Brussels, 01/06/2005 (Agence Europe) - The European Commission has opened a formal investigation under EC Treaty state aid rules to examine UK Government plans to sell the Tote, a British betting operator, to Racing, a consortium representing the various parts of the UK horseracing sector. The Commission believes that the envisaged sale might involve substantial state aid to Racing and has doubts whether the aid favouring racing and betting activities is necessary and proportionate. The British Government's objective of opening up the UK gambling market but Commissioner Neelie Kroes fears that Tote is to be sold to Racing well below the market value of the Tote, at only 50% of a so-called “fair value” which is itself below market value.