Coral ends 51-year Cheltenham Festival sponsorship following UK tax rises

• Coral has withdrawn sponsorship of the Coral Cup at Cheltenham Festival after 51 years as a sponsor.
• Parent company Entain cites government tax increases as the primary reason for ending the partnership.
• Remote gaming duty will rise from 21% to 40% from April 2026, and online sports betting duty (excluding horseracing) from 15% to 25% from April 2027.

Coral has ended its sponsorship of the Cheltenham Festival with immediate effect, bringing to a close a 51-year association as a sponsor at British racing’s marquee event. The bookmaker cited government tax rises as the decisive factor behind the withdrawal.

The decision affects the Coral Cup, a 2m5f handicap hurdle run on the second day of the festival. Coral has sponsored this race since its inception in 1993 and has maintained a presence at Cheltenham since 1974, making it the longest-running sponsor at the meeting.

Tax burden drives sponsorship review

Simon Clare, Entain UK consumer PR director, explained the withdrawal reflects the scale of recent tax increases announced by Chancellor Rachel Reeves in the October 2024 budget.

“It is with some sadness that we are today announcing that Coral will not be continuing with its sponsorship of the Coral Cup,” said Clare.

“Coral has been the longest-running sponsor at the Cheltenham Festival since 1974, but the sheer size of the government’s recent tax increase on betting operators means we are having to take very difficult decisions as we look to mitigate some of the huge impact, none more difficult or regrettable than bringing our sponsorship at Cheltenham to an end.”

The budget confirmed that remote gaming duty would increase from 21% to 40% from April 1, 2026. Online sports betting duty (excluding horseracing) will rise from 15% to 25% from April 1, 2027.

These changes are expected to raise over £1 billion annually for the Treasury by 2031.

Horseracing bets were specifically exempted from the online sports betting tax rise following extensive industry lobbying. Racing’s remote betting tax rate remains at 15%, matching the rate for in-person betting.

Broader sponsorship implications

Clare emphasised that Entain, Coral’s parent company, remains committed to horseracing despite the Cheltenham withdrawal.

The group continues to sponsor major races through its Coral and Ladbrokes brands, including the Ladbrokes King George VI Chase and the Coral-Eclipse, where the company recently celebrated 50 years of sponsorship.

“Horse racing remains very important to Entain, and Coral and Ladbrokes have some of the biggest and most enduring sponsorships in the calendar, including the Ladbrokes King George, which had one of its best ever renewals a few weeks ago, and the Coral-Eclipse where last year we celebrated 50 years of sponsorship,” Clare stated.

“The Cheltenham Festival is also a massive four days for our business and our customers, and we will be promoting and celebrating it as much as ever in our shops and online and across our marketing channels.

“However, the significant change in the taxation landscape for betting operators means we need to drive even more value out of the events we sponsor, and review with even greater scrutiny where we invest our marketing spend, which has resulted in the end of the Coral Cup sponsorship.”

Racing sector responds

Guy Lavender, Cheltenham chief executive, acknowledged Coral’s contribution whilst confirming the search for a replacement sponsor.

“Coral has been a valued and hugely supportive partner of the Cheltenham Festival. The Jockey Club has a strong relationship with Entain as an official betting partner and will continue to work closely with its brands. We look forward to announcing an update on the sponsorship of the race in due course,” said Lavender.

The Jockey Club this week announced Singer Capital Markets as the new sponsor of the Arkle Novices’ Chase, demonstrating continued commercial interest in Cheltenham races despite broader industry uncertainty.

Clare highlighted the financial pressures facing betting operators in their relationship with racing.

“UK horseracing is, and will continue to be, the most expensive product we offer, given the huge cost of media rights on top of the statutory levy. It is therefore essential for the long-term health of the sport that racing works even harder with betting operators to grow its appeal to consumers, whilst ensuring that it does not get any more expensive in a world where our tax burden has increased so sharply, and our ability to invest will be increasingly restricted.”

Industry-wide cutbacks expected

Multiple betting operators have warned of spending reductions following the budget announcements.

Entain has expressed disappointment over the decision, CEO Stella David stating:

“We are deeply disappointed by today’s decision to punitively increase UK gambling taxes, putting at risk an industry which already contributes £7 billion annually to the UK economy and supports over 100,000 jobs across the country.”

The company indicated that it will swiftly mitigate the impact of the new tax burden by cutting marketing spend and promotional activities immediately.

Flutter Entertainment, owner of Paddy Power and Sky Bet, and Evoke, which operates William Hill, have both indicated they will review discretionary expenditure including sponsorships.

Smaller operators BetGoodwin and DragonBet have already announced they are withdrawing or reviewing existing sponsorship commitments. Share prices of major gambling companies fell sharply following the budget announcement, with Entain, Flutter and Evoke all trading lower.

The Betting and Gaming Council criticised the tax increases as “economically reckless”, warning they could drive British gamblers towards unregulated black market operators that pay no tax and offer no consumer protections.

Looking ahead

The withdrawal raises questions about the sustainability of bookmaker-funded racing sponsorships. British racing depends heavily on income from betting operators through media rights payments and the statutory levy collected from betting shops.

Clare indicated Entain would continue working with racing stakeholders but called for greater collaboration.

“We look forward to working constructively with all our partners in horseracing on this mutually important mission.”

The 2025 Cheltenham Festival runs from 11-14 March. Recent Coral Cup winners include Langer Dan, who won the race twice. This year’s renewal saw Jimmy Du Seuil ridden by Danny Mullins claim victory.

The Jockey Club has not announced a timeline for securing a new title sponsor. Industry observers expect several brands to express interest given the race’s profile, though commercial terms may reflect operators’ reduced marketing budgets.

This development marks a shift in racing’s commercial landscape as operators balance regulatory compliance, shareholder expectations and reduced profitability against traditional sponsorship commitments that have sustained the sport for decades.