Betfred ends sponsorship of all five British Classics after UK tax rise

Betfred will not renew its sponsorship of the five British Classics after the UK government raised Machine Games Duty in the October 2026 Budget. The bookmaker linked the decision to cumulative gambling tax rises and the April 1, 2027 increase in Machine Games Duty from 20% to 25%, and confirmed it will end title deals for the Derby, Oaks, St Leger, 2000 Guineas and 1000 Guineas.

Tax changes and timing

The October 2026 Budget increased Machine Games Duty from 20% to 25% for machines with stakes above £1 or prizes exceeding £100, effective 1 April 2027. Remote Gaming Duty rose from 21% to 40% in April 2026. A separate 25% General Betting Duty rate for remote betting will start in April 2027, although the Budget left betting shops and remote wagers on UK horseracing exempt from that particular increase. The Budget measures were the changes Betfred cited when announcing the sponsorship withdrawal; the government increase is set to take effect on the date above (regulation).

Sponsorships ending and prior commitments

Betfred will stop sponsoring the five British Classics: the Derby and Oaks at Epsom, the St Leger at Doncaster, and the 2000 Guineas and 1000 Guineas at Newmarket. Betfred began sponsoring the Derby and Oaks in 2023 and added the St Leger the same year. Its Newmarket agreement began in 2025, making the company the first to sponsor all five Classics; the package included a £2 million bonus for any horse winning the 2000 Guineas, Derby and St Leger.

The bookmaker said it had decided not to proceed with a three-year renewal of the British Classics agreements.

"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," Betfred said. "It is not a decision we wanted to make, but the cumulative cost of government policy has left us with no choice."

Broader cost reductions at Betfred

The sponsorship exit follows a series of cost-cutting moves by the bookmaker. In July 2026 Betfred announced plans to close 132 betting shops and cut more than 600 jobs. In September 2026 RL Commercial confirmed Betfred would end its rugby league sponsorship of Super League, the Challenge Cup and England Rugby League after the 2026 season. Founder Fred Done had earlier warned rising gambling taxes and wage costs made it "necessary to review all Betfred spending."

Reactions from racing and media

The Racing Post reported bookmaker sponsorship of British racing had fallen by 17% year-on-year. Amy Starkey of the Jockey Club said the organisation was "naturally disappointed" and that it was "currently in conversations with a number of interested prospective partners." Arena Racing Company described the decision as understandable given the Budget.

The withdrawal leaves five flagship races seeking new title sponsors and closes out Betfred's short tenure as the first company to hold all five Classics simultaneously.