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In what Channel 4's head of sport Andrew Thompson called a "crucial moment for the horseracing industry", the broadcaster has given potential sponsors until the end of the month to register their interest, so a sponsor can be announced by mid-September.
It needs to have the sponsor confirmed by this date, so the 80-days-a-year coverage can continue as planned until 2009.
Thompson said: "Channel 4 is committed to showing the racing, but we do need the support of the sponsor to continue to do so... We have had some positive discussions with a number of companies, but we are working towards a very tight deadline... It will come as no surprise that in our negotiations we have been speaking to both bookmakers and non-bookmakers to take over the deal."
However, gaming industry insiders believe that few firms within the field will be keen to take on the sponsorship because of the recent deregulation of the gambling advertising industry.
From 1 September betting firms will be able to advertise around the broadcasts. This is the reason the Tote gave for its withdrawal.
A gaming industry source said: "Sponsorship deals no longer represent value to us. There is no question now the deregulation is in place that we will take advantage of the new commercial environment and are looking forward to advertising around the shows."
Betfair, the online gaming company previously tipped to take the deal, confirmed Channel 4 has approached it and said it is one of a number of options it is considering.
Channel 4 will make a final decision on whether it will continue to broadcast the racing without a new sponsor at a board meeting in early to mid-September, but a spokeswoman said: "The sports team is working on the assumption that if there is no sponsor there will be no racing in 2008."