Entain Withdraws Long-Standing Cheltenham Festival Sponsorships Due to Tax Hurdles

Britain’s recent gaming tax changes continue to rock the gambling sector, forcing companies to adapt in a variety of ways, including dropping some of their partnership agreements. One of the most recent developments saw Entain withdraw its Coral brand’s sponsorship of The Coral Cup, a part of the Cheltenham Festival.

The Tax and Statutory Levy Changes Are Straining UK Gaming

The Coral brand has cemented itself as one of the longest-standing sponsors of the festival and has been backing The Coral Cup since 1974. The meeting, which was initially known as The Coral Golden Hurdle, was eventually replaced by The Coral Cup in 1993.

The Coral Cup is one of the fan-favorite meetings of the festival and remains a central fixture in the horseracing calendar, as well as a prime opportunity for betting.

Unfortunately, the recent UK Budget has forced many operators to introduce significant changes to their businesses. The changes almost doubled the remote gaming duty from 21% to 40% and are set to increase the sports betting duty from 15% to 25% in a controversial move that was praised by industry critics and lamented by gaming industry stakeholders. While racing was officially excluded from the tax hike, the BGC previously noted that this exclusion was a cosmetic gift that makes no sense since it will still hurt the broader betting industry that racing relies on.

Operators argued that the biggest winner will be the black market, which will now compete with a crippled regulated gaming sector.

Regardless, operators have now started introducing changes to their businesses in order to adapt to the new tax regime. Among other things, Entain announced that it is ending Coral’s historic ties with The Coral Cup.

Entain Regrets Discontinuing the Agreement, Reaffirms Passion for Racing

Simon Clare, Entain’s director of consumer PR, said that his team regrets having to discontinue Coral’s 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.

Simon Clare, director of consumer PR, Entain

Clare added that horseracing remains very important to Entain’s business, despite the difficult decision. However, he noted that the recent changes on top of the previously introduced statutory levy mean that Entain would have to drive even more value out of the events it sponsors.

While Clare acknowledged that the tax on horse racing bets remains unchanged, he insisted that the changes are needed due to the broader impact on the company’s business.

Guy Lavender, the Cheltenham Festival’s CEO, thanked Coral for its long-term support and said that The Jockey Club will continue to maintain a strong relationship with Entain.

On a more positive note, Entain just launched a new BetBuilder tool for racing bets.