The Gambling Commission has launched a review into the Tote’s betting activity, focusing on its involvement in pool betting and its transparency with customers. The inquiry comes ahead of the Cheltenham Festival and examines whether the Tote is meeting its obligation to clearly inform customers that they may be betting against the operator itself in small-stake, high-win pools such as the Placepot bet.
The Commission’s review follows concerns that the Tote’s own money accounts for a significant proportion of the total stakes in these pools. A detailed analysis, compiled over two years, suggests that up to 60% of the cash invested in the key daily Placepot bet comes from the Tote itself. This bet, which requires punters to select a placed horse in the first six races of the day, will have a guaranteed minimum pool of £750,000 during the Cheltenham Festival.
Pool betting, or pari-mutuel wagering, typically removes the bookmaker from the equation by pooling all stakes and calculating payouts after taking a commission. The Tote has been a key part of British betting since 1928, originally established to provide a bookie-free betting alternative. However, during the pandemic in 2020, it introduced a Pool Guarantee Service (PGS) that “seeded” pools with automated bets to enhance liquidity and create more predictable payouts.
While licensed operators are permitted to participate in their own products to increase liquidity and prize sizes, regulations require them to be transparent about their involvement. The Tote acknowledges in its terms and conditions that it engages in seeding but does not disclose the extent of its participation. Analysis submitted to the Commission indicates that the majority of the Tote’s contributions occur just minutes before the first race, raising concerns that its actions resemble those of high-frequency betting syndicates rather than simple market seeding.
The potential impact on winning payouts is a key issue. If the Tote’s own money represents a large share of the pool, it could influence final dividends and reduce returns for customers. At major events such as Cheltenham, where Placepot payouts can be substantial, winning punters may unknowingly receive smaller rewards due to successful bets placed by the Tote itself.
The review will assess whether the Tote’s involvement aligns with regulations requiring fair and open gambling. The Commission has not confirmed or denied the investigation, while the Tote has yet to comment.
