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Annual Report & Accounts 2009 - Notes
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24 1.9 Employee benefits 1.9.1 Pension arrangements The Group does not operate any pension schemes. The Group, as part of general remuneration arrangements, makes payments directly to employees as a pension contribution allowance. 1.9.2 Share options The Group has a share option scheme which allows Group employees and contractors to acquire shares of the Company. The fair value of options granted is recognised as an employee expense with a corresponding increase in equity. The fair value is measured at grant date and spread over the period during which the employees become unconditionally entitled to the options. The fair value of the options granted is measured using a binomial valuation model (for options granted after 1 January 2007) and the Black-Scholes valuation model for options granted before 1 January 2007). These valuation methods take into account the terms and conditions upon which the options were granted. The amount recognised as an expense is adjusted to reflect the actual number of share options that vest. 1.10 Provisions A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. 1.11 Net Gaming Revenue Net Gaming Revenue is measured at the fair value of consideration received or receivable net of betting duties and similar taxes, and comprises the following elements: Casino: net win in respect of bets placed on casino games that have concluded in the year, stated net of certain promotional bonuses Sportsbook: gains and losses in respect of bets placed on sporting events in the year, stated after certain promotional bonuses. Open position 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 position that have closed Poker: net win in respect of rake for poker games that have concluded in the year, stated net of certain promotional bonuses Bingo: net win in respect of bets placed on bingo games that have concluded in the year, stated net of certain promotional bonuses 1.12 Expenses 1.12.1 Financial expenses Financial expenses comprise interest payable on borrowings calculated using the effective interest rate method. 1.13 Exceptional items Exceptional items are those that in judgement of the directors, 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.