Lazard, the M&A adviser, is advising the UK government on disposal options for government-owned bookmakers, the Tote, a person familiar with the matter said, one of a range of attempts to raise cash to plug the budget deficit.

However, some of the UK's biggest high-street bookmakers said they believe they may be restricted from bidding for the asset due to their market share, which could hamper the government's attempts to get the best price for the business.