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INFLIGHT GAMBLING

A Presentation by:

Gordon StevensonMarketing and Business Development,

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Agenda

The Origin of Inflight Gambling (IFG)

Feasibility of new vs. old IFG systems

Technical Requirements for IFG

Marketing and Social Positioning

Legal Considerations

Revenue Distribution

Conclusion

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The Origin of Inflight Gambling (IFG)In The 80’s

Enthusiastic passengerparticipation

Success led to demise

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Feasibility of new vs old IFG systems

Cabin crew involvement

Graphics

Data Storage

Encryption

Receipt Printing

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Technical Requirements for IFG1

Platforms

Airborne: IFE and satcom

Terrestrial: Ground Communication servers, transaction processing

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Minimum

Specifications

Interactive IFE platform (handheld or installed) with card reader

Must have persistent storage and data offload capabilities

Networking and satcom optional

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Memory

Minimum 4 MB RAM at passenger unit

Amount of RAM determines graphics and sound effects

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Storage

Strong encryption

Mirroring (where capable)

No personal data stored

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IFE Hardware

Most existing IFE systems support some level of IFG

Some more capable than others (hardware-based encryption, better CPU)

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Onboard IFG system

Satcom

Ground server and backup server

Credit CardTransaction Processing

Reporting and customer support

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Marketing and Social Positioning

Brand Objectives

and Positioning

Advertising and Promotion

Demographics

Entertainment Option

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Legal Considerations

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USA Department of Transportation

Jurisdiction Legislation

Gambling Environment

Taxation Identification

Gambling Licenses

Legal Considerations

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Revenue Assumptions

B747 with 340 seats

Load factor: 75%

Potential annual yield of $413,100 from this aircraft

Environment Statistics Revenue

Game participation: 10%Average Length of play: 1.5 hoursAverage: 200 bets/hourAverage bet: $1

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Revenue Distribution

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Distribution of Profit

Net Revenue

Taxes

Fees for data offload

Credit Card Transaction Fees

Other Shared Costs (ATP, Customisation)

Gross Revenue

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Billions of Dollars

2005 World-Wide Internet Gambling Revenues

Market Comparison

Millions of Dollars

US Department of Transportation Inflight

Gambling revenue estimate

Billions of Dollars

Mobile Online Gambling

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Conclusion

Low Stakes Gambling = Airline RevenueEnrich/Excite the Existing IFE ProgramSafe and Secure EnvironmentCost-effective Installation

Low stakes gambling is a win-win situation for both passenger and the airline.

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