A senior Tote source has revealed that the proportion of gross win (the amount won from punters) generated by horse racing has decreased in part because of the popularity of roulette machines.
 
The Tote, the state-owned bookmaker soon to be privatised, has seen the amount it won from punters rise by over 5%, mainly thanks to controversial touch-screen roulette machines in the group's 540 betting shops.

In a surprise move, the bookmaker omitted to say how much gross profit it made from the £500 jackpot machines, as it has done in the last two years' annual reports to parliament.

A spokesman said: "With the current climate we are in it is something we don't have to do, and we have decided not to do it."

The report for the year to March 31, which was presented to parliament at the end of last week, did however make clear gross profit had increased 3.1% to £164m "reflecting growth in the shop estate from the change in mix towards gaming machines".

The government's ownership of thousands of touch-screen roulette terminals is particularly sensitive as ministers insist they are "on probation" and recently ordered the Gambling Commission to conduct a review of such high-stakes slot machines.

Last year a survey for the commission found one-in-nine people playing on betting shop roulette machines was a problem gambler.

In 2006 these machines made up about a third of Tote betting shop gross profits. Although the bookmaker is best known for its pool betting service, in financial terms the operation is dominated by income from the 540 betting shops.

Those considering bidding for the business, if it is put up for open auction, claim they will be unable to put a value on the Tote before the regulatory status of the machines is clarified.