Mr Coleman said after Treasurer Michael Aird's announcement yesterday that Tote was a strong business that turned over more than $746 million last financial year, delivering a net profit of $6.5 million.

"Taking into account this performance plus our future growth potential, no government could agree to a sale if the sale price did not deliver an appropriate return," Mr Coleman said.

But Northern racing identity Robyn Whishaw said that she had watched with dismay as the Government did its best to destroy the racing industry and said that the failed sale was another example of that.

The Carrick breeder and trainer said that the Government had promised racing a $40 million payment, if Tote sold, for capital works.

"Tote hasn't been sold so now there is no money for maintenance and improvement of facilities," she said.

Tasmanian Racing Board chairman Brian Speers said that the board would closely monitor industry developments from the sale cancellation.

"It can't do the industry any harm but the problem that the industry now faces is where the $40 million due for capital works will come from," he said.

Opposition racing spokesman Jeremy Rockliff said that Mr Aird had put Tote on the market to plug a hole in the Government's budget.

"As a result, the failed sale actually cost the budget $3 million," he said.

Greens racing and gaming spokesman Kim Booth said that Mr Aird had pushed through the proposed Tote sale despite serious concerns and warnings raised at the time.