Coral withdraws from Cheltenham Festival amid tax increases

The prominent UK bookmaker Coral, part of the Entain group alongside Ladbrokes, has announced it will withdraw its sponsorship of the Coral Cup at the Cheltenham Festival, bringing to an end a relationship that stretched back more than five decades. The company confirmed the change will take effect immediately in response to significant adjustments in the fiscal landscape for betting and gaming companies in the United Kingdom.

This decision represents a major shift for the Cheltenham Festival, one of the most prestigious events in British horseracing and a cornerstone occasion in the annual sporting calendar. The Coral Cup has been one of the defining races at the Festival and has carried Coral’s branding since the race was created in 1993.

The coral cup and the history of a partnership

The Coral Cup is a handicap hurdle race run over a distance of about 2 miles and 5 furlongs on the second day of the Cheltenham Festival. The event has been a staple of the meeting since its inception and has become a highlight for racing fans and participants alike.

Coral’s involvement with Cheltenham dates back to the 1970s, making it the longest‑running sponsor at the Festival. Its association with the Coral Cup began in 1993 when the race was established under that name and helped elevate the profile and prestige of the contest. The partnership endured for more than half a century.

Over the years the Coral Cup has produced memorable winners and thrilling finishes. Notable recent winners have included the horse Langer Dan, who achieved success in the race multiple times before his passing. The reputation of the race has grown over time and it has consistently drawn strong fields and wide interest from owners trainers and racing enthusiasts.

Reasons for withdrawing sponsorship

Entain has been clear that its decision to withdraw from the Coral Cup sponsorship was driven by economic pressures related to government taxation changes. In the autumn budget the UK government announced substantial tax increases affecting the remote gaming duty and remote betting duty that apply to betting firms.

The remote gaming duty on online casino‑style products is due to rise from 21 percent to 40 percent from April 1 2026. At the same time remote betting duty on sports betting excluding domestic horseracing will increase from 15 percent to 25 percent from April 1 2027. These hikes have fundamentally changed the cost dynamics for operators.

Entain officials have stressed that the increased tax burden imposes significant constraints on how the company allocates its marketing and sponsorship budget. In a statement Simon Clare Entain UK consumer PR director expressed regret at having to make what he described as “very difficult decisions” while evaluating where to invest in the current climate.

“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,” Clare said.

Coral’s decision is part of a broader reassessment by gambling operators of their commercial strategies in response to the evolving regulatory and tax environment. Betting firms across the sector are reviewing discretionary spending including sponsorship commitments and promotional activity to preserve financial sustainability.

Impact on the festival and horseracing industry

The withdrawal of Coral’s sponsorship of the Coral Cup leaves a notable gap in the Cheltenham Festival’s commercial landscape. Organisers will now need to secure a new title sponsor for the race ahead of the next Festival. The Jockey Club which owns and runs the Cheltenham Festival has previously welcomed partnerships with many leading brands and will be expected to engage with potential new sponsors in the months ahead.

Despite the end of this particular sponsorship arrangement Entain officials have emphasised that horseracing remains a key sport for the company’s brands. Clare highlighted other major sponsorship commitments linked to Coral and Ladbrokes including iconic races such as the Coral-Eclipse and the Ladbrokes King George VI Chase.

“Horse racing remains very important to Entain and Coral and Ladbrokes have some of the biggest and most enduring sponsorships in the calendar,” Clare said in the company’s statement pointing to ongoing partnerships with the sport.

These comments aim to reassure stakeholders in the horseracing community that the withdrawal from the Coral Cup is not a retreat from racing as a whole but a realignment of marketing and sponsorship priorities under new economic conditions.

Broader commercial and economic context

The decision by Coral reflects wider pressures on the betting and gaming industry in the UK. Operators have repeatedly warned that rising taxes and regulatory costs including the statutory levy payable to the horseracing industry and expensive media rights are squeezing profitability.

Industry observers suggest that many betting companies may be forced to reassess their involvement in sports sponsorships beyond Cheltenham unless the commercial returns justify the investment. When major sponsors pull back support it can have ripple effects on the events and organisations that depend on that funding.

Some analysts have also raised concerns that significant tax increases on regulated operators could inadvertently benefit unregulated or black market alternatives which are not subject to the same fiscal burdens. This could further complicate the economic environment for licensed operators and the sports that rely on their sponsorship.

Response from stakeholders

While announcements from betting firms have emphasised the commercial necessity of reassessing sponsorship commitments few public statements have emerged from horseracing authorities at this stage. However the Jockey Club’s leadership is expected to engage with the industry and prospective sponsors to ensure that key races at the Cheltenham Festival remain well supported and sustainable in the long term.

Sponsorships in the horse racing sector are vital revenue streams that help fund prize money and support the sport’s growth and development. As the industry adjusts to changing economic conditions a collaborative approach between race organisers and commercial partners is likely to be critical to maintaining the health and appeal of top‑level events.

Looking ahead to the next festival

The Cheltenham Festival scheduled for March remains one of the premier events in the international racing calendar attracting large crowds sponsors and significant media attention. The loss of the Coral Cup sponsorship marks the end of an era but also presents an opportunity for new commercial relationships to emerge.

Race organisers will be working to secure a replacement sponsor for the Coral Cup and are expected to make announcements in due course. Meanwhile horseracing fans and industry participants continue to anticipate the excitement of the upcoming Festival with interest in both on‑track competition and the evolving commercial backdrop.

Conclusion

The withdrawal of Coral from the Cheltenham Festival after more than 50 years marks the end of a significant chapter in the history of British horseracing sponsorship. While the decision is driven by economic pressures resulting from increased UK betting and gaming taxes, it does not signal a retreat from the sport by Entain or its associated brands. Coral and Ladbrokes remain committed to supporting major horseracing events, demonstrating that horse racing continues to be a core part of their business strategy.

This change highlights the evolving commercial landscape for betting operators and the challenges posed by regulatory and fiscal shifts. At the same time, it underscores the importance of strong collaboration between race organisers, sponsors and the broader industry to ensure the long-term sustainability of key events like the Cheltenham Festival. While the Coral Cup will soon seek a new sponsor, the Festival itself remains a celebrated sporting spectacle and both organisers and stakeholders are expected to adapt proactively to maintain its prestige and financial stability.

The situation serves as a reminder that even longstanding partnerships must evolve in response to external economic and regulatory pressures and that the future of horse racing sponsorship will likely require flexibility, innovation and careful strategic planning.

FAQ

What is the Coral Cup at the Cheltenham Festival?
The Coral Cup is a handicap hurdle race run on the second day of the Cheltenham Festival that has carried Coral’s branding since its inception in 1993.

Why is Coral ending its sponsorship at Cheltenham?
Coral is ending its sponsorship mainly due to increased tax burdens on betting and gaming operators in the UK which have forced the company to reassess where it allocates its marketing and sponsorship budgets.

How long has Coral been associated with the Cheltenham Festival?
Coral’s association with the Cheltenham Festival began in the 1970s and it has been the longest‑running sponsor at the event.

Will Coral still support other horse racing events?
Yes Coral and its parent company Entain continue to support other major horse racing events including races sponsored under the Ladbrokes and Coral brands.

Does this change affect Coral’s presence at the Cheltenham Festival overall?
No Coral will continue to promote and celebrate the Festival through its channels but will no longer sponsor the Coral Cup race itself.

Who will sponsor the Coral Cup in future?
Race organisers are expected to seek a new sponsor for the Coral Cup but no official replacement has been announced yet.

How does the tax increase affect the betting industry?
The tax increases raise the cost structure for betting and gaming operators which impacts discretionary spending including promotional and sponsorship budgets.

Will this decision affect prize money at Cheltenham?
There is no indication at this time that prize money will be directly affected but loss of sponsorship revenue can influence financial planning for events.

Is horseracing still important to Entain?
Yes Entain has reaffirmed that horse racing remains an important part of its business and brand partnerships.

What happens next for the Coral Cup?
Organisers of the Cheltenham Festival will work to secure a new title sponsor and prepare for the next Festival with continued interest from the racing community.