United Tote is an American company that provides totalizator equipment and services for parimutuel wagering at racetracks. It is owned by Churchill Downs, Inc. and the New York Racing Association.
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| Company type | Subsidiary |
|---|---|
| Industry | Bookmaking |
| Owner |
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History
editUnited Totalizator was founded in the 1950s by Lloyd and Jane Shelhamer.[1][2] The Shelhamers owned Beaumont Race Track in Belgrade, Montana.[3] They could not find a totalizator company willing to service such a small facility, so they purchased obsolete wagering equipment to operate in-house, and soon branched out to service other racetracks in the region.[2]
In 1980, the company introduced the MicroTote 1000, a computerized tote system designed to be affordable for smaller tracks.[2]
The company changed its name to United Tote in 1984 and made its initial public offering, raising $7 million.[1][4][5]
In 1986, United Tote bought Sunland Park Racetrack in New Mexico for $3.5 million.[6] By this time, United Tote had a 10 percent market share in North America, with contracts to service 85 tracks and jai alai frontons, making it the third largest tote company after AmTote and Autotote.[7] It continued to operate out of the Shelhamers' ranch house in Shepherd, Montana.[7]
The company partnered in 1988 with Wembley plc, a British operator of greyhound racing tracks, to form United Track Racing, a joint venture to acquire and operate tracks in the US.[8] United Tote would own 20 percent of the venture and would be responsible for managing the tracks.[8] United Track Racing acquired five greyhound tracks in South Dakota, Rhode Island, and Colorado the next year.[9]
In 1989, United Tote purchased its larger competitor, Autotote Systems, from Thomas H. Lee for $85 million.[1][10] Before the two companies' operations could be integrated, the merger was challenged by federal antitrust regulators.[1][11] A 1991 court ruling forced the company to split back up, and the original United Tote business was divested to the Shelhamer family.[1][12][13]
The company sold its stake in United Track Racing to Wembley plc in 1992.[14]
In 1994, the Shelhamer family sold United Tote to Video Lottery Technologies, Inc., a Montana-based maker of lottery equipment, for $20 million in cash plus $10 million in promissory notes and an earnout agreement worth up to $10 million.[15][16] Video Lottery Technologies, later named Powerhouse Technologies,[17] was acquired in 1999 by Anchor Gaming,[18] which was then purchased in 2001 by International Game Technology (IGT).[19] United Tote became part of IGT's newly formed lottery division.[20]
IGT sold United Tote in 2003 for $12.3 million.[21]
In 2006, Youbet.com purchased United Tote for $31.9 million plus $14.7 million in assumed debt.[22][23]
United Tote became part of Churchill Downs, Inc. in 2010, when that company acquired Youbet.com.[24]
In 2024, Churchill Downs sold a 49 percent stake in the company to the New York Racing Association.[25] The two organizations said they would develop a system under United Tote to expedite the addition of horse racing to sports betting platforms.[26]
References
edit- ^ a b c d e Phyllis Berman (November 9, 1992). "Home on the range". Forbes. Archived from the original on April 2, 2015.
- ^ a b c Clair Johnson (October 28, 1984). "Gamble pays off". The Billings Gazette – via Newspapers.com.
- ^ "New quarter-million dollar horse racing plant at Belgrade is holding opening Memorial Day". The Independent-Record. Helena, MT. May 23, 1954 – via Newspapers.com.
- ^ "Shepherd firm goes public". The Billings Gazette. July 26, 1984 – via Newspapers.com.
- ^ "Legal Notices: Foreign Amendment (classified ad)". Philadelphia Daily News. September 13, 1984.
- ^ "Sunland Park track sold for $3.5 million". Dallas Morning News. November 10, 1986 – via NewsBank.
- ^ a b Jeff Cole (May 25, 1986). "Running against the odds". The Missoulian. Missoula, MT – via Newspapers.com. (Part 2 of article)
- ^ a b Paul J. Holley (November 17, 1988). "British firm buys stock in United Tote". The Billings Gazette – via Newspapers.com.
- ^ Tom Howard (December 27, 1989). "United Tote joins venture". The Billings Gazette – via Newspapers.com.
- ^ "United Tote buys rival company". The Billings Gazette. December 12, 1989 – via Newspapers.com.
- ^ Tom Howard (March 16, 1990). "Shepherd firm charged with fostering monopoly". The Billings Gazette – via Newspapers.com.
- ^ U.S. v. United Tote, Inc., 768 F.Supp. 1064 (D. Del. 1991).
- ^ Dennis Gaub (November 2, 1991). "Tote divestiture final". The Billings Gazette – via Newspapers.com.
- ^ Tom Howard (August 12, 1992). "Tote sells interest in tracks". The Billings Gazette – via Newspapers.com.
- ^ Tom Howard (March 1, 1994). "Company may buy United Tote". The Billings Gazette – via Newspapers.com. (Part 2 of article)
- ^ Tom Howard (May 6, 1994). "United Tote parent company sold". The Billings Gazette – via Newspapers.com.
- ^ "Video Lottery Technologies, Inc. announces name change to Powerhouse Technologies, Inc., effective January 1, 1998" (Press release). Video Lottery Technologies, Inc. December 22, 1997. Retrieved 2015-03-14 – via PR Newswire.
- ^ "LV firm completes Powerhouse merger". Las Vegas Sun. June 30, 1999 – via NewsBank.
- ^ Jeff Simpson (December 30, 2001). "Casinos expect more guests, but less money, on New Year's weekend". The Press of Atlantic City – via NewsBank.
- ^ "Reno-based company forms lottery division". Las Vegas Sun. March 19, 2002. Retrieved 2015-03-14.
- ^ Form 10-K: Annual Report (Report). International Game Technology. December 10, 2003. p. 3 – via EDGAR.
- ^ "Youbet.com completes United Tote acquisition following adjustment of purchase price and payment terms" (Press release). Youbet.com. February 13, 2006 – via NewsBank.
- ^ Matt Hegarty (December 1, 2005). "Youbet.com agrees to buy United Tote for $49 million". Daily Racing Form. Retrieved 2015-03-14.
- ^ Matt Hegarty (June 3, 2010). "Churchill Downs completes Youbet.com purchase". Daily Racing Form. Retrieved 2015-03-14.
- ^ Robert Fletcher (April 9, 2024). "CDI completes United Tote stake sale to NYRA". iGaming Business. Retrieved 2024-04-20.
- ^ "NYRA entity buys 49 percent stake in United Tote from Churchill Downs" (Press release). United Tote. August 11, 2022. Retrieved 2024-04-20 – via Paulick Report.