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European-Horseracing At the invitation of Mister Jacques Toubon, Under the patronage of Mister Joseph Daul, Member of the European Parliament Member of the European Parliament Member of the EPP-DE group President of the EPP-DE group « HORSERACING AND ONLINE BETTING: DOES THE EUROPEAN HORSERACING INDUSTRY HAVE A FUTURE IN EUROPE? » Conference of the European horseracing industries professionals Thursday 6 March 2008 European Parliament Brussels Minutes of the conference - 1 - SUMMARY OVERVIEW .................................................................................................................................. 4 COMMON DECLARATION OF THE EUROPEAN HORSERACING INDUSTRIES..................................... 6 VERBATIM................................................................................................................................... 7 Jean-Pierre KRATZER, Chairman of the Swiss Trotting Federation................................................. 8 Fernando MELCHOR, Chairman of the Spanish Thoroughbred Breeders Association..................... 8 Tore FYRAND, General Secretary of the Norwegian Trotting Association ...................................... 9 Christiane HEAD-MAREEK, President of the European Trainers Federation .................................. 9 Jacques TOUBON, Member of the European Parliament, EPP Group ............................................ 10 Joseph DAUL, Member of the European Parliament, President of the EPP Group ......................... 10 ROUNDTABLE 1: WHAT ECONOMIC FUTURE IS THERE FOR THE EUROPEAN HORSERACING INDUSTRY? ................................................................................................................................ 13 Franck JOYEUX, Representative of the Internationaler Club v.E. (Germany)................................ 13 Nick COWARD, Chief Executive of the British Horseracing Authority ......................................... 15 Bernard FERRAND, Chairman of the French Thoroughbred Breeders Association ....................... 18 Joe HERNON, Chairman of the Irish Thoroughbred Breeders Association..................................... 21 Malcolm HARBOUR, Member of the European Parliament, EPP Group ....................................... 24 Mr. Íñigo MÉNDEZ DE VIGO, Member of the European Parliament, EPP Group ........................ 25 ROUNDTABLE 2: WHAT MODEL OF ORGANIZATION FOR HORSERACING AND BETTING? ............. 28 Paul ESSARTIAL, Chairman of the French Horse Council Federation........................................... 28 Jean-Pierre KRATZER, Chairman of the Swiss Trotting Federation............................................... 29 Fernando MELCHOR, Chairman of the Spanish Thoroughbred Breeders Association................... 32 Tore FYRAND, General Secretary of the Norwegian Trotting Association .................................... 34 Patrick SANDIN, Chairman of the European Trotting Union.......................................................... 35 - 2 - COMMON POSITION OF THE EUROPEAN HORSERACING INDUSTRIES ........................................... 37 Christiane HEAD-MAAREK, President of the European Trainers Federation................................ 37 DIALOGUE WITH THE AUDIENCE ................................................................................................ 39 SYNTHESIS ................................................................................................................................ 44 Jacques TOUBON, Member of the European Parliament, EPP Group ............................................ 44 - 3 - OVERVIEW Thursday 6 March 2008, at the European Parliament in Brussels, at the invitation of Jacques Toubon, Member of the European Parliament, and under the patronage of Joseph Daul, President of the European People's Party and European Democrats (EPP- ED) group, representatives of horseracing professional organisations from all Europe gathered to express their concern and to propose solutions to ensure the future of their activity, which is facing the growth of online betting. Breeders, trainers, owners, jockeys, representatives of horseracing authorities, trotting and gallop professionals from 12 European countries were present in the room and at the tribune, on the initiative of the French professionals: Germany, Belgium, Spain, Finland, France, Italy, Ireland, Norway, Czech Republic, United-Kingdom, Sweden, and Switzerland. Journalists and European officials were also invited to this conference, which is unprecedented in the world of horseracing. Debates put forward the diversity of present situations, in particular regarding betting models. Some professionals, French foremost, expressed their conviction that the mutual betting system, which represents 80% of the world’s betting on horseracing, is the only one which allows the horseracing industries to face the future and to respond to nowadays’ economic and integrity challenges. Others, from UK and Ireland, have always had the bookmaking system and want to create sustainable mechanisms guaranteeing a fair financial return of betting, including online betting, to the industry. The European horseracing industry agreed on two core facts: - The European horseracing industry has to face a common challenge, the uncontrolled development of online betting, whereas several industries in Europe are experiencing severe economic difficulties and others see their model questioned by the European authorities; this is not to dismiss or exclude technological evolutions, but their rapid development raises ethical and economic issues, especially due to the fact that horseracing’s development is, and always was, closely related to betting; - Horseracing industries represent common economic, social and cultural values, which are also a great asset for Europe: 100 000 races per year, 500 racecourses, 58 000 horses born each year, 150 000 horses participating, 800- millions euros per year market… and 400 000 full-time jobs contributing to the activity. - 4 - Concerning the future, debates highlighted three clear principles, supported by the European professionals’ organisations: - a part of horseracing betting income must return to the industry: those who offer bets on horseracing must pay back into that sport, this return must be controlled and protected by national and European authorities ; races cannot be without bets, but their relation must be healthy and economically balanced; - each Member State should be able to determine, within its legal system, which forms of betting are allowed and which mechanisms will guarantee a fair return to the races and the integrity of the activity; betting on horseracing is not an activity like any other, this obvious fact justifies the application of the subsidiarity principle for Each Member State; - the European Union must make betting and races ethics a top priority : the trust of the audience and punters is the horseracing industries’ most important capital, and the competition that impassions them, must be unimpeachable ; public order stakes are real. Representatives of the horseracing industries have adopted a common declaration (see hereinafter), on which they wish to associate as many organizations as possible. By pointing out the historic character of this appeal, Jacques Toubon, Member of the EPP-DE group, declared that from now on the stakeholders’ goals should be, on the one hand, a European legal framework containing common principles and, on the other hand, a progressive and controlled opening of the national markets. Both are indispensable to ensure the development of the European horseracing industry. - 5 - COMMON DECLARATION OF THE EUROPEAN HORSERACING INDUSTRIES We call the European Parliament, the Council and the Commission, to recognize urgently the need for a clear and coherent legal and regulatory framework, guaranteeing: 1. A fair return from betting to the racing on which it is promoted or offered; 2. The protection of the future integrity of the sport. We call on the European Commission to develop a policy to achieve this, in consultation with the European horseracing organizations. It is necessary that, in conformity with the principle of subsidiarity, Member States have a European legal framework on betting, which will allow them to exercise their own competence in conformity with EU law. - 6 - VERBATIM Jacques TOUBON, Member of the European Parliament, EPP Group “What now has to be done is for us to use our imagination and apply a political will to reconcile the internal market principles and the specific situations. I cannot see any other way to frame community legislation setting out a number of common principles”. Joseph DAUL, Member of the European Parliament, President of the EPP Group “Horseracing is a sector that contributes to the economy and to rural development in many countries of Europe. This sector must survive. For this purpose, the returns need to flow back into the sector. Europe is not meant to break what already works in the countries and the subsidiarity can be handled, even in an internal market system”. Franck JOYEUX, Representative of the Internationaler Club v.E. (Germany) “Betting and gambling is very sensitive sector. And it differs a lot by culture and character of different nations. Therefore, the principle of subsidiarity seems to be the best way to carefully handle this area in the future. For Germany and German horseracing, an environment of integrity and responsible gambling must be secured and guaranteed”. Nic COWARD, Chief Executive of the British Horseracing Authority “There is a very
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