The bookmaker blamed the “significant increase in betting taxation” announced in Chancellor Rachel Reeves’ Budget
A general view during The Coral Cup Handicap Hurdle during Day Two of the 2025 Cheltenham Festival at Cheltenham Racecourse (Image: Getty Images)
Betting giant Coral has pulled the plug on its Cheltenham Festival involvement after more than half a century, citing government levies on the gambling sector.
Whilst duty on UK horse racing bets escaped Chancellor Rachel Reeves’ autumn Budget, taxes on remote sports betting are set to climb from 15 per cent to 25 per cent come 2027.
On Wednesday, Coral’s parent company Entain announced it would be severing its “long-standing” sponsorship of the Coral Cup at the prestigious Cheltenham Festival, famous for hosting the Gold Cup, after a 52-year partnership.
The firm had held the distinction of being the festival’s longest-running sponsor since 1974.
“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,” a statement read, as reported by City AM.
Shadow sports minister Louie French argued that “Coral’s decision is just the latest example of how Labour’s eye-watering and ideological taxes were always going to hit horse racing”, suggesting that “it’s not about tackling gambling harms, it’s a cash grab that puts jobs and sports at risk.”
Simon Clare, Entain’s sponsorship director, acknowledged that it was with “a heavy heart” that the firm would withdraw from the Cheltenham Festival, adding “the scale of the recent tax increase on betting operators means we must take difficult decisions to mitigate its impact”.
The decision is expected to deal a significant blow to the horse racing industry.
Despite efforts to shield the gambling sector from tax rises ahead of the Budget, a raft of increases aimed at plugging what turned out to be a smaller-than-anticipated financial shortfall has left the broader gambling industry 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.”
Betting shops and online gaming operators face paying billions of pounds more in tax before the end of this parliamentary term, whilst the Betting and Gaming Council cautioned last November that punters’ odds throughout the industry would worsen if taxation was raised.
French added: “Rachel Reeves’ gambling tax raid was inevitably going to cost jobs, shut bookies and deprive British sports of vital funding.”
A Department for Culture, Media and Sport spokesperson said: “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. Horserace bets are already subject to a mandatory 10 per cent levy and that remains the case.”
