Betfred is the winning bidder for the Tote
3 June 2011
UK-based bookie Betfred has been selected to purchase the yohaig code Tote after an auction process that began in November.
BBC business editor Robert Peston stated Culture Secretary Jeremy Hunt had selected Betfred although the deal had actually not been completed, with some technicalities still being figured out.
The price is not yet known however Betfred is thought to have actually bid about ₤ 200m.
Half of the cost will go to the racing industry and racing charities, and the majority of the rest will go to the government.
The racing market may be disappointed, due to the fact that it was understood to have actually chosen the competing quote from SIP, a consortium led by British Airways chairman Martin Broughton.
Successive federal governments have been attempting to privatise the Tote for about 14 years, however have actually never ever come this promotion code near doing so.
The government is hoping that the deal will not fall nasty of EU state aid rules or be overturned 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 takes pleasure in 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 personnel, and currently injects half its profits into racing.
In 2015, Chancellor George Osborne promised to protect worth for taxpayers while acknowledging the support the Tote offered to the market.
The Tote provided nearly ₤ 19m to horse racing in 2010.
Efforts over the past three years to sell off the Tote hit problems, and the federal government faces getting a lower price than the ₤ 400m mooted in 2007.
The Jockey Club opposes the sale and desires the Tote to remain independent.
The Tote has 517 High Street wagering shops and the monopoly to run pool betting online and at 60 racecourses in the UK.
