Loto-Québec and the Government of Quebec should remedy the situation and compensate the horse racing industry



    QUEBEC CITY, Aug. 27 /CNW Telbec/ - Mr. Paul J. Massicotte of Attractions
Hippiques has filed a report with the Quebec National Assembly's Commission on
Institutions, in which he explains the organisation's point of view on the
nature and context of the signing of the contract it was awarded from the
Quebec government on December 1st 2006. In it, Attractions Hippiques addresses
the set of conditions required to win the Quebec government's call for
tenders, as well as the terms of the contract and the commitments linking
Attractions Hippiques and Loto-Québec as partners. He explains why his company
finds itself - along with the entire horse racing industry in Québec - in such
a precarious situation and how the current impasse might unfold.

    Portrait of the situation as outlined by Attractions Hippiques:

    
    - Attractions Hippiques won the contract to privatise Québec's
      hippodromes following the public call for tender respecting all the
      rules inherent to this selection process.
    - In order to present a viable proposal, Attractions Hippiques assembled
      the best experts in the field and reviewed the best strategies in the
      world and adapted them to Quebec's reality; it also identified the
      winning conditions required, which were lacking in Quebec
    - $74 million was invested of which $6.3 million was spent on marketing
    - Attractions Hippiques has already generated an 8 percent increase in
      revenue and client attendance has surpassed 1.8 million per year.
    - The very low level of revenues emanating from the Quebec City and Three
      Rivers Ludoplexes designed, constructed and operated by Loto-Québec,
      have seriously impaired Attractions Hippiques's ability to live up to
      its obligations and to award the level of purses originally
      comtemplated for the race participants.
    - In the absence of a new north shore Ludoplex linked with a new
      hippodrome to replace the existing one in Montreal, Attractions
      Hippiques is deprived of a gaming room that should have generated
      annual royalties of $25 million from the 1,100 additional ALVs operated
      by Loto-Québec.
    - Madame Michelle Courchesne, Quebec's minister of Education, Leisure and
      Sport and minister responsible for the Laval region, has privately and
      publicly thwarted plans for a race track and a Ludoplex in Laval or the
      north shore of Montreal.
    - Attractions Hippiques' original revenue forecasts for 2008 stemming
      from the 22 percent royalty on the contemplated Ludoplexes, including
      the one planned for the north shore of Montreal, stood at $49.9 million
      net.
    - Attractions Hippiques currently anticipates receiving $7.5 million net
      this year, representing a shortfall of $42 million. At this point,
      there is no reason to believe the shortfall will be reduced in the
      short to medium term.
    - The horse racing industry in Quebec cannot survive with the current
      level of royalties stemming from the ALVs. It is the 22 percent
      royalties on the ALVs operated by Loto-Québec that permits the race-
      track owner to award the race purses. Whomever the owner, with annual
      royalties of $7.5 million net instead of the originally expected
      $50 million net, all would suffer the same result.

    Urgent measures need to be applied

    - Attractions Hippiques is asking that Loto-Québec and the government
      immediately remedy the situation to ensure as soon as possible the
      anticipated steady stream of revenue to the horse racing industry.
    - Until this is achieved, compensation for the shortfall should be
      awarded.
    - The well-being of thousands of families deserves an urgent positive
      response.
    




For further information:

For further information: Ian G. Wetherly, President & Chief Operating
Officer, Attractions Hippiques, (514) 739-2741 ext. 221; Copy of Attractions
Hippiques's presentation is available on the following web site:
www.attractionshippiques.com

Organization Profile

ATTRACTIONS HIPPIQUES

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890