Risk management is an important aspect of the Group's businesses

The SAZKA Group's risk and opportunity management system allows it to manage risks related to product security and quality, player protection, the protection of minors and the reliability of its lottery and gaming operations in a controlled manner.

In sports betting, a bookmaker’s odds are determined so as to provide an average return to the bookmaker over a large number of events and therefore, over the long term, the difference between the amount staked by customers on betting, less the amounts won by customers, has remained reasonably constant. However, there is an inherent level of variation by event and by day. There is no certainty of generating a positive return and, from time to time, the SAZKA Group may experience significant wins or losses with respect to individual events or betting outcomes.

The risk of incurring daily losses is significantly reduced by the averaging effect of taking a large number of individual bets over a considerable number of events, and the inherent diversification that results from taking bets both online and at the Group's POS from a broad range of areas across all our markets. In addition to such natural mitigating factors, the risk of incurring losses is also controlled through the SAZKA Group's risk management process.