Coral, one of Britain's most prominent bookmakers, has made the significant decision to end its sponsorship of the Coral Cup at the Cheltenham Festival, marking the conclusion of a historic partnership that began in 1974. This move represents the loss of the festival's longest-running sponsor, with the company citing substantial tax increases announced in the government's recent budget as the primary reason for its withdrawal.
A Historic Partnership Comes to an End
Coral's involvement with the Cheltenham Festival commenced with the sponsorship of the Coral Golden Hurdle, which later evolved into the Coral Cup in 1993. Over these five decades, the race has become one of the most anticipated betting events of the festival week, featuring memorable victories such as Langer Dan's back-to-back wins in 2023 and 2024, making him the only hurdler to achieve this feat.
The bookmaker, which operates as part of the Entain Group alongside Ladbrokes, has been a major supporter of British horseracing throughout its history. Its sponsorship portfolio includes signature events like the Coral-Eclipse Stakes, which the company has backed since 1976, demonstrating its longstanding commitment to the sport.
Tax Changes Prompt Difficult Decision
The announcement follows Chancellor Rachel Reeves' November budget, which included significant increases in remote gaming duty from 21 percent to 40 percent, effective from April 1st. While horse racing was exempted from an increase in remote betting duty on sports—scheduled to rise from 15 percent to 25 percent in 2027—the overall tax burden on betting operators has substantially increased.
Simon Clare, Entain UK's Consumer PR Director, expressed regret about the decision, stating: "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."
Strategic Review of Marketing Investments
Clare further explained that the changed taxation landscape requires betting operators to extract greater value from their sponsorship investments and scrutinise marketing expenditures more rigorously. He emphasised that while UK horse racing will not face increased taxes compared to other betting products, it remains the most expensive offering due to media rights costs and statutory levies.
"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," Clare added, highlighting the need for collaboration to manage costs in an environment of heightened tax pressures.
Continued Relationship with Racing
Despite ending the Coral Cup sponsorship, Entain Group maintains its commitment to British horseracing through other partnerships. The company will continue working with The Jockey Club on significant sponsorships under both its Coral and Ladbrokes brands, including events like the Ladbrokes King George and the Coral-Eclipse Stakes.
Cheltenham's Chief Executive, Guy Lavender, acknowledged Coral's valued support over the years, noting: "Coral has been a valued and hugely supportive partner of the Cheltenham Festival and has sponsored the Coral Cup since its inception in 1993." He confirmed that The Jockey Club anticipates announcing a replacement sponsor for the race in due course.
The Cheltenham Festival remains a crucial four-day period for Coral's business operations, and the company plans to continue promoting the event through its shops, online platforms, and marketing channels. However, the withdrawal from sponsoring the Coral Cup marks a significant shift in how betting operators are responding to increased regulatory and financial pressures in the current economic climate.
