TOTE CHAIRMAN’S THOUGHTS - HELLO FROM HONG KONG

Tuesday 26th January 2021

Hello and welcome to my first blog as Chairman of the UK Tote Group.

At the Tote we want to keep everyone we work with updated on our plans and the future of pool betting. For my part, I want to use this platform to look at key developments and how we can work with stakeholders globally to ensure the Tote maximises the positive impact it has on British horseracing and the world around us.

Before I dive in, I owe you an introduction to myself. I joined the Tote as Chairman in September 2020. As a Chartered Accountant I have a background in a broad range of businesses, but this is my first venture into the betting sector and, quite frankly, I never thought I would as someone who would not consider themselves a great gambler. However, the Tote has a unique and special history – and an exciting future - which captivated me.

I was born in Edinburgh but have lived in Hong Kong since 1994. I am passionate about horseracing and have been a member of the Hong Kong Jockey Club for over 20 years. As one of the preeminent organisations in the region, everyone has heard of the Hong Kong Jockey Club and its extensive charitable commitments which reach far and make a hugely positive impact on society.

Everything the Hong Kong Jockey Club does is built on pool betting, which is hosted on race meetings held at Happy Valley and Sha Tin for 10 months of the year (there is a summer break due to the hot weather). Its deep connection to Hong Kong racing is partly why pool betting has always had a natural appeal to me, but I also prefer that it is a form of betting which does not require the customer to lose for the operator to be successful. In many ways, pool betting is akin to a sweepstake or the lottery where everyone bets into the pool and winnings are divided up according to race results, minus the operator’s take out.

Pool betting was the first form of legal betting in the UK with the founding of the Tote by Sir Winston Churchill in 1928, and it is currently the leading form of legal betting in Asia. It is also the bedrock on which the vast majority of leading horseracing nations fund their sport, while also making significant tax returns to Governments.

In this regard, you might be interested to see what pool betting generates for horseracing and Governments in leading racing nations around the world:

As the table shows, the UK and Ireland fall someway behind other leading racing nations in what pool betting returns to their respective Governments and horseracing industries. Some will say this is because the top three – Japan, Hong Kong and France – have a pool monopoly and so it is the only way for racing fans to bet on the sport. However, Australia is not a monopoly, with pool betting and fixed odds betting co-existing side-by-side.

The key difference is that pool betting has been invested in and nurtured in other leading racing nations in a way that has not happened in the UK.

This is beginning to change, with the UK Tote Group taking ownership of the Tote in October 2019. Backed by over 160 investors, the vast majority being racehorse owners and breeders, the UK Tote Group’s sole focus is to revitalise the Tote.

Big changes have already been made by the team of over 120 people, which is very impressive given that, like so many organisations, our team is working from their homes and cannot be together in our Wigan HQ. We have invested in improving the customer experience, along with furthering international partnerships to grow liquidity, including a strategic alliance with Tote Ireland.

I decided to join the UK Tote Group because of the purpose and vision which makes Alex Frost, the UK Tote Group’s Chief Executive, and the team’s plans so exciting, and is why I am so delighted to be Chairman of this special institution. We have a unique opportunity to grow the Tote and see pool betting thrive in the years ahead.

The UK has a rich racing history which includes hosting more top class racing than any other nation. Now I want to work with the dedicated team at the UK Tote Group to ensure our pool betting offering can match this.

It is a very exciting journey to be on.

I look forward to sharing my thoughts and more Tote news with you in the months ahead.

For more information about the UK Tote Group please visit www.uktotegroup.com and follow us @UKToteGroup and @ToteRacing.