Betfred has officially terminated its sponsorship agreements for all five British Classics, citing the recent increase in machine games duty (MGD) as the primary driver. The company stated it has “no choice” but to withdraw from the high-profile deals following Chancellor John Healey’s Budget announcement. This decision marks a significant shift in the commercial landscape of British flat racing, removing a major brand name from the most prestigious events in the calendar.
Machine games duty hike to 25% forces betting giant to pull out of major flat racing deals.
The affected contracts cover the 1000 Guineas and 2000 Guineas at Newmarket, the Derby and Oaks at Epsom, and the St Leger at Doncaster. Chairman and co-founder Fred Done had previously warned that the sponsorships would be jeopardized if MGD rates were raised. Although Healey stopped short of the feared 40% increase, he raised the tax rate from 20% to 25%. Betfred argues this adjustment threatens over 1,000 jobs in its physical shops, prompting the immediate cessation of these lucrative partnerships.
This move underscores the growing tension between the gambling industry and government fiscal policy. By linking the withdrawal of major sporting sponsorships directly to tax legislation, Betfred highlights the financial fragility of its retail operations under the new regulatory environment. For racecourse operators, the loss of such a prominent sponsor represents a substantial revenue gap that will require urgent strategic realignment to maintain the prestige and funding of the Classic meetings.
Source: The Independent Sport
