Casino Mundial

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Mandate

Created in 2002, Loto-Québec subsidiary Casino Mundial is tasked with leveraging Québec’s know-how in designing, implementing and operating casinos and related businesses, and applying it worldwide as a means of generating economic spin-offs for the province.

Background

Through its Casino Mundial subsidiary, Loto-Québec is co-proprietor of Casinos Développement Europe (known as JOAGROUPE Holding prior to February 16, 2009), a company based in Lyon that owns and operates a network of 20 casinos in France. Casino Mundial holds a 35% interest in the group, and its co-shareholders are the European investment firm of Bridgepoint Capital and the enterprise’s management team, which hold 55% and 10% of Casinos Développement Europe capital respectively.

Formerly called Moliflor Loisirs, the Lyon-based concern has earned a 9.2% share of the French casino market. As the third largest casino operator in Metropolitan France, JOAGROUPE Holding has 1,625 salaried employees and operates 2,000 slot machines, 57 traditional gaming tables, as well as related services like restaurants, bars, discotheques and hotels. Its various establishments registered some 3.9 million visits last year.

A partnership that is bearing fruit

Through its service contract, Loto-Québec pursued the transfer of its expertise to JOAGROUPE Holding’s casinos, most notably by implementing a multi-site client loyalty program and by conducting a comprehensive review of activity at the gaming tables. This contribution has proven to be quite productive, translating into a 20% increase in gaming table revenues at most of JOAGROUPE Holding’s casinos during 2008-2009.

On the regulatory front, the French Government indicated its intention to review casino taxation, which has not been revised since the 1980s. Some of the measures announced concerning this revision are included in the draft bill on the opening up of competition in the online gaming sector tabled in the French National Assembly on March 30, 2009. This bill calls for legislation governing Internet-based poker, which should generate new business opportunities for JOAGROUPE Holding. The series of measures taken by the Government concerning taxation revision and the resumption of economic activity should, thus, help boost our profits while stimulating revenue growth for French casinos in the not too distant future.

Last update: July 22, 2008

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