'Free bets' for trainers scam

"In 2000 the Jockey Club described these arrangements as 'a grey area' and issued a code of conduct that prohibited trainers from accepting special privileges or concessions. We fully accepted the Jockey Club's decision, and once this code was introduced we haven't entered into any such arrangement with trainers."

Jockey Club spokesman John Maxse said: "The Jockey Club motive for expressing concern about relationships between bookmakers and trainers was based on the content of the letters in question."

Buffham, who was dismissed by the Jockey Club for an unrelated matter, said: "I said in May that I believe there are significant matters of public interest that need to be raised. I maintain that view.

"I am afraid that these matters are merely the tip of the iceberg."

Chandler's rivals Ladbrokes, Hills, Coral and the Tote were fuming at claims which they insisted were untrue. Ladbrokes spokesman Sean Boyce said: "Our position is that we do not offer nor have ever offered, free bets, no-lose accounts, or anything like that to trainers or anybody else. We don't do it and we have never done it."

Meanwhile, racing's integrity is under attack again after allegations that a £10 million 'sweetener' was demanded by a leading official in return for helping a television firm win exclusive broadcasting rights.

Lord Hesketh, a former Tory trade minister and the owner of Towcester, has issued a writ alleging that Richard Johnston, managing director of the Racecourse Holdings Trust (RHT), a Jockey Club subsidiary representing Britain's top racecourses, contacted Nicholas Markham, an executive of Carlton Media.

Lord Hesketh alleged that Mr Johnston told Mr Markham that if Carlton hired RHT as consultants, RHT would support Carlton's bid. Mr Johnston is said to have suggested a consultancy fee of £1m a year over 10 years. Carlton declined the offer and RHT later backed the rival bid of Go Racing.