The Tote operates so-called “pool betting”, where all the stakes placed on a particular race are pooled and the total amount is distributed to winners, minus a commission taken by the operator. Pool betting also includes a range of creative multiple bet options, such as accumulators and place pots, that can lead to large prizes being won.

The Tote was run by the government until 2011, when it was privatised by Chancellor George Osbourne and sold to bookmaker Betfred for £265 million, with British Racing receiving £90 million. Betfred sold the on-course business for £115m five years ago to a group of investors trading under Alizeti Capital, who rebranded as The Tote Group, but retained control of the 517 high-street bookmakers that were part of their original purchase from the government.

The Tote Group pay 10 per cent of their gross profits to the Horserace Betting Levy Board, who contributed £70.5 million in prize money to racing this year, as well as an additional £50 million over seven years to the racecourses.

Colossus’s offer to usurp the Tote is likely to be opposed by many within racing, not least because many influential figures have invested in the operation. While most of them have remained anonymous, the majority of the Tote Group’s 160 shareholders are believed to be owners and breeders, while the Racecourse Owners Association are also investors.

The Tote Group’s biggest success has come in the form of the World Pool, which allows punters all over the world to bet into a single pool on certain designated races generating multi-million-pound pay-outs. Run by Hong Kong Jockey Club, the World Pool has generated significant financial returns for the sport, with racecourses whose meetings are selected for World Pool days earning between £500,000 and £800,000 for each fixture.

Ranogajec made millions in blackjack

Ranogajec and Marantelli are the two main shareholders in Colossus Bets with Denis Mikan, chief executive of an online gaming company based in the Isle of Man, a director of the company. In addition a “John Wilson” is listed as a “person of significant control” at Companies House. This is believed to be Ranogajec’s alias as Wilson is the surname of his wife, Shelley.

Ranogajec made millions playing blackjack and poker in Australian casinos in the 1980s before turning his attention to horses. Much of his subsequent success came in pool betting after he was able to negotiate rebates of up to 10 per cent from the operators, leading to winnings of hundreds of millions.

Under his model, Ranogajec and his army of gambling analysts only had to break even with their bets to make a profit made up from their rebate. In 2012, Ranogajec was named as being the leader of a gambling syndicate, The Punters Club, whose success led to the Tasmanian Tote experiencing financial problems which led to its sale.

Ranogajec has been the subject of a multi-year investigation by the Australian Taxation Office (ATO), which ended in 2012 with both parties reaching an undisclosed settlement.

Telegraph Sport has approached Colossus Bets for comment.