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Par Jake Pollard - 19 janvier 2010

Zeturf to raise funds, co-mingling with other sites a possibility

French horse racing pool specialist Zeturf is looking to raise between €10m and €15m so it is able to compete with current tote monopoly Pari Mutuel Urbain (PMU) once France’s online gaming betting market is open to competition from private operators later this year.

Zeturf chief executive Emmanuel de Rohan-Chabot told La Tribune: « €10m will be part of a capital raising exercise and the rest will come from Austrian and Maltese shareholders. »

The level of taxation on French-licensed sports betting operators is sure to come back to front of stage as the market nears regulation. Operators will only be allowed a maximum pay out ratio of 85% and tax levels for fixed odds bets set at 7.5% plus 1% to go towards sports funding. Tote operators will be taxed the same 7.5% but will have to add another 8% on top of that as funding for the horse racing industry.

New market entrants will also have to contend with PMU’s huge and exclusive offline reach in retail outlets and hippodromes across France. PMU recorded an online turnover of around €600m to go with its €9bn offline turnover and will mingle both liquidities under the new regulation.

Commenting on the accessibility to points of sale and the huge difference in liquidity between PMU and private operators, Mangas Gaming chief executive Isabelle Parize told iGaming France: « If a million players stake €1 on PMU’s website, it means more or less €1m in prize pool. Whereas a private operator with 10 players staking €1 will only have €10 to offer as winnings (and will have to build up their liquidity from scratch). Is this not a classic case of unfair competition? »

One option could see private operators co-mingling liquidities. Sajoo.fr reportedly tried to engage PMU about such an issue but was unsurprisingly rebuffed by the state-licensed company. It might instead look to Zeturf and Mangas-owned Betclic to build up their player base and have a competitive offering in French pari mutuel horse racing betting.

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Catégories : English digest, Non classé

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