PLAY AREA

New episode in the fratricidal struggle being waged by families of the world casinos. On Monday, the group Accor and Lucien Barriere expected to announce the merger of their casino operations – excluding Farmer Cannes – in a single structure that will be owned 51% by the family barrier, 34% and 15% by Accor fund Colony Capital. For this, the second and third French casino operator, longtime allies, the lady now peg their common rival, the family Partouche . And recover all the number one spot, where in three decades, Isidore Partouche , who arrived from Algeria in 1962, had managed to assume 28% of this very lucrative market.

This foray into “their” world did not please the family barrier, which owns the casino of Deauville, Enghien-les-Bains, Biarritz and whose founder André François-time undertaker, was founded in the aftermath of war circle game Haussman (still open), before becoming director of the Deauville casino.

With its rules, its atmosphere and reputation sometimes sulfurous, this particular industry, which has grown exponentially in recent years, also has its rivalries. A priori, while opposing the Partouche , the Barrier and the Accor Group which together control almost 60% of the casino market in France. If Isidore Partouche has a reputation as a go-getter who does not have cold eyes, Barrier-Desseigne have a more civilized, linked also to the “jet-set who frequent their hotels. Accor, for its part is the international group with its techniques of management and its financial strength. In a report entitled “The state dealer, the rump parliament,” Senator UMP du Var, Francois Trucy, stigmatizes “the virulence of the competition between the groups between them, particularly the Group Barrière and Partouche . And recall in particular that “we must not underestimate the effects of poaching maneuvers when this or that casino would complement its emergency staff to the expansion of settlements.”

The rivalries between the three main clans have only exacerbated in recent years, notably through two sagas exchanges. Originally the first battle: the purchase in 1996 by Isidore Partouche of 30.3% held by the former Compagnie Générale des Eaux (now Vivendi) in the Company’s casino Farmer City Cannes ( SFC TM), controlled by barrier.

The latter holds the Hotel Majestic, Hotel Gray d’Albion, the Cannes-Mandelieu Golf & Casino Croisette. This participation has been reduced from about 15% after a capital increase defensive barrier. Result, according to the analysis of rivals, Partouche is now “stuck” in the FCS MC. But the minority shareholder is turbulent, refusal to approve the accounts in 1997, a takeover threat in 1998 …

Second episode of the iconic war waged between the three major casino operator: the stock market battle that saw clash Accor and Partouche for the redemption of the European group of casinos. Isidore Partouche will win in 2002 but at a price considered overvalued, ie 318 million euros. “At Accor, we have very bad memories of the brawl market,” says one expert in these groups.

The episode began with the marriage Barrière-Accor strengthens competition with Partouche . “Since Farmer Cannes is excluded from the agreement, the gap between Partouche , who performed in France 693 million gross gaming revenue (GGR), and this new Accor Barrier is only 20 million Euro …, said Hubert Benhamou, CEO of Group Partouche , who expects 2004 figures to judge. Moreover, signs of more modest size, and as Moliflor group Edge , are ambush. The party is likely to be tight.

Yesterday, the strikers of the Casino of Argelès and members of the CGT 66 gathered outside one of Canet. 40 people have rallied to voice their revendications.Le Steward, Valerius Ruault, said that their main demand is “the wage increase with a 10% increase in minimum wages is about 116 € gross per employee. For now our salaries accounted for 16.5% of the turnover of the Casino is 329 euros 0000. The twenty employees on strike also want this increase, the thirteenth month to get all. “If we protest today in Canet is because it is the seat of the regional group that owns the Casino Moliflor Argelès. We want to show the direction our dissatisfaction with his conduct vis-à-vis us. We spent a week in the street before receiving a proposal for negotiation (1) “says Valerie Ruault.Les protesters denounce the fact that” no increase in wages has been held for 4 years while at the same time Moliflor group increased from 5 to 20 casinos. In Argelès, we are one of the establishments worse off with salaries situated below the national average. “Mr. Lawrence, director of the Casino de Canet has notified its full support to the Director of Casino Argelès describing him as such requests “unreasonable.” He said that “negotiations will take place which explains my surprise at this move. Contrary to what some strikers we have not taken a week before we account for their mobilization. But their demands were far too important to consider any negotiations. Union officials have so far reviewed their claims to the decline we are ready to discuss with them. “As to the lack of social progress in recent years, Mr. Lawrence explained that” the wages of the Casino d’Argeles rose 10% in 3 years, an incentive scheme was introduced as the 35 hours (2). Rabeyrolles Julie (1) negotiations that took place yesterday Saturday at 8:00 p.m. at the Casino d’Argeles – sur-Mer. (2) For the 35 hours the strikers confirm that “an agreement on the organization of working time has been signed but it is still not respected. Several breaches of legislation have been identified and denounced. “Yesterday, about forty strikers protested outside the casino in Canet-en-Roussillon.Photo Patrick DAVIAU. Last night negotiations in Argeles

(Reuters) – The hotel group Accor has officially unveiled on Monday the Memorandum of Understanding with the family and the Barrier Desseigne Colony funds to create the first European group in the casino sector.

This protocol provides for the ‘asset pooling casinotier hoteliers and hotel company Chain Lucien Barriere (SHCLB), Society Hotel and Casino de Deauville (SHCD), Accor Casinos and their respective subsidiaries.

With this major transaction, Groupe Lucien Barrière will simplify its structures since after the merger, the family will have lasting barrier Desseigne 51%, 34% of Accor and Colony Capital 15% of the new entity, called ‘Group Lucien Barriere , .

In addition to its shareholding, Colony Capital, notably through the European Fund Colyzeo, 100 million euros in the new group, strengthening its financial structure.

Accor says that capital allocation is “accompanied by a shareholders agreement that sets the rules of governance of the new group, including some important decisions regarding the company in accordance with usual practice in this type of partnership ‘.

The French group added that as part of shareholders’, Colony Capital has an option to sell its stake in Accor and Accor an option to purchase such participation.

SHCLB society, become ‘Groupe Lucien Barriere , will be transformed into joint stock company with a Supervisory Board whose Chairman is Dominique Desseigne specific additional powers. Benjamin Cohen was appointed Vice-Chairman. Chairman of the Executive will Sven Boinet.

The new entity will become world on top of the podium European sector with a turnover of around gross 900MlsE (based on 2003 figures) with 37 casinos.

He finally stated that this MOU is subject to certain conditions precedent, in particular the approval of competition authorities and regulators of casinos.

Nothing is worth, it seems, a small tower to the casino to boost morale. Especially in times of economic crisis: the gambling industry does not really know the ambient stagnation. Small bets (20 euros on average), experienced players (two thirds are over 60 years), but big profits at the exit. Last year, while France was close to recession, the 180 establishments lights broke another record: the gross gaming revenue (GGR), the alpha and omega of the profession, has exceeded 2.54 billion of euros, up 3.8% over the previous year. “The advantage of the casinos is that they smooth the crisis: When everything goes wrong, the activity will decline by 2% to 3% only, while other sectors such as hotels lose their shirts “says one industry expert.

Synergies. This is not the Accor group that says otherwise. Shaken by an international situation that weighs heavily on tourism (its profits in the first half of 2003 plunged by 52%), the leading European hotel also owned Accor Casino with 24 properties. It comes to pass Groupe Lucien Barrière . Which sees itself propelled to the forefront French. With a pedigree that is likely to fade group Partouche , former number one, who was dethroned by the new group: Groupe Lucien Barriere and his new friend Accor Casino now control 37 gaming establishments (including the first of France at Enghien-les- Bains, Val-d’Oise) and collect jackpots of 4 656 bandits penguins gleaming electronics. That’s not all: Once the players tired of losing, just suggest they take a good room for the night in one of thirteen luxury hotels Barrière Group in Paris, Deauville and elsewhere. This is what financial analysts call synergies: the owner of casinos will play them thoroughly with Accor, particularly for reservations or “tourist packages” casino-hotel included.

But the beneficiaries of this merger are greater. Barrière-Accor rapprochement must transform this pair into a war machine that can eat the market share, especially as the cronies have a financier in the round of casino operator new group: the U.S. investment fund Colony Capital took 15% and put 100 million euros on the table. What to shoot everything that moves in France and Europe.

Profitability. Starting with the future casinos in Toulouse and Lille. They are also ready to pounce on the City of Brussels, which promises the imminent opening of its first facility in-house. Groupe Lucien Barrière is also closely following the case of the Netherlands: the upcoming privatization of the public holding Holland Casino whets your appetite. “In each of its operations, if successful in the tender, it will put 50 million euros on the table, prices of the concession and construction included. But the bankers will fund more easily diversified as a big casino operator Lucien Barrière group less than solid. This gives a good head start to the new entity, “says our expert. Bankers are not the last to salivate at the profitability of casinos: where traditional hospitality reported a little over 10% return on investment, casino spits 14.5%.

NOTHING MORE VA for two tellers from the Casino of Enghien-les-Bains (Val-d’Oise). Suspected of embezzling nearly 400 000 € fund the first gambling establishment in France, they were indicted last week for “theft” by a magistrate in Pontoise and detained. A first suspect was arrested and also indicted in November last year after discovering a hole in the accounts so this casino has cleared the last year nearly 117 million euros of turnover. “They managed to break into a loophole” The investigation began in the middle of last year due to suspicions of wrongdoing in the settlement that borders the lake of Enghien. Seized by the Economic and Financial Section of the prosecution of Pontoise, the Directorate for races and games “General Intelligence (RG) has finally identified several cashiers who had developed a clever ploy to capture a portion of the proceeds. The crux of the scam apparently was located in the vault when the cashiers were record revenues. “With a set of computer writing, they managed to break into a loophole that allowed them to leave all this money,” says a source familiar with the matter. The cashiers were also systematically studied the video surveillance system of the vault to escape the cameras. “They may have used the blind spots, slides the same source. The trio have even repeated several times by simulating the scenario of theft and diversion to ensure that the scheme was well developed. Two months ago, a head cashier has been identified and indicted. Last week, two of his former colleagues have suffered the same fate. It now remains for investigators to peel the bank accounts of suspects to trace the stolen money. Stringent safety rules, with among others the presence of about 200 cameras Originally the complaint, the casino manager Bruno Cagnon stated yesterday that this type of event was “rare”. Like all other casinos, the establishment of Enghien is subject to stringent safety rules, with among others the presence of about 200 cameras. “They have been successful in thwarting some of our active control systems using a procedure very smart,” says the director, but the passive safety has played its role. “Since the discovery of the facts, the casino has nevertheless strengthened some of its procedures, particularly in terms of revenue control.

Dominique Desseigne: “Participating in the consolidation of the casino industry”

Interview by Aude Seres

Le Figaro Economie. – You have just announced the merger of your casinos with those of the Accor Group. What is the value of such an approximation?

DOMINIQUE DESSEIGNE .- We wanted to create a European player of any player in the field of casinos. The project we just signed with the Accor Group is an agreement “win-win” in which my family has sustained 51%. It allows numerous industrial synergies, trade and finance, including procurement. This new entity will thus benefit from Accor’s sales network, including its sales offices located around the world, as well as agreements with car rental or the constitution of “package”.

How much do you encrypt the synergies?

It is a bit early to quantify them. Give us time!

Context in which this operation takes place?

We arrived in a period of consolidation of the casino market. Indeed, the pace of growth we have experienced in recent years has become slower. And in 2003, growth was zero at Park constant. In addition, both creations as extensions of casinos have become more difficult. The casinos must regroup. The choice of Accor, with whom we are working on this merger for nine months, has imposed itself. Indeed, we are together since 1987, when Accor took 34.9% of the Company for hotels and casinos in Deauville. So we have a long partnership and a long acquaintance with each other. We also rely on Colony, a fund that is particularly familiar with the casino operator and real estate sectors.

This operation in casinos foreshadows Does a broader alliance in the hotel between Accor and Groupe Lucien Barriere ?

Absolutely not. This agreement is primarily a casino operator agreement. There is no question of integration of Accor hotels. Only thirteen hotels are concerned, eleven luxury hotels Lucien Barriere , and two belonging to Accor Casinos.

What are the next steps in developing the new set?

We will devote ourselves to the creation of an actor in the forefront. This is intended to improve the profitability of this group, but also continue to participate in the ongoing consolidation of the casino industry. This course also passes through the opening of new casinos. We must also address ourselves to the optimization of the Montreux Casino, which opened only recently. We will also present on the new tenders. Moreover, within two years, we will open in Paris Hotel Fouquet’s Barrière.

What are your earnings outlook for 2004?

The 2003 gross sales of the new entity would have reached 923 million euros. The outlook for the year will depend on the growth of casinos being opened, but also increasing the stock of slot machines during the year. We hope to increase the fleet from 400 to 500 slot machines this year.

The Municipal Corporation of farm Casino Cannes is excluded from this agreement. The presence of the group Partouche , up by 15.5%, capital is it a hindrance to the formation of a cohesive group?

No. The presence of Partouche is not an obstacle. It is true that the Farmer Cannes is not yet included in the agreement. But for valuation reasons this structure, which includes our facilities on the Cote d’Azur. Indeed, it was difficult to develop this company, since we will soon open the third casino in Cannes. This casino will have a very high-end positioning, levels of casinos in London and Monaco. We hope to optimize this property within four years.

Do you think war is a casino and in particular with Partouche , your biggest rival?

I do not lie on the ground of “War of the casinos.” For now, I am dedicated to this win-win with Accor and Colony, and development of the new group of casinos. With each day as it comes.

The alliance between Accor and Barriere fears a worsening of working conditions in the gambling houses of the Franco-Swiss region.

This is not a “war of casinos’ declared, but it looks like. In business circles as in union circles, the announcement this week by French firms and Accor Casinos Barriere their upcoming merger to create “a group of any player in the casino business” causing a stir. First, it will drop Partouche in his role as leader, after a fierce competition on the European market. Then the new entity is striking for its imposing size: Group Lucien Barriere lead 37 casinos, including those of Deauville, Enghien, La Baule, Bordeaux, Biarritz, Nice, but Montreux, Fribourg and Courrendlin (JU), or about 5,000 slot machines. The category “luxury hotels” is as important with 13 establishments, the restaurant business or the famous brand Le Fouquet’s on the Champs-Elysees in Paris. Who says better?

To manage this heritage of international renown, an alliance: the Group Lucien Barriere is 51% owned by the family Desseigne barrier and 34% by Accor Casinos. The remaining 15% returning to Colony Capital, the U.S. investment fund injecting 100 million euros – more than one tenth of the total turnover in 2003 – to strengthen the financial structure. A wedding “necessary” between the two giants of the hospitality and entertainment, which today rely on the argument of profitability, reduction in net debt of the Accor Group or reduction of operating costs to justify their decision .

the reality of employees
At the headquarters of Accor in Paris, a spokesman merely explain that the transaction will be “effective in 4-5 months” and that “it will, among others to save money on buying equipment.” But behind the grand showcase of luxury hotels and casinos luxury, lurked less attractive reality: that of employees. Whether casinos run in France, Belgium or Switzerland, the precarious working conditions more than once alerted the trade unions. Even led to strikes. Some observers worry about the future impact of the new covenant on staff.

In the race for profits, the Accor Group (the European leader in the world of travel, tourism and corporate services, with over 150,000 employees in 140 countries) behind some nice pots. Accor does not “factory” not always “smile”, as claimed, however, the slogan of the multinational. In the field of hospitality, the company has been taken to task in 2002 by MEPs on its policy of subcontracting, and accused of imposing its infernal cadences immigrant employees. Several cases have come before the French courts, among other “illicit lending for labor” in the various units of the group. In 2003, Accor Casinos would still wipe the protests from his home games in Dinant (Belgium), where dealers were threatening to strike. Then the discontent of the casino employees of Fribourg, under pressure from its opening in February.

Battle Lake Geneva
The old struggle that engaged in positions for years Accor, Gates and family Partouche seems particularly exacerbated in the vicinity of Lake Geneva, which concentrates the highest density of casinos in Europe. Here, we fight to attract a clientele wealthy Franco-Swiss (Saint-Julien en Genevois, Annemasse, Meyrin, Divonne, Evian, Montreux) … Transposed into the realm of employment, this rivalry slots claimed many victims.

Last August, the Interprofessional Union of Workers (SIT) had intervened to denounce the abuses seen at the opening of the Casino du Lac Meyrin (Geneva, led by the group Partouche ): flow of overtime, low wages, high staff turnover and use of foreign labor, mostly French … This crisis scenario is becoming a habit. Especially since opening in March 2003 in Montreux, the largest casino in western Switzerland, the only one to hold the license A in the region, operated by the family barrier: it still has revived the competition.

It’s done now. The group Tranchant and society SOCRA, specializing in commercial real estate, signed ownership papers on two parcels of ZAC Saint-Jean, Cagnes sur Mer, a total of 9.85 million, land on which they found themselves in competition with Ikea. This sum will be used firstly to repay the 5.7 million committed by the company Swan Hill, the main private shareholder of SEMDAC (semi-public company responsible for development and management of Cagnes-surma ). On the other hand, nearly 2 million will be used to secure an area irrigated by the Malvan and fund road works on the business park, located next to the freeway that leads to La Colle-sur-Loup .

The group ” Edge “, which wanted to expand and could not do on the waterfront, will build a new casino of nearly 4500 m2 for $ 15 million. The creation of a theater, built within the casino, would also being negotiated with elected Cagnes. As for the company “SOCRATES”, it expects to achieve over 20 000m2 of commercial space to be rented. The project, which will soon go into departmental commission for Commercial Equipment (CEDC), also includes the construction, underground, a parking lot.

City Council Amnéville vote for breaking with the group Edge . It is justice for a decision.

A further step was taken Thursday night to the break between the city of Amneville (Moselle) and group Edge , manager of the Casino. The City Council voted a resolution in effect that goes in the direction of the end of the contract granting the casino management group to private. If the court confirms that decision and accesses to the wishes of the mayor (various right) John Kieffer, it will be a first in France. The goal is for the municipality to award the management of a casino in municipal governance. For its part, the current casino operator will argue that the very strict legislation relating to gaming and in particular casino can not operate at a town hall itself an institution of this kind.

The Santenay Casino has just opened its doors to fifteen new slot machines, bringing to 150 the total number of beautiful seductive American component park.

With an average of 600 visitors per day and peaks up to a thousand people on weekends, all of the 135 machines often displayed in full effect and the casino management had submitted to the Ministry of Interior in June a file request to expand its offering of games. It has been approved and has enabled the integration into the existing squad of fifteen new models come in a straight line from Las Vegas, capital of the world games.

They were greeted at the scene a few days ago by the technical team of the institution Santenay and representatives of MFC who worked all night to install them. Each of these new machines to 0.20 €, 0, 50 €, 1 € or 2 €. Is currently marked by a placard.

Like their counterparts already in place, these new arrivals were put in unison, rattling, flash and glitter to attract the attention of visitors. All carry a small charming name: Lucky in Love, Flame of Olympus, Double Dragon or Red Eyes Nickel, Frog Prince and Enchanted Unicorn, designed to attract and retain the player, because we know that some (s) client (e ) s will choose a model and come back regularly to his appointments in the great room carpeted in red, talk face to face with the elected (e) of their heart. Proof that there are still people who think that loyalty pays.