Singapore deal start of something big for Tote
Some time in June 2011, George Osborne, the Chancellor of the Exchequer, rang me to discuss the sale of the Tote.
I told him that I did not think it was his to sell, but that fell on deaf ears. I added that if he did sell it, under no circumstances should the buyer be a bookmaker. He promptly sold it to Betfred, which ran it until 2019.
The current management and a broad church of racing enthusiasts then invested in it, and they introduced very favourable terms for racing.
So, while the Tote is not a not-for-profit organisation, it is certainly a benevolent force for good as far as racing’s future is concerned.
Since 2019, the Tote’s turnover on British racing has increased by 74 per cent. But many feel that is disappointing progress, given the deal that it offers punters.
On 25 per cent of races, the Tote win price beats the industry (bookmakers’) starting price and it always matches it on the remaining occasions. It also offers some fantastic bets that the bookmakers do not offer, such as the Placepot (getting a placed horse in six races). The record payout for a £1 stake was at Newcastle, where it produced £129,858.80.
The first four horses home in the Grand National all paid out at significantly bigger odds on the Tote than they did on the bookmakers’ starting prices.
But perhaps one of the biggest factors that should be working in favour of the Tote is that it never has, and never will, close a winning punter’s account. Because, as a pool operator, it does not care who wins.
However, a week never goes by without someone complaining that bookmakers either will not take their bets or that they have shut their accounts down. So, why are they not betting with the Tote?
Some would argue that they like to hunt around and take early fixed-odds prices. But the reality is that the bookmakers restrict the amount any punter can get on to a tiny amount.
The vast majority of bets on a race are taken in the 10 minutes running up to it, at which point it is difficult to beat the starting price anyway.
There is no question that the bigger the pool, the less big-hitting punters will crash the win odds of their selections, as opinions and the weight of wagers will be more spread out. That is particularly true when there is an international mix of punters.
So, last week’s announcement that all of Singapore and Britain’s pools will commingle feels like the start of something big for the Tote. It is a massive step forward, due in no part to the quality of British racing.
It is obviously a win for British racing, too, because the bigger the pool, the larger the return to the sport. And a timely reminder as to why the sport in Britain needs to retain the quality of horses that punters want to bet on. The sort of horses leaving these shores in droves to chase greater riches worldwide.
Racing and wagering are competitive businesses. The spokesman in Singapore made that point when he said: “Singapore Pools will continue to bring quality products from around the world and elevate the racing experience for all.”
Those words should have been ringing in the ears of Newmarket racecourse, which is owned by the Jockey Club.
Britain’s racecourses currently host 20 World Pool days. Winfried Engelbrecht-bresges, the chief executive of the Hong Kong Jockey Club, came up with the idea of commingling tote pools from different parts of the world to bolster liquidity and the flow of money coming back into racing.
When a racecourse in Britain hosts an entire meeting, it can expect to earn £750,000. But
Politicians must understand that keeping better horses in Britain is how more World Pool days will be based here
competition to get races into the World Pool is intense, and only the 1,000 and 2,000 Guineas make it into the pool from two days’ racing at Newmarket, whereas every race at Royal Ascot features.
Politicians need to understand that keeping better horses in Britain is how more World Pool days will be based here. But to retain the horses who make that happen, a fairer Levy deal needs to be struck.
A Levy on the bets that bookmakers take on overseas racing is the obvious compromise, and would bring £25million back to racing.
But the Government expecting the bookmakers and racing to agree a deal is like telling Celtic and Rangers fans to kiss and make up.