Coral Ends 52-Year Cheltenham Sponsorship Over Tax Hikes

David Moore · 2026-01-28

It's the end of an era for one of horse racing's most iconic partnerships. Coral, the UK bookmaker that's been a fixture at the Cheltenham Festival since 1974, is pulling out. Their parent company, Entain, made the announcement this week, and honestly, it feels like losing a piece of the festival's soul. They're not leaving because they want to. The decision comes with what the company calls "a heavy heart." The driving force? A significant increase in UK gambling taxes that's forcing operators to rethink everything. When your marketing budget gets squeezed, even the most cherished sponsorships come under the microscope. ### Why Coral Had to Make This Tough Call Let's break it down simply. Running a betting operation in the UK isn't cheap. You've got the statutory levy, media rights, and now, a big jump in taxes. Simon Clare, Entain's Sponsorship Director, pointed out that the Cheltenham sponsorship is Coral's single most expensive marketing product. When the government changes the rules of the game, businesses have to adapt to survive. The official statement put it bluntly: Coral must "reassess the commercial viability of certain sponsorships." It's a cold, corporate phrase for a warm, 52-year relationship. But in the boardroom, numbers talk. The sentiment is clear—this wasn't a choice; it was a financial necessity. ### Understanding the New Tax Landscape So, what's actually changing? UK Chancellor Rachel Reeves laid out the plan last November. The tax rate on remote sports betting is set to rise from 15% to 25% starting in 2027. That's a major hike. For online casino games, the increase is even more dramatic—doubling from 21% to 40% in April 2026. Here's a quick look at the key changes: - Remote sports betting tax: Rising to 25% (from 15%) in 2027. - Online casino games tax: Doubling to 40% (from 21%) in April 2026. - Horse racing wagers: Notably, these will NOT see an increased charge. The timing is interesting. The casino tax hits in 2026, right before the festival that Coral will now miss. It shows how interconnected these financial decisions are across an operator's entire portfolio. ### What This Means for the Cheltenham Festival The Coral Cup has been a highlight on the festival's second day since 1993. For over three decades, that name has been part of the racing lexicon. Now, the race organizers have a big task ahead: finding a new title sponsor before the gates open on March 10, 2026. It won't be easy. You don't just replace a 52-year partner overnight. The new sponsor will be stepping into some very big shoes, inheriting a legacy that's woven into the fabric of the event. They'll need deep pockets and a genuine love for the sport to make it work. This move by Coral might be the first domino to fall. Other operators are surely crunching the same numbers, looking at their own high-profile sponsorships and wondering if they still make sense. The entire sponsorship model for UK racing and sports could be in for a shake-up. It's a reminder that even the most storied traditions in sport aren't immune to economic pressures. When the cost of doing business goes up, something's gotta give. Sadly, this time, it's one of racing's most enduring partnerships. The Cheltenham Festival will go on, of course. The roar of the crowd, the thundering hooves, the thrill of the jump—that magic remains. But from 2026 onward, it'll just feel a little different without Coral's name in the mix.