RNS

Probability plc ("Probability" or "the Company")

Award of Italian Gambling License

Expands Probability's market  for mobile gambling within Europe

Probability plc, the mobile gambling specialist, announces that its
wholly owned subsidiary, Probability (Gibraltar) Limited, has been
awarded a remote gambling license in Italy.

The new license (reg. no. 15240) is valid for ten years. It greatly
expands Probability's addressable market for mobile gambling services
by giving the Company direct access to one of the largest legal
gambling markets in Europe just as it is opening up the most
popular forms of online and mobile gambling.

The award of the license comes three months after Probability made its
first step into the Italian market by acquiring the business-to-business
mobile gambling developer, Playyoo SA. The new license allows
Probability to leverage that investment further by adding a complementary
White Label service.

Commenting on the new license, Probability CEO Charles Cohen said:

"The conditions are ideal for us to enter this market with a
full White Label offering alongside the B2B business we already operate
there following the Playyoo acquisition.

"Our expertise in mobile gambling is tailor made for Italy, where some 30%
of adults now have a smartphone and where slots games - our best performer
in the UK market - are by far the most popular way to gamble (notes 2,3).

"With the licensing of slots for online and mobile users expected to start
later this year, we feel we are in the right place at the right time,
with the right offering, to succeed in this very exciting European
market."

* White Label strategy.

White Label services allow non-gambling companies to recruit players to
a branded gambling service without that company taking any gambling risk
or needing its own gambling license.

Typically the partner is responsible for all marketing investment whilst
Probability manages the service and looks after the customers, as well
as taking the gambling risk and all regulatory responsibility. Revenues
are shared after direct costs including gaming duty.

Probability derives around 20% of its revenues from such services in the
UK market and is growing this area quickly. As in the UK, a white-label
solution in Italy is expected to appeal to media companies, mobile
network operators and mobile content providers who already have access
to Italian mobile users. Some of Probability's UK white label clients
are also interested in extending their offering to Italy.

The White Label strategy allows Probability to continue to expand its
existing B2B business in Italy through Playyoo, whose clients are large
Italian gambling companies.

There are no plans to introduce a direct-to-consumer offering.
* Speed and cost of implementation.

The Company expects to launch its first service in the first half of 2013.
Integration of its platform into the Italian regulatory system is already
largely in place by way of the Playyoo service.

A certification process is also already underway on Probability's mobile
slots and casino games in order to meet demand from Playyoo customers.
This is progressing to plan. These certifications will apply to the White
Label service.

The cost of the licence itself is €300,000 which will be amortised over ten
years. A good behavior bond of €200,000 has also been posted which will remain
in place for the life of the service. These have been funded from the
Company's existing cash reserves. No further capital investment is required
to enable the Company to deploy services in the Italian market.
* Background to the Italian Gambling & Mobile market

The overall Italian gambling market was worth €18.5bn in gross win last
year, some 50% more than the UK at €12bn. (note 1).

However, online gambling in Italy lags the UK, with €1bn in gross win
last year against €2.4bn in the UK.

This is the result of a deliberate policy by the Italian government to
open its online and mobile gambling sector slowly.

Unlike the UK where all products are licensable, the Italian government
has added product categories individually over the last few years.

The most important new product category still to be introduced to Italy
is slots. Whereas the UK gambling market is dominated by sports betting,
more than half of all wagering in Italy is on slot machines (note 3).
Regulations for slots were recently adopted by the Italian government
and approved by the EU come into force. This is expected to result in
the first online slots being approved during December 2012.

Slot games are the largest single product category for Probability's
business.

ENDS
For further information, please go to www.probability.co.uk, follow
@probabilityplc, or contact:

Probability: Charles Cohen, Chief Executive Officer
+44(0) 207 092 8800

Numis Securities: Richard Thomas, Nominated Adviser
+44(0) 20 7260 1000

Square 1 Consulting: David Bick, Public Relations
+44(0) 20 7929 5599

Notes:

1. H2 Gambling Capital June 2012 via. The Economist, June 4 2012.
2. Smartphones: source Google Mobile Planet. Data for 2012.
3. Slots dominance, GamblingCompliance.com Italy country report,
Sept. 2012

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