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Bookmaker Sponsorship of British Racing Plummets 17% Ahead of MGD Decision

By jili tutorial · October 8, 2026

Bookmaker Sponsorship of British Racing Plummets 17% Ahead of MGD Decision

Overview of the Decline

According to a Racing Post analysis published on 6 October 2026, bookmaker sponsorship of British horseracing experienced a significant 17% year-on-year decline between 1 January and 28 September 2026. This alarming trend comes just three weeks before the UK Budget announcement on 28 October, where a potential increase in Machine Games Duty (MGD) is under consideration.

Which Bookmakers Cut Back?

The Racing Post meticulously recorded the sponsors of every British race title during the same periods in 2025 and 2026. The findings revealed that major players in the industry significantly reduced their sponsorship activities:

A spokesperson for bet365 explained the reasons behind these cuts: “While these have been long-standing and much-valued partnerships, bet365 is currently facing a highly competitive trading environment, plus increased regulatory and tax-related costs, which have unfortunately required us to make some tough commercial choices.”

Similarly, bet365 announced job cuts of around 340 positions, citing similar pressures.

Smaller Operators Fill the Gap

Despite the significant reductions from major players, smaller operators managed to fill some of the void:

All-Weather Racing Hit Hardest

All-weather racing bore the brunt of the sponsorship cuts, with bookmakers sponsoring only 58.2% of all-weather races in 2026, down from 73.3% in 2025. Notable tracks like Wolverhampton, Southwell, Lingfield, and Newcastle all recorded declines. Prize money for bookmaker-backed races dropped by 2.5%, translating to a 5.5% fall in real terms when accounting for inflation.

However, Ripon remained largely unaffected, with bookmaker sponsorship down just 0.1%. The course has maintained a long-standing deal with William Hill for over 25 years. James Hutchinson, Ripon’s Chief Executive, stated, “New regulations and taxes have made it more difficult for them to spend as they once did.”

Tax Changes Behind the Cuts

The November 2025 Budget introduced a significant hike in Remote Gaming Duty (RGD) from 21% to 40%, effective from 1 April 2026. The Racing Post noted that the sponsorship cutbacks began in earnest that month, with bookmaker sponsorships falling by an average of 8.8% each month compared to the same months in 2025. Additionally, a new 25% rate for remote betting is set to take effect on 1 April 2027. Notably, remote bets on UK horseracing will remain at the current 15% rate.

Machine Games Duty Decision on 28 October

Chancellor John Healey is reportedly considering an increase in Machine Games Duty (MGD), currently charged at a standard rate of 20%. Industry experts estimate that doubling the MGD to 40% could cost British racing £92 million annually, roughly one-third of its income from betting.

Fred Done, founder of Betfred, has indicated that the company would withdraw its sponsorship of the five British Classics if the Budget raises MGD. Betfred has already closed 132 betting shops, and Flutter Entertainment is reviewing up to 100 Paddy Power shops.

Conclusion

The significant decline in bookmaker sponsorship highlights the challenges faced by the British horseracing industry amidst increasing regulatory and tax pressures. As the UK Budget announcement looms, the potential increase in Machine Games Duty could further exacerbate the situation, posing severe financial implications for the sport.