The British horseracing industry has thrown its dummy out of the pram according to media reports this weekend. Claims suggest that if the state-owned bookmaker, the Tote, is sold to a private bidder rather than to the Racing Foundation’s charitable trust then the industry will look at barring the bookmaker from racecourses. Even though we are in the middle of a recession, facing unprecedented spending cuts, we might as well just bow down to the industry and give away the taxpayer’s assets…..

The government has an obligation to ensure that the best deal (for all parties) is agreed for the state owned bookmaker and limiting the bids to just one buyer certainly isn’t going to achieve that.

The industry suggests that it could ban the Tote from its racecourses and start a new international pool-betting operation unless its demands are met.

Simon Bazalgette, group chief executive of The Jockey Club, which runs 14 tracks, including Cheltenham, Newmarket and Aintree, claims the racing industry has no confidence 'its needs were being taken into account' in the sale.

He adds that racing risks losing the £20million it receives from the Tote in the Horse Racing Levy and sponsorship.

We're concerned about the way the sale process is going and the only bid we are confident about is the Racing Foundation,' he adds.

Simon suggests the industry may have other ideas: 'The Tote has no formal right to be at the racecourses and we can cut off that part of the Tote.'

The horseracing industry could work with new operators in place of the Tote sites. 'We also own the rights to the Tote's international business and, again, we can pull the plug on that,'

I wonder whether Simon Bazalgette was watching the news over the weekend showing up to 500,000 protestors lining the streets of London in relation to the spending cuts. In fact polls have suggested that the government faces massive risks in relation to reducing the deficit.

While it is reported that the Government plans to give half of proceeds back to the industry the sale is somewhat controversial. The state-owned bookmaker has exclusive rights to run pool betting in Britain, which was set up to benefit the industry.

Other bidders for the assets are Betfred, Gala Coral, the Reuben brothers of Northern Racing and British Airways chairman Martin Broughton. A second round of bids was expected to be completed before the weekend. It is reported that the Racing Foundation, in partnership with the Tote management, is understood to be willing to put up about £60million, with the other bids coming in at £200million.

There is one easy answer rather than setting up a new rival to the Tote maybe The Jockey Club could put the rest of the money to beat the best bid!!

Either that or the coalition government could give the assets away and ensure that the horseracing industry pays the same level of tax as the bingo industry. I am sure that would make them rethink their demands. The bingo industry has been burnt many times in the past when it comes to trying to reduce the tax burden.

Anyway Good Luck with that one Simon