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Scotbet, has been bought out by its managemen
Tuesday July 19,2011 : MANAGEMENT BUY-OUT AT SCOT ONLINE AND LAND BOOKIE
Troubled bookmaker has 65 retail shops and an internet operation
Scotland's largest independent bookmaker, Scotbet, has been bought out by its management, the BBC reports.
The troubled betting company had been on the market for about 12 months, after its Edinburgh-based owner, Festival Group, sustained serious losses in the economic downturn.
The existing management has bought out the 65 outlets in Scotland and its online betting site but former chief executive Kenny Waugh will no longer play a role.
The value of the deal, financed by Clydesdale Bank, has not been disclosed.
Incoming chairman John Heaton said the new owners intended to grow the business, particularly its online betting. Heaton, a consultant in the gambling industry, said the buy-out of Scotbet - the trading name of Morrisons Bookmaker - had been planned for nearly a year.
He said it remained a good investment, despite competition from the three dominant high street betting shop operators - William Hill, Ladbrokes and Coral - and the shift of online gambling to lower-tax offshore businesses.
He added: "There are a lot of offshore businesses which are very successful, but this company is licensed by the UK Gambling Commission with 65 high street outlets.
"This is a small, well-run group which is profitable and it's a good opportunity to expand."
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