Version: 25022003
Editor: Franka Pals
Publisher: Novamedia
Disclaimer: Novamedia disclaims all liability for information provided within the "Novamedia European Gaming and Lottery Files".The information is supplied by independent journalistic sources. No parts of these files may be reproduced in any form by print, photo print, microfilm or otherwise, or re-distributed electronically in any form without written permission from the publisher.
France is bordered clockwise from the North by Belgium , Luxembourg , Germany , Switzerland , Italy , Mediterranean Sea , Spain , Andorra , Spain , the Bay of Biscay and the English Channel . In general, France has cool winters and mild summers, but mild winters and hot summers along the Mediterranean.
France is the largest West European nation and is divided into 22 regions and subdevided into 96 departments.
France today is one of the most modern countries in the world and is a leader among European nations. Since 1958, it has constructed a presidential democracy. In recent years, its reconciliation and cooperation with Germany have proved central to the economic integration of Europe , including the introduction of a common exchange currency, the euro, in January 1999.
France is in the midst of transition, from a well-to-do modern economy that has featured extensive government ownership and intervention to one that relies more on market mechanisms. The Socialist-led government partially or fully privatized many large companies, banks, and insurers, but the government retains controlling stakes in several leading firms, including Air France, France Telecom, Renault and Thales, and is dominant in some sectors, particularly power, public transport, and defense industries. The telecommunications sector is gradually being opened to competition. The current government has lowered income taxes and introduced measures to boost employment. The government is focusing on the problems of the high cost of labor and labor market inflexibility resulting from the 35-hour workweek and restrictions on lay-offs. The government is also pushing for pension reforms and simplification of administrative procedures. The tax burden remains one of the highest in Europe (43,8% of GDP in 2003). The current economic slowdown and inflexible budget items have pushed the 2003 deficit to 4% of GDP, above the EU's 3% debt limit. Business investment remains listless because of low rates of capital utilization, sluggish demand, high debt, and the steep cost of capital.
(Source: CIA)
Pan-european exchange
The Euronext Paris S.A. is a fully computerised stock market, which belongs to the Euronext NV group to form the largest stock market in the euro zone. But it is also a business corporation that supervises listings on the exchange, ensures efficient trading, provides a guarantee of final settlement of transactions, disseminates market data in real time, and promotes securities markets in general.
Euronext N.V., a holding company incorporated under Dutch law that operates through local subsidiaries, was formed on 22 September 2000 when the exchanges of Amsterdam, Brussels and Paris merged. The Euronext group expanded at the beginning of 2002 with the acquisition of LIFFE (London International Financial Futures and Options Exchange) and the merger with the Portuguese exchange BVLP (Bolsa de Valores de Lisboa e Porto).
Since its formation, Euronext has strengthened its economic position through geographic expansion by means of targeted acquisitions, and is now a major player in the European exchange industry.
An international news provider in France is the Pan European sports broadcaster Eurosport SA., a punters' favourite.
Eurosport is the most widely available TVchannel in Europe, broadcasted in 18 languages, reaching over 95 million homes and 250 million viewers in 54 countries. Over 96% of Eurosport's viewers can watch sports in their native language.
And where 'sports' is, comes automatically 'bookmakers', 'gaming', betting', 'prognostication', 'totalisator', 'oddset', 'parimutuel', 'Veloto', 'toto', etc. So it is not so strange that Eurosport in cooperation with some leading bookmakers started a special 'punters' survive at Eurosport's teletext service. In the meantime the development of gaming via Eurosport keeps on enlarging. Betting on live football matches, tennistoto, Star of the match via sms, result betting, cycling prognostication, etc. is now possible on Eurosport.
| Population: | 60.424.213 (July 2004 est.) Population growth rate: : 0,39 % (2004 est.) |
|---|---|
| Age Structure | Age structure: 0-14 years: 18,5% (male 5.724.185; female 5.446.716) |
| Currency: | EURO (EUR) 1 US Dollar = 0.74 Euro 1 Euro (EUR) = 1.34 US Dollar (USD) (Decembert 7, 2004) |
| GPD | purchasing power parity - $1,661 trillion (2004 est.) GDP - real growth rate: 0,5% (2004 est.) GDP - per capita: purchasing power parity - $27.600 (2004 est.) |
| Internet: | Number of internet users is 25,4 million (2004 est.) |
| Telephones | Main lines in use: 33.905.400 (2003 est.) Mobile cellular: 41.683.100 (2003 est.) The French mobile phone market is one of the largest in the EU, despite a relatively low penetration rate of almost 69% at the end of June 2004. With only 41,7 million subscribers in a population of 60 million, the market was worth 15,3 billion euros in 2003, or about a third of all telecom market revenues in the country. Three network operators provide the full range of telephony and data services to mobile subscribers, corresponding to two thirds of the French population. France Telecom's Orange and the Vodafone-Vivendi owned SFR dominate the market, with Bouygues Telecom challenging. In June 2004, SFR launched its commercial 3G services for customers in Paris , Lyon and Toulouse .
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The French regulator is the Ministry of Finance c.s. which is in charge of supervision on La Française des Jeux (FDJ's) activities. This Ministry is designed to regulate the practice of gaming.
Its role is to :
Online gambling is still illegal in France , although authorisation was given to the lottery operator La Française des Jeux in June, 2002. Free lotteries, however, are allowed.
French law requires that rules and regulations should be published on each internet gambling site. These rules and regulations also have to be checked by a lawyer, who must verify the correctness of the drawing process. In addition, the contact information of the organiser and the exact dates the lottery is in operation must be displayed on the site. In most cases these requirements are missing.
The State authorises games, sets the level of deductions and approves the budget and accounts of La Française des Jeux. Every game is covered by regulations published in the Journal Officiel, which define the rules on participation, the frequency and organisation of the draws. The lottery is meant to be a people's lottery, providing both amusement and funds for major humanitarian and social causes.
Already back in the 70s, firms running games of chance had been called on to help finance sporting activities, in particular by funding the National Fund for the Development of Sport, which provides money for all the sports' federations. In January 1993 the Française des Jeux Foundation was set up to manage the company's patronage of sports activities. It divides its largess between high-level sport and sport for all.
Although the law does not prohibit access by minors to the games of La Française des Jeux, the company has taken steps to protect minors.
In the area of product distribution, La Française des Jeux encourages its retailers not to accept wagers by unaccompanied minors under the age of 16 year and, certainly, not to pay prizes to them directly.
In the area of Internet gaming, in order to access La Française des Jeux games, aspiring players must identify themselves, hold a resident bank account, and sign a declaration to the effect that they are legally adults. As a safeguard, the company has set a cap on online wagers and can deny players access to their accounts for seven consecutive days if the limit is exceeded. After three such denials, La Française des Jeux cancels the registration.
In order to stimulate foreign investments the "Invest in France Agency" was established under the New Economic Measures Law of May 15, 2001. The Agency is responsible for encouraging long-term international investment and reports to the Minister for the Economy, Finance and Industry and to the Minister of Regional Development. Several financial support measures are available to incite companies to invest, create new jobs and train their staff. Supporting measures are: subsidies, government-subsidised loans, tax credits, discounts, etc. They are offered by the State and local communities (regions, departments, municipalities, local organisations).
In accordance with community law, investment and job creation aids to large corporations are legal as long as they promote the settling and development of companies in priority development areas (so-called PAT areas).
Taxes
Tax rules in France have traditionally been designed to favour corporate investment, regional development and international expansion. Measures thus include accelerated depreciation, exemptions and loss carry forwards. France 's commitment to equitable tax treatment is also well illustrated by rules applying to groups of companies. France has tax treaties with over one hundred countries. These treaties generally help avoid double profit taxation in France and in the foreign country of origin.
As soon as a foreign company conducts profitable business in France , the said profit is taxed in France . This rule applies regardless of the type of company: subsidiary, branch, permanent establishment.
In the case of a branch or a permanent establishment with no separate legal status, the proceeds of the business conducted in France is derived from the accounts of the foreign company. The concept of permanent plant is defined in each individual tax treaty.
Taxable profit is calculated on income minus deductible expenses. Income encompasses all proceeds from business, sales or services. Only expenses incurred as part of the business conducted can be deducted.
Deductible expenses: depreciation of tangible and intangible assets (excluding goodwill), reserves, building and equipment rents paid, salaries, social security charges, goods purchased, energy consumption, advertising costs, financial expenses.
The deductibility of certain categories of expenditures is limited in order to prevent abuse. This is in particular the case with so called "extravagant expenditures", such as the use of private vehicles: in that case, the deductible depreciation and rent expenses are capped at 18.300 euros including VAT.
Long-term net capital losses can be charged against similar capital gains for 10 years. The French tax incorporation system is particularly attractive. It enables groups of companies to compensate for the profits and losses of their French operations within the consolidation scope, and makes transactions easier between companies that belong to the same group. It applies optionally if a French parent company holds at least 95% of the shares of the incorporated group.
Value-added tax (VAT) is a tax on the consumption of goods and services, and is paid by the consumer.
Businesses are only charged with collecting the tax on sales, and deduct the VAT they have paid on purchases and investments from the amount collected. If VAT paid on purchases exceeds VAT collected on sales, the resulting VAT credit is reimbursed to the business on application.
Goods exported outside the EU are totally exempt from VAT. The standard rate on sales of goods and services is 19,6%, but reduced rates apply to a number of cases. Thus, 5,5% is the rate that applies to foods, certain farm products, drugs (5,5% or 2,1%), books, hotels, public transportation, newspapers and magazines, certain leisure activities, etc.
Tax measures have been adopted to encourage companies that invest in difficult areas or take over ailing companies.
In 2003 La Française des Jeux collected 7,8 billion euros in wagers, the PMU 7 billion euros and the turnover of the casinos was 18,2 euros billion (calculated on the basis of "gross gaming revenues" and a mean player payout rate of 86%). So in 2003 the gaming market accounted for a total gross expenditure of 33 billion euros.
| casinos | FDJ | PMU | |
|---|---|---|---|
| 1993 | 3.66 | 4.74 | 4.74 |
| 1994 | 6.15 | 4.75 | 5.06 |
| 1995 | 7.51 | 5.04 | 4.80 |
| 1996 | 8.89 | 5.14 | 5.19 |
| 1997 | 10.07 | 5.20 | 5.27 |
| 1998 | 11.74 | 5.44 | 5.33 |
| 1999 | 13.07 | 5.76 | 5.43 |
| 2000 | 14.69 | 6.52 | 5.78 |
| 2001 | 16.27 | 7.01 | 6.17 |
| 2002 | 17.54 | 7.43 | 6.41 |
| 2003 | 18,2 | 7,79 | 7,02 |
The gaming market has grown sharply in recent years (revenues would have increased by 90% between 1995 and 2003). This trend has varied from one gaming segment to another; for example, although sales by La Française des Jeux have grown, its market share has fallen steadily.
One reason for the rapid growth is the relatively late development of slot machines sector in France. Slot machines only became legal in France in 1987. In a regulated market in which demand is structurally greater than supply, authorisation of games is of crucial importance both to respond to this demand in a controlled manner and to combat illegal gaming. Economic activity is another factor. Regardless of game authorisations, the total amount of wagers correlates with the economic situation. Total wagers increased during the boom of the 1990s, then fell as the economy slowed down (for example, sales of La Française des Jeux scratch games fell by 2,6% in 2003).
Changing social practices also affect sales patterns. As in other countries, sales of gaming products have reflected societal change and a more relaxed attitude to money, gaming and winning prizes. This has not altered the way gaming is regulated by government, however, even though French players of lottery or sports-betting games are among the most moderate in Europe,. The average stake per head of population is nearly 25% lower than the European average in 2003.
French people spent an average of EUR 121,60 on lotteries a year, which is 27,5% less than the average for the main Western European countries (EUR155). France is thus a long way behind Spain (EUR247,90), Norway (EUR287,80), Greece (EUR223,30), Italy (EUR195,40) and the United Kingdom (EUR125,40) La Française des Jeux is ranked 52nd in the world by per capita sales.
The lotteries have a long history in France since the first was introduced by Francis I back in the sixteenth century.
Website: www.fdjeux.com
La Française des Jeux operates lotteries and sports-betting games in France. While not a public service, it enjoys a state monopoly under French legislation designed to regulate the practice of gaming. Its role is to ensure the legality, transparency, and proper operation of gaming activities. La Française des Jeux is a semi-public corporation owned 72% by the French Government. Other shareholders:
It is the government that authorises new games, sets state levies and commissions, oversees the organisation of games and supervises the company's activities. The Chairman and CEO of La Française des Jeux is appointed by presidential decree for a five-year term on the recommendation of the board of directors.
2003 has been another year of growth for La Française des Jeux (French National Lottery): with an annual turnover of billion Euro 7,79, i.e. an increase of 4,8 % compared to 2002. The trend confirms the renewed momentum of draw games.
In 2003 28,4 million people played a game run by La Française des Jeux. Players have received 4,7 billion euros in winnings, representing 60,4% of the turnover in 2003 compared with 4,47 billion euros in 2002. In 2003, 149 people received a price from at least 1 million euros - almost 3 major winners per week. A total of 515 people won a prize worth at least 150.000 euros. These results confirm the strength of lottery-type games (Loto, Keno, Rapido), with 8,8 % growth of sales for this year (2003) compared to the previous year.
Over 535 million euros have been paid out in commissions to the distribution network. Sums levied by State finances have reached almost 2,09 billion euros, 10 % of which are allocated to the development of sport. This is the equivalent of 26.8% of wagers in 2003.
The successful launch of book-maker betting has enabled sports forecast games to reach 213 million euros, doubling sales for the range in comparison with 2002. Scratch cards, however, have proved far more sensitive to the current situation, registering a 2,6 % drop. Almost 2 billion tickets were sold for the whole range. Millionnaire remains the leading game with 3,3 % sales growth. Launched in November 2003, TAC O TAC Gagnant à Vie generated 80 million euros in sales after only six weeks on the market.
La Française des Jeux has planned to invest over 200 million euros in equipping its network between 2000 and 2005. Its distribution network represents a system of over 40.000 points of sale The revenue paid out to them is equivalent to 20.000 jobs.
La Française des Jeux products are designed for the general public and are priced between 50 cents and 3 euros per play.
The player population shows the same basic characteristics as the general French population:
With a few limited exceptions, their sociooccupational profile reflects the social diversity of the country.
Survey conducted between October 14 and 26, 2003, on a sample of 2.000 people representa tive of the French population aged over 16 using the quota method.
Of the 28,4 million people who played a La Française des Jeux game at least once during 2003:
The average weekly investment per player remains at about Euro 5.
Draw games
The Draw games (Loto®, Keno and Rapido) showed 8.8 % growth to 4,21 euros billion in sales in 2003. This represents 54,1 % of total sales. The increase is partly attributable to a strong performance by Loto® and a continued rise in Keno sales. It is also the result of the expansion of the Rapido player base, with 754 additional sales outlets and a resulting overall increase of 11% in wagers; sales per outlet were only slightly higher than the year before.
Sport betting games
Sports-betting games achieved sales of 211 million euros (2,7 % of total sales), thanks to the launch of Cote & Match, La Française des Jeux's first fixed-odds game. Distributed through the retail network and over the Internet, Cote & Match met a clear customer demand. Despite the introduction of the new game, sales of Loto Foot fell by 15%. With fewer matches available and no World Cup effect, Loto Foot sales thus returned to their 2001 level.
'Cote & Match':
Quite close to other fixed odd games such as "long lists" run in Scandinavia, Germany, and other countries, a internet football betting product has been introduced in January 2002: 'Cote & Match. This is the second sports betting game after the traditional Loto Foot (football pools) which remains in FDJ's range of products. 'Cote & Match' is aimed at sports fans who take pleasure in using their sports knowledge to make predictions about the performances of the different teams as players can estimate their winnings according to the odds. Cote & Match is a game of strategy since player's winnings depend on player's own stake amount.
'Cote & Match' is a draw game, which runs in parallel to the equivalent retail offering, allows players to bet on the results of upcoming football matches by marking the win, loss or draw fields alongside each fixture. Fixed odds are offered on, for example, French, UK, Italian and Spanish fixtures. Bets of between EUR1 and EUR100 are allowed on Simple (3 to 6) or Multiple (3 of 6, 4 of 6, etc.) match combinations. 'Cote & Match' is available to registered players alongside the 12 instant lotto games already running on the French platform. Net prize payout to players is 60%.
For the 'Cote & Match' football betting Access Gaming Systems (AGS) system has been used. The AGS interactive gaming system is a transaction processing system for interactive gaming via the internet, interactive television and wireless networks. The project was realised in close co-operation with La Française des Jeux's technical subsidiary (LotSys).
In July, 2003, FDJ and AGS, signed a new 5-year contract, as a follow up of the above mentioned agreement. FDJ will continue to use AGS's 'ACES' system supplied under the initial contract in 2000, prior to migrating to AGS's interactive gaming product, « Xenia », released in April 2003. FDJ currently uses AGS's technology to offer Instant games and Soccer Betting via the internet. In the coming phase, this offer will expand to include Draw games as well as augmenting the distribution channel to include Interactive TV alongside internet.
Scratch games
Scratch games are much more sensitive to economic cycles. Sales of scratch games fell by 2.6% to 3,359 billion euros in 2003. They represent 43,1 % of total sales. This trend was also visible across the range, with the exception of games that were actively promoted - including Millionnaire, which increased sales by 3,3% - or were revamped (Morpion, Solitaire and Tac O Tac Gagnant à Vie). The launch of three new games - Passeport, Pharaon and Saga Le Seigneur des AnneauxTM - met player demand for novelty but did not prevent the overall slide in instant game sales during 2003.
Multimedia games
Multimedia games achieved sales of 6 million euros, o,1 % of total sales.
Games include:
Managed by the Ministry for Sports in conjunction with sports associations, the FNDS aims to promote the development of both high-level an community-based sports. La Française des jeux provides more than 90% of its funding: a total of EUR219 million in 2003.
TV plays an essential role in promoting lottery products and pushing the sales. First there were the sec broadcasts of the draws and now there are complete entertainment show programs. La Française des Jeux has the following products linked to TV programming:
Other combined TV and gaming programs of La Française des Jeux are:
In December 2002, Milestone Entertainment signed a multi-year agreement with La Française des Jeux for the development and marketing of television and multimedia games for internet, mobile phone and interactive television applications. Milestone Entertainment is specialised in the development of innovative, patented lottery game concepts for use in all media from television to SMS and internet.
Together with 8 other European countries (UK, Spain, Belgium, Luxembourg, Switzerland, Portugal, Ireland and Austria) La Française de Jeux organizes a lotto game named "Euromillions". This first European lottery is an initiative from Française des Jeux, Camelot (UK) and Loterias y Apuestas del Estad (Spain). The first draw took place on Februari 13th, 2004. As of October 8th, 2004, Belgium, Luxembourg, Switzerland, Portugal, Ireland and Austria joined Euromillions. With nine nations taking part, EuroMillions is now the world's biggest lottery in terms of population (200 million). The biggest jackpot paid out since the launch of EuroMillions in February was 33 million. But prizes could run up till 50 million euros. The chance of winning the jackpot is one in 76 million. The organisers of EuroMillions guarantee a one-in-24 chance of a win. To hit the jackpot, punters have to select seven lucky numbers and hope they come up trumps. If no one wins, the jackpot rolls over to the following week. There are no restrictions on where a person can buy a ticket, but winnings can only be collected in the country of sale.
In the year 2003 the following European lottery companies used sponsoring (and owning) of professional cycling teams as a promotional tool:
In the race season 2003 La Française des Jeux spent approximately 5 million Euro to the team with 21 riders, above that comes of course the costs of the surrounding promotional activities, relation marketing. Strangely enough, non of the above mentioned cycling/lottery companies have a specialised 'hard' cycling betting product, however La Française des Jeux has "Pronovélo", the prognostication of the names and the correct order of the arrival of the first four fdjeux riders of seven 'tours' of the season. One may win 8.000 euro in the form of 'presents'.
For the season 2004 a new cycling betting product will be available: Veloto, a lotto type of sportsbet, pari mutual and with Jackpots.
Website: www.pmu.fr
The Tote in France is operated by Pari Mutuel Urbain (PMU). The principle of parimutuel betting is that, players bet against one another according to the principle of mutualisation, the winners share the stake money, after deductions have been made for the organisers and the Government. In 2003 state levy was 1,03 billion euros (total sales were 7,02 billion euros).
Established in 1930, the PMU is an economic interest group comprising 68 Racing Associations. PMU designs, promotes, markets and manages bets on horse racing. It is Europe's leading company for horse racing and the third-biggest in the world. PMU currnetly employs 50.000 people.
PMU takes bets 365 days a year either remotely or through one of its 8.000 out lets. It also calculates odds and pays out winnings to betters. In keeping with the rules of tote betting, PMU redistributes stakes to the winners, after first making the required levies. Over 1,2 billion wagers are processed per year on some 5.200 races. With the widest range of bets in the world, the PMU attracts more than 7 million punters in France a year.
In 2003 more than 5 billion euro was distributed to winners, a dividend rate of 72%. In 2003, PMU's 6,5 million customers generated a turnover of 7 billion euro (up 9,5% compared to the previous year). The company's turnover has climbed by 22% in just 3 years.
The PMU offers punters the chance to bet from their own home either by telephone, Minitel, interactive TV or the Internet. This service is provided through the "PMU Direct" network, which has 210.000 subscribers and posted revenues of 296,5 million euros (up by 4,9%) in 2003.
In 2000, PMU became the first company in the world to provide interactive television betting facilities. Players may bet when watching the TV-channel Equidia by using their remote control. 90.000 people are signed up to this service and 10% of these are first-time betters. This service accounts for 30% of PMU Direct's turnover, attracting 90 million euro's worth of wagers last year.
Internet betting was launched on 24 November 2003: 7,8 million euro were staked and 14.500 direct accounts opened in 5 weeks. After using these innovations to widen access to horse racing, the company now offers a full range of remote betting services and is trying to attract a younger clientele uninterested in horse racing uptill now.
In France, horse racing is regulated by the act of 2nd June 1891 "Loi ayant pour objet de réglementer l'autorisation et le fonctionnement des courses de chevaux" (Law to regulate the authorisation and organisation of horse races).
Under the terms of this law, which is still in force today, only the Horseracing Companies - non-profit-making organisations approved by the ministry of Agriculture are allowed to organise horse races. These companies are licensed to take bets and regulate races ensuring that they are properly run. Only mutual tote betting is authorised under this law.
1930 On April 16th, 1930 a law came into effect which authorises Racing Associations to take bets outside racetracks. They create altogether a service called the "Pari Mutuel Urbain" (Urban Tote).
1931 On March 3, 1931 PMU was established as a company. Operating first in Paris and after that in all major cities of France. Betting products were "Simple" (Win and Place) and "Report" (Win and Place on successive races).
1954 In 1954 PMU's chairman, André Carrus, contrives "Tiercé" bet (bet on three horses in one race), which is still a favourite bet of PMU.
1968 In 1968 betting services by telephone got introduced. Today, more than 100.000 people have an account by phone or minitel.
1985 In 1985 PMU's network got computerized.
1989 In 1989 "Quinté+" bet was introduced, which is now the first bet of PMU and represent one third of its turnover.
1999 In 1999 all PMU outlets got a new computer system (15.000 new terminals). the PMU site on the internet was created. On October 20th, the first television channel entirely dedicated to horses, Equidia, was launced.
2000 In November 2000 bets via Interactive TV in April and information services by WAP was launched.
2001 In September 2001 "Multi" was introduced. Also, launching of a new instant way to bet called "spOt", which automatically proposes a bet according to previously placed bets. "spOt" exists for "2sur4" or "Quinté+".
2002 After launching the "2sur4" and the "Quinté+" "spOt"in 2001, PMU started "Multi spOt" in 2002.
2003 in 2003 PMU launched a complementary new service: the Pariez spOt range offering automatic betting facilities. The Pariez spOt network boasted 134 outlets in 2003, all located in shopping centres or newsagents and appealing to a younger clientele, including women and people unfamiliar with the world of horse racing uptill then. Some 600 Pariez spOt outlets are planned for the end of 2004, including 230 interactive betting terminals. Internet betting was launched on 24 November 2003: 7,8 million euro were staked and 14.500 direct accounts opened in 5 weeks. PMU signed deals with Germany, Poland, Austria and Great Britain so that punters in those countries can take part in common pool betting on French races (meaning that wages are added to those placed in France). With this expansion, PMU was able to form the biggest tote in Europe, covering France, French-speaking Switzerland, Monaco, Germany and England.
2004 In 2004, PMU launched the final phase of its technical modernisation plan by hooking fifty race tracks up to the Central Information System. This means that bets may be placed at the tracks themselves and that a single information system will manage all bets regardless of where they were placed.
|
2000 | 2001 | 2002 | 2003 |
|---|---|---|---|---|
| Number of wagers | 5.782 | 6.170 | 6.414 | 7.021 |
| Winnings paid to punters | 4.023 | 4.343 | 4.569 | 5.049 |
| Paid to the French State | 954 | 979 | 976 | 1.033 |
| Gross Margin | 774 | 820 | 836 | 914 |
| Net operating costs | 405 | 428 | 427 | 452 |
| Net profit horserace cy's | 370 | 392 | 410 | 461 |
| in EUR millions Source: PMU | ||||
Sales development in EUR billion
| 1993 | 4,74 |
| 1994 | 5,06 |
| 1995 | 4,80 |
| 1996 | 5,19 |
| 1997 | 5,27 |
| 1998 | 5,33 |
| 1999 | 5,43 |
| 2000 | 5,78 |
| 2001 | 6,17 |
| 2002 | 6,41 |
| 2003 | 7,02 |
In July 2001 PMU and Scientific Games Corporation signed a contract valued in excess of $1 million for software and the delivery of 65 STANs, its self-service terminal. In the meantime STAN terminals have been installed in the PMU's off-track betting (OTB) shops as part of a pilot project initiated by the PMU marketing department. The agreement also included software development to enable full compatibility between the STAN and any other Autotote terminal, and the new central system (PEGASUS) developed by the PMU.
Created in 1999, Equidia is Europe's first theme channel entirely dedicated to horses. It is watched by over 3,7 million viewers every week. This digital and interactive TV channel is available on cable and satellite. Equidia shows documentaries, magazines, reports, shows, news, films, television series, cartoons and live horseracing. They broadcast in 3 languages, en 40 countries across 3 continents.
Over 5.200 French and international races are broadcast annually. Besides the images, commented by a team of 40 journalists and consultants, more information is shown on the screen, including programmes, times, changes in the odds, last minute nonstarters, results and reports.
Equidia has organised a huge programme of interactive multimedia services including an Internet service, a WAP service and also an interactive betting service via satellite. Interactivity is a major area of development for Equidia, both in France and abroad.
In the spring of 2000, the PMU launched satellite betting on this digital television channel Equidia. This greatly increased the access points for horseracing bets, with 7.900 sales points and long-range betting by telephone and Minitel. PMU claims that they were the first in the world to take bets via Interactive TV (It was on April 15th 2000 with CanalSatellite Leading television by satellite in France). Since November 16th 2000, French punters can bet via TPS too. By the end of 2002, more than 200,000 accounts had already been opened via Equidia, the horse channel, producing a turnover of 95 million euros (in 2002).
Simple, specially designed set-top decoders allow punters to bet using credit cards or by direct debit. Since March 2004 Equidia has offered this service on cable. In June 2004, it will also take bets via NC Numericable. Winnings are transferred directly to a bank account.
By derogation of the Code Pénal (Penal Law) of 1810, several money games were authorised: the Lottery, racehorse betting and casinos.
It seemed that the legalisation was engendered by the fact that money games existed anyway, but without any control and in a total anarchy. That was the reason that the France State wanted to cleanse and regulate this gambling activity. The State wanted to regulate and assure the return on investments for the operators in a substantial way, as well as securing the rights of the players via the law, "Loi Sapin".
There are 180 licensed French casinos. There are 10 major groups, and 47 licensed operators. It is estimated that about 20.000 professional employees are involved in casinos in France. Two groups dominate: one is traditional and big Partouche. The other comes from the merger of Accor with Groupe Lucien Barriere which is currently in progress. Because at the time of writing this merger isnt't finalized yet these casinos will be discussed here separately, the information as up to date as possible.
France has seen a vast boom in slot machine use (bandit manchot) which are sited in casinos by law (other countries have quotas for slot machines in casinos, and slot machines in gaming shops, which are not casinos). Slot machine rooms in French casinos received 61 million visits in 2003.
website: www.groupepartouche.com
History
1973 Arriving in France from Algeria Mr Isidore Partouche bought the Saint-Armand-les-Eaux casino, together with its spa and mineral water source. Although restoring the casino proved difficult, success was ultimately achieved.
1976 Le Touquet Casino was bought from Mr Lucien Barrière.
1982 Creation of the Calais Casino.
1986 Acquisition of the Forges-les-Eaux casino, 110 km from Paris, and opening of the Boulogne-sur-Mer casino.
1988 Acquisition of the Dieppe casino. Until 1988, Mr Partouche's efforts were mainly focused on the bottling and distribution of brand waters such as Amanda, Arline in Froconville, Eau-d'Alet-les-Bains, Source Lucheux and Source Baudour in Belgium. Casinos remained a second line of business because at the time the Group's financing resources were largely invested in spring waters bottling.
1989 Gradual withdrawal from the water business in favour of the casino sector. This strategic move enabled all the released resources to be rechannelled into boosting the casino business. In the same year, the Fecamp, Bagnoles-del'Orne and Vichy casinos joined the Group.
1991 The Partouche Group casinos were finally granted their first slot machines operating licences. The Group also took control of the Lyon Vert casino in La Tour-de - Salvigny that year, together with its subsidiaries, the Saint Galmier and Juan-les-Pins casinos.
1992 The towns of Royat and Chamalières entrusted the Group with the reopening of the Royat casino. In order to increase the Group's liquidity for investment in Lyons, the Fecamp and Bagnoles-de l'Orne casinos were sold off.
1994 The Partouche Group took control of the Aix-en-Provence and La Ciotat casinos. In December the Group acquired the Palavas casino.
1995 Acquisition of an equal share in the Grasse casino leaving management responsibility to the Boucau Group. On 29 March 1995, Groupe Partouche S.A. was launched on the "Second Marché " of the Paris Stock Exchange (Sicovam Code 5354), in order to strengthen the Group's image, consolidate its position in France and provide it with additional resources to finance the development of its business, particularly on the international level. In September 1995, The Group negotiated the acquisition of the Belgian casino and resort of Knokke-le-Zoute.
1996 The Partouche Group bought out the minority interest of the Générale des Eaux Group in Société Fermière du Casino Municipal de Cannes. The Group opened its first casino in Agadir (Morocco) in association with Club Méditerranée.
1997 Acquisition of the 4-star Hotel which became the Méridien-Garden Beach. This transaction brought together the hotel and the Juan-les-Pins casino properties, constituting a cohesive asset.
1998 The Partouche Group opened the Jerba Casino. In June 1998, the Group bought the Carlton Casino Club in Cannes from the English group London Clubs International. On 2 November 1998, the Partouche Group bought out the Vivendi Group's 99% interest in Cannes Balnéaire.
1999 The Hilton in Lyons' Cité Internationale opened in July, home of a new casino. Cabourg Casino is granted its first slots authorisation. The Hilton Lyons opens its doors to the Cité Internationale. In October, the Partouche Group acquired a majority stake in S F C, which operates four casinos, three ofwhich are located in Auvergne and one on the Narbonne Coast.
2000 In January, the Partouche Group has been granted the authorisation to operate a casino in Lyon. Its first in a major city. The casino opened in April. In March the Group took over in Aix-en-Provence the Hotel Aquabella and the town's spa.Lyons Grand Casino Le Pharaon opened. In May: Acquisition of the company operating the casino of Chatel-Guyon.
2001 In July, "Le Pharaon", the casino of Lyon's Cité International is granted the authorisa tion to operate 200 slot machines. In July, the new casino of Aix-en-Provence was opened on the 20th of July. December: Contrexeville and Vittel: Groupe Partouche has just finalised the buy-out of Group Perrier Vittel's tangible & intangible assets in Contrexeville & Vittel spas as well as the Contrexeville Casino. The latter will be Groupe Partouche's 26th casino in France.
2002 March: Public Cash Offer on the Compagnie
Européenne de Casinos following a memorable
battle on the stock market, the Partouche
Group strengthened its position by taking
control of the Compagnie Européenne de
Casinos (CEC). CEC was a French and international
operator with 22 casinos in total, ranked
3rd by number in France.
August: the Partouche Group has been granted
the authorisation to transfer the Carlton Casino
to the Palm Beach by the Ministry of the
Interior. The later was opened on the 13 August.
In December, the casinos based at La
Bourboule and Le Mont-Dore together with the
company intended to oversee the creation of a
casino in Alvignac were sold.
2003 In January, a new playroom with 50 machines
came in use in the casino of Plombières-the-
Baths.
In June, the cities of Le Havre and Port-the-
News retain Group Partouche to exploit a
casino.
In July, the first Swiss casino of Group
Partouche opened in Meyrin. This casino,
located opposite l'aéroport international of
Geneva, opened its doors with 150 machines
and has tables of plays (English caster, studpoker
and black-jack).
In September, authorization was granted for
the opening of the casino of the Trinity-on-Sea.
At 31 October 2003, Groupe Partouche operated
a total of 180 casinos, four more than a
year earlier. Groupe Partouche remains the
leading French casinos group, commanding a
market share of 27,2%. With this the Partouche
Group has created a unique player in the
European casino market, with a strong geographical
fit in France.
Casino's of groupe Partouche:
Internet
Casino Partouche International is the internet casino version (www.casinopartouche.com), which is recognised by the Internet Gaming Commission (IGC). Casino Games offered: Black Jack, European roulette, Slots and Video Poker.
Finances
Turnover for financial year 2002/2003 (which ends in October): 435,7 million Euros. A growth of 17,1 % compared to the previous year, but stable with respect to financial year 2001/2002. This stability of turnover is attributable to a tough business climate due on the one hand to prevailing economic conditions and a slowdown in international tourism and on the other hand to a revised taxation basis for Gross Gaming
Revenue commencing May 2002 which impacted the entire financial year 2002/ 2003.
Consolidated net income in 2003: 17,7 million Euro.
The Gross Gaming Revenue reached EUR 173,4 million, up by 46,3% due to the integration of the Compagnie Européenne de Casinos. As a result of the heaviness of the levies on the GGR, the total levies during the second quarter increased from 53,4 % to 55,5 %.
in million euros |
2003 | 2002 |
|---|---|---|
| Gross gaming revenue | 722,0 | 599,6 |
| Percentage levies | 55,3 % | 54,9 % |
| Net gaming revenue | 322,8 | 270,21 |
| Turnover from other activities | 112,8 | 101,8 |
The first 9 months of this fiscal year ended up with gross win of 559,3 million euros compared to 522,2 million euros in the previous year. Net win is up 8,4 % to 262,1 million euros.
website: www.lucienbarriere.com
Groupe Lucien Barrière owns 14 casinos and runs 13 hotels and 57 restaurants. Groupe Lucien Barrière, the majority of whose capital is held by the Barrière-Desseigne family, is a holding of three companies: 2 companies listed on stock exchange:
With the current merger with Accor Casinos Groupe Lucien Barriere/Accor together will own 60 casinos. The new casino group claims an annual turnover of Euro 900 million and a 28% share of the total French market.
History
François André was born in Rosières (Ardèche) in 1880 into a family of coopers. He met a wealthy funeral director who suggested he should move to Paris. The young man tried his hand at a number of different trades, becoming undertaker then funeral director. In his spare time he became fascinated by the game of baccarat. Ironically, François André's luck was shortlived; he soon swallowed up his savings.. His fascination with gambling led him to open his first gaming circle.
He met Eugène Cornuché, founder of Maxim's restaurant who was planning to open the Deauville and Ostende Casinos and offered François the position of Manager. However, war broke out shortly after. In 1918, François André founded the Haussmann Circle in Paris, then took over from Eugène Cornuché as Manager of the Deauville Casino. Spurred on by the Roaring Twenties, François André breathed life into this resort, which was founded during the Second Empire by the Duc de Morny, turning Deauville into a modern seaside resort.
During the war years, a friend from the trenches died in the arms of François André and made him promise to visit his "homeland". Seduced by that region, François André invested in plots of land and started building a new resort in La Baule. Even today, a number of streets in La Baule still bear the name of members of François André's family.
For years, he continued to expand his empire by reinvesting his gambling winnings. Wishing to carefully prepare his succession, he sent for his nephew, Lucien Barrière, who was at that time a successful expanding farmer in Ardèche. Succeeding François André in 1962, within a flourishing economic environment, Lucien Barrière further expanded and modernised the Group, while maintaining a traditional perception of his profession. Shortly before his death, he grouped the various establishments into an Economic Interest Group and incorporated Accor into the Société des Hôtels and Casino de Deauville's capital in an aim to assist the latter's development.
Following his death in 1990, his daughter Diane Barrière-Desseigne, supported by the Group's managerial shareholders, set about extending the range and quality of products and services, developing internal and external channels of growth. In 1997, Diane Barrière-Desseigne handed over the company reigns to her husband Dominique Desseigne. Following Diane Barrière-Desseigne's demise in May 2001,
Dominique Desseigne took over as the Group's Chairman.
Recent developments
As mentioned above, the Groupe is merging at this moment with Accor Casinos.
In May 2004 the Groupe submitted a bid on a casino in Toulouse which is supposed to become one of the 5 leading casinos in France. The decision about the sale is expected in December 2004.
In September 2004 The Groupe has renewed and broadened its exclusive partnership with France Galop for a further three years, with a view to reaping potential synergies with the PMU, for the Prix de l'Arc de Triomphe Lucien Barrière horse race. This partnership will result in a 25% increase in the prize money for the Prix de l'Arc de Triomphe. Lucien Barrière will raise it to two million euros with effect from 2006.
Casinos:
Website: www.accorcasinos.com
Accor is now the third-largest French casino group. The subsidiary, which became Accor Casinos in March 1998, has a staff of 2 000 employees and posted EUR 389 million in sales in 2003. In 2002, Accor Casinos reported EUR 335 million in sales. Accor Casinos SAS is an equally owned subsidiary of Accor (50%) and ColEven SAS (50%), a subsidiary of Colony Investors IV L.P.
Accor is with 150,000 associates in 140 countries the European leader and one of the world's largest groups in travel, tourism and corporate services, with two major international activities:
Accor Casinos is merging at this moment with the Groupe Barriere. With this current merger they will own 60 casinos. The new casino group claims an annual turnover of Euro 900 million and a 28% share of the total French market.
Developments
Recently the Ministère de l'Intérieur has made known that a new casino of Accor Casinos will open in Briançon. About 30 people have already been recruited locally. Accor Casinos announced on June 27, 2002 it had acquired the concessionaire of the Grand Casino in Le Touquet on France's northern coast. The casino, located in the Palais des Congrès convention center, includes gaming tables, 151 slot machines, a restaurant and conference rooms. In 2001, the Grand Casino generated EUR 16.3 million in gross revenues. Accor Casinos intends to enhance the attractiveness of the casino and the Touquet Paris Plage resort by developing an extensive program of entertainment, cultural, artistic and tourist activities.
In a separate development, France's Ministry of the Interior has authorised Accor Casinos to open the Casino de Carnac in Brittany. A room of gaming tables will open on July 5. The casino employs 40 people and represents an investment of approximately EUR 7 million. In June 2002 the Casino de Bordeaux got inaugurated.
Casinos in:
Website: www.vikings-casinos.fr
Vikings Casinos is part of Groupe Vikings (hotels, casinos and services) and was established in 1998. At this moment its following casino's are operated in:
Website: http: //www.didot-bottin.fr
Shareholders:
The Groupe de Divonne was formed in July 1999 to acquire control of the Société Financière du Domaine de Divonne. The Aaron and Mesnard de Chal families, owners of the Estate for many years, chose to retain sizable interests whilst fully supporting the buy-in by a controlling shareholder in the form of the Didot-Bottin Group who developped the casino into a resort.
Within three years, the Group has made significant investments in this sector, making ongoing improvements at "Domaine de Divonne" and opening two new casinos in 2002, one at Crans-Montana in the canton of Valais and one at Saint-Julien-en-Genevois, followed in 2003 by a fifth, in Hauteville.
The opening of these new casinos seems to have been a great success and has considerably increased the size of Group de Divonne. The reintroduction of high-stake machines at the existing casinos has also appreciably boosted turnover.
The Group's Casinos:
Website: www.moliflor.fr
Groupe Moliflor was founded in 1999. Today they are the 3rd casino operator in France and own 20 casinos, mainly around the coastal regions. Moliflor employs 1350 employees. Gross turnover in 2003 exeeded 250 million euros.
Website: www.groupetranchant.com
Founded in 1987, Groupe Tranchant now owns 19 casinos in France and 7 casinos abroad.
Other Casino companies are Group Emeraude, Groupe Malortigues and Groupe Omnium.
A complete list of all casinos in France can be found on: http://www.isa-casinos.de/data/4501.html
Access Gaming Systems is a provider of interactive gaming and wagering systems for the Internet and interactive television networks.The Access Internet gaming system includes a broad range of standard lottery and casino games as well as the Game Development Kit (GDK) which allows gaming operators and independent game developers to create games for its system. AGS only licences its Internet gaming system to major gaming operators (like The Française des Jeux) in fully regulated jurisdictions.
Access Systems Europe GmbH opened its offices in Munich in early 1996 and currently provides both marketing and technical support services for ACES in the European market.In nine years the company has grown to a team of more than 150 in its offices in Australia and Europe.
In April 2003 AGS launched the Internet Loto and Euromillions at The Française des Jeux.
GTECH Corporation is an information technology company that provides software, networks, and professional services that power high-performance, transaction processing solutions to over 100 customers on six continents. The Company's core market is the lottery industry, with a growing presence in commercial gaming technology and financial services transaction processing. Their share in the world's online lottery business is 70 %.
GTECH employs more than 5.400 people in its offices worldwide. GTECH's 2004 fiscal revenue is over $1 billion an increase of 7 % over 2003.
In 2003 the net income rose 29 percent to $183 million and diluted earnings per share increased approximately 17 percent to $2.84.
Website: www. scientificgames. com
Scientific Games Corporation is a supplier of instant tickets, systems and services to lotteries and a supplier of wagering systems and services to pari-mutuel operators. It is also a licensed pari-mutuel gaming operator in Connecticut and the Netherlands and is a supplier of prepaid phone cards to telephone companies.
Scientific Games Austria is a wholly owned subsidiary of Scientific Games Corporation and supplies the European market with lottery systems and services.
In 2003 Scientific Games revenues increased to USD 561 million, compared to USD 455 in 2002. Netto income in 2003 was USD 52 million compared to USD 34 million in 2002.
Established in 1907, Pollard Banknote is a full service lottery suppliers. It's a privatelyowned Canadian company, specializing in the printing and graphic design of security products, including Instant Lottery Tickets, Break Open/Pull Tab Tickets, Promotional Games, Pull Tab Vending Machines, Instant Ticket Vending Machines, and Lottery Management Services. The company currently provides her services to more than 45 lotteries worldwide, including operators in Europe, Asia, the United States, Canada, and Central and South America.
Pollard Banknote has supplied Française des Jeux since 1996 and has served as its primary instant ticket supplier since 1999. The company has printed all of FDJ's base games and has partnered with the Lottery to launch games with unique shapes, programming requirements and formats, as well as special event games. In January 2003 they signed a new agreement to continue service as primary instant ticket supplier. The three-year contract, which includes options for three additional one-year renewals at the Lottery's discretion, calls for production of at least 600 million tickets annually.