Horses replace balls for the next generation of punters
Thursday 10th May 2007
A brief series of televised horse races will launch Magna Entertainment’s next generation of betting structures aimed at new punters.
Magna Entertainment Corp’s new chief executive officer, Michael Neuman, has announced the “life-changing” payouts of $10m or more and “new-age wagering products”.
However, there may be boggy ground ahead for North America’s biggest horse track operator. Magna is handicapped by debt and is calling for a reassessment of out-dated regulation. While they are anticipating extended opening hours and a softening of regulators attitudes, along with increased numbers of slot and video terminals at tracks, Neuman stated that “horse racing needs a new business model.”
While the new products are expected to generate a lot of interest, debt reduction is also a priority for the company, despite its vast property assets. Three properties were sold during the quarter, generating $65.1m, however, long-term debt and convertible notes still total more than $570m. More sales are planned.
Founder and Chairman Frank Stronach explained that “MEC is really a global lottery corporation. Instead of balls bouncing up and down, we have horses.' He appealed for shareholders to be patient.
