The Tote has been the main trackside bookmaker in the UK since its establishment by Winston Churchill in 1928. [Image: Shutterstock.com]

Colossus approaches courses

Colossus Bets will launch a bid to replace Tote as the trackside bookmaker at UK racecourses, according to a report in UK newspaper The Daily Telegraph.

Several major racecourses have been approached with multi-million pound offers

The newspaper claimed that several major racecourses have been approached with multimillion-pound offers to set up a new trackside bookmakers and replace the Tote, which has been the standard operator at UK races for 96 years.

Colossus, which is owned by secretive Australian businessman Zeljko Ranogajec and former PR executive Bernard Marantelli, was founded in 2013. Ranogajec, who is nicknamed “The Loch Ness Monster” for his elusive personal appearances, is believed to be a billionaire and likely operates under the alias John Wilson.

96 years of history

The Tote was established by Winston Churchill in 1928 when he was Chancellor of the Exchequer in a bid to provide funding for racing and crack down on illegal betting. Initially owned by the government, it was sold to bookmaker Betfred in 2011 for £265m ($351m.)

It is now owned by a consortium of high-profile figures in racing, and pays around £13m ($17.3m) per year to UK racecourses for the right to offer trackside betting services. Additionally, 10% of its profits are donated to the Horserace Betting Levy Board, which contributes significant sums to prize money.

Tote runs on a parimutuel betting system, pooling all bets taken on races

The Tote runs on a parimutuel betting system, pooling all bets taken on races and dividing the sum among winners, minus a commission. According to The Telegraph, Colossus will maintain the same model if successful in its bid.

The Tote also generates significant revenues from its World Pool, which is run by the Hong Kong Jocket Club. The World Pool, which allows global bettors to contribute to a single pool, often earns between £500,000 ($663,000) and £800,000 ($1.06m) for each designated event.

Courses to decide

Ranogajec is likely to face significant opposition in his bid, due to the Tote’s owners largely being made up of breeders, trainers, and other influential figures in the racing world. While the UK’s 59 courses have a variety of owners, the report claims that they will make a united decision on the bid.

The current arrangement with the Tote doesn’t really work for a lot of us.”

One source from the report who was close to the negotiations stated: “The current arrangement with the Tote doesn’t really work for a lot of us. There’s potential for Colossus to change that, but we’re miles away from doing a deal.”

“They have work to do to prove their credibility. The courses are all talking, but there’s work to do. It’s very politically charged.”

The Australian businessman was said to have made his fortune playing blackjack and poker in the 1980s before becoming involved in horses. His subsequent success was then in parimutuel betting, where he often negotiated rebates from operators.

Ranogajec was also at the centre of of a years-long investigation by the Australian Taxation Office, which ended in both parties agreeing to a settlement in 2024.