Coral’s decision to end its sponsorship of the £110,000 handicap hurdle at the Cheltenham Festival has sent shockwaves through the horse racing community. When Chancellor Rachel Reeves unveiled her budget last November, the racing world was optimistic since the tax on British horse racing remained at 15%, even though taxes on other betting sectors increased. However, bookmakers expressed frustration, feeling that racing was unfairly targeted amid broader tax hikes that will nearly double gaming taxes to 40% come April and raise taxes on other betting categories, except British horse racing, to as high as 25% within the next 14 months.
Previously, bookmakers primarily profited from horse racing, but now that gaming offers a cheaper alternative, racing has become expensive due to media rights. Consequently, bookmakers, including Coral’s parent company Entain, have made it clear they will reduce discretionary spending such as marketing and sponsorships. Coral’s withdrawal from racing’s premier event marks the most significant sign of this cost-cutting approach so far.
The contract for the race, known as the Coral Cup since its inception in 1993, was up for renewal. Coral’s choice also reflects its position as a “supporting sponsor” to BetMGM, a newcomer holding the title rights to the Champion Chase on the same day, which dominates the festival’s branding and advertising. In contrast, Coral’s sponsorship at other major events like the Gold Cup at Newbury and the Welsh Nationals casts them as the leading sponsor.
Simon Clare, communications director for Entain, stressed that although racing taxes haven’t changed, the overall tax burden on the industry is rising, forcing the company to trim expenses and reassess sponsorship commitments. While Coral continues to invest in racing through other sponsorships and ambassadors, the focus is now on ensuring these partnerships deliver true value.
Entain’s other betting brand, Ladbrokes, hasn’t sponsored Cheltenham since 2017 but remains active in other major flat races like the Ayr Gold Cup and Chester Cup. Clare highlighted successful seasons by ambassadors such as Dan Skelton and Sean Bowen, emphasizing their efforts to justify support. He suggested Coral’s withdrawal from the Coral Cup isn’t indicative of broader withdrawal from racing but reflects careful portfolio management under rising costs.
Despite Coral’s decision, the festival’s sponsorship landscape remains balanced, with bookmakers backing fewer than a quarter of the races. Other sponsors represent diverse sectors, including logistics, aviation, real estate, food and beverage, fashion, technology, and construction. The Jockey Club continues to engage with brands to fill sponsorship vacancies, and it’s expected that new partners will be secured well before the Coral Cup runs on March 11.
Though the festival faces challenges such as declining attendance, high hotel prices, and recent course issues like a collapsed culvert, sponsorship is not currently seen as a major problem. The Gold Cup previously ran unsponsored for two years but was successfully supported by charity and then a long-term deal with family jeweler Boodles. Cheltenham’s efforts to enhance the customer experience indicate optimism about attendance and ticket sales moving forward, underscored by record crowds during the holiday season.
Course safety concerns have been thoroughly examined, with experts assuring that drainage problems, while historic, are common across British racecourses and are being managed. Ultimately, attendance figures will continue to be closely watched, but it’s unlikely that sponsorship shifts alone will define the future of Cheltenham or the wider jump racing festival.
Fan Take: Coral’s withdrawal from Cheltenham’s Coral Cup highlights the financial pressures bookmakers face amid rising taxes, signaling a potential shift in sponsorship dynamics. For horse racing fans, this underlines the need for the sport to diversify its funding sources to maintain its premier events and secure long-term stability in a challenging economic climate.
