Betfred received a 32 million pound rebate for early payment when it purchased Britain’s The Tote bookmaker from the government in 2011.
The original purchase price had been reported at 265 million pounds, but Britain’s The Mail Online reports that the actual price paid was 233 million pounds.
Betfred acquired a seven-year license to operate the Tote in 2011. Initial reports said 90 million pounds of the purchase price went to the British horse-racing industry and 90 million pounds went to the government to offset taxes. Additionally, Betfred would commit to paying the racing industry 11 million pounds up to March 2012 and payments of 9 million pounds per year for the next six years.
According to the website, Betfred actually paid 233 million pounds after negotiating a lower price for paying the purchase price early, saving 25 million pounds m in scheduled interest payments, and earning a 7 million pound early-payment rebate.
A spokesperson for the Department for Culture, Media & Sport told the Mail Online: “The sale of the Tote to Betfred was about getting the best possible deal for racing. The Government has begun discussions with racing on the arrangements for paying their final share of the net proceeds, after Betfred’s early completed payment on the deal.”
