Betfred, a well-known UK bookmaker, is going to sell one-quarter of their shares in Tote, stated a media report by Sky News. Fred Done, Betfred’s founder, is in negotiations with a consortium in the racing industry. The report claims 25% of the shares will be sold and it is likely to earn the company 30 million pounds. The deal could be completed before March ends.
Eamon Wilmott is the head of the consortium, according to the news report. Wilmott is the chairman of Total Performance Data, a racing tech provider. Eamon was also a board member of the Horseracing Authority. The authority is one that Done has had words within the last couple of years.
Done stated in September of 2017 that he and his company had an “association” with the racing world that is no longer working. He said he would remove on-course betting and the commercial relationship he had with the racing world in July 2018, which is the expiration date of the betting deal he had with authority. Betfred held exclusive pool betting rights.
The 2011 Deal
Betfred had a deal for Tote wagering on UK races. The contract started in 2011 and is set to end in 2018, as a seven-year agreement. However, racing relationships have not been well in the last few years with most of the stakeholders at Betfred saying they are not going to have their betting services like Britbet.
Britbet is set to appear as soon as Betfred’s deal is over.
Done does not think more competition will hinder the Tote from working as it should, and the price point for shares that may end up sold is undoubtedly an indication of this belief.
Britbet may be able to get a little of the market share; however, they are not going to have the liquidity Tote. The consortium is going to obtain a good deal, providing it goes through. The negotiation process is said to be in the tens of millions of pounds given the market value of Tote. Done feels the Tote can keep or even increase the market share it has.
For companies looking to begin investing in the racing betting pool, an opportunity is coming. The consortium has yet to announce their plans and Done is not confirming the media report, as yet. But, with rumors of a shares sale, one should be on the lookout for changes in the industry.