Colossus Bets in Gambit to Usurp the Tote at UK Racetracks

Posted by Admin September 19, 2024 Gambling

Posted on: September 19, 2024, 08:33h.

Last updated on: September 19, 2024, 09:35h.

Online parimutuel betting company Colossus Bets has launched a bid to usurp the Tote’s longstanding position at UK racetracks.

Sources who spoke to The Telegraph said that Colossus has approached the country’s 59 tracks, more commonly called race courses in the UK, with an offer that is being taken seriously.

The Jockey Club, Arena Racing Company (ARC), and Large Independent Racecourses group, which collectively own the majority of these courses, are engaged in talks about Colossus’ offer, the sources claim. The offer will only be accepted if these parties can find consensus, they added.

The current arrangement with the Tote doesn’t really work for a lot of us,” a source told The Telegraph. “There’s potential for Colossus to change that, but we’re miles away from doing a deal.

Ubiquitous Presence

The Tote has been a ubiquitous presence at race courses throughout the UK since 1928. That year, a bill introduced by Winston Churchill established the state-owned pool betting services to combat illegal gambling and provide revenues for the sport.

The British government privatized the Tote in 2011, selling it to Betfred, which later sold it on to a consortium of investors who rebranded to The Tote Group. The group pays around £13 million (US$16 million) a year to the race courses for the right to offer on-track betting.

Colossus’ offer may face resistance from the industry because many owners and breeders are believed to have invested in the Tote Group.

Colossus Bets was formed in 2013 by Bernard Marantelli and Zeljko Ranogajec with a mission to modernize parimutuel betting to make it more competitive with the fixed-odds betting markets. This included the creation of new features, such as Cash Out options and Syndicates, a product that allows gamblers to share the cost of their bets and winnings with fellow players.

The Telegraph source said Colossus would still have to “prove their credibility,” adding that the situation was politically charged.

‘The Loch Ness Monster’

Colossus co-founder Ranogajec has been described as one of the most successful professional gamblers in the world and is said to be worth billions of dollars. The Australian first made a fortune as a blackjack card counter before turning his attention to horses.

According to documents filed to an Australian court in 2012, Ranogajec at the time was placing more than AU$750 million (US$510 million) a year in bets.

The reclusive gambler has been given the nickname “the Loch Ness Monster” in his native Australia because he is so rarely seen.