Betfred ends sponsorship of all five British Classics after tax rises

The move leaves Britain’s most prestigious flat races looking for new backers and shows how higher gambling taxes are now reaching sport.

Betfred has decided not to renew its title deals for the 2000 Guineas, 1000 Guineas, Derby, Oaks and St Leger, blaming successive increases in betting duties and, in particular, the machine games duty rise announced in the October Budget.

Five Classics lose their title sponsor

The decision affects the Guineas races at Newmarket, the Derby and the Oaks at Epsom, and the St Leger at Doncaster. Betfred first backed the two Epsom Classics in 2023 and that year also agreed a multi-year partnership for the St Leger Festival with Arena Racing Company (Arc). Its Guineas deal, which started in 2025, made Betfred the first brand to sponsor all five of Britain’s Classics, and came with a £2 million bonus for any horse winning the 2000 Guineas, Derby and St Leger.

Betfred said in a statement:

‘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.’

The company added: ‘It is not a decision we wanted to make, but the cumulative cost of government policy has left us with no choice.’

Amy Starkey, Managing Director of the Jockey Club’s London hub, said in comments reported by the Racing Post that the Jockey Club was ‘naturally disappointed’ and was ‘currently in conversations with a number of interested prospective partners’. Arc said the decision was not a surprise given the Budget.

What the last two Budgets changed

• Machine Games Duty: rises from 20% to 25% on machine games with stakes over £1 or prizes over £100 from 1 April 2027
• Remote Gaming Duty: increased from 21% to 40% on 1 April 2026, under the November 2025 Budget
• General Betting Duty: a new 25% rate for remote betting applies from 1 April 2027, while bets in betting shops and remote bets on UK horseracing are not affected

The rise was lower than many had feared: Chancellor John Healey raised it to 25%, below the 40% some had expected.

Shop closures and rugby league exit

The Classics decision follows earlier cuts. In July, Betfred announced plans to close 132 shops and cut more than 600 jobs.

In September, RL Commercial confirmed that Betfred’s title partnerships of Super League, the Challenge Cup and England Rugby League would end after the 2026 season, closing a relationship that began in 2017.

Betfred founder Fred Done said then that the tax rises and wage inflation that followed the 2025 Budget had made it ‘necessary to review all Betfred spending’.

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