Sports betting in the United Kingdom has not been affected by the most recent increase in the Remote Gambling Duty (RGD). However, what lies ahead for the Tote now needs a closer look.
The Tote Lands £50m in Partnership
The Tote will be able to continue and operate its horse racing bookmaker business, news has emerged. The company’s owners have reached a partnership with the UK’s racecourses in order to secure £50 million in additional funding, with the company expanding its breadth of operation to feature 55 racecourses globally.
As such, the Tote will pool funds from all over the world and also pay out to a more diverse crowd of horse racing fans. The owner, Britbet, will focus on creating a more flexible operator, which will strive towards profitability. It’s worth noting that Britbet is a newly-emerged entity, which was established with the help of respected shareholders, including the Arena Racing Company and Scottish Racing Banners.
Responsibilities will be divided equally by everyone involved. The Tote’s owners will be in charge of digital output and growth, sources revealed. This is seen as an essential aspect to the development of the operator.
With Britbet taking the helm, new workers will be employed at the existing betting shops and the owners will use the newly added £50 million to keep things running.
The Future of UK Tote Betting
There have been quite a few unknowns about what the next logical step for Tote could be. The company maintained an unchallenged monopoly for nearly seven years, but now things are about to change up. The CEO, Alex Frost, has managed to secure a 25% stake from Betfred in May, 2018 and the racetracks pushing ahead to create Britbet as a rival entity.
Mr. Frost has made a comment that his utmost priority was to ensure that British horse racing operators are here to stay and indicated that the company is prepared to bolster up the country’s finances necessary to maintaining a vibrant horse racing industry.
He also elaborated on the nature of the deal, saying that it has a central role in making sure that the Tote continues to develop. A similar deal was struck with Ascot not so long ago, too.
The Tote has stated that at the time no information can be cited as to what the exact expectations from the Tote presently are. Speaking to a media outlet, however, the company mentioned that it would hope to get an EBITDA of £65-odd million by 2024, which would constitute a result that everyone feels comfortable with.
The £50 million allocated to the Tote will not only help restore a business. The money will directly influence how British horse racing is seen across the world, with the funds used to promote the activity.
After a hectic year, the Tote is finally back to normal. The company will be involved with multiple entities, too, including At The Races (ATR), the Racecourse Media Group (RMG), and GBI Racing and achieve the stated goals.