The UK government has set September 28th as a deadline for investors in the horse racing industry to put forward its bid for state-owned bookmaker Totesport. The government is brokering a sale with the racing consortium, which includes Tote management, the Race Course Association and the Racehorse Owners Association.

The Labour government pledged to sell the Tote to the racing industry in 2001, but an attempted sale in 2005 was blocked by the European Commission, which said the price was so low that it constituted state aid. Following the Commission ruling, the government had the Tote valued by PricewaterhouseCoopers at a reported price of about 400 million pounds and invited offers.

Totesport was set up in 1928 and comprises 540 high street betting shops, 59 betting shops on race courses and Britain’s pool betting system. Some racing industry players have questioned whether the Tote would be able to meet its mandate of investing in racing if its new owner were burdened by heavy interest payments after funding the deal with debt.

An initial bid of around 320 million pounds from the racing industry consortium was rejected. Europe’s biggest gambling firm, Gala Coral, has offered to pay 405 million pounds ($796 million), but the government has pledged to sell the Tote to the industry.