Betfred pulls plugs on iconic races – The betting giant Betfred has officially withdrawn its sponsorship from all five British Classics, a move directly attributed to the Labour government’s recent increase in machine game duty in the Budget.
What Happened
Betfred, founded by Fred Done, has followed through on its threat to end sponsorship of the Derby, Oaks, St Leger, and both Guineas races. This decision comes after Chancellor of the Exchequer John Healey announced a 5% increase in machine game duty, raising it to 25%. While the increase was less than some anticipated, it was enough for Done to activate his warning, despite it being a long-held ambition for his company to sponsor all five Classics, an achievement only realised recently by adding the Guineas to their portfolio. Betfred’s contribution to these races is believed to have been in the millions of pounds.
Key Details
- Betfred has ceased sponsorship of all five British Classics: the Derby, Oaks, St Leger, 1,000 Guineas, and 2,000 Guineas.
- The decision follows a 5% increase in machine game duty in the Labour Budget, raising it to 25%.
- Betfred founder Fred Done had previously warned of withdrawal if such a tax increase occurred.
- The Derby, in particular, has been struggling with attendance and investment, and now faces a lack of a sponsor.
- Amy Starkey, managing director of The Jockey Club’s London Hub, expressed disappointment but understood Betfred’s reasons, citing government policy.
- The Jockey Club is already in talks with prospective new sponsors for these events.
Why It Matters
The withdrawal of Betfred’s sponsorship represents a significant blow to British horse racing, particularly the Classics, which are considered the pinnacle of the sport. The Derby, already facing challenges with dwindling attendance and investment, is now without a major sponsor just two years after Betfred took over the full set. This decision underscores the financial pressures placed on the betting industry by government policy and highlights the potential ripple effects on other sectors that rely on gambling sponsorship. The Jockey Club’s swift move to seek new partners indicates the urgency and importance of securing financial backing for these historic races, ensuring their continued viability and prestige.