Tote to be sold to private sector
Published on 10 March 2008
State-controlled bookmaker Tote has been put up for sale, the government has officially announced.
The Department for Culture, Media and Sport said it was to sell-off Tote after rejecting a bid from a racing consortium whose offer was lower than the £400 million price tag sought.
Under EU laws the sale couldn’t take place because the bid was lower than the independently assessed value of £400 million.
So far Gala Coral have indicated they may be interested in bidding for Tote. The Racehorse Owners Association however, who were part of the bid consortium, say that Tote must stay within racing.
Minister for sport, Gerry Sutcliffe commented that the government had to reject the racing consortium’s offer with “great regret”.
President of the Racehorse Owners Association, Paul Dixon said: “The announcement… should mark the time when everyone in racing backs a campaign to keep the Tote within racing.
“It is not acceptable to have a bookmaker owning the Tote, especially with a seven-year exclusive pool-betting licence.”
Gala Coral said it was up to the government to open up the sale and confirmed an interest in buying the Tote.
Gala Coral spokesman, Simon Clare said, “The opportunity to buy the Tote would be welcomed.”
Betfred and Paddy Power are two other bookmakers that could be interested in buying the Tote.
The government t has pledged that half the money of the sale of the Tote will go to the racing industry.
The government made an election commitment to sell the Tote in its 2001 election manifesto.
Shadow culture secretary, Conservative Jeremy Hunt said: “The government promised in 2001 that the proceeds of the Tote would go to racing.
“After seven years, they are now effectively back to square one.”
The Tote, which is short for Horserace Totalisator Board, was founded by the great Winston Churchill in 1928. It was set up as a safe haven for punters so they could avoid the illegal bookmakers.
The Tote today employs over 4,000 people and is a feature at all racecourses across the country.
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