The Tote, the state owned bookmaker will continue to split its profits equally with the taxpayer following its sale the government has revealed. The Tote, which was set up 83 years ago to provide punters an alternative to illegal betting, has 517 High Street betting shops, the monopoly to run pool betting online and at 60 racecourses in the UK. Both Gala Coral and Betfred have confirmed their interest in taking over the operation in a deal that is reported to be worth nearly £400 million for the treasury.

Currently the Tote which has 4,000 staff puts half its profits back into the sport but there were suggestions from the Commons that this should be increased when the Coalition Government sells the Wigan based bookmaker. Reports suggest that any deal will be completed later this year.

John Penrose the junior heritage minister commented: "There have been various comments that 50% isn't enough and it ought to be 100% of the proceeds going to racing - but that isn't where we are."

He added: "Given the state of the national finances, it's going to be extremely hard - in fact, completely impossible - to argue we should be doing more than a 50-50 split."

The Chancellor, George Osborne, last year claimed that while he would get a good deal for the taxpayers he realised that the Tote provided to the industry.

Conservative Laurence Robertson told the Commons the Tote contributed almost £19m to horse racing in 2010. He added: "That money is absolutely crucial to racing. The Tote is an institution and provides the friendly face of bookmaking.

"It would be wrong for the government to do anything with the Tote that would deprive racing of its annual income."

While Gala Coral and Betfred are among the forerunners to take over the Tote there are reportedly a number of other interested parties including Paddy Power, Sportech, South African Tote, and France’s PMU. Lazard a financial advisor is handling the bidding process for the government. The company would not confirm how many interest parties there are. However not everyone is keen to see the Tote being privatised; the Jockey Club opposes the sale and wants the Tote to remain as it is.