Tote under investigation by UKGC for being accountable for up to 60% of bets in placepot pools

IMAGO

The UK Gambling Commission (UKGC) have launched an investigation into betting activity by pool betting operator Tote. The investigation was sparked by a bettor’s own two-year investigation into the company and its products. 

The punter’s in-depth analysis suggests that as much as 60% of placepot bets are placed by Tote themselves. The UKGC is said to be investigating whether the firm is adequately informing customers that they could be betting against Tote, rather than solely against other players. 

Check out the best UK bookmakers to claim free bets worth up to £850!

Just over a month ago, one disheartened punter submitted a report to the UKGC highlighting potential conflicts of interest in the pools betting system run by Tote. The bettor said that, in some cases, Tote was responsible for 60% of the bets placed on pari-mutuel pools. 

They went on to say that Tote enjoys a considerable advantage over regular bettors because of its market position and the access it has to betting market data. 

Tote revolutionised sports betting in the UK in 1928. During its early days, the Horserace Totalisator Board, as it was then known, was government-owned. It was overseen by the Prime Minister of the time, Winston Churchill, and set up to provide a reliable and trustworthy means of betting on horse racing. 

Illegal on-course bookmakers were commonplace around that time and the scheme was an instant success. In 1961, the scheme changed its name to the more familiar Tote: the name it is still known by today. 

However, Tote is no longer government-owned, having initially been sold to Betfred for £265m in 2011. A consortium of more than 150 investors called the UK Tote Group then purchased the scheme for £115m in 2019. 

The UK Tote Group includes prominent figures from within the industry and operates at 58 of the country’s 59 racecourses.

The premise has remained the same, despite a change in governance. Tote players choose their picks from various races, typically across a single meet on one day. Their stakes are then pooled with stakes from all other players. 

All punters who chose the winning picks take a share of the prize pot. The fewer people that correctly picked winners, the higher the winning portion.

Traditionally, the Tote has only pooled money bet by punters. However, during the Covid-19 pandemic, racing took place behind closed doors. This meant fewer punters at racecourses and less liquidity in the market. 

As a result, Tote launched the ‘Pool Guarantee Service’. This saw automated bets added to the pools up to four hours before the start of the race, effectively ensuring a decent prize pot for winners. This process is known as seeding and is generally accepted across the industry. 

Tote does inform bettors of its seeding practices in the terms and conditions of its products. However, the UKGC requires that companies explain this to bettors “in plain language.” 

The Commission is also investigating the extent to which the group participates in its own products, and whether its activities still qualify as seeding. 

Analysis suggests that Tote is placing substantial bets just minutes before the first race of the day, which is more in line with automated betting strategies and means that Tote could effectively be hedging bets against the market to ensure greater profits.