Coral Withdraws from Cheltenham Festival After 52 Years Due to Tax Increases
Betting giant Coral has announced it will end its sponsorship of the Cheltenham Festival after more than half a century, citing significant tax rises on the gambling industry imposed by the government. The decision marks the conclusion of a partnership that began in 1974, making Coral the longest-running sponsor at the prestigious horse racing event.
Tax Hikes Force Commercial Reassessment
The move comes in response to tax increases announced in the recent UK Budget, which will see the duty on remote sports betting rise from 15 per cent to 25 per cent in 2027. While horse racing wagers were exempted from Chancellor Rachel Reeves' autumn Budget, the broader gambling sector faces substantial financial pressure.
Entain, Coral's parent company, stated that the tax changes have necessitated a thorough review of marketing investments. 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 company explained in an official statement.
End of an Era for Racing Sponsorship
Coral's sponsorship of the Coral Cup at Cheltenham Festival, home to the famous Gold Cup, has been a fixture since 1974. Simon Clare, sponsorship director at Entain, expressed regret about the withdrawal. It is with a heavy heart that we will be ending our association with the Cheltenham Festival, Clare said. But the scale of the recent tax increase on betting operators means we must take difficult decisions to mitigate its impact.
The departure represents a notable blow to horse racing, which relies heavily on sponsorship from the gambling industry. Clare emphasized the need for collaboration between the sport and betting operators, stating: 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.
Broader Implications for the Gambling Sector
The tax increases are part of broader fiscal measures aimed at addressing government finances, though the projected financial shortfall appears smaller than initially anticipated. Bookmakers and online casinos are expected to pay billions more in taxes by the end of the current parliamentary term.
Industry representatives have warned that such tax hikes could lead to reduced odds for punters across the sector. The Betting and Gaming Council cautioned last November that increased taxation would likely result in less favorable betting terms for customers, highlighting the interconnected nature of taxation, operator profitability, and consumer experience.
Entain has committed to continuing dialogue with racing partners, affirming: We are committed to working constructively with our partners to support racing's long-term health. However, the withdrawal from Cheltenham underscores the challenging economic landscape facing both the gambling industry and traditional sports sponsorships in the current fiscal environment.
