Building a Bright Future for Greek Racing - May 2019 - Markopoulo Park
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Building a Bright Future for Greek Racing
May 2019
Company Confidential
Contents
• Background
• Our Vision
• Future Governance
• Developing Greek Racing
• Building a Better Betting Product
• Creating a Unique Experience
2
Introduction
• Has been a difficult period for all stakeholders
• Many challenges – some even within the industry
• We are now at the dawn of an exciting new era
• Working together we can build a brighter future
• OPAP remains committed to horseracing in Greece
• OPAP wants to build a healthier industry for all of us
3
Background – achievements since 2016
We have fixed many of ‘the basic requirements’
We have applied world-class practices and built international collaborations
We have made improvements to the infrastructure and facilities
We have improved the quality of the product in OPAP shops
We have succeeded in expanding the Markopoulo venue beyond racing
…but there is still much more we can all do together
4
Via significant investments OPAP is fully committed to Horseracing
Since 2016 OPAP has invested more than €84.0m, including:
- €40.5m for the exclusive horseracing license
- €6.9m for prize-money (€5.5m – Owners/Breeders, €1.1m – Trainers, €0.3m – Jockeys)
- €7.5m in rental payments for Markopoulo property
- €29.1m for racetrack maintenance and other Greek-racing operating expenses
5
Stakeholders of Greek horseracing industry – all want future success
OPAP
OPAP
shareholders Regulatory and
Owners/Trainers/ and employees statutory bodies
Breeders Greek State,
Jockey Club,
Key stakeholders for HGC, and others
horseracing industry
to exist
Customers
Jockeys
Existing and future
The riders that are customers in OPAP
co-protagonists with Agents shops and
the horses-athletes Markopoulo
Network of OPAP
stores
across whole of
Greece
6
Our Vision for Greek Horseracing
OPAP’s 2020 Vision Long-term Vision for Greek Racing
Establish OPAP as a Transform Horseracing into one of the leading
world-class gaming entertainment company entertainment experiences in Greece
7
What are our main challenges?
Challenge Number 1: Building a modern, sustainable industry
• Horseracing industries worldwide face huge challenges
• Greece no different…smaller so should be easier to
improve
• However we are in a very difficult situation…
…so real changes are needed
• Try to balance the interests of all industry stakeholders
• Embrace modern thinking and proven world class ideas
9
Challenge Number 2: Increasing the horse population
Growing the horse population drives whole economic model
Existing
owners
and new
owners buy
horses
Owning
horses
Increased
becomes
horse
more
population
attractive
investment
Higher
number of
More prize
races and
money is
more
generated
betting
revenues
10Challenge Number 2: Increasing the horse population
Registered Horses
ODIE SA Horseraces SA
c. 1,000 horses needed for 3rd race day
per week
c. 600 horses needed for 2nd race day
per week
400+ horses targeted by the end of 2020
DEC TODAY
2018
11Challenge Number 3: Increasing horse ownership
• Ownership directly drives increased interest in the sport
• Ownership today limited to small group of people
• Urgent need to increase wider ownership
• Syndication is a successfully proven program world-wide
• Currently syndication in Greece is limited to just 10 part
owners
12Challenge Number 4: Increasing the number of betting customers
• Increasing number of other entertainment alternatives
• Other gambling has increased in last 10 years (n.b. football)
• Online games and gaming becoming increasingly popular
• Reputation of horseracing still needs to be improved
• Betting product needs to be simplified and modernised
• Experience at Markopoulo needs to improve
13Challenge Number 5: Dysfunctional governance model
• Breakdown in trust of horseracing industry
in the Jockey Club
• Consequence is that no racing held since
December 2018
• 5 months without races means substantial
income loss for OPAP and for all the horse-
racing professionals
• Races to start again on 5 May 2019
14Strategic Pillars for future Success
Our Relaunch Plan is based on three main pillars:
1. Developing a sustainable Greek racing industry
2. Building an attractive Betting Product
3. Creating a unique Experience at Markopoulo
15Future Governance Model
Governance: New legal framework
Change Benefit
•
1. Concession Agreement • Merger of Horse Races with OPAP
Healthier financial and
operating environment
Change Benefit
• Possibilities for venue
•
2. Use of land
Horse-racing, tourism, leisure,
sports and motorsport activities
development and new
activities to support racing
business
Change Benefit
• Promoting a fair and
•
3. Greek Jockey Club
(FEE)
New legal framework for Jockey
Club’s operation
cooperative environment for
the supervision of racing
activity
17Governance: New operating framework for Greek Jockey Club
Main Changes Key Benefits
• Clearly defined role and powers for GJC
Greater representation of racing community
• GJC General Assembly of 100 members (from 64)
Promotion of cooperation
• New 11-member composition in GJC board
Promotion of consensus in decision-making process
• Introduction of incompatibility clauses
New General Assembly members refresh GJC
• Increased majority of 2/3 required for major decisions
Increased transparency and credibility
• New Industry SteerCo (quarterly)
Together the changes will help to build a healthier and more collaborative environment in the industry
18Working together to develop Greek Racing
Greek Horse Racing – Changes to Prize Money allocation
• Part of overall changes to adopt common international standards
• New allocation aligned with major horseracing countries (UK, France, Hong Kong, Australia)
• Additional 7.5% extra bonus to unplaced horses
EXISTING
NEW ALLOCATION
ALLOCATION PER
PER POSITION
POSITION
1 73,00% 66,00%
2 14,00% 18,00%
3 9,00% 11,00%
4 4,00% 5,00%
5 2,00% 3,00%
6 1,80% 2,50%
7 1,50% 2,00%
20Greek Horse Racing – Changes to Prize Money allocation
Part of overall changes to adopt common international standards
Flat allocation for owners/trainers/jockeys for all positions
22% increase from 4.5% to 5.5% of the prize money allocation to Jockeys
EXISTING ALLOCATION NEW ALLOCATION
OWNERS TRAINERS JOCKEYS OWNERS TRAINERS JOCKEYS
1 78,50% 17,00% 4,50% 78,50% 16,00% 5,50%
2 80,50% 15,00% 4,50% 78,50% 16,00% 5,50%
3 80,50% 15,00% 4,50% 78,50% 16,00% 5,50%
4 80,50% 15,00% 4,50% 78,50% 16,00% 5,50%
5 80,50% 15,00% 4,50% 78,50% 16,00% 5,50%
6 80,50% 15,00% 4,50% 78,50% 16,00% 5,50%
7 80,50% 15,00% 4,50% 78,50% 16,00% 5,50%
21Greek Horse Racing – Working together with Owners and Trainers
New Prize Money Incentives
2&3yo maiden races: 9% increase (from €7,800 to €8,500)
Races in 2019 with just 6 horses: No prize money reduction
Races in 2019 with just 5 horses: No prize money reduction
• BH races, 2&3yo maiden races, Special Conditions BHE races,
Main races
22Greek Horse Racing – Working together with Owners and Trainers
New Prize Money Incentives – Major Events
Greek Derby
Total prize money to increase by 33% (€30,000 to €40,000)
2019 Greek Derby will take place on October 20th
4 Listed Races
Total prize money to increase by 25% (€20,000 to €25,000)
For all 4 listed races: Lefkos Pyrgos Cup, Sprint Cup, Grand Prix 28th
October, Alexander the Great Cup
New Triple Crown (from 2020)
New exciting race series for 3yo horses
Extra bonus of €40,000 for the winner of all 3 races:
• Iniohos Cup (1,400m), Criterion (1,575m), Greek Derby (2,100m) as the
final leg
23Greek Horse Racing – Working together with Owners and Trainers
Handicapping
Introduction of the internationally applied Rating
Based Handicapping System (RBHS) to Greek races
Aim to finish by end 2019
Horse Eligibility
All horses (Greek-bred and imports, raced and
unraced) will be eligible to run in the:
• 3yo Criterion
• 3yo Greek Derby
• 3yo fillies Derby (Oaks) – ARTEMIS CUP
• 2yo Winter Challenge
24Greek Horse Racing – Working together with Breeders
Promote and incentivize local horse production
Establish “Greek Horse Cup” for 3yo horses – €25,000
Re-introduce “Greek Breeders Cup” when population
allows
€1,000 1st participation bonus for 2yo Greek horses
placing 1-4. To apply for first 30 horses/year
€400 1st participation bonus for 3yo Greek horses
placing 1-4. To apply in 2019 for the first 30 horses
25Greek Horse Racing – Working together with Breeders
Promote and incentivize local horse production
Increase premiums for Greek-bred horses
Current Percentage
Horse Age New Premiums
Premiums Increase
2 yo 20% 35% 75%
3 yo 17% 25% 47%
4+ yo 15% 20% 33%
26Greek Horse Racing – Expanding ownership base
2019 Horse imports
Source horses through International auctions for Greek owners
1st phase May, 2nd phase July, 3rd phase October
Secondary Market
Create secondary market for owners selling their horses
(dedicated website, claiming races after implementation of RBHS)
Additional Incentives
Credit facilitation for up to 3yo transportation costs (repayable in 2
years)
Zero initial registration fees (including colors’ cost) for 50 new
owners in 2019
€500 win bonus for 1st win (in first 12 months) of imported 2-3yo
horses bought in 2019
27Greek Horse Racing – Working together with Jockeys
Support solution for jockeys’ social security
Help integrate jockey profession with those covered by ergosimo
Minimum training fee per horse
Support relevant efforts with the agreement of trainers/owners
Jockeys with disabilities fund
Continue support in multiple ways
New generation of jockeys
Long-term plan to increase the number of Greek jockeys
28Greek Horse Racing – Initiatives for the community
Annual awards event for the champions of the previous year
Owners rewards package (VIP treatment and privileges,
winners photos etc.)
Introduce and promote Race Horse After Care program
29Need background picture Building a high quality betting product
Developing an attractive Betting Product – Retail customers
New Racing Channel
Primary focus on Horse Races – introduction of Greyhounds (Q3 2019)
Upgraded image quality and graphics
Easy-to-digest info even for novice players (odds, name, form, rating)
Bottom display for key information (e.g. top odds for complex bets, next events)
Customer acquisition through product enhancements
3-hour live show during Greek races (assess possibility)
Promotion clips for Sunday’s Greek Races
Promotion of jackpot games (e.g. Pick 6)
Cross-selling through Sports Channel
31Developing an attractive Betting Product – Retail customers
Easier bet placement
Product to be available across OPAP network by Q1 2020
Races in SSBTs and Apollo terminals by Q1 2020
Introduction of Racing betting slips by Q1 2020
Online betting in 2020
32Developing an attractive Betting Product – OPAP agents
Initiatives increasing store performance
• Intensive communication to agents
• Horse Races within Sports Betting area for easier cross-sell
• Utilize existing Performance Management scheme
Initiatives for agents’ engagement with product
• Training session on new racing product
• Promote the creation of syndicates by OPAP agents
33Developing a unique Customer Experience at Markopoulo
Customer Experience at Markopoulo – International examples
UK
Over 100 music events in racecourses – over 870,000 attendees
France
Family Days (Sundays), restaurants and gastronomy events
Hong Kong
Racing nights, combining horse races with a fully immersive
social atmosphere
Australia/UK
Corporate/social events focusing on entertainment and covering
corporate away days
35Customer Experience at Markopoulo – What we want to do
In Markopoulo we have been organizing:
• Corporate events (awards) Over 8,000
• Fashion shows visitors came to
• Car racing Markopoulo for
Koulouma
• Running events
• Social events
We aim to continue this and further utilize opportunities (e.g. music concerts, festivals, etc)
36Customer Experience at Markopoulo – Entertainment destination
Promote Markopoulo as a “go-to” entertainment destination for the whole family
Venue renaming and logo redesign – “Markopoulo Park”
Move our racing day to Sunday
Dedicated calendar of events addressing different audiences
Promotion to broader audiences, focusing on local areas
Dedicated promotion programs and entertainment activities on
the occasion of big races
37Customer Experience at Markopoulo – Moving to Sundays
Greek Races on Sundays
Make them part of the regular sporting calendar
Busy sports day in OPAP shops
Attract families and younger audiences at the weekend
Winter time at 13.00 - Summer time in the evening
From September 2019
Creation of a holistic “Family Day” experience
New exciting activities for children and adults
Promote Markopoulo as an alternative venue for entertainment
38Customer Experience at Markopoulo - What we will offer
Family Slot Horse Races Slot Entertainment slot
10:00-13:00 13:00-16:00 16:00-19:00
Families Families Restaurant & Bar
All F&B areas (coffee shop, Horse Races OPAP shop & VLT’s
canteen, Restaurants, Bar)
All F&B areas (coffee shop, Screening of football
Children canteen, Restaurants, Bar) games
Various facilities (playhouse, “Follow the saddle” tours Music events / DJs
cycling activities, street
games, pony rides, Children
adventure park) Various facilities (playhouse,
Adults cycling activities, street games,
pony rides, adventure park)
OPAP shop & VLT’s
Adults
OPAP shop & VLT’s
Betting area
39Customer Experience at Markopoulo – Racing Experience
New Outdoor matrix screen
40Customer Experience at Markopoulo – Racing Experience
New Paddock
41Customer Experience at Markopoulo – Racing Experience
Grandstand Refurbishment
42Customer Experience at Markopoulo – Racing Experience
New Bar Area
43Marketing & promoting Horseraces
Main pillars
Maximize interest around Greek races in various audiences
Promote new product proposition and gaming experience
Establish Markopoulo as a “go-to” family entertainment destination
45Sponsorship and syndication
Dedicated/ specialized partner for sponsorships and syndication
Formulate sponsorship packages for big companies
Establish sponsored races, i.e. Greek Derby and key listed races
Promote syndication to a wider audience base
Increase syndicate members from 10 to 100+
Dedicated events and activities to attract new owners
46Targeted promotional actions
Races Product Venue
• Live TV broadcasting for Greek • Advertising campaigns (print • Dedicated calendar of special
Races and online) events
• Horse races promotion in media: • New “Pame Stoixima Racing” • Utilize landmark meetings as
Sunday sports news/ TV Channel for OPAP stores “must” events (happenings etc.)
broadcasts, weekly promotion of
important races etc
• In-store promotion activities
• Third-party endorsement
• Promote Derby and main races
as sporting events
• Engage Eastern Attica
communities
• Promote jockeys and horses’
sporting profiles
47Summary
• Historic opportunity for us to rebuild
horseracing in Greece together
• OPAP committed to working with all
stakeholders
• Vitally important that all stakeholders are in
healthy position
• Markopoulo Park to become one of
Greece’s top entertainment locations
• Not easy… but working together we can
succeed!
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