Betfred withdraws sponsorship of the five British Classics after tax rises
Operator blames Machine Games Duty rise and other fiscal measures for decision
Key Takeaways
- Betfred will not renew its sponsorship of the five British Classics after the October 2026 Budget tax increases.
- The UK Government raised Machine Games Duty from 20% to 25%, effective 1 April 2027 for machines with stakes over £1 or prizes over £100.
- Betfred previously announced the closure of 132 shops and the loss of more than 600 jobs as part of wider cost-cutting measures.
- Bookmaker sponsorship of British racing fell 17% year-on-year, and organisers will now seek new title sponsors for the five Classics.
Betfred has announced it will not renew its sponsorship of the five British Classics after the increase in Machine Games Duty approved in the October 2026 Budget. The bookmaker said the accumulation of tax rises, including the increase of Machine Games Duty from 20% to 25%, prevents it from continuing the sponsorship agreements.
Withdrawals and timeline of measures
The withdrawal affects the five major fixtures in the British horseracing calendar: the 2000 Guineas, the 1000 Guineas, the Derby, the Oaks and the St Leger. Betfred began sponsoring the Derby and the Oaks at Epsom in 2023 and added the St Leger at Doncaster that same year. Its Newmarket agreement started in 2025, making Betfred the first company to sponsor all five Classics.
The UK Government raised Machine Games Duty from 20% to 25% for machines with stakes above £1 or prizes exceeding £100, effective 1 April 2027. In addition, Remote Gaming Duty rose from 21% to 40% in April 2026 and a 25% General Betting Duty for remote bets will be introduced in April 2027, although in-shop bets and remote bets on British races are exempt from that particular increase. These tax changes form part of the October 2026 Budget and broader industry taxation policy under discussion in the Department for Science, Innovation and Technology and HM Treasury; more on regulatory developments can be found on our [regulation](/regulation) page.
Declared reason from Betfred and operational context
Betfred linked the decision directly to the "accumulation of tax rises." In its statement the company 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." — Betfred
The withdrawal follows other cost-saving measures: in July Betfred announced the closure of 132 betting shops and the loss of more than 600 jobs. In September, RL Commercial confirmed Betfred would end its sponsorship of the Super League, the Challenge Cup and England Rugby League after the 2026 season.
Industry reactions and next steps
The Racing Post reported that bookmaker sponsorship of British racing fell 17% year-on-year. Amy Starkey of The Jockey Club said the organisation was "naturally disappointed" and is holding talks with a number of interested partners. Arena Racing Company described the decision as understandable in light of the Budget. The Racing Post coverage is available on our [news](/news) section.
Betfred's package also included a £2 million bonus for any horse that won the 2000 Guineas, the Derby and the St Leger; that incentive is now off the table. The five fixtures will be open to seek new title sponsors, and organisers will begin discussions with potential partners for replacement deals and promotional plans ahead of the 2027 season; further updates on the Classics themselves appear on our [sports](/sports) coverage.
Frequently Asked Questions
Why is Betfred ending its sponsorship of the five British Classics?
Betfred says the decision is due to the accumulation of tax rises in the betting industry, notably the increase in Machine Games Duty from 20% to 25% introduced in the October 2026 Budget, which it says makes a three-year renewal financially unviable.
Which races lose Betfred sponsorship?
The sponsorship withdrawal covers the 2000 Guineas, the 1000 Guineas, the Derby, the Oaks and the St Leger; Betfred had sponsored the Derby and Oaks since 2023 and added the St Leger in 2023 and Newmarket in 2025.
When does the new Machine Games Duty rate take effect?
The 25% Machine Games Duty rate applies from 1 April 2027 for machines with stakes over £1 or prizes exceeding £100, as set out in the October 2026 Budget.
What other measures has Betfred taken recently?
In July Betfred announced it would close 132 betting shops and cut more than 600 jobs; in September RL Commercial confirmed Betfred would end sponsorship of the Super League, Challenge Cup and England Rugby League after 2026.
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Miguel Sandoval
Regulatory Affairs Correspondent
Miguel Sandoval tracks gambling legislation, licensing, and regulator enforcement — from Spain's DGOJ and the Latin American authorities to the UKGC, the MGA, and the state-by-state map in North America. The reports answer three questions precisely — what changed, where, and who it affects — with jurisdictions, dates, and penalties cited exactly as published. Operators and compliance officers read Miguel Sandoval to know which rulebook moved before their next meeting.
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