British state-owned bookmaker sale on hold


The fate of the British state-owned bookmaker firm The Tote has taken another twist in the long-running saga of its disposal. This week the government decided to put a hold on the planned sale of the company due to the poor economic conditions currently being experienced around the world.

In a statement to the British Parliament, Minister for Sport Gerry Sutcliffe said: "I have now concluded that it is not appropriate to pursue a sale in these market conditions. I have therefore decided that the Tote should be retained in public ownership for the medium-term, and brought to the market when conditions are likely to deliver value for the taxpayer and racing."

The latest setback comes after previous attempts to sell the business to the racing industry and a consortium backed by private equity fell through.

Sutcliffe paid tribute to the 4 000 staff at the company, which was established by Winston Churchill in 1928 and is the fourth largest bookie in the UK, saying: "The government would like to place on record again its warm appreciation of the loyalty and dedication of the Tote's staff whilst its future has been under consideration."

The disposal by the government of The Tote was one of the items on Labour's election manifesto in 2001, and has been in an out of the news headlines ever since. A sale appeared to be close to fruition last (2007) year, when a group of racecourse operators, racehorse owners and Tote management, with debt financing from Lloyds TSB bank, made a bid which subsequently failed.

This was followed, in April 2008 with the appointment by the government of investment bank Goldman Sachs to advise on its options for the enterprise, which had been estimated to be worth GBP 400 million. Sources later claimed that the investment bank had revalued the company, which has 529 betting outlets, down to between GBP 260 and 290 million.

Reuters reports that Minister Sutcliffe commented later: "It is right that the Tote is now given time to grow the business so that any future sale will achieve maximum value. In particular, I would expect the Tote and racing to continue to work closely together for the benefit of the sport and the punter."

General Gambling News Gambling Law & Society News

Login to post a comment:


 
 

Click Here to register a new account

What's going on right now!

4mins ago someone from United States played 7 Lucky Dwarfs

Casino Community

Share this page on:
Follow LCB on:
Follow LCB

Casino Of The Month

Casino of the Month

In the last 24h

Totals

  • New Members
    27
  • Members Online
    371
  • Guests
    1,712
Highest Community Rated Online Casinos
SlotsMillion
  (93 Ratings)
32 Red Casino
  (362 Ratings)
Guts Casino
  (204 Ratings)
Club USA Casino
  (289 Ratings)
Mr Green Casino
  (313 Ratings)
Buzzluck Casino
  (183 Ratings)
Lucky Red Casino
  (228 Ratings)
Videoslots.com
  (176 Ratings)
BETAT Casino
  (216 Ratings)
NextCasino
  (172 Ratings)
Bet365 Games
  (190 Ratings)
Unibet Casino
  (165 Ratings)
Betsson Casino
  (238 Ratings)
CasinoLuck
  (245 Ratings)
Betsafe Casino
  (212 Ratings)
Redbet Casino
  (174 Ratings)
ComeOn Casino
  (281 Ratings)
Spin Palace Casino
  (129 Ratings)
Casino Extreme
  (182 Ratings)
Slotty Vegas
  (127 Ratings)
Intertops Red Casino
  (139 Ratings)
Thrills Casino
  (159 Ratings)
Slotland
  (341 Ratings)
Vera John Casino
  (198 Ratings)
Sin City Casino
  (112 Ratings)
Sunnyplayer Casino
  (40 Ratings)
Huge Slots
  (36 Ratings)
Ladbrokes Casino
  (167 Ratings)
Winner Casino
  (364 Ratings)
Mummys Gold
  (141 Ratings)


Follow LCB on Facebook Follow LCB on Twitter Follow LCB on Pinterest Follow LCB on Google plus