Gala Coral, the owner of the Gala Bingo brand, casinos and bookmaking chain has surprisingly pulled out of the bidding for the state owned Tote. According to reports over the weekend, the Nottingham-headquartered company failed to submit a formal bid to purchase the Tote bookmaker chain by the 25 March deadline. Industry experts had expected Gala to be one of the favourites to purchase Wigan-headquartered Tote, although its financial position over the last few years suggests the company will concentrate on breaking up rather than further acquisitions.

Ironically Gala failed to submit a bid after concerns over current trading levels at the Tote and pension liabilities. It is believed there are just four companies now in the bidding war to buy the bookmaker which include Betfred, a bid from British Airways chairman Sir Martin Broughton and property expert group, the Reuben Brothers. The fourth contender is thought to be from the company itself, through its vehicle The Tote Foundation, however they are unlikely to be able to meet the bid levels of the other bidders.

Warrington based Betfred has pledged to limit job cuts, if it is successful. Supporters of the Tote Foundation bid have threatened that if unsuccessful the Tote may be banned from racecourses.

Government minister for heritage and tourism, John Penrose, stated earlier this year “in the event that the Tote is sold on the open market, [the government] will honour the commitment of the previous government to share 50 per cent of the net cash proceeds of sale with racing”.

The sale of the Tote would end a long-running saga in the racing industry, with the sale first discussed more than 20 years ago. The tote has more than 3,300 jobs and 500 UK betting shops. It was valued a few years back at around £400 million; however at today’s value may be just half of that amount.