Colossus Bets makes offer to Britain's racecourses to replace Tote as pool betting partner

Pool betting operator and technology provider Colossus Bets has offered racing the chance to take "risk-free control of its own destiny" after making a proposal to replace the UK Tote Group as partner of the majority of British racecourses.

The offer, first reported by the Daily Telegraph this week, comes with little more than a year left of the seven-year agreement signed between the Tote and the 55 racecourses which make up on-course pool betting operation Britbet. Under that deal the courses are set to receive more than £50 million over the course of the agreement, during which the Tote and Britbet have combined to offer a single pool on races.

The Tote, founded in 1928, was bought in 2011 by bookmakers Betfred, who were given a seven-year exclusive licence to run pool betting on British racing.

The consortium of owners and breeders, which now makes up the UK Tote Group, bought a 25 per cent stake in the Tote from Betfred in 2018 and took over full control the following year.

Colossus Bets is understood to have made its proposal last week to Arena Racing Company, the Jockey Club and the Large Independent Racecourse group, which includes Ascot, Chester, Goodwood, Newbury and York.

While not wishing to be drawn on ongoing commercial discussions, a Colossus Bets spokesperson said: "Our proposal will give racing the opportunity to take risk-free control of its own destiny from 2025 and to correct the missed opportunities of 2011 and 2018.

Hong Kong: collaborates with the Tote over lucrative World PoolCredit: HKJC

"On top of a substantially improved annual commitment to racecourses, the Colossus Bets offer centres around 'Racing First', building a collaboration with total control and improved commercials for racing, as it should always have been. 

"Additionally, Colossus Bets will gift the world's most advanced, innovative tote technology to racing, letting the tracks and racing finally own and control its product."

Contacted by the Racing Post, Britbet said discussions with the UK Tote Group were "ongoing and constructive", while the Tote itself said it could not comment on ongoing commercial negotiations.

In its latest set of published accounts for the year to September 24, 2023, the UK Tote Group reported that underlying earnings – which it said was the fairest representation of the performance of the business – fell to a loss of £3.3 million compared to a profit of £2.9m in 2022. As a result the Tote said it had delivered a "cost efficiency programme" and insisted it was making "strong operational progress" both domestically and internationally.

Talks between courses and the UK Tote Group over a renewal of their agreement, which runs to October 2025, are understood to have been taking place for a number of months. 

Industry insiders have questioned whether racecourses might consider alternative partners to the Tote due to commercial friction and its performance. However, there is a great deal of political sensitivity about the situation given that a number of senior figures among the Jockey Club and large independents are investors in the Tote.

The relationship with the Hong Kong Jockey Club is also an important factor given the increasing importance of World Pool, which Hong Kong hosts.

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