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
- 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
- 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
- The well-being of thousands of families deserves an urgent positive
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: