New investors looking to overseas punters to transform pool betting in Britain

The new investors in the future of the Tote are looking to tap into the vast riches of the global market to make not only themselves money but improve British racing's finances.

That was the message from Alex Frost, chief executive of the Alizeti consortium who bought 25 per cent of the Tote this summer, who was speaking on the Luck On Sunday show on Racing UK.

Frost, an owner and breeder and former Merrill Lynch city trader, said: "There are massive massive numbers that could be funnelled back into racing with huge opportunities when you see how pools can commingle.

"We are looking further afield at global wagering with a model involving £100 billion. There are huge rewards out there, totally transformational."

After pointing out the Tote's US tie-up for the Breeders' Cup this week and ongoing commingling with Hong Kong racing, Frost added: "There is a tremendous template for Royal Ascot next year, where you could see pools going from £6-7m to the realms of £100m.

"UK horseracing is going to benefit massively, and consumers benefit accordingly with huge liquidity on offer and vastly improved products, which is hugely exciting."

Frost said that Alizeti was made up of 75 investors, none with more than a ten per cent share, frustrated with the pool betting situation and by racehorse owners' meagre returns from the sport.

He would also not be drawn on the details of promised reductions in the take-outs he called "too high" from pool bets which were increased by the Tote, much to the anger of punters and leading to a drop in turnover on the machine.

As Frost pointed out, that has seen the Tote's market share drop to four per cent.

Alizeti remains keen to buy the other three-quarters of the Tote in the next three to five years in a £150m deal.

Also speaking on the RUK show was Nigel Roddis, chief executive of Britbet, formed by 55 racecourses for their pool betting, who played down suggestions of a superbet from the commingling opportunities, while emphasising the new technology which he hopes will bring better service and products to racegoers.

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