Vincent Trudel has been in the forefront of the Canadian gaming industry for more than 20 years, first as a Loto-Quebec executive who piloted the opening of the province’s first casino in Montreal in 1993,
then as chief operating officer of Great Canadian Gaming Corp., and since 2011 as general manager of the Quebec Jockey Club, the non-profit corporation now operating Quebec’s only racetrack in Trois-Rivières and overseeing the province’s nine teletheatres and internet wagering.
Trudel sat down recently with Paul Delean to share his views on the horseracing industry and where it fits in today’s highly competitive gaming landscape.
TROT: In a perfect world, if everything goes exactly as you’d hope, what does horse racing look like in Quebec in 20 years?
TRUDEL: I’m not comfortable projecting that far ahead. I don’t think that’s realistic. We have a five-year plan that we hope to implement successfully, and if we do, we should take the industry from about 700 full-time jobs now to about 3,000. That would mean a similar increase in the standardbred horse population, since studies have shown it’s about 1.1 jobs per horse. A second track in the province, this one in the Montreal region, also is part of the plan but it remains to be seen when that would be feasible. We’re not as far along as we would like to be. And to get there, some things still need to happen.
TROT: What specifically is required to get there?
TRUDEL: We have proposed two measures that will produce for the government benefits in excess of their cost. One would be the return (to the industry) of the 2.5% provincial tax we pay on all horseracing wagers in the province (at Hippodrome 3R, at the teletheatres and on HorsePlayer Interactive). That amounts to roughly $2 million a year at current wagering levels of about $80 million. This would make a huge difference for our purse levels (currently about $2.5 million a year) and create jobs. We also would like the government to give the Quebec Jockey Club a 22% cut (an estimated $2 million a year) of the money generated by the Ludoplex (government-owned gaming centre) next to Hippodrome 3R. That’s the same percentage they used to pay (defunct racetrack operator) Attractions Hippiques when they operated the track. Ludoplexes were created for the industry. Since reopening the track, we’ve received nothing from the ludoplex.
TROT: Who needs to lead the effort for the industry?
TRUDEL: The Quebec Jockey Club does, and has been. It’s a non-profit corporation, with only four full-time employees and a respected board of directors. What we generate in revenue all goes back into the industry. The horsemen voted overwhelmingly to let the QJC speak for the industry because it’s important, especially when dealing with government, to do so with one voice. When there are too many voices, it’s easy for the government not to pay attention.
TROT: What support does the industry need within Quebec?
TRUDEL: It needs for the (provincial) government to appreciate there is reborn interest in racing in Quebec and to understand the economic potential of this industry, particularly in the regions. And it needs to make clear to Loto-Quebec that they have to work with us, closely and intelligently, to develop new products. It’s normal. Parimutuel is a game. It must be part of the gaming strategy. Collaboration could be beneficial to both sides. We have an interesting product, they have a top-notch sales network. But it’s not happening now.
TROT: What support does the industry need from outside of Quebec?
TRUDEL: I’d like to see the racing jurisdictions collaborate like the provincial lottery corporations did when they launched Lotto 6/49 in the ‘80s, making it a national success with much larger jackpots. Maybe we could come up with a national bet similar to the Quinté Plus in France and the V75 in Sweden. A national handicapping championship could also generate interest.
TROT: What are the biggest concerns (the things that keep you up at night)?
TRUDEL: We are a very lean operation and control our costs tightly. There isn’t much room to manoeuvre. If we don’t get government on-board, it’s going to be very difficult to increase the number of professionals, owners and breeders and to grow purses to our target of $10-12 million a year. We might be able to get to $100 million (in total annual handle) from $80 million with our current, limited revenue sources, but that won’t make a huge difference when you’re paying the government, teletheatre operators, host tracks and HPI out of the 20 per cent takeout. The net profit on every dollar bet on racing is not substantial. Our take is only 5-9 per cent. And every year, this industry loses horseplayers. Even if you attract someone new, they’re not going to immediately replace a longtime player who bet a couple of hundred a day. That’s a concern as well.
TROT: Is there a model that you look to as a success/role model?
TRUDEL: It’s remarkable what they’ve been able to do with horseracing in France and Sweden. It will also be interesting to see what comes out of (Ontario Premier) Kathleen Wynne’s directive that the Ontario Lottery and Gaming Corp. work with the industry. That could be a model for us in Quebec.
TROT: Why do you care about the industry? Why does it matter?
TRUDEL: My background was not in racing and I’m still learning. I enjoy going to the paddock, being at the track every program. The revelation for me has been how passionate people are, how hard they work, their investment in time, effort and money. They’re good people, creating real economic value in the regions. Government invests in various ways in a lot of other sectors. Why not this one?
TROT: Horse racing isn’t the only gaming sector struggling in Quebec these days. Casinos and lotteries also have seen their revenues plateau and profitability fall. Is gaming perhaps a mature industry faced with an inevitable decline?
TRUDEL: There is still good potential for gaming in every jurisdiction. You just need to manage innovatively and develop products that will appeal to players. The competition is much stiffer now. You have to adjust quickly. When we opened Quebec’s first casino, we did it before Ontario and New York had theirs, and were able to capitalize. It was the most profitable casino in North America, even more than the Vegas ones…for a while. Things have changed. There are so many more gaming options now, especially with the internet. It’s not a lost cause. The younger generation can be attracted by new games; look how poker tournaments have taken off. But you’ve got to find a way to reach them and make it simple. Pari-mutuel betting is easily understood if you’ve been going to the races a long time but it’s not as clear to someone who’s never done it before. We need a simple, mass-market product that can be sold throughout a large network. If nothing is done, if we don’t get an investment soon from the government, if we have to survive solely on pari-mutuel betting as we are now, it will be tough simply maintaining what we have.
