The Tote holds a legendary status in British sports betting, with a history dating back to 1928. Its unique approach to betting introduced a new way for punters to wager, and although much has evolved since its inception, the essence of Tote betting remains largely unchanged.
How the Tote Works:
At its core, Tote betting is pool betting. Instead of betting against fixed odds from a bookmaker, punters place their money into a pool for a specific market. If their bet wins, their payout is a share of the pool—proportional to their stake—called a dividend. This approach initially transformed betting on horse racing and has since been adapted for various other sports.
The Early Days:
The Tote was founded in 1928, not by private bookmakers but under government oversight, with Winston Churchill playing a pivotal role in its establishment. In a time when the betting industry was often chaotic, the Tote aimed to provide a safer betting environment. The Racehorse Betting Control Board oversaw operations, and by 1929, the Tote began taking bets at major race meetings like Newmarket and Carlisle. Its innovative pool betting approach, backed by the government, quickly attracted punters, marking its early success.
By 1930, Tote Investors Limited was established to ensure the Tote’s practices were aligned with the interests of both the company and horse racing. The Tote continued to grow steadily, and by the 1960s, it had become a key player in UK betting. The Betting Levy Act of 1961 legalized betting shops, and though many bookmakers rapidly opened high street locations, the Tote was initially restricted to racecourses, maintaining its unique reputation and government-aligned mission.
High Street Expansion:
In 1972, the Tote’s restrictions were lifted, allowing it to open high street shops. This expansion followed growing demand from punters and board members. With the opportunity to reach a wider audience and offer bets on more sports, the Tote quickly gained popularity, establishing hundreds of shops and a significant presence at racecourses across the UK. By the mid-1980s, the Tote continued to innovate, introducing live sports coverage in its shops.
Collaborations and Growth:
In 1992, the Tote struck a deal with high street bookmakers like Ladbrokes, Coral, and William Hill, who began offering Tote pool betting in their shops through Tote Direct. This partnership gave the Tote a massive new audience, further solidifying its position in the UK betting landscape.
By the late 1990s, the Tote was recognized as one of the world’s leading parimutuel betting companies. Its commitment to horse racing earned it unique partnerships, including collaborations with Channel 4 Racing to showcase bets like the Scoop6, which awarded substantial payouts to lucky punters.
Push for Privatisation:
For decades, the Tote’s government ownership provided reassurance to punters. But by the late 1980s, discussions around privatization began, though initial attempts failed due to industry pushback. In 2004, Labour’s Jack Straw made significant headway, passing the Horserace Betting and Olympic Lottery Act, which set the stage for future bids.
Several privatization attempts in the late 2000s failed for various reasons, including changes in financial markets and regulatory shifts. It wasn’t until 2011, under a coalition government, that the Tote was officially put up for sale. Following a lengthy bidding process involving 18 companies, Betfred secured the Tote in June 2011 for £265 million.
Why Betfred Wanted the Tote:
Betfred’s founder, Fred Done, was long familiar with the UK betting scene. Securing the Tote granted Betfred access to 60 UK racecourses and over 500 betting shops, bolstering its presence in the market. The deal also required Betfred to allocate millions to the horse racing industry over subsequent years.
The Future of the Tote:
Betfred’s exclusive rights to the Tote at UK racecourses extended until 2018. However, tensions between Betfred and the racing community arose, with some arguing that the company wasn’t contributing enough to the sport. As a result, the Jockey Club and Arena Racing Company (ARC) began working on an alternative bid for UK pool betting, aiming to channel more funds into horse racing. Backed by the majority of UK racecourses, this potential takeover reflects ongoing efforts to ensure the Tote’s legacy continues to support British horse racing.
Photo: JC
