UK gambling firm Betfred has announced it has ended its sponsorship of horseracing’s British Classics, five of the oldest and most important English races, as it continues its exit from sport commitments on the back of rising taxes.
Betfred said it was left with “no choice” but to walk away from its partnerships with Jockey Club and Arena Racing Company following the latest tax increase announced in the UK Government's latest budget.
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The latest budget increased MGD from 20% to 25%, a rise the company said could put 1,420 jobs at risk.
Ahead of the budget announcement, Betfred’s co-founder and chairman Fred Done suggested the company would back out of its deal covering the 1000 and 2000 Guineas at Newmarket, the Derby and Oaks at Epsom, and the St Leger at Doncaster if UK Chancellor John Healey increased machine games duty (MGD).
The termination comes three years after Betfred took over sponsorship of the Derby, Oaks, and St Leger in 2023 and secured Newmarket’s 2,000 Guineas and 1,000 Guineas from 2025.
A Betfred spokesperson said: “Following successive tax rises for the betting industry – and in particular the increase to machine games duty at the most recent Budget – it is with great sadness that we have taken the difficult decision not to proceed with a three-year renewal of our sponsorship of the British Classics.
“It is not a decision we wanted to make, but the cumulative cost of government policy has left us with no choice.”
The news comes shortly after Betfred announced it would end its long-standing title sponsorship of British rugby league’s Super League this year.
Betfred has put its name to the 14-team Super League since 2017 but said it will not renew its contract when it ends at the conclusion of the 2026 season.
The most recent deal between the pair was struck in October 2023 and was valued at more than £3 million ($4 million) per year at the time, according to GlobalData Sport.
At the time, Done also cited the UK government's most recent budget and the ensuing combination of tax rises and wage inflation that has forced the company to reevaluate its spending.
Last year, it also let its deal covering golf's British Masters expire, with Swedish robotic lawnmowing specialist Husqvarna then taking its place in February.
Betfred, meanwhile, is also a sponsor of top-tier darts action through 2030, through a deal with the Professional Darts Corporation.
Amy Starkey, who runs Epsom as managing director of the Jockey Club’s London Hub, said: “While we are naturally disappointed that Betfred have taken the decision not to renew their sponsorship of the Derby and the Guineas Festival at Newmarket, we understand their reasons for doing so and know this was not an easy decision for them.
“We are currently in conversations with a number of interested prospective partners that share our ambitions for the future of both events and look forward to sharing more details in due course.”
