Published on: September 19, 2024, 08:33h.
Last updated on: September 19, 2024, 08:33h.
Colossus Bets, an online parimutuel betting company, is making a move to challenge the Tote’s long-standing dominance at UK racetracks.
Sources cited by The Telegraph revealed that Colossus has approached the 59 tracks, known as racecourses in the UK, with a serious offer that is being considered.
The Jockey Club, Arena Racing Company (ARC), and Large Independent Racecourses group, who collectively own most of the tracks, are in discussions regarding Colossus’s proposal, according to the sources. They mentioned that the offer will only be accepted if all parties can reach an agreement.
One source told The Telegraph, “The current agreement with the Tote is not satisfactory for many of us. Colossus has the potential to change that, but we are still far from making a deal.”
Widespread Presence
Since 1928, the Tote has held a prominent position at racecourses across the UK. It was established that year by a bill introduced by Winston Churchill to provide legal betting services and generate revenue for the sport.
In 2011, the British government privatized the Tote, selling it to Betfred, which later passed it on to a group of investors that rebranded it as The Tote Group. The group pays approximately £13 million (US$16 million) annually to the racecourses for the right to offer on-track betting.
Colossus’ offer may encounter resistance from the industry due to the belief that many owners and breeders have investments in the Tote Group.
Founded in 2013 by Bernard Marantelli and Zeljko Ranogajec, Colossus Bets aims to modernize parimutuel betting to compete with fixed-odds markets by introducing new features such as Cash Out options and Syndicates, which allow gamblers to share bets and winnings with others.
A source from The Telegraph mentioned that Colossus will need to establish their credibility and highlighted the politically charged nature of the situation.
‘The Loch Ness Monster’
Co-founder Ranogajec of Colossus has been described as one of the most successful professional gamblers globally, with a net worth in the billions. Starting as a blackjack card counter, he later shifted to horse betting and was reportedly placing over AU$750 million (US$510 million) in bets annually as of 2012.
Known as “the Loch Ness Monster” in Australia due to his reclusive nature, Ranogajec remains a mysterious figure in the gambling world.