Tote Goes To Betfred Following Auction

UK-based bookmaker Betfred’s bid has been chosen to buy the Tote, following an auction process that began in November.

According to media reports, Culture secretary Jeremy Hunt chose Betfred – although the deal had not yet been completed, with some technicalities still to sort out.

The bid is thought to be around £200m, with half the fee going to the racing industry and racing charities, and most of the rest going to the government, who owns the Tote.

The racing industry may be disappointed, with media reports indicating that a rival bid from SIP, a consortium led by British Airways chairman Martin Broughton, was preferred.  

Successive governments have been trying to privatize the Tote for about 14 years, but have never come this close to doing so.

For the deal to finally go ahead, the government is hoping that the deal will not fall foul of EU state aid rules or be overturned by a judicial review.

The Tote was set up 83 years ago to provide a safe haven for punters, controlled by the state, and beyond the reach of illegal bookmakers.

It enjoys a monopoly of horse race pool-betting in exchange for a guarantee that money was pumped back into the sport.

The Tote is based in Wigan, with more than 4,000 staff, and currently gives half of its profits back to racing.

The Jockey Club has openly opposed the sale, and wants the Tote to remain independent.