Betfred is the winning bidder for the Tote

3 June 2011

UK-based bookie Betfred has actually been chosen to purchase the Tote after an auction procedure that began in November.

BBC organization editor Robert Peston said Culture Secretary Jeremy Hunt had actually selected Betfred although the offer had actually not been completed, with some technicalities still being arranged out.

The cost is not yet known but Betfred is believed to have bid about ₤ 200m.

Half of the cost will go to the racing market and racing charities, and many of the rest will go to the government.

The racing market may be dissatisfied, since it was understood to have actually preferred the competing quote from SIP, a consortium led by British Airways chairman Martin Broughton.

Successive governments have actually been attempting to privatise the Tote for about 14 years, however have actually never come this promotion code close to doing so.

The government is hoping that the offer will not fall foul of EU state aid guidelines or be reversed by a judicial evaluation.

Jockey opposition

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

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

The Tote is based in Wigan, with more than 4,000 staff, and presently injects half its profits into racing.

Last year, Chancellor George Osborne guaranteed to protect worth for taxpayers while recognising the assistance the Tote provided to the industry.

The Tote gave practically ₤ 19m to horse racing in 2010.

Efforts over the past 3 years to sell off the Tote hit issues, and the federal government faces getting a lower price than the ₤ 400m mooted in 2007.

The Jockey Club opposes the sale and wants the Tote to stay independent.

The Tote has 517 High Street betting shops and the monopoly to run swimming pool wagering online and at 60 racecourses in the UK.