 310 478
income tax paid 21 40
net cash from operating activities 289 438
purchases of property plant and equipment 13 41 104
purchases of software 12 209 133
acquisition of subsidiaries 01 06
interest paid 08 02
cash used in investing activities 259 245
exercise of share options 07 10
issue of shares 618 02
finance leases 07 25
dividends paid 86 75
issue of convertible loan notes 620 –
net cash from financing activities 1152 58
net increase in cash and cash equivalents in the year 1182 135
cash and cash equivalents at beginning of year 589 443
effect of foreign exchange rate changes 31 11
cash and cash equivalents at end of year 15 1802 589
the notes on pages 53 to 77 form part of these financial statements 
consolidated cash flow statement
for the year ended 31 july 201 1 sportingbet plc annual report 201 1 53
financials notes to the financial statements 
1 accounting policies
basis of preparation
the financial information provided is for the group’s financial year ending 31 july 2011
the financial information has been prepared in accordance with applicable international financial reporting standards “ifrss”  
as adopted by the european union
the ifrs financial statements have been drawn up on the basis of accounting policies consistent with those applied in the financial 
statements for the year to 31 july 2010 except for the following
•	 ifrs 2 amendment – sharebased payment – group cashsettled sharebased payment transactions
•	 improvements to ifrss 2010
the accounting policies have been applied consistently throughout the group for the purposes of preparation of these financial 
statements the effect of adopting the above standards and interpretations is not material to group profit or to total equity in  
the current or prior year prior year information has not been restated therefore an additional comparative balance sheet has not 
been presented 
standards in issue not yet effective
the iasb and ifric have issued the following standards and interpretations applicable to the group which are effective for periods 
starting after the date of these financial statements and are yet to be adopted by the group
•	 ifrs 9 financial instruments – 1 january 2013
•	 ifrs 10 consolidated financial statements – 1 january 2013
•	 ifrs 11 joint arrangements – 1 january 2013
•	 ifrs 12 disclosure of interests in other entities – 1 january 2013
•	 ifrs 13 fair value measurement – 1 january 2013
•	 ias 24 related party disclosures – 1 january 2011
•	 ias 19 employee benefits revised june 2011 – 1 january 2013
•	 ias 27 revised separate financial statements – 1 january 2013
•	 ias 28 revised investments in associates and joint ventures – 1 january 2013
•	 disclosures – transfers of financial assets – amendments to ifrs 7 – 1 july 2011
•	 deferred tax recovery of underlying assets – amendments to ias 12 income taxes – 1 january 2012
•	 presentation of items of other comprehensive income – amendments to ias 1 – 1 july 2012
the group does not anticipate that the adoption of these standards and interpretations will have a material effect on its financial 
statements on initial adoption
basis of consolidation – subsidiaries
the group financial statements for the year consolidate the financial statements of sportingbet plc and the entities it controls 
its subsidiaries
subsidiaries are consolidated from their date of acquisition being the date on which the group obtains control and continue to be 
consolidated until the date that such control ceases control comprises the power to govern the financial and operating policies of 
the investee so as to obtain benefit from its activities and is achieved through direct or indirect ownership of voting rights currently 
exercisable or convertible potential voting rights or by way of contractual agreement accounting policies are consistently applied 
across the group all intercompany balances and transactions are eliminated 
business combinations
on acquisition the assets liabilities and contingent liabilities of a subsidiary are measured at their fair values at the date of 
acquisition any excess of the consideration transferred over the fair values of the identifiable net assets acquired is recognised as 
goodwill any deficiency of the cost of acquisition below the fair values of the identifiable net assets acquired ie discount on 
acquisition is credited to the statement of comprehensive income in the period of acquisition 
contingent and deferred consideration arising as a result of acquisitions is stated at a measure of fair value at the date of 
acquisition contingent consideration is based on management’s best estimate of the likely outcome the fair value of contingent 
share consideration is measured based on the market price of shares at acquisition subsequent remeasurement of contingent 
consideration is recognised in the statement of comprehensive income  54 sportingbet plc annual report 201 1
1 accounting policies continued
amounts wagered
amounts wagered do not represent the group’s statutory revenue they represent amounts staked in respect of bets placed on 
sporting events in the year net win in respect of casino and gaming and rake in respect of poker games that have concluded in  
the year amounts wagered are stated net of certain promotional bonuses 
revenues
net gaming revenue
net gaming revenue is measured at the fair value of consideration received or receivable and comprises the following 
•	 sports betting gains and losses in respect of bets placed on sporting events in the year stated after betting taxes and certain 
promotional bonuses 
•	 open positions are carried at fair market value and gains and losses arising on this valuation are recognised in revenue as well  
as gains and losses realised on positions that have closed 
•	 casino and gaming net win in respect of bets placed on casino games that have concluded in the year stated net of certain 
promotional bonuses 
•	 poker net win in respect of rake for poker games that have concluded in the year stated net of certain promotional bonuses 
•	 where the group refers to gaming revenue this represents net gaming revenue before the deduction of promotional bonuses
other operating revenue
other operating revenue is comprised of transaction fees for payment processing services and is measured at the fair value of the 
consideration received
goodwill
goodwill represents the excess of the cost of an acquisition over the group‘s share of the fair value of the identifiable assets and 
liabilities acquired goodwill is allocated to cashgenerating units for the purpose of impairment testing 
goodwill allocated to each cashgenerating unit is not amortised and is reviewed for impairment at least annually where 
impairment arises on a cashgenerating unit it is allocated initially against goodwill and thereafter pro rata amongst other assets 
any impairment is recognised immediately in the statement of comprehensive income and is not subsequently reversed goodwill 
arising on earlier acquisitions prior to ifrs conversion was being amortised over its estimated useful life of 20 years in accordance 
with the transitional provisions of ifrs 1 first time adoption of ifrs the unamortised balance of goodwill at 31 july 2006 was 
frozen and reviewed for impairment at least annually 
computer software
where in the opinion of the directors the group’s expenditure in relation to development of internet activities results in future 
economic benefits these costs are capitalised and amortised over the useful economic life of the asset 
development costs are capitalised only when it is probable that future economic benefit will result from the project and the 
following criteria are met
•	 the technical feasibility of the product has been ascertained
•	 adequate technical financial and other resources are available to complete and sell or use the intangible asset 
•	 the group can demonstrate how the intangible asset will generate future economic benefits and the ability to use or sell the 
intangible asset can be demonstrated
•	 it is the intention of management to complete the intangible asset and use it or sell it 
•	 the development costs can be measured reliably
amortisation is provided on computer software at a rate calculated to write each asset down to its estimated residual value using 
the straightline method over its expected useful life as follows 
computer software 20–33 on cost
methods of amortisation residual values and useful lives are reviewed and adjusted if appropriate at each balance sheet date 
notes to the financial statements  sportingbet plc annual report 201 1 55
financials 1 accounting policies continued
other intangible assets 
identifiable intangible assets acquired as part of business combinations that meet the conditions for recognition under ifrs 3 are 
recognised at their fair value at the acquisition date and amortised over their useful economic life as follows 
superbahis url 33 on cost
belmond international limited – marketing contract 20 on cost
property plant and equipment
property plant and equipment is stated at cost less accumulated depreciation depreciation is provided on all property plant and 
equipment except for freehold land at rates calculated to write each asset down to its estimated residual value using the straight
line method over its expected useful life as follows 
fixtures fittings and equipment 25 on cost
leasehold improvements 10 on cost
motor vehicles 25 on cost
computer equipment 20–33 on cost
freehold land and buildings 2 on cost
methods of depreciation residual values and useful lives are reviewed and adjusted if appropriate at each balance sheet date 
leasehold improvements are included within fixtures fittings and equipment in the property plant and equipment note 
impairment of property plant and equipment and intangible assets
at each balance sheet date the group reviews the carrying amounts of its property plant and equipment and other intangible 
assets to determine whether there is any indication that those assets have suffered an impairment loss if any such indication exists 
the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss if any where the asset 
does not generate cash flows that are independent from other assets the group estimates the recoverable amount of the cash
generating unit to which the asset belongs 
recoverable amount is the higher of fair value less costs to sell and value in use in assessing value in use the estimated future cash 
flows are discounted to their present value using a pretax discount rate that reflects current market assessments of the time value 
of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted 
if the recoverable amount of an asset or cashgenerating unit is estimated to be less than its carrying amount the carrying  
amount of the asset or cashgenerating unit is reduced to its recoverable amount an impairment loss is recognised as an  
expense immediately 
where an impairment loss subsequently reverses the carrying amount of the asset or cashgenerating unit is increased to the 
revised estimate of its recoverable amount but so that the increased carrying amount does not exceed the carrying amount that 
would have been determined had no impairment loss been recognised for the asset or cashgenerating unit in prior years 
a reversal of an impairment loss is recognised as income immediately 
finance costs
finance costs are charged to profit over the term of the debt so that the amount charged is at a constant rate on the 
carrying amount 
finance costs include issue costs which are initially recognised as a reduction in the proceeds of the associated financial instrument 
financial instruments
financial assets and financial liabilities are recognised on the group’s balance sheet when the group becomes a party to the 
contractual provisions of the instrument  56 sportingbet plc annual report 201 1
1 accounting policies continued
trade receivables
trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest 
method less provision for impairment a provision for impairment of trade receivables is established when there is objective evidence 
that the group will not be able to collect all amounts due according to the original terms of the receivables significant financial 
difficulties of the debtor probability that the debtor will enter bankruptcy or financial reorganisation and default or delinquency in 
payments more than 60 days overdue are considered indicators that the trade receivable is impaired the amount of the provision is 
the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the original 
effective interest rate the carrying amount of the asset is reduced through the use of an allowance account and the amount of the 
loss is recognised in the statement of comprehensive income within ‘other administrative expenses’ when a trade receivable is 
uncollectible it is written off against the allowance account for trade receivables subsequent recoveries of amounts previously 
written off are credited against ‘other administrative expenses’ in the statement of comprehensive income 
cash and cash equivalents
cash and cash equivalents include cash in hand deposits with banks it also includes cash reserves and shortterm cash in transit 
held by payment service providers 
financial liabilities and equity
financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into 
an equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities 
interest bearing loans and other borrowings
borrowings are recognised initially at fair value net of transaction costs incurred borrowings are subsequently stated at amortised 
cost and the difference between the proceeds net of transaction costs and the redemption value is recognised in the statement  
of comprehensive income over the period of borrowings using the effective interest method 
borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for  
at least 12 months after the balance sheet date 
trade payables
trade payables are not interestbearing and are stated initially at their fair value and thereafter at their amortised cost using the 
effective interest rate method the fair value of trade and other payables has not been disclosed as due to their short duration 
management considers the carrying values recognised in the balance sheet to be a reasonable approximation of their fair value 
equity instruments
equity instruments issued are recorded at the proceeds received net of direct issue costs 
convertible bonds
the net proceeds received from the issue of convertible bonds are split between a liability element and an equity component at the 
date of issue the fair value of the liability component is estimated using the prevailing market interest rate for similar nonconvertible 
debt the difference between the proceeds of issue of the convertible bonds and the fair value assigned to the liability component 
representing the embedded option to convert the liability into equity of the group is included in equity and is not remeasured the 
liability component is carried at amortised cost 
issue costs are apportioned between the liability and equity components of the convertible bonds based on their relative carrying 
amounts at the date of issue the portion relating to the equity component is charged directly against equity 
the finance cost on the liability component is calculated by applying the prevailing market interest rate at the time of issue for 
similar nonconvertible debt to the liability component of the instrument the difference between this amount and the interest paid 
is added to the carrying amount of the convertible bonds
derivative financial instruments
the group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates 
the group uses derivative financial instruments to reduce exposure to foreign exchange rate movements the group does not hold 
or issue derivative financial instruments for speculative purposes 
notes to the financial statements  sportingbet plc annual report 201 1 57
financials 1 accounting policies continued
derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured  
at their fair value calculated using either discounted cash flow techniques or by reference to market prices supplied by banks  
the method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument and 
if so the nature of the item being hedged the group designates certain derivatives as hedges of the variability of cash flows cash 
flow hedge
the group documents at the inception of the transaction the relationship between hedging instruments and hedged items as  
well as its risk management objective and strategy for undertaking various hedge transactions the group also documents its 
assessment both at hedge inception and on an ongoing basis of whether the derivatives that are used in hedging transactions  
are highly effective in offsetting changes in the cash flows of the hedged items 
the use of financial derivatives is governed by the group’s policies approved by the board of directors which provide written 
principles on the use of financial derivatives
derivative financial instruments not eligible for hedge accounting are recognised in the balance sheet at fair value calculated using 
either discounted cash flow techniques or by reference to market prices supplied by banks changes in their fair value are recognised 
in the profit or loss 
cash flow hedges
the effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised  
in equity the gain or loss relating to the ineffective portion is recognised immediately in the profit or loss
amounts accumulated in equity are recycled in the consolidated statement of comprehensive income in the periods when the 
hedged item will affect profit or loss however when the hedged transaction results in the recognition of a nonfinancial asset or  
a liability the gains and losses previously deferred in equity are transferred from other comprehensive income and included in the 
initial measurement of the cost of the asset or liability 
fair value measurements are based on quoted prices in active markets for the same instrument
when a hedging instrument expires or is sold or when a hedge no longer meets the criteria for hedge accounting any cumulative 
gain or loss existing in other comprehensive income at that time remains in equity and is recognised when the forecast transaction  
is ultimately recognised in the statement of comprehensive income when a forecast transaction is no longer expected to occur the 
cumulative gain or loss that was reported in other comprehensive income is immediately transferred to the consolidated statement 
of comprehensive income 
dividends
dividends are recognised when they become legally payable interim dividends are recognised when paid final dividends are 
recognised when approved by the shareholders at the annual general meeting
functional and presentational currency
items included in the financial statements of each of the group’s entities are measured using the currency of the primary economic 
environment in which the entity operates “the functional currency” the consolidated financial statements are presented in 
sterling £ which is the parent’s functional and presentational currency
foreign currency translation
foreign currency transactions of individual companies are translated at the rates ruling when they occurred foreign currency 
monetary assets and liabilities are translated at the closing spot rate any differences are taken to the statement of  
comprehensive income 
the results of overseas operations are translated at the average rates of exchange during the year and their balance sheets 
translated into sterling at the rates of exchange ruling on the balance sheet date exchange differences which arise from translation 
of the opening net assets and results of foreign subsidiary undertakings and from translating the statement of comprehensive 
income at an average rate are taken to reserves 
taxation
the tax expense represents the sum of the tax currently payable and deferred tax 58 sportingbet plc annual report 201 1
1 accounting policies continued
the tax currently payable is based on taxable profit for the year taxable profit differs from net profit as reported in the statement  
of comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it 
further excludes items that are never taxable or deductible the group’s liability for current tax is calculated using tax rates that  
have been enacted or substantively enacted by the balance sheet date 
deferred tax
deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities 
in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using 
the balance sheet liability method deferred tax liabilities are generally recognised for all taxable temporary differences and deferred 
tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary 
differences can be utilised such assets and liabilities are not recognised if the temporary difference arises from the initial recognition 
of goodwill or of other assets and liabilities in a transaction other than in a business combination that affects neither the tax profit 
nor the accounting profit 
deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries except where the 
group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse  
in the foreseeable future 
the carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer 
probably that sufficient taxable profits will be available to allow all or part of the asset to be recovered 
deferred tax is calculated at the tax rates that are expected to apply in accordance with laws which have been enacted or 
substantially enacted at the balance sheet date deferred tax is charged or credited in the statement of comprehensive income 
except when it relates to items charged or credited directly to other comprehensive income in which case the deferred tax is also 
dealt with in other comprehensive income 
employee benefits
pension costs
for defined contribution arrangements the amount charged to the statement of comprehensive income in respect of pension costs 
and other postretirement benefits is the contributions payable in the year differences between contributions payable in the year 
and contributions actually paid are shown as either accruals or prepayments in the balance sheet
sharebased employee remuneration
where share options are awarded to employees the fair value of the options at the date of grant is charged to the statement of 
comprehensive income over the vesting period with the corresponding credit to the profit and loss reserve nonmarket vesting 
conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so 
that ultimately the cumulative amount recognised over the vesting period is based on the number of options that eventually vest 
market vesting conditions are factored into the fair value of the options granted as long as all other vesting conditions are satisfied 
a change is made irrespective of whether the market vesting conditions are satisfied the cumulative expense is not adjusted for 
failure to achieve a market vesting condition 
where the terms of the options are modified before they vest the increase in the fair value of the options measured immediately 
before and after the modification is also charged to the statement of comprehensive income over the remaining vesting period 
where equity instruments are granted to persons other than employees the statement of comprehensive income is charged with 
the fair value of goods and services received 
the proceeds received net of any directly attributable transaction costs are credited to share capital nominal value and share 
premium when the options are exercised 
leases
leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership  
to the lessee all the other leases are classified as operating leases 
notes to the financial statements  sportingbet plc annual report 201 1 59
financials 1 accounting policies continued
the group as lessee
assets held under finance leases and other similar contracts which confer rights and obligations similar to those attached to owned 
assets are capitalised as property plant and equipment and are depreciated over the shorter of the lease terms and their useful 
lives the capital elements of future lease obligations are recorded as liabilities while the interest elements are charged to the 
statement of comprehensive income over the period of the leases to produce a constant rate of charge on the balance of capital 
repayments outstanding hire purchase transactions are dealt with similarly except that assets are depreciated over their useful lives 
rentals under operating leases are charged on a straightline basis over the lease term even if the payments are not made on such  
a basis benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straightline basis 
the group as lessor
rental income from the group’s land and buildings accounted for within property plant and equipment is recognised on a 
straightline basis over the lease term 
exceptional items
exceptional items are those that in management’s judgement need to be disclosed by virtue of their size or incidence in order for 
the user to obtain a proper understanding of the financial information 
provisions
provisions are recognised when the group has a present obligation as a result of a past event and it is probable that the group will 
be required to settle that obligation provisions are measured at the directors’ best estimate of the expenditure required to settle the 
obligation at the balance sheet date and are discounted to present value where the effect is material 
critical accounting judgements
in the application of the accounting policies which are detailed in this note the directors are required to make judgements 
estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources  
the critical judgements are discussed below
business combinations
management apply judgement in respect of each business combination entered into in respect of their assessment of the date 
when control passes
classification of convertible bonds
the terms of convertible bond instruments including all conditions under which an adjustment to the conversion price can be 
made where in management’s judgement such terms are all considered to be antidilutive to the bondholder the instrument is 
recognised as a compound financial instrument in accordance with the requirements of ias 32
key sources of estimation uncertainty
the estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant 
actual results may differ from these estimates 
the estimates and underlying assumptions are reviewed on an ongoing basis revisions to accounting estimates are recognised in 
the period in which the estimate is revised if the revisions affect only that period or in the period of the revision and future periods  
if the revision affects both current and future periods 
the estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amounts of assets and 
liabilities within the next financial year are discussed below 
sharebased payments
management applies valuation techniques to calculate the fair value of share option charges note 20 provides information on the 
choice of valuation technique and the assumptions used in these financial statements 
customer liabilities
customer liabilities represent cash held by the group on behalf of customers these are stated net of an allowance for uncollected 
dormant balances management apply judgement calculating the allowance by reference to player terms and conditions in assessing 
the likelihood of balances being reclaimed  60 sportingbet plc annual report 201 1
1 accounting policies continued
measurement of convertible bonds
the finance cost of convertible bonds is calculated using an effective rate of interest which is at a premium to the coupon rate  
this effective rate is calculated based on the estimate of the cost of a similar instrument without a conversion option
2 net gaming revenue
2011
£m
2010
£m
gaming revenue 2243 2263
promotional bonuses 203 188
net gaming revenue 2040 2075
3 operating segments 
for management purposes the group is currently organised into three geographical regions – europe australia and emerging 
markets these regions are the basis on which the group reports its operating segments
the following table presents revenue and profit information and certain asset and liability information regarding the group’s 
operating segments for the years ended 31 july 2011 and 31 july 2010
emerging markets refer to the group’s operations in canada brazil chile and south africa 
2011
europe
£m
australia
£m
emerging 
markets
£m
unallocated 
central costs
£m
total
£m
amounts wagered 11255 8220 1064 – 20539
total revenue 1586 371 106 – 2063
depreciation and amortisation of software 114 18 – 01 133
administrative expenses before exceptional items share option 
charge and amortisation of intangible assets 1082 264 71 132 1549
group operating profitloss before exceptional  
items share option charge and amortisation of other 
intangible assets 390 89 35 133 381
other administrative expenses
exceptional items 12 – – 96 108
share option charge 05 02 – 05 12
amortisation of other intangible assets 17 – – – 17
total administrative expenses 1230 284 71 234 1819
operating profitloss 356 87 35 234 244
finance incomecost 08 05 01 18 06
taxation 02 29 – – 31
profitloss for the year 362 63 34 252 207
balance sheet information
total assets 2682 307 – – 2989
total liabilities 1148 56 – – 1204
expenditure incurred to acquire property plant and equipment 
and intangible assets 223 27 – – 250
notes to the financial statements  sportingbet plc annual report 201 1 61
financials 3 operating segments continued
2011
sports 
betting
£m
casino 
gaming
£m
poker  
rake
£m
other 
operating 
revenue
£m
total
£m
amounts wagered 20090 475 177 – 20742
promotional bonuses 124 35 44 – 203
net amounts wagered 19966 440 133 – 20539
revenue 1591 475 177 23 2266
promotional bonuses 124 35 44 – 203
total revenue 1467 440 133 23 2063
2010
europe
£m
australia
£m
emerging 
markets
£m
unallocated 
central costs
£m
total
£m
amounts wagered 11578 7439 696 – 19713
total revenue 1674 336 65 – 2075
depreciation and amortisation of software 97 10 – 04 111
administrative expenses before exceptional items share option 
charge and amortisation of intangible assets 1122 248 47 193 1610
group operating profitloss before exceptional  
items share option charge and amortisation of other 
intangible assets 455 78 18 197 354
other administrative expenses
exceptional items – – – 245 245
share option charge 05 01 – 14 20
amortisation of other intangible assets 18 – – – 18
total administrative expenses 1242 259 47 456 2004
operating profitloss 432 77 18 456 71
finance cost – – – 02 02
taxation 04 26 – – 30
profitloss for the year 428 51 18 458 39
balance sheet information
total assets 1384 264 – – 1648
total liabilities 602 119 – – 721
expenditure incurred to acquire property plant and equipment 
and intangible assets 217 20 – – 237
2010
sports  
betting
£m
casino  
gaming
£m
poker  
rake
£m
other 
operating 
revenue
£m
total
£m
amounts wagered 19202 482 217 – 19901
promotional bonuses 112 33 43 – 188
net amounts wagered 19090 449 174 – 19713
revenue 1564 482 217 – 2263
promotional bonuses 112 33 43 – 188
total revenue 1452 449 174 – 2075 62 sportingbet plc annual report 201 1
4 exceptional items
notes
2011 
£m
2010 
£m
department of justice settlement a – 228
centrebet acquisition costs b 64 –
costs associated with the possible disposal of the turkish language website c 44 –
move to the main market d – 17
108 245
a the agreed settlement payment to the united states department of justice in respect of the usfacing element of the group’s 
business operating prior to the implementation of the unlawful internet gambling enforcement act “uigea” in return the  
us federal government will not seek to prosecute the group with regard to its former actions in the us 
b the costs related to the fees incurred in relation of the acquisition of centrebet international limited “centrebet” which 
completed after the balance sheet date note 23
c legal and professional fees relating to the strategic review of the turkish language website
d the costs related to transferring the listing of the group’s entire issued share capital from aim to a premium listing on the 
official list of the uk listing authority “official list”
5 profit before taxation
2011
£m
2010
£m
net foreign exchange losses – 19
depreciation of property plant and equipment 52 54
amortisation of software 81 57
auditors’ remuneration
audit services 01 01
audit of subsidiaries pursuant to legislation 03 03
tax services – 01
transaction support services 08 04
6 share option charge
2011 
£m
2010 
£m
share option charge 12 11
social security costs on share options – 09
12 20
notes to the financial statements  sportingbet plc annual report 201 1 63
financials 7 staff costs
2011 
no
2010 
no
the average monthly number of employees including executive directors was 
europe 517 468
australia 113 103
630 571
2011 
£m
2010 
£m
employee costs including executive directors were as follows 
wages and salaries 331 357
social security costs 33 38
pension costs 22 15
386 410
the following table sets out directors’ remuneration there are no key management personnel other than the group’s directors
2011 
£m
2010 
£m
directors’ remuneration
salary and fees 13 14
bonuses – 11
sharebased payments 04 28
total emoluments 17 53
pension contributions 01 01
18 54
further disclosures on the remuneration of each individual director are given in the remuneration report on pages 39 to 44
8 net finance incomecosts
2011 
£m
2010 
£m
bank loans and overdrafts 09 05
finance lease interest 02 01
11 06
interest receivable 05 04
06 02 64 sportingbet plc annual report 201 1
9 taxation
the tax charge for the year is higher than the standard uk rate of corporation tax as explained below 
2011 
£m
2010 
£m
note 9a analysis of charge in the period
current tax
uk corporation tax on losses of the period – –
overseas taxation 29 30
adjustments to overseas taxation in respect of previous periods 10 06
total current tax 19 36
deferred tax
current year movement to deferred tax 12 06
total deferred tax note 9c 12 06
tax on profit on ordinary activities note 9b 31 30
note 9b factors affecting the tax charge for the period
profit on ordinary activities before tax 238 69
profit on ordinary activities multiplied by the standard rate of corporation tax in the uk 27 2010 28 65 19
effects of
expenses not deductible for tax purposes 21 104
effect of lower tax rates on overseas earnings 87 106
difference between fixed assets and capital allowances 02 –
tax losses arising in year 31 33
other timing differences 03 14
adjustments to tax charge in respect of previous periods 10 06
tax charge for the period note 9a 19 30
note 9c provision for deferred tax deferred tax asset
other timing differences – 06
provision for deferred tax at 27 2010 28 – 06
as at the beginning of the year 20 14
current year movement 12 06
as at the end of the year deferred tax asset 08 20
uk deferred tax assets in respect of accelerated capital allowances of £nil trading losses of £236m and nontrading loan 
relationship deficits of £28m have not been recognised on the basis that it is not probable that there will be sufficient taxable profit 
in future years against which the assets can be recovered
a resolution passed by parliament on 29 march 2011 reduced the main rate of corporation tax to 26 from 1 april 2011 on 5 july 
2011 a further cut in the main uk corporation tax rate from 26 to 25 was substantively enacted with the reduction to take 
effect on 1 april 2012 the deferred tax balance has therefore been recognised at 25 
in addition to the change in rate of corporation tax disclosed above further reductions to the main rate are proposed to reduce the 
rate by 1 per annum to 23 by 1 april 2014 none of these expected rate reductions had been substantively enacted at the 
balance sheet date and therefore are not included in these financial statements 
notes to the financial statements  sportingbet plc annual report 201 1 65
financials 10 earnings per share
2011 
total
2010 
total
profit per ordinary share
basic 39p 08p
diluted 39p 07p
adjusted earnings per ordinary share before exceptional items share option charge 
and amortisation
basic 66p 65p
diluted 63p 62p
the calculation of basic earnings per share is based on the profit on ordinary activities after taxation attributable to shareholders  
of sportingbet plc and the weighted average number of shares in issue during the year 
the group has adjusted its earnings per ordinary share to exclude exceptional items share option charge and amortisation 
2011 
£m
2010 
£m
basic earnings 207 39
exceptional items 108 245
share option charge 12 20
amortisation 17 18
adjusted earnings 344 322
after taking into account the dilutive effects of convertible bonds the diluted earnings are £217m 2010 £39m and the adjusted 
diluted earnings are £354m 2010 £322m
during the year the group had the following weighted average number of shares in issue and potentially dilutive shares 
2011 
no
2010 
no
weighted average number of shares in issue 524559273 496107615
employee share schemes 16360174 19181226
convertible loan notes 18373559 –
fully diluted number of weighted average number of shares in issue 559293006 515288841
as at 31 july 2011 the group had the following shares in issue and potentially dilutive shares 
2011 
no
2010 
no
number of shares in issue 660543128 502038144
employee share schemes 16360174 19181226
convertible loan notes 128968253 –
fully diluted number of shares in issue 805871555 521219370 66 sportingbet plc annual report 201 1
11 goodwill
£m
cost
as at 1 august 2009 2428
exchange movements 04
as at 1 august 2010 2432
exchange movements 04
as at 31 july 2011 2436
impairment losses
as at 1 august 2009 2016
exchange movements 01
as at 1 august 2010 2017
exchange movements 01
as at 31 july 2011 2018
net book value
as at 31 july 2011 418
as at 31 july 2010 415
movements arose as a result of changes in the underlying value of the amount payable to satisfy the contingent consideration 
subsequent to the annual impairment test for 2011 the carrying amount of goodwill is allocated to the following cash
generating units 
2011 
£m
2010 
£m
europe 178 178
australia 240 237
418 415
the recoverable amounts for the cashgenerating units above are determined based on internal discounted cash flow evaluation the 
cash flow evaluation is based on actual operating results and five year forecasts at the growth rates stated in the key assumptions 
management consider the key assumptions to be the selection of growth and discount rates 
discount rates for the goodwill impairment review are based on company specific pretax weighted average cost of capital 
percentages and range from 10 to 15 based on management’s assessment of comparable companies in the sector the future 
cash flows are modelled based on budgeted projections and cash flows beyond the budget period are extrapolated using a growth 
rate of 1 the growth rate applied is based on past experience future cash flows are projected assuming no changes to the 
current regulatory environment
determining whether goodwill is impaired requires an estimation of the value in use of each cashgenerating unit based on the key 
assumptions above a change of 2 in either of the key assumptions would not result in the impairment of goodwill
notes to the financial statements  sportingbet plc annual report 201 1 67
financials 12 other intangible assets
software
£m
other
£m
total
£m
cost
as at 1 august 2009 234 139 373
additions 133 – 133
disposals 07 – 07
exchange movements – 01 01
as at 1 august 2010 360 140 500
additions 209 – 209
disposals – – –
exchange movements 03 – 03
as at 31 july 2011 572 140 712
amortisation and impairment losses
as at 1 august 2009 138 76 214
charge for the year 57 18 75
disposals 06 – 06
exchange movements 02 01 01
as at 1 august 2010 187 95 282
charge for the year 81 17 98
disposals – – –
exchange movements – – –
as at 31 july 2011 268 112 380
net book value
as at 31 july 2011 304 28 332
as at 31 july 2010 173 45 218
the £140m of other intangible costs includes £53m capitalisation of the superbahis url and contract and £87m relating to the 
belmond international limited marketing contract 
amortisation of software is charged to administrative expenses in the statement of comprehensive income other amortisation and 
impairment losses are charged to other amortisation within other administrative expenses  68 sportingbet plc annual report 201 1
13 property plant and equipment
fixtures 
fittings and 
equipment
£m
motor  
vehicles
£m
computer 
equipment
£m
freehold land 
and buildings
£m
total
£m
cost
as at 1 august 2009 60 01 154 127 342
additions 14 01 75 14 104
disposals 02 – 07 – 09
exchange movements 01 – 02 – 03
as at 1 august 2010 73 02 224 141 440
additions 07 – 34 – 41
disposals 15 – – 12 03
exchange movements – – 05 – 05
as at 31 july 2011 65 02 263 153 483
depreciation
as at 1 august 2009 30 01 85 07 123
charge for the year 11 – 39 04 54
disposals 02 – 06 – 08
exchange adjustments – – – – –
as at 1 august 2010 39 01 118 11 169
charge for the year 09 – 39 04 52
disposals 01 – – 01 –
exchange adjustments – – – – –
as at 31 july 2011 47 01 157 16 221
net book value
as at 31 july 2011 18 01 106 137 262
as at 31 july 2010 34 01 106 130 271
the net book value of assets held under finance leases amounts to £29m 2010 £19m
notes to the financial statements  sportingbet plc annual report 201 1 69
financials 14 trade and other receivables 
2011 
£m
2010 
£m
trade receivables 128 90
provision for impairment of trade receivables 42 49
trade receivables net 86 41
other receivables 23 32
prepayments and accrued income 54 53
163 126
other receivables includes £08m of called up share capital net paid all called up share capital was fully paid in august 2011
trade receivables that are less than 30 days past due are not considered impaired as of 31 july 2011 trade receivables of £86m 
2010 £41m were past due but not impaired these related to a number of independent customers for whom there is no recent 
history of default 
the ageing analysis of these trade receivables is as follows
2011 
£m
2010 
£m
up to 2 months past due 48 36
2 to 6 months past due 24 01
over 6 months past due 14 04
86 41
 
the carrying amounts of the group’s trade receivables are denominated entirely in australian dollars 
movements on the group provision for impairment of trade receivables are as follows
2011 
£m
2010 
£m
as at 1 august 49 24
provision for receivables impairment 01 32
receivables written off during the year as uncollectable 08 07
as at 31 july 42 49
the creation and release of provisions for impaired receivables have been included in ‘administrative expenses’ in the statement of 
comprehensive income amounts charged to the allowance account are generally written off when there is no expectation of 
recovering additional cash 
the other classes within trade and other receivables do not contain impaired assets 
trade receivables are usually due within 30 days and do not bear any effective interest rate all trade receivables are subject to credit 
risk exposure however the group does not identify specific concentration of credit risk with regards to trade receivables as the 
amount recognised consists of a large number of receivables from various customers 
the fair value of these shortterm financial assets is not individually determined as the carrying amount is a reasonable 
approximation of fair value  70 sportingbet plc annual report 201 1
15 cash and cash equivalents
2011 
£m
2010 
£m
cash 988 423
shortterm cash deposits 150 165
restricted cash 664 01
1802 589
restricted cash includes £620m 2010 £nil of cash held in escrow in respect of the acquisition of centrebet which was completed 
after the balance sheet date and described in note 23 the remaining £44m 2010 £01m is held in designated accounts which 
have certain restrictions 
shortterm cash deposits consist of balances held by payment service providers 
16 trade and other payables
a amounts falling due within one year
2011 
£m
2010 
£m
bank loans 40 40
finance leases 20 13
trade payables 110 68
other payables 01 38
customer liabilities 209 162
tax and social security 20 15
accruals and deferred income 246 241
derivatives 02 –
open bets 18 20
666 597
included within accruals and deferred income is £116m 2010 £228m outstanding in respect of the agreed department of justice 
settlement as referred to in note 4 the final settlement date is 31 march 2012 
although repayable on demand the group has a bank loan of £40m which is available up to july 2012 the directors do not 
anticipate early repayment the loan is secured by a floating charge over the assets of the group and bears an interest rate of 15 
above libor 
the open bets at the year end are within the scope of ias 39 as derivative contracts these bets are held at fair value with gains and 
losses recognised in revenue management’s assessments of the exposure to significant changes in the fair value of open bets is 
assessed as negligible due to the shortterm exposures to such liabilities and the minimal movement on average betting odds 
between the date of bet placing and period end 
notes to the financial statements  sportingbet plc annual report 201 1 71
financials 16 trade and other payables continued
b amounts falling due after more than one year
2011 
no
2010 
no
accruals and deferred income – 116
finance leases 11 12
convertible bonds due 2016 527 –
538 128
on 8 june 2011 the group issued £650m of 7 fixed rate convertible bonds raising cash of £620m net of issue costs the equity 
portion of the convertible bond issue is included within reserves
 
these bonds are convertible into ordinary shares of the company at a conversion price of £0504 on 8 june 2016 unless 
otherwise redeemed
interest is payable semi annually in arrears 
interest on the debt proportion after the deduction of issue costs of £25m will be charged to the statement of comprehensive 
income using an effective rate of 1263 
17 leases
a obligations under finance leases
2011 
£m
2010 
£m
minimum lease payments
within 1 year 22 12
within 25 years 10 13
32 25
future finance charges 01 –
present value of lease obligations 31 25
2011 
£m
2010 
£m
present value of minimum lease payments
within 1 year 20 12
within 25 years 11 13
31 25
accounts due for settlement within 1 year 20 12
accounts due for settlement after more than 1 year 11 13
31 25
the group has entered into three separate lease arrangements for the purchase of computer hardware and other associated assets 
each commencing on september 2009 august 2010 and december 2010 the lease terms for all these arrangements were three 
years as at 31 july 2011 the average life outstanding on each lease was one year and two months for the lease commencing in 
september 2009 two years and one month for the lease commencing in august 2010 and two years and five months for the lease 
commencing in december 2010 the average effective borrowing rate for the above leases were 51 48 and 28 respectively 
the group’s obligations under these finance leases are secured by the lessor’s charges over the leased assets themselves as well as 
fixed and floating charges over the current assets of sportingbet plc and three of the group’s subsidiaries  72 sportingbet plc annual report 201 1
17 leases continued
b commitments under operating leases
the minimum lease payments under operating leases in respect of land and buildings that have been recognised as an expense for 
the period
2011 
£m
2010 
£m
minimum lease payments 20 18
the group had outstanding commitments from the future minimum lease payments in respect of land and buildings 
2011 
£m
2010 
£m
within 1 year 19 13
within 25 years inclusive 37 27
in more than 5 years 21 28
77 68
operating lease payments represent payable by the group for office property costs 
18 financial instruments 
the group uses financial instruments comprising cash and cash equivalents shortterm borrowings and trade receivables which 
arise directly from its operations 
shortterm receivables
the group’s trade and other receivables are actively monitored to avoid significant concentrations of credit risk 
derivative instruments
the group takes out forward currency contracts in euro and australian dollars hedge accounting is applied to certain derivative 
instruments as set out below
interest rate risk
the group finances its operations through a mixture of retained profits and bank facilities interest on the convertible bond is at a 
fixed coupon rate of 7 bank borrowings are made using variable interest rates the interest rate risk on the group’s £40m bank 
loan is not considered to be significant 
liquidity risk 
the group seeks to manage liquidity risk to ensure sufficient liquidity is available to meet foreseeable needs and to invest cash 
assets safely and profitably 
sufficient cash reserves are held to maintain shortterm flexibility together with shortterm borrowings 
the following table details the contractual maturity analysis of the group’s financial liabilities 
31 july 2011
1 year or less
£m
2–5 years
£m
5 years  
and over
£m
total
£m
financial liabilities
trade payables 131 – – 131
customer liabilities 209 – – 209
bank loans 40 – – 40
convertible bond 46 832 – 878
finance leases 20 11 – 31
sports betting open positions 18 – – 18
total 464 843 – 1307
notes to the financial statements  sportingbet plc annual report 201 1 73
financials 18 financial instruments continued
customer liabilities represent cash held by the group on behalf of customers net of an allowance for uncollected balances in the 
event that the level of balanced reclaimed exceeds management’s expectation the gross cash outflow could be higher 
the maturity analysis in respect of sports betting open positions reflects the fair value of the liability position at the balance sheet 
date in the event that the outcome of bets adversely affected the business the gross cash outflow could be higher 
31 july 2010
1 year or less
£m
2–5 years
£m
5 years  
and over
£m
total
£m
financial liabilities
trade payables 121 – – 121
customer liabilities 162 – – 162
bank loans 40 – – 40
finance leases 12 13 – 25
sports betting open positions 20 – – 20
total 355 13 – 368
credit risk
as explained in the financial review the group recharges its credit risk arising from credit facilities allowed to certain customers in 
the australian region by making appropriate credit checks before bets are placed and setting credit limits based on this information 
currency risk
the group’s activities expose it to the financial risks of changes in foreign currency exchange rates a significant proportion of its 
income is derived from foreign currencies whilst the majority of its costs are in sterling 
the group maintained its proactive position and continued to hedge foreign currency sales with forward contracts for up to one 
year purchasing currencies to cover the first 80 of its exposure on quarter ahead 80 two quarters ahead 70 three quarters 
ahead and 60 four quarters ahead this policy is approved by the board and the board receives updates on a regular basis in 
respect of the hedging position 
the group’s derivative transactions comprise currency forward contracts during the year the group entered into a number of 
forward contracts over highly probably forecast euro sales 
amounts initially taken to other comprehensive income under designated cash flow hedges totalled a loss of £04m 2010 £03m 
gain of which a £12m gain 2010 £03m loss has been reclassified to the statement of comprehensive income on the completion 
of designated hedge relationships remaining hedges continue to be highly effective 
the tables below show the extent to which group companies have monetary assets and liabilities in currencies other than their  
local currency 
net foreign currency monetary assets
euro
£m
us dollars
£m
australian 
dollars
£m
brazilian real
£m
other 
currencies
£m
total
£m
2011
sterling 158 51 25 22 37 293
158 51 25 22 37 293
2010
sterling 162 119 02 33 46 362
162 119 02 33 46 362 74 sportingbet plc annual report 201 1
18 financial instruments continued
carrying values
the carrying amounts of the group’s financial instruments are set out below as these financial instruments are not publicly traded 
the fair values presented are determined by calculating present values of the cash flows anticipated until maturity of these 
financial assets
assets at fair value through  
the statement of 
comprehensive income loans and receivables
2011
£m
2010
£m
2011
£m
2010
£m
financial assets as per balance sheet
trade and other receivables – – 109 73
cash and cash equivalents – – 1802 589
derivatives – 13 – –
– 13 1911 662
assets at fair value through  
the statement of 
comprehensive income
financial liabilities at  
amortised cost
2011
£m
2010
£m
2011
£m
2010
£m
financial liabilities as per balance sheet
trade and other payables 18 20 320 268
interest bearing loans and borrowings – – 567 40
derivatives 02 – – –
20 20 887 308
foreign currency sensitivity
sportingbet plc is exposed to market risk through its use of financial instruments and specifically to currency risk 
exposures to currency exchange rates arise from the group’s retranslation of its foreign subsidiaries as well as the group’s overseas 
sales and purchases which are primarily denominated in euros and turkish lira 
the following table illustrates the sensitivity for the net result for the year and equity with regard to the group’s financial assets and 
financial liabilities and the eurosterling exchange rate and turkish lirasterling rate it assumes a – 05 movement in the sterling
euro exchange rate for the year ended 31 july 2011 2010 02 and a – 10 movement for the sterlingturkish lira exchange 
rate 2010 05
these percentages have been determined based on the average market volatility in exchange rates in the previous 12 months 
if sterling has strengthened against the euro and turkish lira by 05 2010 02 and 10 2010 05 respectively then this 
would have had the following impact 
2011 2010
euro
£m
turkish lira
£m
total
£m
euro
£m
turkish lira
£m
total
£m
net profit 01 02 03 01 01 02
equity 01 02 03 01 01 02
notes to the financial statements  sportingbet plc annual report 201 1 75
financials 18 financial instruments continued
if sterling had weakened against the euro and turkish lira by 05 2010 02 and 10 2010 05 respectively then this would 
have had the following impact
2011 2010
euro
£m
turkish lira
£m
total
£m
euro
£m
turkish lira
£m
total
£m
net profit 01 02 03 01 01 02
equity 01 02 03 01 01 02
exposures to foreign exchange rates vary during the year depending on the volume of overseas transactions nonetheless the 
analysis above is considered to be representative of the group’s exposure to currency risk 
capital management 
in common with many internet companies that have few physical assets the group has no policy as to the level of equity capital and 
reserves other than to address statutory requirements following the issue of £65m of convertible bonds in june 2011 the primary 
capital risk to the group is the level of indebtedness the convertible bond includes a financial covenant which limits the group’s 
indebtedness excluding the bonds themselves to £35m without the prior approval of an extraordinary resolution of bondholders 
as at 31 july 2011 the group had £40m 2010 £40m of bank loans which are secured on the group’s land and buildings 
details of the group’s dividend policy are disclosed on page 57 of this annual report 
19 share capital 
2011 
£000
2010 
£000
authorised
1000m 2010 1000m ordinary shares of 01p each 1000 1000
allotted issued and fully paid
as at 31 july 2010 502038144 shares of 01p each 502 484
issues of ordinary shares 154761904 shares 155 –
other share issues in respect of exercised share options 3743080 shares 4 18
as at 31 july 2011 660543128 shares of 01p each 661 502
at 31 july 2011 the following share options were outstanding in respect of ordinary shares
date of grant ordinary shares of 01p period of option
exercise price 
p
december 2003 1115000 december 2006–december 2010 395
january 2004 539375 january 2007–january 2011 49
february 2004 100000 february 2007–january 2011 395
may 2004 50000 may 2007–may 2011 94
october 2004 100000 october 2007–october 2011 975
november 2004 95000 november 2007–november 2014 131
august 2005 22250 july 2007–july 2008 –
june 2008 902484 november 2009–november 2011 –
january 2009 11164161 november 2010–november 2012 –
august 2009 703334 november 2010–november 2012 –
august 2010 455736 july 2011–july 2013 –
november 2010 671538 july 2011–july 2014 –
january 2011 145000 july 2011–july 2012 –
as at 31 july 2011 there were 16063878 options or awards over ordinary shares outstanding 2429860 of which relate to 
directors details of which can be found in the remuneration report on pages 39 to 44
of the share options detailed above 784375 relate to the executive scheme 1215000 relate to the unapproved scheme 22250 
relate to the 2005 plan 902484 relate to the 2006 share plan and 13139769 relate to the 2009 restricted share plan  76 sportingbet plc annual report 201 1
20 sharebased payments 
the company operates five equitysettled sharebased remuneration schemes for employees across the group as listed in note 19 
all employees are eligible to participate in these schemes the vesting conditions being that the individual still remains in 
employment at the date of the release of the option and in respect of the 2005 and 2006 share plans satisfy certain performance 
criteria the terms of these schemes are discussed in more detail in the remuneration report on pages 39 to 44
2011 2010
weighted 
average 
exercise 
price p no
weighted 
average 
exercise  
price p no 
outstanding at the beginning of the year 23 19181226 25 39630748
granted during the year – 1489665 – 703334
forfeited during the year – – – 250000
exercised during the year – 3997878 21 18158451
lapsed during the year – 609135 67 2744405
outstanding at the end of the year 27 16063878 23 19181266
exercisable at the end of the year 501 2021625 501 2021625
the exercise price of options outstanding at the end of the year ranged between 0p and 131p 2010 0p and 131p and their 
weighted average contractual life was 406 days 2010 675 days
of the total number of options outstanding at the end of the year 2021625 had vested and were exercisable 2010 2021625
the weighted average share price at the date of exercise of options exercised during the year was 608p 2010 744p
the weighted average fair value of each option granted during the year was 581p 2010 563p
the following information is relevant in the determination of the fair value of options granted during the year under the equity and 
cashsettled sharebased remuneration schemes operated by sportingbet plc 
2011 2010
equitysettled
options pricing model used black–scholes black–scholes
weighted average share price at grant date p 6170p 5975p
exercise price p nil nil
weighted average contractual life days 724 830
equitysettled
expected volatility 50 50
expected dividend growth rate 2 2
riskfree interest rate 5 5
the volatility assumption measured at the standard deviation of expected share price returns is based on a statistical analysis of 
daily share prices over the last three years 
2011 
£m
2010 
£m
the sharebased remuneration expense comprises
equitysettled schemes 12 11
notes to the financial statements  sportingbet plc annual report 201 1 77
financials 21 contingencies
a from time to time the group is subject to legal claims and actions the group takes legal advice as to the likelihood of success of 
the claims and actions and no provision or disclosure is made where the directors feel based on that advice that action is 
unlikely to result in a material loss
 as part of the ongoing operational risk assessment process adopted by the group there is continued monitoring of the legal and 
regulatory developments and their potential impact on the business appropriate advice continues to be taken in respect of these 
developments 
 there is uncertainty as to what actions if any may occur from the group’s regulatory history and any impact such action may 
have on the group however the board does not consider it likely that a material liability or a material impairment in the carrying 
value of assets will arise as a result of any potential action 
b the group has been paying taxes in the form of product fees to various states of australia to the three racing codes the group’s 
management believes the legal bases of these taxes is flawed and have been making payments under protest the group has 
paid a13m to the state of new south wales this financial year which may be recoverable if legal action is successful 
22 related parties
transaction with nonexecutive directors
nigel payne nonexecutive director provided financial consultancy services to the group amounting to £45000 2010 £20000 
via merlin financial advisors llp 
sean o’connor nonexecutive director provided marketing consultancy services to the group amounting to £60240 2010 
£19800 via the sean o’connor consultancy limited
transaction with key management personnel
the group makes contributions into an employee benefit trust “ebt” as part of a cashbased longterm incentive plan for certain 
key employees two directors are beneficiaries of the ebt into which contributions of £05m was made in 2011 2010 £04m
23 post balance sheet event
on 26 may 2011 the group announced a recommended proposal to acquire the entire issued and to be issued share capital of 
centrebet international limited “centrebet” effected by way of two schemes of arrangement under australian law the “schemes”
following the approval of the schemes by centrebet shareholders and performance rightholders on 17 august 2011 and by the 
federal court of australia on 22 august 2011 the schemes were implemented on 31 august 2011 and centrebet became a 
whollyowned subsidiary of sbet australia pty limited 
in addition centrebet ordinary shares were suspended from quotation on the australian securities exchange on 23 august 2011 
and an application to remove centrebet from the official list of the australian securities exchange was made on 31 august 2011
the total fair value of the purchase consideration was £1180m comprising of 154761904 new sportingbet ordinary shares at 42p 
raising gross proceeds of £650m and an issue of £650m of 7 fixed rate convertible bonds due 2016 which raised a further 
£650m gross of issue costs
the initial accounting for the business combination has not been finalised hence an estimate of the financial effect of the 
transaction cannot yet be made 78 sportingbet plc annual report 201 1
we have audited the parent company financial statements  
of sportingbet plc for the year ended 31 july 2011 which 
comprise the parent company balance sheet and the related 
notes the financial reporting framework that has been applied 
in their preparation is applicable law and united kingdom 
accounting standards united kingdom generally accepted 
accounting practice
this report is made solely to the company’s members as a 
body in accordance with chapter 3 of part 16 of the 
companies act 2006 our audit work has been undertaken so 
that we might state to the company’s members those matters 
we are required to state to them in an auditor’s report and for 
no other purpose to the fullest extent permitted by law we do 
not accept or assume responsibility to anyone other than the 
company and the company’s members as a body for our audit 
work for this report or for the opinions we have formed 
respective responsibilities of directors and auditor
as explained more fully in the statement of directors’ 
responsibilities the directors are responsible for the preparation 
of the parent company financial statements and for being 
satisfied that they give a true and fair view our responsibility 
is to audit and express an opinion on the parent company 
financial statements in accordance with applicable law and 
international standards on auditing uk and ireland those 
standards require us to comply with the auditing practices 
board’s “apb’s” ethical standards for auditors 
scope of the audit of the financial statements
a description of the scope of an audit of financial  
statements is provided on the apb’s website at  
wwwfrcorgukapbscopeprivatecfm
opinion on financial statements
in our opinion the parent company financial statements
•	 give a true and fair view of the state of the company’s affairs 
as at 31 july 2011
•	 have been properly prepared in accordance with united 
kingdom generally accepted accounting practice and
•	 have been prepared in accordance with the requirements  
of the companies act 2006
opinion on other matter prescribed by the 
companies act 2006
in our opinion
•	 the part of the directors’ remuneration report to be audited 
has been properly prepared in accordance with the 
companies act 2006 and
•	 the information given in the directors’ report for the 
financial year for which the financial statements are 
prepared is consistent with the parent company  
financial statements 
matters on which we are required to report by exception
we have nothing to report in respect of the following matters 
where the companies act 2006 requires us to report to you if 
in our opinion
•	 adequate accounting records have not been kept by the 
parent company or returns adequate for our audit have not 
been received from branches not visited by us or
•	 the parent company financial statements and the part of the 
directors’ remuneration report to be audited are not in 
agreement with the accounting records and returns or
•	 certain disclosures of directors’ remuneration specified by 
law are not made or
•	 we have not received all the information and explanations 
we require for our audit
other matter
we have reported separately on the group financial statements 
of sportingbet plc for the year ended 31 july 2011
paul etherington bsc fca cf
senior statutory auditor
for and on behalf of grant thornton uk llp
statutory auditor chartered accountants
london
4 october 2011
parent company independent auditor’s report
independent auditor’s report to the members of sportingbet plc sportingbet plc annual report 201 1 79
financials notes
31 july 2011 
£m
31 july 2010 
£m
fixed assets
investments 4 891 883
891 883
current assets
debtors 5 1114 793
cash at bank and in hand 6 621 –
1735 793
creditors – amounts falling due within one year 7 190 169
net current assets 1545 624
creditors – amounts falling due after more than one year 7 527 116
net assets 1909 1391
shareholders’ funds
issued share capital 8 07 05
share premium 9 589 588
reserves 9 1313 798
equity shareholders’ funds 1909 1391
the notes on pages 80 to 84 form part of these financial statements these financial statements were approved by the board and 
authorised for issue on 4 october 2011
a mciver
director
parent company balance sheet
as at 31 july 201 1 80 sportingbet plc annual report 201 1
1 parent company accounting policies
the financial statements for the company have been prepared in accordance with uk law and applicable uk gaap 
accounting standards 
the principal accounting policies are summarised below they have been applied consistently throughout the financial year and the 
preceding year 
the following principal accounting policies have been applied
exemptions
the directors have taken advantage of the exemption available under section 408 of the companies act 2006 and not presented  
a profit and loss for the company alone 
valuation of investments
investments held as fixed assets are stated at cost less any provision for impairment
leased assets
rentals under operating leases are charged on a straightline basis over the lease term even if the payments are not made on such  
a basis benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straightline basis over 
the lease term except where the period to the review date on which the rent is first expected to be adjusted to the prevailing 
market rate is shorter than the full lease term in which case the shorter period is used 
pension costs
for defined contribution schemes the amount charged to the profit and loss account in respect of pension costs and other post
retirement benefits is the contributions payable in the period differences between contributions payable in the year and 
contributions actually paid are shown as either accruals or prepayments in the balance sheet 
sharebased employee remuneration
where shares options are awarded to employees the fair value of the options at the date of grant is charged to the profit and loss 
account over the vesting period 
where share options are granted to employees of subsidiary undertakings the fair value of the options is added to the cost of 
investment in these subsidiary undertakings over the vesting period 
nonmarket vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each 
balance sheet date so that ultimately the cumulative amount recognised over the vesting period is based on the number of options 
that eventually vest market vesting conditions are factored into the fair value of the options granted as long as all other vesting 
conditions are satisfied a charge is made irrespective of whether the market vesting conditions are satisfied the cumulative 
expense is not adjusted for failure to achieve a market vesting condition 
where the terms of the options are modified before they vest the increase in the fair value of the options measured immediately 
before and after the modification is also charged to the profit and loss account over the remaining vesting period 
where equity instruments are granted to persons other than employees the profit and loss account is charged with the fair value  
of goods and services received 
financial liabilities and equity
financial liabilities and equity are classified according to the substance of the financial instrument’s contractual obligations rather 
than the financial instruments legal form 
notes to the parent company financial statements sportingbet plc annual report 201 1 81
financials 1 parent company accounting policies continued
convertible bonds
the net proceeds received from the issue of convertible bonds are split between a liability element and an equity component at the 
date of issue the fair value of the liability component is estimated using the prevailing market interest rate for similar nonconvertible 
debt the difference between the proceeds of issue of the convertible bonds and the fair value assigned to the liability component 
representing the embedded option to convert the liability into equity of the group is included in equity and is not remeasured the 
liability component is carried at amortised cost 
issue costs are apportioned between the liability and equity components of the convertible bonds based on their relative carrying 
amounts at the date of issue the portion relating to the equity component is charged directly against equity 
the finance cost on the liability component is calculated by applying the prevailing market interest rate at the time of issue for 
similar nonconvertible debt to the liability component of the instrument the difference between this amount and the interest paid 
is added to the carrying amount of the convertible bonds
2 loss after tax
company loss after tax for the year amounted to £130m audit fees for the company were borne by other members of the group 
and are disclosed in the notes to the consolidated financial statements
3 staff costs
2011 
£m
2010 
£m
employee costs including directors were as follows
wages and salaries 28 32
social security costs 04 04
pension costs 02 02
34 38
during the year 14 employees were employed by the company 2010 14
there were 2 2010 2 directors in the company’s defined contribution pension scheme further disclosures on the remuneration  
of each individual director are given in the remuneration report on pages 39 to 44
4 investments
shares in 
subsidiary 
undertakings 
£m
investment in subsidiary undertakings
as at 1 august 2010 883
acquisitions –
options issued to employees of subsidiary undertakings 08
as at 31 july 2011 891
the company made no acquisitions in respect of subsidiary undertakings during the year 2010 £413m  82 sportingbet plc annual report 201 1
4 investments continued 
the following principal subsidiaries were wholly owned at 31 july 2011 
activity
country of incorporation  
or registration
interactive sports ci limited online betting alderney
interactive sports limited online betting england
sportingbet australia pty limited online and telephone betting australia
sbet australia pty limited australia holding company australia
internet opportunity entertainment sports limited online betting antigua and barbuda
sporting odds limited online betting england
mlb limited contract call centre ireland
anfield group limited investment holding company bvi
sb properties guernsey limited investment property holding company guernsey
sportingbet management services limited administrative services england
sportingbet it services limited software development and it related services england
sportingbet product services limited market research project management and 
web design services
england
sportingbet holdings limited group holding company england
spread your wings limited online betting malta
sbt software operations sa pty limited online betting south africa
for all undertakings listed previously the country of incorporation is the same as the country of operation sportingbet holdings 
limited spread your wings limited and sbt software operations sa pty limited are wholly owned subsidiaries of sportingbet 
plc all other companies listed above are wholly owned subsidiaries of sportingbet holdings limited
5 debtors
 
2011 
£m
2010 
£m
other debtors 11 07
prepayments and accrued income 09 14
owed by subsidiary undertakings 1094 772
1114 793
the company has agreed to provide its subsidiary undertakings with such financial support as is necessary to enable the subsidiaries 
to continue to trade and meet their obligations to third party creditors as and when they fall due 
6 cash at bank and in hand
2011 
£m
2010 
£m
cash 621 –
621 –
notes to the parent company financial statements sportingbet plc annual report 201 1 83
financials 7 creditors
a amounts falling due within one year
2011 
£m
2010 
£m
bank loans 40 40
accruals and deferred income 150 125
due to subsidiary undertakings – 04
190 169
b amounts falling due after more than one year
2011 
£m
2010 
£m
accruals and deferred income – 116
convertible bonds due 2016 527 –
527 116
further description of the convertible bonds are given in note 16 of the group financial statements
8 share capital
2011 
£000
2010 
£000
authorised
1000m 2010 1000m ordinary shares of 01p each 1000 1000
allotted issued and fully paid
as at 31 july 2010 502038144 shares of 01p each 502 484
issues of ordinary shares 154761904 shares 155 –
issues in respect of exercised share options 3743080 shares 4 18
as at 31 july 2011 660543128 shares of 01p each 661 502
as at 31 july 2011 the following share options were outstanding in respect of ordinary shares
date of grant ordinary shares of 01p period of option
exercise price 
p
december 2003 1115000 december 2006–december 2010 395
january 2004 539375 january 2007–january 2011 49
february 2004 100000 february 2007–january 2011 395
may 2004 50000 may 2007–may 2011 94
october 2004 100000 october 2007–october 2011 975
november 2004 95000 november 2007–november 2014 131
august 2005 22250 july 2007–july 2008 –
june 2008 902484 november 2009–november 2011 –
january 2009 11164161 november 2010–november 2012 –
august 2009 703334 november 2010–november 2012 –
august 2010 455736 july 2011–july 2013 –
november 2010 671538 july 2011–july 2014 –
january 2011 145000 july 2011–july 2012 – 84 sportingbet plc annual report 201 1
8 share capital continued
as at 31 july 2011 there were 16063878 options or awards over ordinary shares outstanding 2429860 of which relate to 
directors details of which can be found in the remuneration report on pages 39 to 44
of the share options detailed above 784375 relate to the executive scheme 1215000 relate to the unapproved scheme 22250 
relate to the 2005 plan 902484 relate to the 2006 share plan and 13139769 relate to the 2009 restricted share plan 
further descriptions of the group’s sharebased payment plans are given in note 20 of the group financial statements 
9 reserves
share 
premium 
account 
£m
other 
reserves
£m
equity  
portion of 
convertible 
bond
£m
profit and loss 
account 
£m
as at 1 august 2010 588 – – 798
employee share options 01 – – 07
convertible loan notes – 623 – –
equity portion of convertible bond – – 103 –
share option charge – – – 12
dividends – – – 86
profit for the year – – – 130
as at 31 july 2011 589 623 103 587
the movement in company shareholders’ funds of £516m 2010 £723m is wholly represented by the movements shown in 
reserves and share capital in notes 8 and 9
10 related parties
the company has taken advantage of the exemption in financial reporting standard no 8 “related party disclosures” from the 
requirement to disclose transactions with group companies on the grounds that all companies are wholly owned
transaction with nonexecutive directors
nigel payne nonexecutive director provided financial consultancy services to the group amounting to £45000 2010 £20000 
via merlin financial advisors llp 
sean o’connor nonexecutive director provided marketing consultancy services to the group amounting to £60240  
2010 £19800 via the sean o’connor consultancy limited
transaction with key management personnel
the company makes contributions into an employee benefit trust “ebt” as part of a cashbased longterm incentive plan 
for certain key employees two directors are beneficiaries of the ebt into which contributions of £05m was made in 2011 
2010 £04m
notes to the parent company financial statements sportingbet plc annual report 201 1 85
financials registrars
all enquiries relating to shares or shareholdings should be 
addressed to 
capita registrars 
34 beckenham road 
beckenham 
kent 
br3 4tu
shareholder helpline 0871 664 0300 – calls cost 10p per 
minute plus network extras lines are open 830am–530pm 
monday–friday if calling from overseas 44 0 20 8639 3402
facsimile 01484 601512 
email shareholderservicescapitaregistrarscouk
wwwsportingbetplccom 
the company’s website provides amongst other things the 
latest news and details of the company’s activities share price 
information and links to the websites of our brands the 
investor relations section of wwwsportingbetplccom contains 
uptodate information including the company’s latest results 
the company’s financial calendar and archived webcasts 
nonshareholders can register to receive notifications of the 
company’s annual report and accounts and webcasts at 
wwwsportingbetplccom 
wwwsportingbetsharescom 
shareholders who prefer to receive communications about the 
company by email are encouraged to register their details at the 
company’s shareholder portal – wwwsportingbetsharescom 
you will need your investor code found on your share 
certificate or on correspondence from capita registrars to 
complete this process at the first time of registering capita 
registrars will send you a username and activation code by post 
and upon receipt you will then be able to access the 
company’s shareholder portal the shareholder portal provides 
shareholders of the company with the ability to choose from 
the following services 
i annual report and accounts agm and egm notices 
and webcasts 
shareholders can choose to have these emailed to a specified 
email address rather than by post 
ii web proxy voting 
shareholders can vote at agms or egms through  
wwwsportingbetsharescom or alternatively via  
wwwcapitaregistrarscom by clicking on the “shareholder 
portal” and entering sportingbet as the company name  
you will need your investor code for this service which  
can be found on your share certificate 
iii announcements made to the london stock exchange
uk based shareholders can choose to receive certain rns 
announcements by email 
iv direct dividend payments 
dividends can be paid automatically into a shareholder’s bank 
or building society account there are two primary benefits of 
this service a there is no chance of a shareholder’s dividend 
cheque going missing in the post and b the dividend payment 
is received more quickly because the cash sum is paid directly 
into the account on the payment date without the need to pay 
in the cheque and wait for it to clear 
as an alternative shareholders can download a dividend 
mandate to complete and post to capita registrars 
v change of address 
shareholders can change their address directly online at www
sportingbetsharescom or by notifying capita registrars in 
writing at the above address 
vi your shareholding 
shareholders can value their shareholding and view previous 
transactions in the company’s shares and
vii share dealing 
a share dealing service is available to the company’s 
shareholders to buy or sell the company’s shares at capita 
share dealing services via wwwsportingbetplccom or  
wwwsportingbetsharescom telephone dealing is also 
available via capita registrars on 0871 664 0445 calls cost  
10p per minute plus network extras
please note that the directors of the company are not seeking 
to encourage shareholders to either buy or sell the company’s 
shares shareholders of the company who are in any doubt as 
to what action to take are recommended to seek financial 
advice from an independent financial adviser authorised by the 
financial services and markets act 2000 
lost share certificate 
if your share certificate is lost or stolen you should immediately 
contact the shareholder helpline who will advise on the process 
for arranging a replacement 
duplicate shareholder accounts 
if as a shareholder you receive more than one copy of a 
communication from the company you may have your shares 
registered in at least two accounts this happens when the 
registration details of separate transactions differ slightly if you 
wish to consolidate such multiple accounts please call the 
shareholder helpline 
sharegift 
sharegift is a charity share donation scheme it is a free service 
for shareholders wishing to give shares to charitable causes it 
may be useful for those who wish to dispose of a small parcel of 
shares which would cost more to sell than they are worth there 
are no capital gains tax implications ie no gain or loss on gifts 
of shares to charity and it is also possible to obtain income tax 
relief further information can be found at wwwsharegiftorg
shareholders’ information 86 sportingbet plc annual report 201 1
financial calendar
exdividend date for 2011 final dividend 14 december 2011 
record date for 2011 final dividend 16 december 2011 
annual general meeting at 4th floor  
45 moorfields london ec2y 9ae
16 december 2011
final dividend payment date for the 
financial year ended 31 july 2011
12 january 2012 
consolidated dividend tax vouchers
sportingbet plc has a consolidated tax voucher “ctv” service 
for those shareholders who choose to receive dividends directly 
into their bank or building society account dividend funds will 
continue to be credited to your chosen account on the dividend 
payment date but instead of receiving individual tax vouchers 
you will receive a ctv detailing all the dividend payments in the 
tax year these will be mailed at or shortly before the end of 
each tax year
choosing to have your dividends paid directly into your bank 
account and joining the ctv service helps shareholders and 
sportingbet plc reduce their environmental impact if you would 
like to receive your dividends paid directly to your bank please 
visit the shareholder portal at wwwsportingbetsharescom to 
download the form or to register your preference online
if you wish to continue to receive individual tax vouchers  
for each dividend payment but prefer to receive the  
dividend electronically to your bank account please contact  
our registrars 
electronic tax vouchers
by registering your email address and choosing to receive 
documents electronically you will be assisting the company  
in reducing its environmental impact shareholders  
registering a valid email address will receive notification via 
email that an electronic tax voucher or electronic ctv is 
available for download from the shareholder’s website at  
wwwsportingbetsharescomformsloginaspx at the time  
each dividend is paid
shareholders’ information
dividend reinvestment plan
a dividend reinvestment plan is a convenient easy and 
competitively priced way to build your shareholding by using 
your cash dividends to buy additional shares in sportingbet  
the service is provided by capita irg trustees ltd capita irg 
trustees ltd is authorised and regulated by the financial services 
authority
for further information about the dividend reinvestment plan 
please contact capita using the shareholder helpline
would you prefer to receive your next dividend in a 
currency other than sterling
capita registrars can now convert your dividend into an 
alternative currency such as sterling dollar or australian dollar 
and send you the funds by draft or if you prefer pay them 
straight into your bank account for more information about 
this service please contact our registrars at
email ipscapitaregistrarscom
telephone 44 20 8639 3405 from outside the uk
or 0871 664 0385 from within the uk
calls cost 10p per minute plus network extras lines are open 
900am–530pm monday–friday
or go to
wwwcapitaregistrarscominternational sportingbet plc annual report 201 1 87
financials year ended 
31 july 2007 
£m
year ended 
31 july 2008 
£m
year ended 
31 july 2009 
£m
year ended 
31 july 2010 
£m
year ended 
31 july 2011 
£m
amounts wagered 10609 13478 15772 19713 20539
net gaming revenue 1172 1443 1636 2075 2040
other operating revenue – – – – 23
total revenue 1172 1443 1636 2075 2063
operating profit before exceptional items share option 
charge and amortisation 78 247 311 354 381
exceptional items 268 120 42 245 108
share option charge 99 80 31 20 12
amortisation 18 39 19 18 17
group operating profitloss 307 08 219 71 244
net finance incomecost 10 04 04 02 06
profitloss before taxation 297 12 223 69 238
taxation 12 35 05 30 31
profitloss for the period 309 23 218 39 207
loss for the period from discontinued operations 2813 20 94 – –
group profitloss for the period 3122 43 124 39 207
earnings per share
basic 732p 05p 46p 08p 39p
basic adjusted 44p 48p 65p 65p 66p
diluted adjusted 40p 42p 60p 62p 63p
financial summary 88 sportingbet plc annual report 201 1
secretary
d talisman llb hons fcis
registered office
4th floor
45 moorfields 
london ec2y 9ae
company number 3534726
registrars
capita registrars
34 beckenham road 
beckenham 
kent br3 4tu
auditors
grant thornton uk llp
grant thornton house
melton street
london nw1 2ep
financial advisers
lazard  co limited
50 stratton street
london w1j 8ll
stockbrokers
oriel securities limited
150 cheapside
london ec2v 6et
daniel stewart  company plc
becket house
36 old jewry
london ec2r 8dd
solicitors
nabarro
lacon house
84 theobald’s road
london wc1x 8rw
principal bankers
barclays bank plc
floor 27
1 churchill place
london e14 5hp
press office
maitland
orion house
5 upper st martin’s lane
london wc2h 9ea
corporate directory business 
fundamentals
01
geographic 
diversity
regulatory and gaming risk 
exposure minimised by a highly 
tailored local market offering
see page 4
02
bestinclass  
product suite
a sportsbook product that  
is increasingly valuable and 
difficult to replicate
see page 8
03
building on our  
core strengths
providing an enhanced and 
unique customer experience 
through enterprise and 
innovation
see page 12
04
benefit from external  
growth drivers
positive market trends indicate 
significant potential to expand
see page 16 business 
fundamentals
01
geographic 
diversity
regulatory and gaming risk 
exposure minimised by a highly 
tailored local market offering
see page 4
02
bestinclass  
product suite
a sportsbook product that  
is increasingly valuable and 
difficult to replicate
see page 8
03
building on our  
core strengths
providing an enhanced and 
unique customer experience 
through enterprise and 
innovation
see page 12
04
benefit from external  
growth drivers
positive market trends indicate 
significant potential to expand
see page 16 sportingbet plc annual report 2011
sportingbet plc
4th floor 45 moorfields
london ec2y 9ae
tel 44 20 7184 1800
email investorsportingbetcom
wwwsportingbetplccom
sportingbet plc  annual report 2011
overview
01 highlights
02 chairman’s statement
04 geographic diversity
06 group chief executive’s qa
08 bestinclass products
10 key performance indicators
12 building on our core strengths
14 regulation in brief
16 building from external   
growth drivers
business review
18 overview
20 europe and australia
22 corporate social responsibility
25 financial review
26 management of principal risks
30 board of directors
governance
32 corporate governance statement
36 directors’ report
39 remuneration report
45 regulatory developments
financials
48 independent audit report 
49 consolidated statement of 
comprehensive income
50 consolidated balance sheet
51 consolidated statement of changes 
in equity 
52 consolidated cash flow statement
53 notes to the financial statements
78 parent company independent 
auditor’s report
79 parent company balance sheet
80 notes to the parent company 
financial statements
85 shareholders’ information
87 financial summary
88 corporate directory sportingbet plc annual report 2011
sportingbet plc
4th floor 45 moorfields
london ec2y 9ae
tel 44 20 7184 1800
email investorsportingbetcom
wwwsportingbetplccom
sportingbet plc  annual report 2011
overview
01 highlights
02 chairman’s statement
04 geographic diversity
06 group chief executive’s qa
08 bestinclass products
10 key performance indicators
12 building on our core strengths
14 regulation in brief
16 building from external   
growth drivers
business review
18 overview
20 europe and australia
22 corporate social responsibility
25 financial review
26 management of principal risks
30 board of directors
governance
32 corporate governance statement
36 directors’ report
39 remuneration report
45 regulatory developments
financials
48 independent audit report 
49 consolidated statement of 
comprehensive income
50 consolidated balance sheet
51 consolidated statement of changes 
in equity 
52 consolidated cash flow statement
53 notes to the financial statements
78 parent company independent 
auditor’s report
79 parent company balance sheet
80 notes to the parent company 
financial statements
85 shareholders’ information
87 financial summary
88 corporate directory


Summary:
 06 sportingbet plc annual report 201 1
andrew mciver  
group chief executive 
discusses the key events 
of the year and looks 
forward to 2012
how would you summarise 
sportingbet’s year
despite economic pressure in two of 
our biggest markets greece and spain 
we delivered a robust performance 
and hit our profit target of £381m we 
benefited from a good performance in 
australia and our emerging markets – a 
clear demonstration of the benefits of 
having a geographically diverse business
i was pleased that we finally settled 
with the us department of justice in 
september 2010 this has been a long 
and arduous process so it was good to 
reach a conclusion and give shareholders 
certainty on the potential liability we 
could now reenter the us subject to 
the prevailing regulation if we felt it 
was appropriate to do so more recently 
the successful acquisition of centrebet 
secured our market position in the 
buoyant australian market and gave 
a welcome boost to performance 
how will the centrebet acquisition 
generate shareholder value
the acquisition of centrebet brings a 
number of benefits firstly it consolidates 
our position as the leading fixed 
odds bookmaker in the fast growing 
australian market and it puts us in 
prime position to benefit from any 
future regulation changes in online 
casino poker and inrunning products
secondly we will be able to extend 
our capabilities in the wider sports 
and internet arena where centrebet 
is particularly strong complementing 
our leading presence in horseracing 
and telephone betting
finally we expect to deliver significant 
cost savings as we merge operations and 
this integration is progressing well so far
overview
group chief executive’s qa
wellpositioned sportingbet plc annual report 201 1 07
overview
how do you view increased 
regulation in your markets
very positively we welcome regulation 
because it provides certainty over 
revenues and profit streams our 
experience in australia suggests that 
after an initial profit hit as we began 
to pay tax within three years profits 
recovered and growth returned this 
demonstrates the positive impact of 
being able to market products more 
widely and with the acquisition of 
centrebet we have taken a major step 
along the regulatory path in that market 
we are following moves towards 
regulation in spain and greece closely 
and expect this trend to continue – 
look at the developments in italy and 
even germany we meet extensively 
with licensing authorities to put our 
views forward – they are often well 
received – and we are very happy to 
contribute to the regulatory debate
what is unique about sportingbet’s 
customer proposition
i think the clue is in the name we are 
focused on delivering an industry leading 
sports betting proposition built on our 
fast growing inrunning product an 
unrivalled selection of bets and a well 
thoughtout customer engagement 
model we expect our staff to have a 
passion for sport and support almost 
anything sporting this is underpinned 
by a significant investment in customer 
service we recruit multilingual staff 
and train them to understand betting 
and how our products work and 
even to acquire another language 
if they want to extend their skills 
why is inrunning betting so popular 
and what is its impact on revenue
inrunning betting took off as soon 
as it became technically possible 
because it dramatically increases the 
level of involvement in a sports event 
maintaining the excitement throughout 
from the constraints of the win lose 
draw starting point we now offer up 
to 200 possible bets during a match 
from our point of view we have seen 
revenues for our inplay product rise to 
67 of european amounts wagered 
within a very short period of time
do you see mobile betting as a key 
area of growth
yes certainly mobile currently represents 
about 15 of our actives and this 
is growing at a steady 150 year 
on year there are some key market 
drivers dictating pace and momentum 
in ‘new technologies’ in general 
smart phone penetration and flat 
data packages are growing strongly 
and demographics are working in our 
favour in addition with the advent of 
platforms like google ppc facebook 
and the apple app store who have 
all recently begun to regulate mobile 
accessibility and activity is set to increase 
what will management focus  
on over the next few years
customer retention remains key 
to the future so we will continue 
investing in our products to give the 
customer a richer more rewarding 
experience alongside expanding 
our mobile capabilities
in the shortterm bedding in centrebet 
will be a key priority alongside ensuring 
we compete effectively in the newly 
regulated markets like spain and greece 
and keep a watching brief on other 
countries on the regulatory path 
growth will remain top of the agenda 
as we expand our international presence 
but this will be combined with an 
increased focus on cost management 
as we tackle the challenge of the 
harsh economic conditions facing 
european markets together with the 
incoming cuts that regulation brings 
wellpositioned