By Rob van der Gaast

In 2001 Frenchman Emmanuel de Rohan Chabot launched ZEturf, together with a group of passionate horse lovers. Now, eight years later and after many legal battles, the pool-betting operator has more than 65,000 active users. ZEturf, working with a Maltese License, now has a staff of 25 and a website in French, English and Spanish.

The 45-year old general manager, who has three children, studied Economics and Law in France and later worked in accounting, and then managed a private equity investment fund in France.

The general manager has no shares but he has some stock options. The main shareholders are Maltese and Austrian Financial investors.

Rob van der Gaast: How did you get in touch with the gambling industry?

Emmanuel de Rohan Chabot: At a time I realized, in 2000 around, that there were, at least in France no information sites for horse racing punters. So I started one, called Zeturf.com. It was also rather clear already that, one day or the other, the European gambling market would have to open (even if at that time PMU people were thinking that the monopoly would last for minimum one more century). Having a free information internet site since the early 2000's was not a really relevant model. So, when I saw the premises of a European liberalization (Gambelli, late 2003) and was contacted by my present investors, I decided to move.

RvdG: When did ZEturf get problems with the French monopolistic authorities? What happened then... A shock?

EdRC: My first analysis was that France, and PMU, would not attack us, as it might trigger a strong reaction from the Brussels Commission and urge the opening pace. I have been right for less than one week, just the time to receive the summons from France. A shock, yes, but rather exciting...

RvdG: At a certain moment PMU had the right to sanction the unauthorized organization of lotteries with two years of imprisonment and a fine of 30,000 euro for each violation. Could you travel to France during that time? During which period you could not enter your country and how was that period?

EdRC: No! I neither did, at least not "officially". That lasted from June 2005 till May 2007. Then the French police, to come and "explain", called me. What I did. I've been spending two days in custody and was then charged and bailed for "illegal gaming".

RvdG: When did you get involved with ULY Thibault Verbiest's law firm?

EdRC: At that time back in 2005 and 2006, T. Verbiest was the only lawyer involved in gaming. This is not the case anymore. He was more an advisor for me than a lawyer. Our principal lawyers are now in Malta, Dr. Farrugia and Dr. Miggiani and in France Me. Delgrange, Cabinet Wenner and for the criminal case Me. Haïk.

RvdG: Which court cases are still pending?

EdRC: Two court cases are still on going. One criminal, against me and a pending civil appeal.

RvdG: You should have had deep pockets for all the legal costs.

EdRC: That was for sure the first and heaviest line in my expenses...

RvdG: What about this Charlie McCreevy, the EU financial services commissioner?

EdRC: He is a strong man, defending what he believes in, even if it is not an easy job to fight against member states, specifically France who is always good in defending old monopolies.

RvdG: Will you ever foresee a free and open cross border betting market in whole Europe?

EdRC: It will come I think. 'When' is a very different question.

RvdG: Where may one find financial key information over the last three years of your company?

EdRC: Ask us... rough turnover figures are:
2005: 25 M€;
2006: 55 M€;
2007: 78 M€;
2008: 105 M€.
And we do make profit.

RvdG: How many active users do you have now? And can you split them?

EdRC: A bit more than that 90,000, coming from 40 % French, 15 % Belgians, 15 % Spanish, 15 % other European and 15 % rest of the world.

RvdG: What is Eturf, and what is the relation with you and/or with ZEturf?

EdRC: Eturf is what remains from the old information company in France (working for French newspapers). No relations anymore.

RvdG: Do you really think that there will be a sports betting privatization in France? If so, when will it take place?

EdRC: There will be an opening of the market. In 2010 probably, forfaitaire. Horseracing, "Pari Mutual" only (good for us as we have the only tote system in private hands in Europe...). Sports and poker.

RvdG: They say that the French Government is planning a partial privatization of the sports betting. Do you have any information on this subject?

EdRC: They will privatize Française des Jeux shortly, and the PMU after.

RvdG: Could it be a stock exchange privatization?

EdRC: Yes, when the market will resuscitate.

RvdG: Will they slice up La Française des Jeux?

EdRC: No clue...

RvdG: Will your company be involved in the possible bidding process, if there will be a privatization?

EdRC: For sure not! Running an internet business is fine enough for me, not 45,000 retail shops!!

RvdG: What is your biggest passion/hobby besides your professional work atmosphere?

EdRC: Traveling (far !).

RvdG: Besides interviews, what irritates you the most in the gambling industry?

EdRC: Time !