iagr conference 2014 philadelphia october 2014
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IAGR Conference 2014 Philadelphia October 2014. Horserace betting in France. L egal framework Pari mutuel is the only legal form of betting on horseracing in France. - PowerPoint PPT PresentationTRANSCRIPT
Horserace betting in France
Legal framework
Pari mutuel is the only legal form of betting on horseracing in France.
Between 1881 and 2010, only horse racing associations (nonprofit) were allowed to organize betting on horseracing :
– On racetracks only until 1931,– Off-track since 1931, through PMU.
In 2010, the law opened the French online gambling market (horserace betting, sports betting and poker) to competition :
– Horseracing associations keep the monopoly for on-track betting and, though PMU, betting in retail networks,
– 8 operators (including PMU) offer online betting on horse racing.
Offline and online gambling markets are now regulated by different laws and monitored by supervision bodies, of which ARJEL regulates online gambling.
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Horserace betting in France The market
In 2013, horserace betting accounted for : € 9.93 billion handle 23% of total gambling expenditures in France in 2013
23%
5%
24%
33%
15%
French Gambling Market per Gambling Offer in 2013 (handle)
Horserace Betting Sports Betting LotteriesOffline Casinos (estimate)Online Poker
97%
1% 2%
PMU (horserace only)
PMH
Online licensed opera-tors
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PMU, a company created to fund racing Created in 1930 by French Horseracing Associations, PMU is a leisure
company whose role is to conceive, market, totalize and promote bets on horse races for their account.
Since 1985, PMU has been an Economic Interest Group (EIG), now made up of 58 horseracing associations
o Diversified into online sports betting and poker in 2010o Returns its whole profit to its members
→ PMU’s activity is closely supervised by the State
PMU is run by a Board of Directors which gathers :o PMU’s Chairman & CEO and PMU’s Managing Director, o 4 representatives from State Departments (2 for
Finance and 2 for Agriculture)o 4 representatives of the Horseracing Authorities (2 for
France Galop and 2 for SECF).
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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
668
694
727736
731
791
876865
854
614
PMU net income / return to the industry (M€)
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N°1 Horserace betting operator in EuropeN°2 Horserace betting operator worldwide
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€ 854 million paid to the horseracing sector in 2013
75.7% punters9.2% State
5.8% PMU’s opera-ting costs
8.2% Net profit paid to horserace associa-
tions
1.1% foreign pro-viders
€ 10.4 billion handle in 2013
PMU’s Offer
Horserace bettingo Retail network o Online on PMU.fro Abroad in common pool
Sports bettingo Online on PMU.fr
Pokero Online on PMU.fr
• €9,6 bn stakes (-1.8%) in 2013 • 15,371 races in 2013• Export : + 94%• 85% market share
• €199 million stakes (+22.4%)• 24% market share• 30+ sports • Live betting : 47% of stakes
• Cashgame et tournaments• €569,9 million stakes (+ 10%)• N°3 operator• 9% market share
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PMU’s retail network
12, 200 retail outlets in France and overseas territories
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Mainly in cafés, bars, tobacco shops, restaurants Diversification : Newsagent’s, gas stations, local shops… and fully
owned Betting shops (« PMU City »)
PMU.fr
PMU.fr is the N°1 betting site in France
44% market share, €1 billion turnover
N°1 for horserace betting with 83.6% market share (Gross Product)
35% of sports bets are registered through mobile
Cash game available 24/7 for poker players
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International activity
Foreign races offered to French punters to supplement national
racing offer
2,585 foreign races from 27 countries in 2013
€ 549 million handle (+12%)
31 contracts for betting on French races in PMU’s Pool : €638 million handle in 2013 (+94%)
Contracts for separate pool betting in 37 countries (>€ 1 Bn handle)
French races offered to foreign punters
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Separate pool
CP & SP
Common pool *
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PMU’s international contracts
Digital innovation is at the core of PMU’s activity
PMU.FR websiteEnhanced user-friendly design
PMU.FR appAdapted layout for smartphones, IOS and
Android tablets
INFO.PMU.FR websiteHorse racing information website for offline bettors
MYPMU appSpecially designed app for offline bettors with
all horse racing information
Touch screensDisplaying live
information in points of sale
Touch tablesTo learn with the« Play for fun » option or to bet for
real at PMU events
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Powerful IT solutions
IT accounts for 40% of PMU’s operating costs 2500 transactions per second, among which 90% come from
PMU’s 12,200 retail outlets
50% of turnover comes from bets registered in the last 10 minutes before the start of each race
EASY Project over 5 years, budget > € 50M− Reduce the Time to Market from 18 to 9 months to launch
a new bet − Make it possible to operate 24/7
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Corporate social responsibility
Trai
ning
of P
MU’
s
empl
oyee
s and
reta
ilers
Prevention among
the general public
and customers o
n
internet and points
of sales
Funding of medical research
Best practice
sharing with other
operators and
dialogue with civil
society stakeholders
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PMU vision for 2020
PMU 2020
Retail & outletsCAGR : +1 % through new retail formats
Digital60% of the growth in France
through digital channels
International10 % of net margin outside France
Offer & productsCompetitive positioning on every authorized segment to become a reference actor of the gambling market
Customers15 % of the French people will be PMU customers
People & cultureChange into an agile and attractive organization, turned towards innovation
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Revenue sources of major sports
Global Sport Market
European Soccer Leagues (top 5)
British Rugby Union
NFL (USA) Horse Racing
4130 36 38
5
22 4523
44
5
3725
41
185
20
65
Owners Wagering Commercial Broadcasting Ticketing18
Competition trend : sports betting surpasses horse betting in 2014
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20170
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Horse Racing Sports Betting Lotteries
CAGR 2009/2013 : 0.8%
CAGR 2009/2013 : 4.3%
CAGR 2009/2013 : 5.5%
CAGR 2013/2017 : 1.2%
CAGR 2013/2017 : 7.5%
CAGR 2013/2017 : 3.3%
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A broad range of issues to renew horse racing
Customer
Pattern racing
Wagering
Major events
Social media
Laboratory accreditati
onPopular culture
BreedingIntegrity
Big Data
Environmental sustainibility
Jockey & horse safety
Anti-doping
Industry vocational training
Media
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