Coral will not renew its sponsorship of the Coral Cup at the Cheltenham Festival, the operator confirmed on Wednesday (28 January).
The Entain-owned brand has been the longest-running sponsor of the festival since 1974, putting its name on the Coral Cup since 1993.
The Coral Cup, a two-mile five-furlong hurdle race held on the second day of the festival, will cease to be sponsored by the Entain brand with immediate effect.
The operator cited the planned gambling tax hikes announced in the Autumn Budget back in November as the key driver for the decision.
The government announced an increase in remote gaming duty to 40% from 21%, and an increase in online sports betting, excluding horseracing, to 25% from 15%.
While horseracing was not directly impacted, operators have warned of the trickledown impact of the tax hikes on other parts of their businesses, especially marketing and sponsorship.
Entain will continue to hold the Ladbrokes King George VI Chase at Kempton, with the company noting horseracing “remains very important to Entain”.
Simon Clare, consumer PR director at Entain UK, 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 then 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.”
“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.
“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.”
Clare said the rises had required Entain to be more economical with their marketing spend, a strategy expected by the industry of operators in the wake of the tax hikes.
Guy Lavender, Cheltenham CEO described Coral as 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,” he added.
“We look forward to announcing an update on the sponsorship of the race in due course.”
The post Coral ends sponsorship of Coral Cup at Cheltenham Festival first appeared on EGR Intel.
Parent company Entain blames the upcoming UK gambling tax hikes on the decision to end the sponsorship of the race, in what could be a significant blow for horseracing
The post Coral ends sponsorship of Coral Cup at Cheltenham Festival first appeared on EGR Intel.