UK bookmaker Betfred has decided not to renew its sponsorship of Britain’s five Classic horse races, citing the financial impact of successive gambling tax increases.
The decision follows the UK government’s increase in Machine Games Duty (MGD) from 20% to 25%, adding to operating costs for betting businesses. Betfred’s withdrawal affects the 1,000 Guineas, 2,000 Guineas, St Leger Stakes, Oaks and Epsom Derby, ending the bookmaker’s branding across the five major races.
Betting and Gaming Council warns of pressure on British sport
The Betting and Gaming Council (BGC) described Betfred’s decision as “another sign of the impact successive gambling tax rises are having on British sport”.
The industry body confirmed that Betfred would not renew its sponsorship of the British Classics, including the Derby, because of the cumulative cost of tax increases and the latest rise in Machine Games Duty.
According to the BGC, the regulated betting industry contributes about £350 million (€419.3 million) annually to British horseracing through various funding arrangements. The organisation argued that Betfred’s withdrawal demonstrated the importance of maintaining a financially sustainable betting sector.
A Betfred spokesperson told the Racing Post that the company had made the “difficult decision” not to proceed with a proposed three-year sponsorship renewal. The spokesperson attributed the withdrawal to successive tax increases, particularly the latest increase in Machine Games Duty, saying the cumulative cost of government policy had left the company with no alternative.
Betfred had previously warned of shop closures and job losses
Betfred’s decision follows earlier warnings about the financial pressures facing its retail betting operations. In August, the bookmaker announced a consultation process that could result in the closure of 132 betting shops across Britain, potentially affecting approximately 600 employees.
The proposed closures would reduce its retail estate to around 1,100 shops and its workforce to approximately 6,800 employees. Betfred CEO Joanne Whittaker had previously raised concerns about the sustainability of the company’s retail operations under the existing fiscal and regulatory conditions.
Founder Fred Done also warned that a verbal agreement to extend sponsorship of the Classic races for another three years could collapse if further taxes were imposed on betting shops.
British horseracing faces potential funding reductions
Betfred’s withdrawal adds to concerns about the financial consequences of gambling tax increases for British horseracing.
British Horseracing Authority CEO Brant Dunshea recently estimated that the sport could lose approximately €68 million annually following the announced tax changes. The loss of Betfred’s sponsorship creates an additional commercial challenge for race organisers seeking replacement partners for some of Britain’s most prominent racing events.
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