In a move that marks the end of a major sporting sponsorship era, betting giant Coral has announced it will terminate its involvement with the Cheltenham Festival after a partnership spanning fifty-two years. The company has directly attributed this decision to the substantial increase in betting taxation announced in the recent UK Budget.
End of an Era for Racing Sponsorship
On Wednesday, Entain, Coral's parent company, confirmed it would be severing its long-standing sponsorship of the prestigious Coral Cup handicap hurdle race. This sponsorship had been a fixture at the Cheltenham Festival since 1974, making Coral the event's longest-running commercial partner. The festival, world-renowned for featuring the Gold Cup, will now lose one of its most iconic brand associations.
A formal statement from the company explained the rationale behind the withdrawal. "The decision follows the significant increase in betting taxation announced in the recent UK Budget, which has required the business to reassess the commercial viability of certain sponsorships as part of a broader review of marketing investment," it read.
Budget Changes Force Difficult Decisions
Whilst the mandatory 10 per cent levy on UK horserace bets was protected in Chancellor Rachel Reeves' autumn Budget, taxes on remote sports betting are scheduled to rise sharply. The rate is set to increase from 15 per cent to 25 per cent by 2027. This broader tax hike on the gambling sector has forced operators to make tough financial choices.
Simon Clare, Entain's sponsorship director, expressed regret over the decision. "It is with a heavy heart that we withdraw from the Cheltenham Festival," he said. "The scale of the recent tax increase on betting operators means we must take difficult decisions to mitigate its impact."
Political and Industry Reaction
The move has sparked immediate political controversy. Shadow sports minister Louie French criticised the government's policy, framing Coral's exit as a direct consequence. "Coral's decision is just the latest example of how Labour's eye-watering and ideological taxes were always going to hit horse racing," he argued. "It's not about tackling gambling harms, it's a cash grab that puts jobs and sports at risk."
French further warned that "Rachel Reeves' gambling tax raid was inevitably going to cost jobs, shut bookies and deprive British sports of vital funding." The Betting and Gaming Council had previously cautioned that such tax increases could lead to worse odds for punters across the industry.
Calls for Collaboration and Sustainability
Despite the withdrawal, Clare emphasised a commitment to the sport's future. He pointed to the combined pressures of higher taxation and racing's existing high costs, driven by media rights and the statutory levy. "It is essential that the sport and the betting industry work together to grow racing's appeal while ensuring it remains financially sustainable," he stated. "We are committed to working constructively with our partners to support racing's long-term health."
The Department for Culture, Media and Sport defended the government's position. A spokesperson stated: "At the Budget, the Chancellor announced a package that raises revenue and forms part of our ambition to create a fair, modern and sustainable tax system. Horseracing has been protected, as we recognise both its unique heritage and vital importance to rural communities."
Significant Blow to the Industry
The loss of such a historic sponsor is expected to deal a considerable financial and symbolic blow to the horse racing industry. It highlights the tension between government revenue-raising measures and the commercial partnerships that underpin major sporting events. The decision comes despite reported efforts to shield the gambling sector from the full brunt of tax rises ahead of the Budget.
With betting shops and online operators facing billions of pounds in additional tax before the end of the current parliamentary term, the industry is bracing for further scrutiny and potential restructuring of its sponsorship models. The departure of Coral from Cheltenham serves as a stark indicator of the changing economic landscape for gambling-related investment in UK sport.
