Tote Wins Seven Year Licence To Operate Horserace Pool Betting
136/03
The Racing - Trust a consortium of racing interests - buying the Tote will have an exclusive licence to run pool betting for seven years, the Government announced today.
The licence will not be extended and at the end of that period there will be a new regulatory regime that will allow other operators to provide pool betting.
Sports Minister Richard Caborn said:
"Selling the Tote to the Racing Trust is the right way to fulfil the Government's commitment to sell the Tote. We firmly believe it's in the public interest to open up the pool betting market to effective competition. But we also believe a reasonable period of preparation is necessary in order to safeguard the revenue racing receives from the Tote and its successor.
"That's why we are granting the Trust a seven year exclusive licence so it can establish itself in the market. It strikes the right balance between these two priorities and I'm convinced it's the best way forward for racing, the betting industry and punters alike."
Notes to Editors
1. The Racing Trust is likely, a consortium of horseracing interests, to be made up of an independent chairman and one representative for each of the British Horseracing Board, Industry Committee, Jockey Club, Racecourse Association, Racehorse Owners Association, Tote staff, & punters.
2. The proposal to enable the sale the Tote will be included in the Horserace Betting and Olympic Lottery Bill. We hope that the Bill will be introduced to Parliament early in this Session but precise timing will depend on Parliamentary business.
3. The announcement was made via a Parliamentary statement from Richard Caborn, the text of which follows:
'The Government remains committed to the sale of the Tote, and we plan to bring forward the necessary legislative proposals very shortly.
As part of the preparations for the sale, the Government has had to consider whether the Tote's current exclusive right to offer pool betting on British horseracing should continue once it has been transferred into the private sector. We have concluded that it will be in the public interest to open up the pool betting market to effective competition, but that a reasonable preparatory period is necessary in order to safeguard the policy aims underlying the sale.
The Government has therefore decided that if our plans to sell the Tote to a racing consortium proceed, then the current intention is to issue the Tote's successor company with an exclusive licence to operate horserace pool betting on British racing for seven years.
This licence will not be extended and at the end of that period there will be a new regulatory regime that will allow other operators to provide pool betting as well.
We believe that this proposal provides necessary certainty for all concerned.'
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