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Wednesday, 15 April 2009 18:15 |
Wednesday, April 15th. The French Tote, or PMU, did well in 2008. Its turnover grew 4.8 percent to €9.3 billion while the racing institution received 1.3 percent more cash than the previous year with a €736.4 million income. Internet betting is booming with a 25.1 percent increase over 2007, reaching €540 million.
Commingling with foreign operators is now common. Switzerland, Germany, Italy, Ireland and even TABCorp in Australia should be able to participate in French pool bets and vice versa, or bet locally on French races. The French governement will be granting licences to operate in France as early as the first quarter of 2010, while the French PMU will probably seek alliances with other national legal operators with its huge pool bets.
Meanwhile, the PMU tries to make life much easier for its own clients. It will be soon possible to bet live with credit cards in most of the 10,000 outlets located in the country. The most popular exotic bets have been modified so that punters can halve their stake whenever they box their bets. More outlets are being created tailored to different kinds of clients (women, newcomers, etc). Racecourses restricted to local betting are now open for nationwide wagering through the PMU website. Successful bets are expanded to more races in every meeting. Premiums and welcome bonuses are given away to Internet newcomers and so forth. The PMU has got an edge on competitors and intends to make the best of it.
Yet it looks tempted to expand its borders beyond horseracing. A pari-mutuel sports betting alternative offer has been mentioned and is definitely being studied, but racing people fear it would divert its clients. The thing is, if the PMU does not get into this market, others definitely will, old friend!
Monopoly operator chairman Belinguier leaves reins to newcomer as competition will rule
 Nominated president of the French Tote (PMU) in 1997 by France Galop and its trotting counterpart, Bertrand Belinguier found an old-fashioned monopoly that was struggling to cope with increasing demand for prize money. Ruined by antique civil servants more eager to levy taxes effortlessly rather than to tackle the business challenges, the company needed someone more dedicated to racing. Supported by a then newly appointed France Galop president, Jean-Luc Lagardere, Belinguier had been around a while; his father's colours won the Grand Prix de Paris with Birum in 1959. The Bordeaux region native himself had played an active role in the French ruling body's modernization from the early 80s and up to the rise of Lagardere. "Punters are clients," he summed up upon arrival at the head of the funding body of the whole institution. Although these simple words sound rather obvious to most people today, it was not the case back then.
Even though he inherited a few lame ducks set up by the former president's chums at the French exchequer, Belinguier's reign saw gross turnover grow from €5.3 billion to €9.3 billion (an increase of 73.7 percent) and the net racing institution income reach €736 million (an increase of 77.7 percent) in 2008. No wonder his ten-year stint has been vastly applauded by racing officials and professionals alike.
His successor, however, will have to deal with even more stiff challenges because for the first time since 1891 and the enforcement of a Tote Monopoly in France, the French Tote will have to deal with official and powerful competitors not only for wagering on horse racing, but which will offer online poker and betting on other sports as well. Philippe Germond, 52, was at the head of French telephone operator Cegetel when the French market opened to competition. He's also familiar with IT and electronics, having worked with Hewlett Packard, Vivendi Universal and most recently with Atos Origin, which he left after a disagreement emerged with some stockholders of the French IT company. This experience and the fact that he was immediately available played a key part in his nomination as the new president of the PMU.
Belinguier will remain in the business as the newcomer's advisor. He will try to show him the ropes because Germond has never been involved in our great sport.
It could be useful because outsiders cast a new eye on such activities. It could also be tricky as the French Institution remains a group of associations rather than a company.
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