Statement on future of the Tote

077/2008
21 July 2008

The Government has begun preparations for a possible sale of the Tote on the open market in the autumn, Sports Minister Gerry Sutcliffe said in a written statement to Parliament today.

However he made it clear that no final decision to launch a sale has been taken and that the Government will need to be satisfied that it is right to proceed with a sale in the light of market conditions at the time.

Mr Sutcliffe said:

“The Government remains of the view that it is appropriate that it removes itself from detailed involvement in the affairs of the racing and bookmaking industries. We also want to give certainty to the Tote and its businesses so that they can develop and flourish for the benefit of their staff and racing.

“Having received preliminary views from our advisers on the strategic options available with regard to the Tote, it is clear that the Tote is a highly attractive asset which would enjoy significant interest if brought to market in an open auction.

“However the Government will need to be satisfied that it is right to proceed with a sale in the light of current market conditions. The Government intends to commission detailed work on the Tote to be undertaken during the course of the summer, which would provide the necessary groundwork to launch a sale in the autumn.

“This work will also provide further data on the company which would enable the Government and the Tote Board to consider how best to create further value inside the Tote if, in the light of market conditions, the Government decided in the autumn not to proceed to a sale at that time.”
 
Mr Sutcliffe also paid tribute to the Tote staff in Wigan:

“I would like to place on record its warm appreciation of the fortitude and professionalism of the Tote’s staff up and down the country at this time. If a sale of the Tote were to proceed the Government would emphasise in any sale documentation and process both the quality of the Tote’s workforce and the North West as an excellent business destination.”

Notes to Editors

  1. A copy of the written statement is available within the ministers' speeches section of the DCMS website.
  2. The Horserace Totalisator Board (“the Tote”) is a statutory body created by an Act of Parliament in 1928.  It is currently incorporated under the Betting, Gaming and Lotteries Act 1963. The Tote is one of the principal betting organisations in Britain with more than 4,000 employees, over 540 shops, a major presence on the 59 racecourses in Britain, as well as internet and telephone betting facilities. The Tote offers a full range of fixed odds bets and also holds and operates the monopoly to conduct pool betting on horse races at race courses in the UK, which is marketed as Totepool. Total Group turnover is over £2.4billion.

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