Having exhausted all practicable sale options, the Government has decided to draw a close to the period of exclusive negotiation with racing.

The Government now intends to prepare for an open market sale, and will appoint advisers shortly to advise on strategic options. Advisers will look at all the sale options to establish which will maximise value for the taxpayer. 

The sale of the Tote is part of the Government’s wider policy of ending its direct involvement in the administration and financing of horseracing.

Minister for Sport Gerry Sutcliffe said:

“It is with great regret that the Government has declined the offer. However, we stand fully behind our commitment to make available to racing half the net proceeds of any open market sale. We will now be considering urgently how best to give effect to that undertaking in ways which meet the needs of racing, do not add unnecessary bureaucracy and are consistent with European state aid and competition regulations.”

The Government is also taking steps to appoint a Chair to oversee the process of preparing the Tote for sale. The current interim Chair, Sir Ian Good, will continue in this role until an appointment is made.

Pending the appointment of sale advisers, the Government is happy to receive any initial expressions of interest to acquire the Tote’s businesses. 

Notes to Editors

1. A copy of the written statement is available online.

2. The Horserace Totalisator Board (“the Tote”) is a statutory body created by an Act of Parliament in 1928. The Tote is one of the principal betting organisations in Britain with more than 4,000 employees, over 450 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 horseraces at race courses in the UK, which is marketed as Totepool. Total Group turnover is over £2.4billion. Profits in 06/07 increased by 27% to £30.7million.

3. The consortium of racing interests comprises the Race Course Association, the Racehorse Owners Association, and the management and staff of the Tote.

4. The Government’s original intention was to sell the Tote to a racing trust in 2005 until it became clear that, by offering the Tote below open market value, the sale would have breached European state aid and competition rules.