Horse betting, a potential business in China?

Germond said he has similar hopes for the Chinese market if the activity is legalized in the country. PMU is looking at exporting its products and services to China, which will allow Chinese punters to directly bet on French horse races in the future.

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"The people of France spend more than 9 billion euros on betting on horse races a year. That's a country with only about 60 million inhabitants. You can imagine the potential will be huge for a country with a population the size of China," he said.

But Germond admitted that betting on an overnight change of heart by the Chinese government on horse-race gambling remains a long shot.

Some industry experts said legalizing betting on horse races still remains a sensitive subject in China because the government may worry about its negative effect on social stability and financial security.

"We may benefit in the future but we understand that it is not just a business decision but also a political decision for the central government," he said, noting that the first step should be building a high quality international-standard equine industry in China including breeding, training and organizing races.

France Galop, the governing body that regulates flat and jump races in France and the parent company that owns PMU, has signed an agreement on the exchange of horse-race sponsorship and the export of French horses with Chinese company Desert Star Holdings Ltd, a Hong Kong-registered investment company in the equine business and the main investor in the Tianjin horse-racing project.

"It is an opportunity for us to bring our experience and knowledge to China. The project of creating a ‘horse city' in Tianjin seems extremely attractive to us," said Bertrand Belinguier, the president of France Galop.