Due to poor turnout at Ludoplexes
Attractions Hippiques cuts races by 40%
MONTREAL, February 28, 2008—While customer response to investments of close to $40 million made by Attractions Hippiques in the Sulky racetracks in Quebec City and
Trois-Rivières has been positive, the very low turnout at the Ludoplexes located next to the racetracks has forced the company to take drastic measures to minimize its losses. As a result, it must cancel racing on Tuesdays in Trois-Rivières and Saturdays in Montreal, effective March 8 in Montreal and March 11 in Trois-Rivières. In addition, the purses for the remaining races will be reduced by 15%.
“This is a decision that I bitterly regret when I think back to the hopes raised throughout the Quebec horse racing industry when we signed the agreement late in 2006 with the government of Quebec,” said Paul J. Massicotte, owner of Attractions Hippiques. “We were enthusiastic and excited about this plan to re-launch the industry. In Quebec City and Trois-Rivières alone, we invested $15 million more than the initial $23 million committed under the agreement with the Quebec government. Moreover, we increased purse money by 40%, as soon as possible, in order to support the thousands of jobs that depend on this industry in the province. We worked with equestrian associations to bring together stakeholders across Quebec. I do not exaggerate when I say that we gave more than 110% to meeting our commitments,” Mr. Massicotte added.
The Ludoplex plan, developed by the government of Quebec in conjunction with Loto-Québec, was aimed at revitalizing the horseracing industry while reducing the number of video lottery terminals (VLTs) in bars.
In order to make the racetracks economically viable and help the industry get back on its feet, 22% of the revenues generated by the VLTs located in the Ludoplexes adjacent to the racetracks go to Attractions Hippiques, as is the case for the owners of bars where VLTs are located. However, Attractions Hippiques must re-invest 60% of these sums in the horse racing industry through purse money awarded to horse owners, breeders, riders and trainers.
The industry revitalization plan was based on Loto-Québec’s projections regarding the level of activity at the Ludoplexes and their anticipated revenues. However, to date, these projections have not been met. It is therefore impossible to ensure the viability of the racetracks at this time, and by the same token, maintain all jobs.
“It is imperative that the Quebec government and Loto-Québec review their business model in light of these results, so that they can deliver on their promises to the horse racing industry”, said Mr. Massicotte.
“At this point, as we are forced into making very difficult decisions, my thoughts are with all those who had renewed hopes in a revitalized industry, including the owners, breeders, trainers, drivers and grooms. It is my wish that a solution to this situation be found,” said Mr. Massicotte, expressing his appreciation for racetrack staff who have supported the company in its recovery plan.
“I hope that Loto-Quebec and the government of Quebec can soon agree on a new recovery plan for the industry. That would allow us to return to a full racing schedule and, of course, move ahead with the construction of a new complex north of Montreal. I hope there is a political will to act—the survival of a whole industry depends on it”, he concluded.
Racing on Sundays in Montreal, Thursdays in Quebec City, Saturdays in Gatineau and the Hippo Club network is not affected.
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INFORMATION:
Jean-Paul Lejeune
Cell: (514) 823-2351
e-mail: jplejeune@national.ca
