Government prepares for Tote sale

The credit crunch may reduce how much is offered for the Tote

The government has begun to prepare for a possible sale of state-owned bookmaker, the Tote, in the autumn.

But Sports Minister Gerry Sutcliffe said that the final decision to launch the sale had not yet been taken.

Attempts to sell the business to the racing industry and a consortium backed by private equity have both fallen through in the past few years.

The Tote was established in 1928. It now employs 4,000 people and is the fourth-largest bookmaker in the UK.

Falling value?

The government made a commitment to sell the Tote in its 2001 election manifesto.

It appointed the investment bank Goldman Sachs to examine options for the business in April.

However, in a written statement to parliament Mr Sutcliffe said that the market conditions would have to be right for a sale.

Previous bids for the Tote have valued the business at about £400m, but recent reports have said the downturn in the economic climate means it may now fetch less than £300m.

The Tote, or Horserace Totalisator Board, was founded by Winston Churchill in 1928.

When it started its purpose was to offer on-course pool betting on horseracing instead of starting price betting with bookmakers.