Coral end backing of Coral Cup at Cheltenham Festival 'with some sadness' - blaming 'sheer size' of tax rises in budget

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Coral are ending their backing of the Coral Cup at the Cheltenham Festival with immediate effect ending 51 years of sponsorship by the bookmakers at the meeting, with the blame laid squarely on tax rises announced in last year’s budget.

The Coral Cup, a 2m5f handicap hurdle run on the second day of the festival that has been won in recent years by the likes of two-time scorer Langer Dan, has been sponsored by Coral since its inception in 1993.

However, the bookmakers, part of the Entain group that also includes Ladbrokes, said on Wednesday they would end their association with the Cheltenham Festival “with some sadness” as part of a review into their sponsorship due to the “sheer size” of the tax increases.

In November, chancellor of the exchequer Rachel Reeves said remote gaming duty – levied on online casino-style games – would increase to 40 per cent from 21 per cent from April 1, while remote betting duty on sports, excluding domestic horseracing, would go up to 25 per cent from 15 per cent from April 1, 2027.

Simon Clare: "We are having to take very difficult decisions"Credit: Ian Walton

Simon Clare, Entain UK consumer PR director, said: “It is with some sadness that we are today announcing that Coral will not be continuing with its sponsorship of the Coral Cup.

“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 Jockey Club are strong, long-standing partners of Entain, and although we are stepping away from this sponsorship, we will continue to work passionately and collaboratively with their racecourse teams on the big sponsorships we have with them under our Ladbrokes and Coral brands."

Clare emphasised that while Coral would not be sponsoring at the festival, racing “remains very important to Entain” and cited the bookmaker’s backing of showpiece contests such as the Coral-Eclipse and the Ladbrokes King George VI Chase.

Clare added that, due to the increased taxes on betting operators, greater focus was being put on “where we invest our marketing spend”, echoing comments made before the budget by bookmakers that they could seek to reduce discretionary spending on the likes of sponsorship, and reducing punter offers, in response to the tax changes.

“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,” Clare said. “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. 

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

Coral's decision means Cheltenham will be seeking a new partner for the race. This week the Jockey Club announced Singer Capital Markets as the new sponsor of the Arkle Novices' Chase, and Cheltenham chief executive Guy Lavender said: “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.”

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