The development, evolution and diversity of leisure activities is a fact that is evident in all modern societies, constituting an economic area of increasing importance. This implies the need for specific attention on the part of the administration to these activities and a regulation commensurate with its economic and social dimension and impact.

Moreover, the progressive extension of new communication technologies to all social areas has an undeniable impact on the world of leisure, where an important group of users shows preference for develop your options through remote connections.

This set of economic, technological and social circumstances means that traditional game modes have been joined by others and that certain traditional games, such as sports betting, are necessary. an adaptation to the new circumstances.

The approval of Law 13/2011, of 27 May, of regulation of the game, has come to establish the regulatory framework for the access to the exploitation and development of state-wide gaming activities, allowing the opening of the market to a plurality of operators.

This opening of the market is realized through the titles that enable the operators of the game for the exploitation, of a part, of the modalities of the game collected in the Law, through the general licenses and, another, of each of the regulated game types, through the singular licenses.

With this Order, it is necessary to comply with the requirements of prior regulation that, for the granting of the singular licenses, establishes Article 11 of Law 13/2011, of 27 May, of regulation of the game, approving the The basic regulation of the sports betting of compensation which, on the basis of the granting of the first individual licences, may be offered under competition.

This new regulation establishes a basic regulation which can be developed by the National Gaming Commission and which will be complemented by the private rules of private character that the various operators will have to develop and propose together with their application for a singular license and finally govern the development of the game and the operator's relations with the participants.

In short, the bases of a regulation aimed mainly at the protection of the participants and of the public interests that converge in the activities of the game, in particular the protection of the children and dependents, the prevention of gambling, and compliance with the provisions of Law 10/2010 of 28 April on the prevention of money laundering and the financing of terrorism.

Article 5 of Law 13/2011, of 27 May, of regulation of the game, attributes to the Minister of Economy and Finance the competence to establish, by Ministerial Order, the basic regulation for the development of each game.

In its virtue, I have:

Article 1. Approval of the Basic Regulation of the Counterpart Sports Betting.

The basic regulation of the state-wide counterpart sports betting, which is listed as Annex I of this Order, is approved. The provisions of this Order shall be without prejudice to the powers of the Autonomous Communities in matters of planning and regulation of the games and bets developed, in person, in public establishments. dedicated to recreational activities.

Article 2. Limits on guarantees linked to the singular license for the exploitation of the counterpart sports betting.

The limits corresponding to the guarantees linked to the singular license for the exploitation of the counterpart sports betting listed as Annex II of this Order are approved.

Article 3. Economic limits to participation in the counterpart sports betting.

The economic limits to participation in the counterpart sports betting listed as Annex III of this Order are approved.

Final disposition first. Authorization to the National Gaming Commission.

1. The National Gaming Commission is hereby authorised to lay down the provisions necessary for the development and implementation of this Order, and in particular for the amendment of Annex III which accompanies it.

2. The National Gaming Commission is hereby authorised to adopt all the provisions necessary for the development and implementation of the provisions of the Basic Regulation on the use of sports betting, without prejudice to the powers conferred on it. correspond to the Autonomous Communities in terms of planning and regulation of games and bets developed, in person, in public establishments engaged in recreational activities.

3. The National Gaming Commission is authorized to establish the procedure governing the granting of singular licenses and the authorization of occasional gambling activities, in accordance with the provisions of this Order. Ministerial and in the regulations of the development of Law 13/2011, of 27 May, of regulation of the game. This procedure shall lay down the requirements to be required of operators and the supporting documentation to be submitted by operators.

Final disposition second. Entry into force.

This Order shall enter into force on the day following that of its publication in the "Official State Gazette".

Madrid, November 8, 2011. -Vice President of the Government of Economic Affairs and Minister of Economy and Finance, Elena Salgado Méndez.

ANNEX I

Basic regulation of counter-sports betting

INDEX

Chapter I. General provisions.

Article 1. Object.

Article 2. Definitions.

Chapter II. Enabling titles.

Article 3. Required enabling titles.

Article 4. Validity and extension of the singular license.

Article 5. Guarantees linked to the singular license.

Chapter III. Relationships between the operator and the participants.

Article 6. Particular rules of the counter sports betting.

Article 7. Claims of the participants.

Article 8. Reporting obligations to participants.

Article 9. Promotion of the games.

Article 10. Channels and means of participation.

Chapter IV. Development of the counterpart sports betting.

Article 11. Objective of the counterpart sports betting.

Article 12. Amount of the counterpart sports betting.

Article 13. Formalization of betting and cancellation of events.

Article 14. Game development, award determination and allocation.

Article 15. Payment of prizes.

CHAPTER I

General provisions

Article 1. Object and scope of application.

purpose of this Regulation is to lay down the basic rules to be followed by operators for the development and exploitation, at the state level, of the commercial bets on the counterpart, as well as in the drafting and drawing up of its own rules, without prejudice to the powers that correspond to the Autonomous Communities in the planning and regulation of games and bets developed, in person, in public establishments dedicated to recreational activities.

Article 2. Definitions.

For the purposes of this Basic Regulation, the terms used in this Regulation shall have the meaning set out in this Article.

1. Sports betting. It is the contest of forecasts on the outcome of one or several sporting events included in the programs previously established by the gaming operator, or on facts or circumstances that form part or develop in the framework of such sporting events or competitions and which have been previously established in the relevant programme by the gaming operator.

2. Counterpart sports bet. It is the sports bet in which the participant bets against the game operator, obtaining the right to prize in the case of approaching the forecast on which the bet is placed, and the prize being the result of multiplying the amount of the participation by the coefficient that the operator has previously validated for the forecast made.

3. Minimum bet unit. It is the amount that corresponds to the minimum amount that can be played on each bet.

4. Sports event. It is the sporting event, previously determined by the operator in the corresponding program, which is developed in the frame of a sports competition or on the sidelines of it, whose organization corresponds to persons, operators ' independent associations or entities, and which presents an uncertain and foreign outcome to the betting operator and the participants.

5. Event suspended. It is the event that, once initiated, has been interrupted before reaching its scheduled end. Suspended events can offer valid results if it is established in the particular rules of the betting.

6. Event cancelled. It is the event that, for reasons other than the game operator and the participants, does not come to be held or, being celebrated, its results are not considered in the bets.

7. Event postponed. It is the event that, for reasons other than the game operator and the participants, does not start at the scheduled time. The postponed event, unless the particular rules of the game establish the opposite and determine an event to replace it, implies the postponement of the results of the bets.

8. Simple counterpart sports bet. This is the forecast that is made on a single result of a single sporting event.

9. Multi-counterpart sports bet. It is understood by multiple counterpart sports bet, the forecast that is performed simultaneously on two or more results of a sporting event.

10. Combined counterpart sports bet. It is understood by combined counterpart sports bet, the forecast that is performed simultaneously on the results of two or more sporting events.

11. Conventional counterpart sports bet. It is that kind of bet whose term to be realized must be closed before the sporting event starts. In the case of multiple or combined bets, the time limit for completion must be closed before the first event is held in chronological order of the contents in the bet.

12. Live counterpart sports bet. This is the kind of bet that takes place during the time of the sporting event on which it is based, either during its entirety or during the part of the event that the operator establishes in its betting program.

13. Bet coefficient. It is the figure that determines the amount that corresponds to a winning bet when multiplied by the amount bet. If the contrary is not established, the coefficient shall include the amount corresponding to the amount of the amount initially paid by the bettor who has won the prize. Each counterparty sports betting operator shall set the coefficients associated with the bets placed on it, on the basis of its own initiative and the likelihood of the outcome of such forecast occurring. These coefficients may vary over the period of time of the placing of the bets. The coefficient fixed at each moment for a particular bet shall be unique.

CHAPTER II

Enabling titles

Article 3. Required enabling titles.

Operators interested in the development and exploitation of the counterpart sports betting shall have a general licence for the mode of betting, as defined in Article 3 (c) of Law 13/2011, of 27 May, regulation of the game, granted by the National Gaming Commission and request and obtain the corresponding singular license for the marketing of conventional counter sports betting or for the marketing of bets (a) a direct counterpart, in accordance with the procedure laid down by the effect on the regulation of the development of Law 13/2011, of regulation of the game.

Article 4. Validity and extension of the singular license.

1. The special licence for the development and exploitation of sports betting shall be extended for a period of five years, subject to the application of the person concerned, for successive periods of the same duration, until the expiry of the licence. general in which you are loved.

2. The application for the extension of the singular license shall be addressed to the National Gaming Commission during the last year of its validity and at least four months in advance of the date of its completion, with the following proof:

a) Compliance with the requirements and conditions that were considered for obtaining the corresponding singular license.

b) The uninterrupted exploitation of the license for at least three-fifths of the duration of the singular license.

c) Payment of the tax on gambling activities and fees for the management of the game.

For the purposes of the accrual, settlement and payment of the fee for the administrative management of the game set out in Article 49.5.d) of Law 13/2011, of May 27, of regulation of the game, the extension of a singular license equating to the granting of a new license.

3. In accordance with the conditions referred to in the preceding number, the National Gaming Commission shall grant the requested extension and agree to its registration in the General Register of Game Licenses unless it is motivated to estimate that there are reasons for safeguarding the public interest, the protection of minors or the prevention of gambling addiction phenomena which justify the failure to carry out the requested extension.

Article 5. Guarantees linked to the singular license.

1. The National Gaming Commission may, in general, establish the obligation to provide an additional guarantee related to the granting of the singular license for the development and exploitation of the counterpart sports betting.

The National Gaming Commission, if applicable and by resolution, shall determine the amount of the guarantee linked to the singular license for the development and exploitation of the counter-sports betting that they have to satisfy all operators within the framework of the provisions set out in Annex II to this Order.

2. The guarantee linked to the special licence for the development and exploitation of the sports betting on the market is affected by compliance with the general obligations of the operator and, in particular, the specific obligations of the the prizes of the game of sports betting of counterpart exploited by the operator and to the fulfilment of any other obligation that, in relation to the corresponding singular license, has been imposed by the National Commission of the Game, In accordance with Article 77 of Law No 58/2003 of 17 December 2003, General Tax within the framework of Article 14 of Law 13/2011, of 27 May, of regulation of the game and its implementing regulations.

3. The additional guarantees referred to in this Article shall be constituted in the forms and under the conditions laid down in the Law 13/2011, of 27 May, of regulation of the game.

CHAPTER III

Relationships between the operator and the participants

Article 6. Particular rules of the counter sports betting.

1. The development and exploitation of the sports betting in return will be governed by this Basic Regulation, by the provisions that in the development of the same dictate the National Commission of the Game, by the terms of the singular license granted and by the particular rules of each game produced and published by the operator.

2. The development and exploitation of the counterpart sports betting requires the prior publication of its particular rules, which have a private nature and are prepared by the gaming operator, without prejudice to the supervisory powers of the National Gaming Commission.

In particular rules will be established the rules of the counter sports betting operated by the operator, the program of prizes, and the rules that will govern the relations between the operator and the participants.

3. The particular rules of the counter-sports betting must be published by the operator on its website and, by means of techniques appropriate to the means employed, must be accessible to the participants on a permanent basis, easily and free.

4. The operator shall notify the National Gaming Commission of the date of publication of the particular rules, as well as any changes they make to them.

Article 7. Claims of the participants.

1. The operator must have a system of care and resolution of any complaints and complaints from the participants and any person who may be affected by the operator's action, and shall establish in the particular rules of the (a) the procedures and means which will enable the participants to submit complaints and, in particular, the address or addresses to which they are to be addressed, the time-limits for the submission of complaints and those applicable to the the operator's response to them.

The complaints and complaints system of care and resolution must be easily accessible to potential stakeholders and must have at least an electronic access through the operator's website which will be of the date and time of receipt of the claims submitted by this path.

The attention to the participant must be at least in Spanish.

2. The time limit for filing claims shall be that set out in the particular rules of the game which shall not be less than three months from the date of the sporting event on which the bet is placed.

The operator shall issue a communication addressed to the claimant, in which he shall acknowledge receipt of his complaint and in which he shall state the identity of the operator and the time limit in which he shall be informed of the decision taken.

The operator shall resolve the participant's claim within one month from the date on which it was received in the address (s) established for these purposes and shall communicate it to the claimant.

3. If the complaint is settled by the operator or, if applicable, one month after the complaint was filed without the person having communicated its decision, the participant may make a complaint to the National Gaming Commission that will resolve the complaint. within two months from the date on which the complaint was entered in its register, without prejudice, where appropriate, to the opening of the relevant sanctioning procedure if the operator had incurred any of the infringements. collected in Title VI of Law 13/2011, of May 27, of regulation of the game.

4. The expiry date of the awards shall be interrupted from the date of receipt of the complaint by the operator until the date on which the latter has communicated its decision to the claimant or, where appropriate, to the notification of the decision of the the National Gaming Commission.

Article 8. Reporting obligations to participants.

Game operators must provide complete and up-to-date information to participants, at least, in relation to the following:

(a) Information about the operator of the game and, in particular, on the possession and validity of the enabling titles granted by the National Gaming Commission, trade name, social name, registered office and, if applicable, the address of the representative in Spain.

(b) Information about the system of complaints that the operator has in place and referred to in the previous article. The information shall contain at least: postal and electronic address to which the complaints may be addressed, time limits for the submission of complaints and, where appropriate, standard models, and time limits for the communication of the decision. The operator must also be informed of the operator's obligation to issue a reply for each complaint received. The operator shall be obliged to communicate to the claimants the identity of the staff with whom they interact.

c) Information about the particular rules of the bets offered and on the forms of participation in the bets that the operator makes available to the participant. This information shall be true and readily available prior to the commencement of the participation and at any time during the participation.

d) Information, if any, about all circumstances, which in the case of the operator, may influence the outcome of the event or the facts or circumstances on which the forecasts are based.

e) Information on sporting events or on all aspects or facts of the same on which bets may be placed, the different classes of bets offered, as well as on the coefficient in force in each time for all bets that can be placed.

f) Information about the prizes that the participant would have obtained, about the amount that he has played or bet, as well as the balance of his/her game account, in the assumptions in which the participation is made through an account user.

g) Information to the participant about the Responsible Gambling policies developed by the operator.

The information regarding the consideration of the sports betting, its name and form of presentation shall be offered in such a way as to avoid any similarities with any other bets or games, or to induce the confusion of the participant with respect to the nature of the bets.

The information that the operator offers to the participant must be provided at least in Spanish.

Article 9. Promotion of bets.

1. In the terms set out in article 7 of Law 13/2011, of May 27, of regulation of the game, the performance by an operator of gambling advertising, sponsorship or promotion of gambling activities, as well as the advertising or promotion of the same, can be performed according to these criteria:

a) That advertising is easily identifiable by its recipients.

b) To ensure that advertising activity is socially responsible, paying due attention to the protection of minors and other particularly vulnerable groups. Thus, in the case of minors, it should be avoided that advertising is aimed at them, or that it is particularly attractive for children and young minors, or that they have a significant role in the particular promotional activity.

c) In the event of its broadcast by audiovisual media, it must also respect the applicable provisions on commercial and self-promotion communications contained in Law 7/2010 of 31 March, General of the Audiovisual Communication, and in particular the provisions of Article 7 on the rights of the child. Special attention shall also be paid to the timing of the advertising of the gambling activity and the age rating of the programme together with which the programme is issued or inserted shall be taken into account.

2. In addition, the operator may carry out promotional activities for the offer of the games which it places on the market and offer bonuses for the registration or participation of the player provided such practices:

a) Do not be contrary to the provisions of this Basic Regulation or the regulatory regulation of the game.

b) Do not contravene the provisions of Law 34/2002, of July 11, of Services of the Information Society and of Electronic Commerce and Law 7/2010, of 31 March, General of Audiovisual Communication.

c) Do not alter the dynamics of the game.

d) Do not induce participant confusion regarding the nature of the game.

3. It is up to the operator to publish on its gaming platform the conditions of application and periods of validity of any promotional initiative that it develops, as well as the terms of it.

4. The National Gaming Commission may limit the maximum amount of promotional initiatives and bonuses to participants developed by the operator, in accordance with the terms of Article 7 of Law 13/2011 of 27 May of Regulation of the game, and in the regulations for which the aforementioned article is regulated.

5. Direct counter sports betting operators will be able to carry out advertising actions in relation to bets placed on the media which are relaying the sporting event on which they are based. bets, simultaneously to the retransmission and without the need for their interruption.

6. Gaming operators will be able to offer free gaming applications on their platforms, as provided for in the regulatory regulatory framework for the development of Law 13/2011, of May 27, to regulate the game.

Article 10. Channels and means of participation.

1. The participation in the sports betting of counterpart, in accordance with the provisions of article 1 of Law 13/2011, of 27 May, of regulation of the game, will be carried out through electronic channels, computer, telematic and interactive, where the in-person media, if any, will have an accessory character.

The participation may also be carried out through physical terminals accessories which the operators may install, prior to the appropriate authorization issued to the effect by the Autonomous Community in reason of the territory in the the purpose of the installation of the terminals, in accordance with the relevant state and regional rules on gambling and gambling. These physical fittings must have been previously approved by the National Gaming Commission.

2. The counterpart sports betting may be performed using any mechanism, installation, equipment or system that allows to produce, store or transmit documents, data and information, including any open communication networks or restricted as television, Internet, fixed and mobile telephony or any other, or interactive communication, either in real time or in deferred time.

CHAPTER IV

Development of the Counterpart Sports Betting

Article 11. Objective of the counterpart sports betting.

1. The objective of the counter-sport bet is the success of the forecast formulated on the outcome of one or more sporting events included in the programs previously established by the game operator, or on facts or circumstances that form part or are developed within the framework of such events or sporting events and have been previously established in the relevant programme by the operator of the game.

2. In application of the particular rules of the game and the program established by the operator, the counter sports bet can be simple, multiple or combined.

Article 12. Amount of the counterpart sports betting.

1. The price of the counter-sports betting shall be that established by the operators in their particular rules, and shall be expressed in euro.

2. The maximum amount that the same participant may devote to the participation in live counterpart sports betting is that set out in the second paragraph of Annex III to this Order.

Article 13. Formalization of betting and cancellation of events.

1. The formalisation and validation of the counter-sports betting shall be carried out by the means or means established by the operator in its particular rules of the game between those referred to in Article 10 (2) of this Regulation. base.

2. The formalisation and validation of the counterpart sports betting must be concluded within the time limit set by the operator in the particular rules of the game, which, in the case of conventional counter-sports betting, be before the start of the sports event contained in the betting program.

In the case of multiple or combined bets, the formalization of the conventional counter sports betting must be concluded before the start of the first event, in chronological order, of the contents in the bet.

3. The operator will issue and provide each participant with the same means by which he/she placed the bet, a stub or accrediting document of each bet he has made. The proof or proof must contain, at least, the identification of the bet, the amount of the bet, the event in which the bet is involved, the type of bet, the forecast made, the coefficient assigned to the bet in the the time of their performance and the number or alphanumeric combination of security to identify it on an exclusive and unique basis.

4. Each matching sports bet will be linked to the current coefficient for that bet at the time of its realization and will not be affected by the subsequent changes that the coefficient may suffer.

5. Operators shall establish in the particular rules of the game a forecast for the cases of suspension, cancellation or postponement of the events established in the betting programme and for the replacement, where appropriate, of those involved in him. It shall also establish the cases in which the betting shall be maintained or cancelled as a result of the suspensions, postponements or replacements. In any event, the right to the collection of prizes which may have been obtained by the participants for bets placed on facts or circumstances of sporting events which had been substantiated prior to the fact that they were The possible suspension or cancellation.

6. The full amount corresponding to the participation in the bets which, once formalized, are cancelled by the operator in application of their particular rules, will be returned or made available to the participants in the form established in such particular rules, always without any additional costs or obligations for the participants.

7. The National Gaming Commission may establish obligations whereby operators are required to establish mechanisms to ensure the temporary limitation of participation in betting.

In addition, the National Gaming Commission, for reasons of safeguarding the public interest, protecting minors or preventing gambling addiction, may set limitations on the marketing hours of the game. live bets.

Article 14. Game development, award determination and allocation.

1. The counterpart sports betting shall be developed in accordance with the provisions of this Basic Regulation, in the provisions that the National Gaming Commission, in the particular rules of the game and in the game, in its development. the corresponding betting schedule set by the operator.

The National Gaming Commission will approve and publish the catalogue of sports, competitions and sporting events that may be included by operators in their betting programs.

Also, and in respect of each sport, competition or sporting event, the National Gaming Commission will approve and publish, the relation of the events or events of the corresponding sports activity that may be the object of each bet class and, among them, those that can be included in the conventional betting and live betting programs.

The catalogue of sports, competitions and events, such as the relation of betting objects, may be modified by the National Commission of the Game of Trade or by reasoned request of the operators.

2. The counterpart sports betting operator is responsible for establishing the sports events program on which the bets will be placed and will inform the participants about the period in which they will be placed.

The operator shall in no case be able to offer bets on sports or sporting events that are not in the catalogue referred to in the preceding number, nor offer bets on facts or circumstances other than those of the collected in the relation of bet objects referred to in the previous number.

3. The prizes of the counterpart sports betting are determined by the result of the sporting events established in the betting program.

A sports bet will be understood to have been awarded when the forecasts contained in it coincide with the result considered valid, in accordance with the particular rules of the game.

4. After the event or sports events object of the bets, the operator will communicate to the participants, through the means that it would have set in the particular rules of the game, the valid results. Whenever possible and the medium allows for proper communication with the participant, the operator shall employ for the communication of the results the same means of the one used by the participant for the formalization of the bets.

In sports events of an official nature, it is considered as a valid result that determined by the organizing entity.

5. Known the result of the event or events object of the bets, the operator will proceed to the assignment of the prizes to the participants who would have realized the forecasts that, according to the results of the events, would have been awarded.

6. The results of the events will be published by the operator on their website within twenty-four hours of the event. The published results shall be accessible, at least, from the date of their publication to the last calendar day which, in accordance with the particular rules of the game, shall be fixed for the lodging of a complaint pursuant to Article 7 (2) of the Treaty. Basic Regulations.

7. The National Gaming Commission shall establish the procedures and reporting obligations relating to the results of sporting events and the allocation of prizes and, where appropriate, the additional publication obligations it understands. precise for the best protection of the participants and the public interest.

Article 15. Payment of prizes.

1. It is the creditors of the prizes that the participants have formalized the bets that, according to the result of the event or events on which the bets were made and the particular rules of the game, have been awarded.

2. The operator is obliged to pay the prizes obtained in the counter sports betting since the result of the event or events on which the bets were placed and the payment of the prizes to the participating creditors in the terms and conditions set out in the particular rules of each game.

The payment of prizes shall be initiated after the publication of the results of the events referred to in Article 14 (6) of this Basic Regulation.

3. The authorised operator shall pay the prizes in accordance with the rules of the game and, failing that, by the same means used for the payment of the participation. Payment of the prize in no case will entail additional cost or obligation for the award-winning participant.

The right to the collection of prizes shall expire within the period laid down in the particular rules of the game which shall not be less than three months from the day following the end of the sporting event closing the corresponding one. betting program.

4. The National Gaming Commission shall establish the additional procedures and obligations that are necessary in relation to the payment of the prizes for the best protection of the participants and the public interest.

ANNEX II

Limits of guarantees linked to the singular license for the exploitation of the counterpart sports betting

Unique.

The National Gaming Commission will, by resolution, determine the amount of the guarantee linked to the singular license for the development and exploitation of the counter sports betting and that will be fixed between the five and the Twelve percent of the operator's net income attributable to the activity subject to a singular license in the year immediately preceding. For this purpose, the net income of the operator shall be understood as set out in Article 48.6 of Law 13/2011 of 27 May of regulation of the game. During the initial period of the individual licences, the lodging of a guarantee shall not be required. The initial period of the singular licenses shall be computed in accordance with the provisions of the Law 13/2011, of May 27, of regulation of the game, which is applicable.

ANNEX III

Economic limits to participation in the counterpart sports betting

First. Deposit limits.

The amount of deposits made in the game account will be adjusted to the limits, which in this respect, will be established by the National Gaming Commission, in accordance with the terms of Law 13/2011 of May 27, of regulation of the game, and in its regulatory framework for development.

Second. Maximum amount of participation in live counterpart sports betting.

A limit is set for the amount of money that a single participant can dedicate to their participation in live counterpart sports betting.

In general, this amount may not exceed the amount of the balance that the participant has on his/her game account at the time the sports event is initiated in which the bets are placed.

If during the course of the sports event in which bets are being placed, the participant enters into his/her account any additional amount, coming exclusively from the prizes won as a result of the Bets placed live on that sporting event, this amount entered can also be dedicated to the realization of new live bets in that same sporting event.

In the event that the same participant performs live-in-counter sports betting on two or more sporting events held simultaneously, the limit of the amounts that the participant may devote to the bets will be the amount of the balance that the participant has on his/her game account at any time, as a result of the two preceding paragraphs.