BetFred buys the UK Tote for £265 million

This is a move I find a little surprising.

Last week BetFred completed their purchase of the (formerly) government owned Tote, paying £265 million.

They will now re-brand and take over the operation of 517 retail betting outlets and assume control of the Tote’s monopoly on-course pool betting at 60 race tracks across the UK.

I find the move surprising because it comes at a time when on-course wagering (indeed terrestrial betting generally) is struggling to compete with various online offerings and dying a slow death in many country’s around the world.

Why line up and take 2:1 odds with  the race track bookie when you can get 5:2 on your mobile phone with Betfair?  No good reason most punters are now starting to realize.

On the face of it, this seems an investment in a betting channel that is a bit of a dinosaur.  Then and again, I’m sure BetFred have their reasons…perhaps access to the Tote player database that they can migrate to their other products is jewel that they’re after?