The Mutual Betting Group that is behind UK Tote is planning to cut down on its reliance on horse betting. Therefore, the company is going to delve into other forms of sports. The UK Tote Group has raised more than 20 million pounds in shares bought by the current investors, as per a report by Sky News.
The New Venture of UK Tote Group Into the Sports Wagering Industry
A huge part of the money that was raised is going to finance the diversification strategy for the racing wagering operator. The company is planning to enter the division of football wagering by next year. It seems that Alizeti Capital, which acquired the group back in 2019 is delving into new opportunities to expand their business. They concluded the acquisition deal with the former owners of the company, Betfred.
According to a spokesperson of Tote Group, the new opportunities that the company is seeing include getting into sportsbetting. It also aims to promote Tote to include a broad base of sports fans. The main idea is not to put all of the eggs in one basket. They aim to achieve that through diversification. One strong form of such diversification is entering the human sports betting market instead of solely focusing on horse racing.
The Horse Racing Industry Situation in the United Kingdom
The horse betting industry has been recovering at a slow pace, including Tote Group, from current events. For instance, many competitions in the horse racing industry will be played behind closed doors without the public's attendance. Also, GVC Holding was forced to sell its field wagering operations in both Ireland and the United Kingdom in October, as the betting handling of the operator was deemed minuscule. According to the Jockey Club, they expect a reduction of income this year of 90 million pounds, and they expect the damage to continue till next year.
The HBLB (Horse Betting Levy Board) stated in October that it would maintain its increased and robust support to the horse racing industry. The support will continue into the first quarter of 2021. As a result, the board allocated more than 32 million pounds in next year's budget for the first four months alone. It also allocated 7 million in regulatory grants and 650,000 pounds for managing costs for current protocols and safeguards.
On the other hand, the HBLB's President, Paul Darling, stated that this form of funding is simply unsustainable. He said that it could only be a short term thing. Therefore, he is urging everyone in the horse racing industry, including Tote Group. to work together. He urges them to come up with future plans and solutions as the contributions decline. For instance, in November, the Arena Racing Company stated that it would waive entry fees for this year. It aims to help struggling bookmakers, at least on the tracks where it is allowed to have spectators.
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