Ladbrokes 'would launch rival Tote service'

Betting group Ladbrokes is planning to launch a rival operation if the Government does not let it bid to run the Tote.

The world's biggest bookmaker said it would create a rival to the state run betting group if it and other bookmakers were not given the chance to bid for the Tote.

The Government plans to transfer the Tote to be run by a racing trust, made up of members of the British Horseracing Board and the new regulator who replaces the Jockey Club, with any profits going back into horse racing.

The transfer, which is expected to be included in new gambling legislation at the end of this year or beginning of next year, will be for a market price, with the Government keeping around half of the total raised.

But Ladbrokes, which is part of Watford-based leisure group Hilton, thinks bookmakers such as itself, William Hill, and Coral should be allowed to play a role in the Tote's privatisation or that pooled betting should be opened up to more competition.

It has also voiced concerns that the Tote, which is made up of the pool betting operation and 400 shops, will be undervalued.

It claims the shops alone could be worth between £350 million and £400 million, based on the £1 million each that bookmaker Coral's shops were sold for.

A Ladbrokes spokeswoman said: "The Tote only accounts for 2.5% of horse betting turnover of £8 billion.

"We believe its only 2.5% of the market because it is such poor value.

"It should be opened up to competition. Five years down the line 10% of horse betting could be in pool betting if it is."

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