Betfred pulls sponsorship from all 5 British Classics over tax pressure

The betting company has decided not to renew its three-year agreement following the tax increase on gaming machines.The Derby, the Guineas, the Oaks, and the St Leger will now have to seek new sponsors, dealing another economic blow to British racing

LONDON, England.— British horse racing has received news that raises serious alarms regarding its long-term financial sustainability. Betfred, one of the country's leading bookmaking firms, announced it will cease sponsoring Great Britain’s five traditional classic races as a direct consequence of tax increases enacted by the government.

The decision marks the loss of a major commercial partner for the Derby, the Oaks, the 2000 Guineas, the 1000 Guineas, and the St Leger—events that form the bedrock of history and international prestige in British racing.

The catalyst was the latest budget proposal, which raised the tax on gaming machine revenues from 20 to 25 percent.Fred Done, chairman and co-founder of Betfred, had previously warned that such a measure would force the company to review its sponsorship commitments with The Jockey Club and Arena Racing Company.

According to corporate projections, the new fiscal environment would push 284 of its 1,094 betting shops into loss-making territory, putting approximately 1,420 jobs at risk.

“Following successive tax increases on the betting industry, and particularly the increase applied to gaming machines in the latest budget, we have with great sadness taken the difficult decision not to proceed with renewing our three-year sponsorship of the British Classics,” Betfred stated in an official release.

“It is not a decision we wished to take, but the cumulative cost of government policies has left us with no choice,” the statement added.

The association between Betfred and Great Britain's premier races began in 2023, when the firm secured sponsorship of the Epsom Derby and Epsom Oaks. That same year, it added the St Leger at Doncaster, and in 2025 expanded its portfolio to include both Guineas at Newmarket.

This made Betfred the first commercial brand to sponsor all five classics simultaneously, even establishing a £2 million bonus for any horse capable of sweeping the British Triple Crown.

Representatives from The Jockey Club expressed disappointment while confirming that discussions are already underway with potential replacement partners.

“We are naturally disappointed, but we understand their reasons and know this was not an easy decision. Fred and his team are passionate supporters of horse racing and have been outstanding partners,” said Amy Starkey, managing director of Epsom for the organization.

Starkey confirmed that negotiations are ongoing with several companies interested in partnering with the high-profile meetings at Epsom and Newmarket.

At Doncaster, David Leyden Dunbar, director of commercial strategy and partnerships, also lamented Betfred’s departure while highlighting that this year's St Leger recorded its highest attendance figures since 2012.

The issue, however, extends beyond a single sponsor or five races. An analysis published by the Racing Post last month revealed that bookmaker sponsorship in British racing has declined by 17 percent since the implementation of higher levies in the previous budget.

The developments underscore a fragile economic ecosystem: betting operators remain a vital source of revenue for racing fixtures, yet face expanding fiscal and regulatory burdens.

For racecourse executives, securing replacement partners now becomes an immediate priority to safeguard purse values, marketing budgets, and the global standing of their signature festivals.

While the Derby and its fellow classics retain their storied heritage, rebuilding a significant pillar of their financial foundation presents an urgent challenge.