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Slide 1

Illegal On Line Gambling

Online Gambling Directory

Woodbine Wagering Trends

Strategy #1: Prohibition

Strategy #2:  Legalize, Regulate, Enforce and Tax

Strategy #3: Stick Your
Head In The Sand

Slide 8

HorsePlayer Interactive

Account Wagering Online

HPIBET.com

HPIBET.com

HPIBET.com/ wireless

Slide 14

HPIBET.com is Reclaiming
Customers

HPIBET.com is Reclaiming
Customers

Reclaiming Customers In
The Future

International Conference of Horse Racing
Authorities

Development of Legal Online Betting Offer

Paris – 2 October, 2006

End of slide show, click to exit.

Slide 1

Illegal On Line Gambling

Web Search Results:

George W. Bush

130,000,000 results

Online Gambling

58,100,000 results

Brad Pitt

18,800,000 results

Prix de l’Arc de Triomphe

793,000 results

Kentucky Derby

6,530,000 results

Online Gambling Directory

iGaming Directory – 494 pages
of

+2500 online gambling sites

listing and ranking by
regulatory leniency of 42 hosting jurisdictions

software suppliers, portal
owners…

Woodbine Wagering Trends

Strategy #1: Prohibition

U.S. Approach

Defy WTO ruling that U.S.
acting inconsistently with fair trade agreements under GATS

Internet Gambling Prohibition
Act vs. Unlawful Internet Gambling Enforcement Act

Dep’t of Justice fines The
Sporting News $3.2 million – proceeds from illegal ads

Clear Channel Communications,
Infiniti Broadcasting, Discovery Communications pull online gaming ads

Strategy #2:  Legalize, Regulate, Enforce and Tax

U.K. Approach

Gambling Act 2005

Licensing, Compliance and
Enforcement powers to Gambling Commission.

Governs all facilities, remote
sites and advertising

Ireland

Agreement between HRI and
Betfair whereby industry will receive 10% commission on all Irish racing
turnover

Unspecified retroactive
payments from years 2003-2006

Challenge

What’s legal in one country
isn’t necessarily legal in others!

Strategy #3: Stick Your
Head In The Sand

Canadian Approach

Slide 8

HorsePlayer Interactive

National account wagering
service operated by Woodbine on behalf of Canadian racetracks*

257 IVR phone lines, 47,015
account holders

Full call centre support from
9AM until last race

Account wagering an extension
of Woodbine Racetrack (tracks offered, bet types, prices, rewards…)

HPItv

24/7 digital cable and
satellite racing channel

+ 400,000 HPItv subscribers

HorsePlayer Rewards

HorsePlayer Points earned for
every $ wagered

> 36% of wagering tracked

$ 19,185,298 of rewards
redeemed by customers to date

Accompanying Online Services

HPIFund - Online account
deposits

On-Site: 15%; Online: 26%;
VR/phone: 59%

HorsePlayer Rewards On-line

WebTote™

Free video streaming, programs
downloads

*excluding provinces of Quebec
and Manitoba

Account Wagering Online

November 2003 regulatory change
permitted pari-mutuel wagering via “any telecommunications device”

Research Online Wagering
Solutions

Tested existing online wagering
solutions in multiple customer focus groups

1754 respondents in online
wagering survey

ranked speed, ease of
navigation and link to a trusted brand as key criteria

Application Development

prepared comprehensive
application development plan (SeBIP)

released SeBIP RFP to several
technology companies

HPIBET.com designed, developed,
tested and approved in 12 months

Woodbine owns source code and
all rights to application

HPIBET.com

HPIBET.com

First legal online wagering
site in Canada, launched January 13, 2004

Secure site with SSL encryption

Fully redundant architecture +
professionally hosted = 100% up time

Designed to support other
platforms, including wireless devices

1447 unique customers/day

$1.73 million wagered weekly

$185,890,620 wagered online
through HPIBET.com to date

HPIBET.com

HPIBET.com/ wireless

On-line survey of 1756 HPI
customers

78% of respondents own a
wireless device, of which 55% are web enabled

32% currently use the web
feature on their wireless device (as compared to 17% of the total Canadian
wireless user base)

68% are willing to wager via a
wireless device

Same HorsePlayer Interactive
account

Microsoft Windows Mobile
architecture - an extension of existing HPIBET.com infrastructure

Wi-Fi network installed at
Woodbine Racetrack

Slide 14

HPIBET.com is Reclaiming
Customers

Average online wager is 30.4%
higher then over the telephone.

Customers have been repatriated
from illegal online wagering services:

In the first year of HPIBET.com
operations,                632
customers reactivated their
HorsePlayer Interactive account and      wagered $10.8 million.

$17,089 per customer

HPIBET.com is Reclaiming
Customers

Average daily wagering is
nearly 1/2 of HPI wagering average.

Reclaiming Customers In
The Future

Research, develop and retain
ownership of commercially superior wagering applications

Lobby our governments to
enforce the laws of our countries and to pass legislation which enables the
racing industry to compete in the 21st century

Protect our Intellectual
Property rights at all costs

Remain united as a global
industry against those who seek to steal our property

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