Groupe Carrus n7

PMC 2060 Selfbet, our new betting kiosk that is already online in Switzerland, France and Spain

JOURNAL OCTOBER 2010 NUMBER-07

Demonopolization, globalization: what is the real challenge?

The LONAB/Carrus Group partnership in Burkina Faso Passage: the new Vigipack速 software SGCPM Bruxelles

速

2

EDITORIAL

PRODUCTS

Paris couplés, paris tiercés, paris quintés… et paris libérés We can already say with certainty that 2010 will be a watershed year in the history of French betting, just like 1891, when parimutuel betting was established; 1930, when it was extended beyond the racecourses; and 1954, when the first trio bets were placed.

This is because as of this April, French law has allowed authorized private independent companies in the horse betting industry to accept bids over the internet, exclusively through parimutuel betting.

Thanks to its unflagging determination, the Carrus Group will weather this historic year with success. While also preparing its future offering of terminals and kiosks, the Technologies Business Unit is continuing to supply PMC 2060 Selfbet kiosks to its historical partner, the PMU, having even garnered an order of 500 additional kiosks.

Business Unit Solutions is in line to be the leading supplier of parimutuel betting solutions to authorized online operators.

Business Unit Services, which is already present at more than 300 racecourses in Europe, is currently expanding its offering by extending it to online operators both in France and abroad, as well as by supervising new physical networks in Europe.

With all of this, the Carrus Group is ready to win the biggest gamble of all: globalization, which in the future should allow European bettors everywhere to play against each other.

The PMC 2060 Selfbet kiosks manufactured for the PMU in France, each equipped with a credit card kit, are being widely out. The new PMU point installed a few steps away from the Pompidou Center in downtown Paris.

PMC 2060 Selfbet, our new b

is already online in Switzerland, Fra

“User-friendly,” “intuitive,” “configurable,” “practic Here are just a few of the words that describe PMC self service betting kiosk that replaces the 2050 gen that bettors are very happy with the kiosk; they find we have seen in Switzerland, tend to gravitate away are not equipped. The PMU in France, which has rol of 2,700 kiosks, adds 500 more. What a success for responsible for the project!

Jérôme and Pierre-Antoine Carrus Directeur de la publication : Jérôme Carrus Rédaction : Florence Rossollin,

Marie Chasteau de Balyon Direction artistique : Raphaël Michon Maquette : Isabelle Achouri Coordination/Édition : Markcom Photos : Yann Pendaries, Claude Bernard 30, rue des Petits-Hôtels F-75010 PARIS Tel 33 (0)1 42 46 89 11 www.groupecarrus.com

Starting in January 2010, the “racing cafés”, as they are called along Lake Geneva, began to receive their first 2060 Selfbet kiosks.

According to Jacky Hatt, head of Network sales for the PMU Romand, they were an instant hit: “Both the owners and the bettors loved them right away, and they keep wanting more.” On the technical side, Reto Volmer, IT manager, is thrilled as well: “ The kiosks run very well and are easy to maintain. In the beginning, we had some minor growing pains, but everything was quickly resolved thanks to

PMC’s responsiveness, which is something we really appreciate in our relationship with the Carrus teams.”

Innovation and reliability: the key to R&D It is certainly true that PMC did everything in its power to help the project succeed: a multidisciplinary team with a range of skill sets, including experienced and creative designers; a rigorous process to select components and subcontractors; and an ISO 9001v2008 quality process applied to the

3

were high during manufacturing as well.

In order to satisfy a much more demanding market, much larger quantities were ordered than for the PMC 2050 kiosk. For almost a year now, the Cofidur workshop in Laval that produces the 2060 kiosk has been running at full steam, as it did for the 2020 terminal several months before; the partnership between the two companies remains as strong as ever.

rolled

betting kiosk that ance and Spain

cal,” “reliable,” “secure”…

2060 Selfbet, the new neration. Indeed, it seems d it easy to learn and, as y from retail outlets that lled out its first order the Carrus Group team letter. Project manager Bruno Destrade is calm now, but during the busiest phases of designing, testing, prototyping and then implementation, he did experience some frantic periods, since things had to be accomplished quickly and well. He believes that one of the keys to R&D is “ reconciling reliability with innovation and choosing forward-thinking, high-performance processes.

That’s because frequently, new solutions are relatively untested solutions, so the industrial challenge is in striking a balance.” The stakes

Custom software applications In addition to the mechanics, aesthetics and robustness of the kiosk, there is also the heart and soul of the machine: its software. For certain clients, like the PMU in France, only embedded software is provided since the application for bettors is developed internally. For others, however, the PMC Solutions Business Unit and its various skill centers develop custom applications that account for the specific parameters of each country: languages, regulations, running modes, operating guides, telecommunications systems, etc. For the PMU in Frenchspeaking Switzerland, for example, both Swiss francs and euros naturally had to be included, as well as tax deductions* on any winnings and a copy of the receipt for the tax administration. Another example is when the PMC developers recently added the famous long-standing “Poverty Tax”, which deducts 13% directly from bets, to the 2060 kiosks in the Canton of Geneva. The technical wizardry involved becomes clear when you realize that placing a bet, querying the central system (which manages several gigabytes of data)

and printing the receipt or the winner’s payment all takes just half a second.

Revenue increases more than 50% with self service In Spain’s Basque country, the self service option has been a permanent fixture for several years to meet the demands of increasing activity. In addition to the permanently installed kiosks, 20 more kiosks were leased by PMC for use during the 2010 summer season at the San Sebastián racecourse, whose race meeting days have a very large turnout.

For Javier Sanchez, technical manager at Hipodromoa, the 2050 kiosk was already doing a very good job, but “the 2060 is a modern self service kiosk that takes up very little space and offers excellent prospects. Once our players have tried it, they won’t be able to do without it.” Most importantly, it helps to boost revenue substantially. We are hearing the same response from Frenchspeaking Switzerland, where some retail outlets have seen bet amounts leap by more than 50% since the Selfbet kiosks were installed. The simple explanation is that they perfectly meet the expectations of both owners and bettors: speed, range of times, discretion, no disputes because of misunderstandings, etc. Having thoroughly won over Switzerland, France and Spain, PMC 2060 Selfbet is off to take over the world.

* Income tax is deducted at the source in Switzerland, and winnings are subject to the same rule.

For the PMU in French-speaking Switzerland and Hipodromoa in the Basque country, PMC Solutions develops specific applications that allow Swiss and Spanish race goers to bet on local races and French races in real time. Above: a Spanish bet entry screen for a race in Paris.

4

FEATURE

Demonopolization, globalization: what

Jérôme Carrus, chairman of the Carrus Group, believes that the challen ability to pool significant volumes of bets and offer bettors the prospect offered internationally are compatible. For the moment, between horizo the wide variety of practices and conventions is far from the ideal of univ

DEHM7O

I

97D7:7 KD?J;:# A?D=:EC

:;DC7HA D;J>;HB7D:

?HB7D:

=;HC7DO 8;B=?KC

9P; H;F

BKN;C8EKH=

<H7D9;

IK?II;

7KIJH?7

?J7B?; FEHJK=7B

KD?J;: IJ7J;I

IF7?D JKD?I?7

C7HE99E

C;N?9E

M;IJ;HD I7>7H7

C7 B ?

D? =;H

I;D;=7B

?LEHO

<H;D9> =K?7D7

9EBEC8?7

97C ;HE

L;D;PK;B7

ED

8KHA?D7 <7IE

=K?D;7

JE=E 8;D?D

Horizontal or vertical: different traditions There are many reasons why certain countries originally developed certain types of bets. Still, it seems that in this as in many other areas, there is a divergence between Anglo-Saxon traditions and Latin traditions. In the Latin countries, with France at the head, since as we know it is the birthplace of parimutuel betting, a variety of bets are available in horizontal combinations: this involves finding combinations of more and more horses within the same race. The Quinté + is a recent illustration of this, and in the countries where it is offered, it alone attracts an average of more than 20% of bets. In Anglo-Saxon countries that practice parimutuel betting, such as the United States, Australia, Canada and Hong Kong, the diversification of available bets runs vertically: this means that betters can play in advance on multiple events on the program by choosing the winner or one of the horses in the ranking. These types of bets, called Jackpot, Win 4, Pick 6, Cinco y Seis or more simply V4, V5, V65, V75, are highly developed in the United States and can even represent more than 75% of the stakes, as in Sweden and Norway.

Offering of parimutuel horse bets(1) around the

=>7D7

The map that we have tried to compile using our knowledge and with the valuable help of the International Development Division of PMU clearly shows the divergences. In an earlier article (Group Carrus Journal No. 2), we underscored the differences in horse betting practices between European countries that use a parimutuel system and those that use bookmaking, or sometimes both combined. Our focus here is to highlight the lack of consistency between the types of bets offered by different parimutuel operators. According to Jérôme Carrus, who is an expert in horse racing not only, of course, by family tradition, but also because he has been observing racecourses worldwide for more than thirty years, “ It is naturally a plus, because it illustrates the variety of traditions, but with the market opening and widespread internet use it is an obvious barrier to market globalization.”

=78ED

8H7P?B

F;HEK

9>?B; KHK=K7O

7H=;DJ?D7

Traditional bets: bets placed on up to the first three horses to finish in the same race.

Exotic bets: other bets.

- Exotic horizontal bets: bets placed on horses beyond the first three to finish in the same race.

- Exotic vertical bets: bets on up to the first three horses to finish, which are placed in advance for events on the program of the same meeting.

(1) Parimutuel betting is the most widely practiced form of horse betting in the world (more than 80% of above. Bookmaking, however, is still most common in countries such as the United Kingdom, Ireland,

5

is the real challenge?

nge in demonopolizing the horse bet industry is in an operator’s of a big win. That will only be possible, however, if the products ontal bets and vertical bets, traditional bets and so-called “exotic” bets, versal horse betting.

Traditional bets or exotic bets The distinction between horizontal bets and vertical bets also applies to so-called “exotic” bets in contrast with traditional bets such as win, place, first and second place double, trio, etc. that exist in every country and are played on up to three of the first horses in, with all sorts of possible combinations. In many countries, although much more so in countries with a “horizontal” betting tradition, these bets also concentrate a substantial part of the stakes. True, these bets are for diehard race goers, since they rely more on knowledge than on luck. In that respect, one country sets itself apart from the rest: Japan.

Indeed, the Japanese hold the absolute record for total stakes in parimutuel betting, with more than 20 billion euros placed each year, far ahead of their three closest competitors – France, the United States and Hong Kong – and they do this solely with traditional bets. Certainly there are many variations, but there are no exotic bets, either horizontal or vertical.

world

<?DB7D:

IM;:;D

FEB7D:

;9> FK8B?9

IBEL7A?7

>KD=7HO I;H8?7

HEKC7D?7

=H;;9;

JKHA?I> 9OFHKI

@7F7D

IEKJ> AEH;7

B?87DED

>ED= AED=

?D:?7 J>7?B7D:

H;FK8B?9 9;DJH7B 7<H?97

C 7 B7 O I ?7

9ED=

E

A;DO7

P?C878M;;

C7:7 =7I97

H

C7KH?J?KI

7KIJH7B?7

7<H?97 IEKJ>

r several

D;M P;7B7D:

Exclusively traditional bets Traditional bets and exotic horizontal bets Traditional bets and exotic vertical bets Traditional bets and exotic mixed bets (horizontal and vertical) No parimutuel horse betting or no data

bets), and it is exclusive or dominant in the vast majority of the countries , Germany, Austria, Belgium, Mauritius, India, etc.

Sources: PMU, Carrus Group

When will there be a Euromillions for horserace betting?

The main concern of operators seeking to reach a larger number of bettors is to diversify by offering new bets. One of the only ways to attract them is to offer the hope of large winnings, which is only possible with significant volumes. The lottery industry realized this and created Euromillions, in which the same game is played in 11 countries, bringing together millions of players and producing record jackpots. In just a few years, it has become an immensely popular product that draws an average of 10% of lottery bets in participating countries.

So – what type of international, universal game could be simple and attractive enough to unite horse bettors? It would certainly have to be a vertical type bet across multiple sites since, to be simultaneous internationally, it would need to cover races run at similar times on racecourses in multiple countries. Today, all of the necessary prerequisites for attempting an initiative seem to be in place, at least within Europe, but first some work will have to be done to harmonize the rules for handling non starters and stables, which is a subject for another day.

6

INTERNATIONAL

LONAB/Carrus Group, a partnership for horse betting in Burkina Faso

Théodore Sawadogo, CEO of the LONAB since 2005, and Séraphin Kiema, head of the project to transfer horse bets to computers.

When Théodore Sawadogo took over the management of LONAB in 2000, he already knew that he would be responsible for the difficult task of modernizing and making profitable the state company, which manages all of the lotteries and horse betting in Burkina Faso. One of the main tasks involved transferring the process of placing horse bets, which was still manual, onto computers. With the help of a solid project team led by Séraphin Kiema, the new CEO launched a call for tenders, which the Carrus Group won in 2005 against several international competitors.

Much more than just a supplier, a partner The criteria that let the LONAB contract awarding committee to choose PMC were typical: experience, the reputation and characteristics of the equipment, the quality of the Business Plan, the precision of the bid, etc. One of the factors was more unusual, however, and that was the one that set us apart: the involvement of the PMC teams. “We felt like they were truly invested in our development process and that we had found more than just a supplier, a real partner.”

Five years later, Théodore Sawadogo, Séraphin Kiema and the entire project team at LONAB unanimously approve of

One of the LONAB’s 650 ALR retail outlets.

Burkina Faso loves horses: tradition has it that the country began when Yennenga, the princess of the neighboring Mossi Empire, arrived on her stallion Ouédraogo, a name that many inhabitants of Burkina Faso bear today. Until recently, however, the country’s 100,000 regular race goers did not have a tool to match their passion. Finally they do, thanks to the partnership between LONAB (the National Lottery of Burkina Faso) and the Carrus Group. their choice. Of course, it was not always easy, since moving to computers drastically changed the company’s working methods

7

INTERNATIONAL

The Carrus Group, sponsor of the Mediterranean Horse Racing Union The championship of the Mediterranean Horse Racing Union was born out of the simple but original idea of highlighting a country’s culture and history through its races. On an initiative by the Italian Race Company (Ippodromi&Città) and the Côte d’Azur Race Company, this nine-phase circuit was launched for the first time in 2005, featuring the best jockeys and horses from the Mediterranean countries.

For the 2010 season, for example, France’s Cagnes racecourse along with Malta, Morocco and Tunisia have already hosted

the twelve participating countries. To ensure fairness, the jockeys and drivers draw lots for their mounts, with each racecourse supplying its country’s best horses for the champions registered for the race.

This year, for the first time, the Carrus Group is a leading sponsor of this prestigious competition. It will be supporting all nine phases, with upcoming meetings in Serbia, Croatia, Algeria and finally Italy for the grand finale on December 12.

Women, who are much more “reliable” according to Théodore Sawadogo, make up 90% of all vendors at ALR points of sale.

and, at times, triggered some social reluctance. The training methods set up by the Carrus Group teams, however, did a great deal to facilitate the installation of the new system and ultimately, both the staff and the bettors found that having computers rather than people handle the bets was much safer.

Yet more projects to develop the network The equipment that PMC provided was used first for the ALR (Avant La Réunion, or before the meeting) network used by PMU’B (B for Burkina): 750 of the 2005 portable terminals and Tetra servers for the 650 retail outlets across the country, nearly half of them in Ouagadougou. In addition, Théodore Sawadogo wanted to equip the country with a PLR (Pendant La Réunion, or during the meeting) network so that bettors could play the French races and racecourses live in welcoming environments. A dozen live race areas (ECD, Espaces Courses en Direct) were created for this purpose starting in January 2007. Equipped with PMC 2012 Classic and PMC 2015 Compact terminals connected to a Star 3000 totalizator, the new ECDs met a real demand from bettors. These locations already represent a substantial part of all bets, and they have allowed for real expansion of the LONAB’s business.

This is important for the country since, in addition to being paid out to the winners, the profits of this public company help to finance socioeconomic, sporting and cultural projects. Even this is not the end of the partnership with the Carrus Group. The next step should enable the two networks to merge, thus providing Burkina Faso with a completely online system.

At the Malta racecourse, during one of the first meetings of the Mediterranean Horse Racing Union.

PRODUCTS

Passage :

the new Vigipack software

®

In keeping with its precursor, Presence, the Passage software is the next step in the scientific partnership developed between PMC and Orsay Université Paris Sud. The mathematical algorithm can be

used to verify, on small, closed premises like an airlock, the passage of one person at a time. For example, if a person tries to pass through within another person’s constraints, or if a static object is detected beyond the configured time to pass through, the alarm center is immediately informed of the anomaly. This makes Passage ideal for any location, company or institution that needs to protect valuable objects and products (banks, stores, etc.) or dangerous objects and products (laboratories, factories, etc.). It replaces gate-based solutions by offering a much more reliable and substantially less expensive solution, since the only investment is in updating the software on a video recorder and installing a video camera. Passage is compatible with the entire Vigipack® XPe product range and can naturally be combined with the Presence software to complete the chain of surveillance and make it possible to continuously monitor the protection of people and goods in a given location.

Renewal of the ISO 9001V2008 certification PMC Solutions specializes in designing betting and gambling platforms for networks of physical retail outlets and internet sites.

Because it belongs to the Carrus Group, it has access to exceptional expertise in the field of parimutuel betting, for which it has designed the Star 3 0 0 0 t o t a l i s a t o r, a n international benchmark for performance and reliability.

PMC Technologies specializes in secure transaction and imaging products such as gambling terminals, interactive kiosks and digital video surveillance recorders. As a part of the Carrus Group, it has developed security standards that are recognized by the main leaders in gambling, banking and distribution.