Entain Ends Longtime Sponsorship of Cheltenham Festival Due to Tax Impact
Introduction
Recent changes to the UK’s gaming tax laws have had a significant impact on the gambling industry, forcing operators to adjust their strategies and partnerships. Among the notable consequences is Entain’s decision to stop sponsoring The Coral Cup at the Cheltenham Festival through its Coral brand, ending a sponsorship that lasted for decades.
Background on the Sponsorship and Tax Changes
The Coral brand has been an iconic presence at the Cheltenham Festival, supporting The Coral Cup since 1974. Originally named The Coral Golden Hurdle, the event was rebranded as The Coral Cup in 1993 and has since been a highlight for fans and bettors alike within the horse racing community.
However, recent fiscal policies introduced in the UK Budget have imposed heavier taxes on remote gaming and sports betting operators. The remote gaming duty nearly doubled from 21% to 40%, and sports betting duty is set to rise from 15% to 25%. Though horse racing betting was exempt from the tax hikes, this exemption has been criticized as superficial since the broader betting ecosystem supporting racing is affected. Industry experts warn that these increases may inadvertently strengthen the black market due to the added strain on regulated operators.
As a result, many gambling companies, including Entain, have had to reconsider their financial commitments, leading to the unfortunate withdrawal from long-standing sponsorships like that of The Coral Cup.
Entain’s Response and Future Outlook
Simon Clare, Entain’s director of consumer PR, expressed regret over ending Coral’s association with The Coral Cup. He emphasized the difficult nature of this decision driven by the significant financial pressure from increased government taxes on betting businesses.
Despite this, Clare reaffirmed how important horse racing remains to Entain, but highlighted that the cumulative tax and statutory levies now necessitate extracting more value from sponsorships, leading to tough choices like this withdrawal.
The Cheltenham Festival’s CEO, Guy Lavender, acknowledged Coral’s long-term support and assured that The Jockey Club looks forward to maintaining a strong partnership with Entain in the future.
On a positive note, Entain has recently introduced a new BetBuilder tool designed to enhance the horse racing betting experience, showing the company’s continued commitment to the sport.
