The consortium of racing industry organisations which is aiming to buy the Tote – the state-owned betting operator – is in talks with overseas companies to boost its bid to meet the government’s £400m valuation of the business, according to the Daily Telegraph.

The group – which comprises the Racecourse Holdings Trust, the Racehorse Owners Association and Tote’s management team – had its £310m bid rejected in September and is rumoured to be in discussions with gaming firms such as Tabcorp and Tattershalls in Australia, and South Africa-based Phumelela.

Bingo and casino operator Gala Coral recently put an offer of £405m on the table, although its preferred option is to buy the Tote’s betting shops for £325m and leave the rest of the business in government hands.