Coral ditches Cheltenham Sponsorship
Betting giant Coral has ended its long association with the Cheltenham Festival after more than half a century, citing the impact of increased government taxation on gambling.
While duty on UK horse racing bets was spared in Chancellor Rachel Reeves’ Budget last autumn, taxes on remote sports betting are set to rise sharply from 15 per cent to 25 per cent in 2027.
Coral’s parent company Entain confirmed on Wednesday that it will bring to an end its “long-standing” sponsorship of the Coral Cup, a partnership that has run uninterrupted for 52 years at the home of the Cheltenham Gold Cup. Since 1974, Coral had been the Festival’s longest-serving sponsor.
In a statement, Entain said: “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.”
The decision has drawn political criticism. Shadow sports minister Louie French said: “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 added: “It’s not about tackling gambling harms, it’s a cash grab that puts jobs and sports at risk.”
Entain ditch Coral Cup
Entain’s sponsorship director Simon Clare admitted the move had not been taken lightly, describing the withdrawal as being made with “a heavy heart”. He added: “The scale of the recent tax increase on betting operators means we must take difficult decisions to mitigate its impact.”
The loss of the Coral Cup sponsor will be viewed as a significant blow for the sport. Despite efforts to shield parts of the gambling industry from Budget increases, a raft of wider tax rises aimed at plugging a financial shortfall has left betting operators increasingly exposed.
Clare added: “With higher taxation and racing’s already high cost base – 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.”
“We are committed to working constructively with our partners to support racing’s long-term health.”
Bookmakers and online casinos are expected to pay billions more in tax by the end of the current parliament. The Betting and Gaming Council previously warned that higher taxes would inevitably lead to shorter odds for punters across the industry.
French reiterated his concerns, saying: “Rachel Reeves’ gambling tax raid was inevitably going to cost jobs, shut bookies and deprive British sports of vital funding.”
