Betfred Poised To Sell 25% of UK's Tote Pool Betting

Published Sunday, February 25, 2018 - Online-Casinos.com
Betfred Poised To Sell 25% of UK's Tote Pool Betting

A recent report in the UK’s Sky News that Betfred founder Fred Done was in “advanced negotiations with a consortium of horseracing industry figures” regarding the sale of a 25% stake in the Tote has the gambling industry wondering what the value of such a transaction would be. It was suggested that the asking price for 25 percent of the assets could possibly bring as much as £30m into the coffers of the company. It was also implied that the deal could be complete “within weeks.”

A war of words has developed over the past few years and last September Done claimed publicly that the company’s “association with racing is broken.” Apparently the horseracing consortium that Done is in advanced negotiations with was led by Eamon Wilmott, chairman of racing technology provider Total Performance Data and a former board member of the British Horseracing Authority.

Recently Mr. Done has said he will remove the majority of Betfred’s local  betting shops and stop his company’s commercial relationships with horseracing after the expiration of Betfred’s exclusive pool betting arrangement in July of 2018.  

The seven year deal signed in 2011 gave Betfred the exclusive right to offer Tote wagering on all UK horseraces. Now however an increasingly troubled relationship with horseracing has moved stakeholders to organize plans to launch their own pool betting service which is now officially branded as Britbet coming after the 2018 expiration of Betfred’s special arrangement.

Sky News maintains that the Founder of Betfred believes the Tote will witness continued growth in part  based on Done’s assertion that Britbet will be unable to compete with the liquidity offered by the Tote. It has also been suggested by Sky News that the racing consortium that Done is negotiating with has pledged ‘tens of millions of pounds’ to market the Tote.  Done is confident that the only organisation in the UK which is allowed to run pool betting on horseracing can ‘significantly’ increase its market share.

 

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