Scotland's largest independent bookmaker which includes 65 land based betting shops and an online betting website has been bought out by its management.

Scotbet has been up for sale for the last 12 months after its parent company, Edinburgh based, Festival Group, accrued serious losses during the economic downtown.

The management team of the gambling chain has bought out the 65 shops in Scotland for an undisclosed amount of money. The deal has been financed by Clydesdale Bank, and will see chief executive, Kenny Waugh, step down.

John Heaton, a consultant in the gambling industry, will take on the role of chairman, and added that the new owners were looking to grow the business, especially the online operations. The new company will trade under the name of Morrisons Bookmaker and had been planned for nearly a year.

While competition may currently be benefitting from the less stringent regulation and minimal tax obligations the new Scottish company may have been a good investment. The UK government announced plans to reform offshore gambling this week.

Heaton added: "There are a lot of offshore businesses which are very successful, but this company is licensed by the UK Gambling Commission with 65 high street outlets.

"This is a small, well-run group which is profitable and it's a good opportunity to expand."