French Racing Monopoly Rolls out Internet Product

1 December 2003

By Rob van der Gaast

Pari-Mutuel-Urbain (PMU), France's monopoly race betting network, on Nov. 24 launched an Internet betting platform at www.pmu.fr. The system, developed by PMU, France Télécom and the Cap Gemini Ernst & Young Group, enables customers to place bets just before the start of each race.

Off-course betting through PMU was already possible via telephone, VTX and interactive television.

Payments are made by credit card. The winnings can be paid out by cheque, within 48 hours or by bank transfer, within 72 hours.

PMU expects to attract a younger audience and more women, who currently make up 40 percent of its customers.

The prognostication is that in 2004 €43 million will be generated via the new Internet system with a database of 50,000 accounts .

Horse racing is regulated in France by the act of June 2, 1891--"Loi ayant pour objet de réglementer l'autorisation et le fonctionnement des courses de chevaux,"--a law regulating the authorization and organization of horse races.

Sales Growth Comparisons between the Three Different French Gaming Operators (in € billion):