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Sponsorships to be hit after bookmakers announce cutbacks in wake of budget tax increases
Bookmakers large and small have said they will begin immediate cutbacks in spending and promotions on sports including racing in the wake of tax increases in Wednesday’s budget.
Betting giant Flutter Entertainment, the owner of Betfair, Paddy Power and Sky Bet; and Evoke, the parent company of William Hill, said discretionary outgoings on the likes of sponsorship would be reduced because of the sharp increases in betting duties, while smaller operators such as BetGoodwin and DragonBet said they were also being forced to re-evaluate their sponsorships.
Following the budget, remote gaming duty (RGD) will be upped to 40 per cent from 21 per cent from April, and general betting duty (GBD) for online sports, except horseracing, will rise to 25 per cent from 15 per cent from April 2027, but betting shops were mostly protected from the changes.
Greg Knight, managing director of Jenningsbet, an independent retail-focused bookmaker, said the changes “gave a voice not only for racing but also for the betting shop industry with the measures taken”.
In contrast, James Lovell, the co-founder of DragonBet, which takes bets via on-course pitches and online, said the budget was “a lot worse than expected” and his company was assessing what steps it would take.
He said: “We’re a small company that started on the racecourse and our heart is in racing and we still support it where we can. Racecourse sponsorship is something that we have done and want to be able to do, but the expectation is we're going to have to roll it back.
“I had a call from one racecourse manager today because he’s had two bookmakers pull out of sponsorship deals for the next couple of years and he wanted to know if we were planning to do the same.
“You have to understand this isn’t something that we want to do and it’s not a backlash. I’m certainly trying to do it with a calm head, but with these increases businesses are going to have to cut back and sponsorship is one of the things you can look at straight away.”
Lovell added his view that some people in racing held a misconception that if taxes increased on other betting products that there would be more money to spend on racing, or there would be more focus on it from layers.
He said: “Bookmakers have a pot of money where these things are funded from and that comes from all the products offered. You have your forecasts and your profits and from there you can make commercial decisions, so it’s almost irrelevant racing hasn’t been touched because there is just less money to spend.
“Frankly, the biggest losers in this are consumers. Bookmakers are going to increase margins, and there are going to be fewer concessions such as free bets and best odds guaranteed. I would add that this will potentially boost on course as you can get a good bet on there, but it won’t make up for the shortfall from this budget.”
In post-budget statements, Flutter and Evoke outlined plans to reduce sponsorship and promotions, while BetGoodwin, who sponsor at Plumpton and Fontwell, said on X: “We have taken the decision to cut all our horseracing sponsorship. So disappointed that horseracing bodies didn’t see the bigger picture.”
The concerns raised by a range of bookmakers were in contrast to the views held by Jenningsbet boss Knight, who was encouraged that GBD was left unchanged in betting shops, there was no rise in machine games duty, and that self-service betting terminals were exempted from increases to RGD.
Knight said: "The Treasury and the chancellor gave a voice not only for racing but also for the betting shop industry with the measures taken. They were convinced that community-based betting and entertainment was a good thing, as they also removed the levies from bingo halls.
"Your outlook on the budget is going to entirely depend on whether your focus is online or in-person betting. It was a big statement when [the government] said they wanted to protect community-based betting."
https://www.racingpost.com/news/britain/racing-tax/furious-bookmakers-warn-of-reducing-promotional-spend-and-pulling-sponsorships-in-wake-of-tax-increases-acEXK1B8377B/
Bookmakers large and small have said they will begin immediate cutbacks in spending and promotions on sports including racing in the wake of tax increases in Wednesday’s budget.
Betting giant Flutter Entertainment, the owner of Betfair, Paddy Power and Sky Bet; and Evoke, the parent company of William Hill, said discretionary outgoings on the likes of sponsorship would be reduced because of the sharp increases in betting duties, while smaller operators such as BetGoodwin and DragonBet said they were also being forced to re-evaluate their sponsorships.
Following the budget, remote gaming duty (RGD) will be upped to 40 per cent from 21 per cent from April, and general betting duty (GBD) for online sports, except horseracing, will rise to 25 per cent from 15 per cent from April 2027, but betting shops were mostly protected from the changes.
Greg Knight, managing director of Jenningsbet, an independent retail-focused bookmaker, said the changes “gave a voice not only for racing but also for the betting shop industry with the measures taken”.
In contrast, James Lovell, the co-founder of DragonBet, which takes bets via on-course pitches and online, said the budget was “a lot worse than expected” and his company was assessing what steps it would take.
He said: “We’re a small company that started on the racecourse and our heart is in racing and we still support it where we can. Racecourse sponsorship is something that we have done and want to be able to do, but the expectation is we're going to have to roll it back.
“I had a call from one racecourse manager today because he’s had two bookmakers pull out of sponsorship deals for the next couple of years and he wanted to know if we were planning to do the same.
“You have to understand this isn’t something that we want to do and it’s not a backlash. I’m certainly trying to do it with a calm head, but with these increases businesses are going to have to cut back and sponsorship is one of the things you can look at straight away.”
Lovell added his view that some people in racing held a misconception that if taxes increased on other betting products that there would be more money to spend on racing, or there would be more focus on it from layers.
He said: “Bookmakers have a pot of money where these things are funded from and that comes from all the products offered. You have your forecasts and your profits and from there you can make commercial decisions, so it’s almost irrelevant racing hasn’t been touched because there is just less money to spend.
“Frankly, the biggest losers in this are consumers. Bookmakers are going to increase margins, and there are going to be fewer concessions such as free bets and best odds guaranteed. I would add that this will potentially boost on course as you can get a good bet on there, but it won’t make up for the shortfall from this budget.”
In post-budget statements, Flutter and Evoke outlined plans to reduce sponsorship and promotions, while BetGoodwin, who sponsor at Plumpton and Fontwell, said on X: “We have taken the decision to cut all our horseracing sponsorship. So disappointed that horseracing bodies didn’t see the bigger picture.”
The concerns raised by a range of bookmakers were in contrast to the views held by Jenningsbet boss Knight, who was encouraged that GBD was left unchanged in betting shops, there was no rise in machine games duty, and that self-service betting terminals were exempted from increases to RGD.
Knight said: "The Treasury and the chancellor gave a voice not only for racing but also for the betting shop industry with the measures taken. They were convinced that community-based betting and entertainment was a good thing, as they also removed the levies from bingo halls.
"Your outlook on the budget is going to entirely depend on whether your focus is online or in-person betting. It was a big statement when [the government] said they wanted to protect community-based betting."
https://www.racingpost.com/news/britain/racing-tax/furious-bookmakers-warn-of-reducing-promotional-spend-and-pulling-sponsorships-in-wake-of-tax-increases-acEXK1B8377B/
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In contrast, James Lovell, the co-founder of DragonBet, which takes bets via on-course pitches and online, said the budget was “a lot worse than expected” and his company was assessing what steps it would take.
He said: “We’re a small company that started on the racecourse and our heart is in racing and we still support it where we can. Racecourse sponsorship is something that we have done and want to be able to do, but the expectation is we're going to have to roll it back.
Some of you remember his father John lovell
Helped to bring the electronic pitches to UK tracks.
These companies exist online because of the crack-cocaine spinning thingies of which they make large sums of wonga that allows them to sponsor, advertise and run shops at a loss.
The big boys will merely double-down on their invasion of the states etc.
He said: “We’re a small company that started on the racecourse and our heart is in racing and we still support it where we can. Racecourse sponsorship is something that we have done and want to be able to do, but the expectation is we're going to have to roll it back.
Some of you remember his father John lovell
Helped to bring the electronic pitches to UK tracks.
These companies exist online because of the crack-cocaine spinning thingies of which they make large sums of wonga that allows them to sponsor, advertise and run shops at a loss.
The big boys will merely double-down on their invasion of the states etc.
Walked past a ****, Hills and Laddies shop all within a 100 yards of each other.
Saw one old boy sat in the middle of the Laddies shop staring at the screens with a few on the gamblers.
Other shops appeared to have 4 people maximum all sat next to the spinning thingies.
Leaving the tax on horse racing is obviously a good thing but that's not going to stave off the cutbacks.
Saw one old boy sat in the middle of the Laddies shop staring at the screens with a few on the gamblers.
Other shops appeared to have 4 people maximum all sat next to the spinning thingies.
Leaving the tax on horse racing is obviously a good thing but that's not going to stave off the cutbacks.
ray Winston,crouchie,arry redknapp,etc,betfair amassadors pumpkins,bobby, etc getting sacked,wished they,d said earlier we got have crowdfunded and got it all stopped yrs ok, Barry orr latest on X telling us all the things we hate betfair advertisements, ambasadors getting cut to bone, latest news Barry orr been arrested for threatening punters with a good time 
Several forumites predicted this would happen despite the successful campaign to limit budget changes.
One day racing will wake up to the fact that the bookies are not on its side. No matter how often racing bends the knee, its main function for the betting shop chains is to deliver waves of mugs to be converted to other "products". And nowadays even that function is increasingly usurped by football.
One day racing will wake up to the fact that the bookies are not on its side. No matter how often racing bends the knee, its main function for the betting shop chains is to deliver waves of mugs to be converted to other "products". And nowadays even that function is increasingly usurped by football.
Betting turnover on track seems to be holding up well but bookies reigning back on sponsorship won't add to the positivity.
Bonuses will be trimmed and the payback to in shop wheel spinners will also be cut.
You also have to feel for small yards that will suffer from the rate increases that will add to the increase in minimum wage hike.
Not saying for one moment that yard staff don't deserve a decent wage.
Bonuses will be trimmed and the payback to in shop wheel spinners will also be cut.
You also have to feel for small yards that will suffer from the rate increases that will add to the increase in minimum wage hike.
Not saying for one moment that yard staff don't deserve a decent wage.
Yep, and spitting out their dummies, threatening to pull back on sponsorship and implement shop closures.
They became casinos overnight which led to a proliferation of bricks and mortar joinnts on the back of misery.
I wonder if the Spoilsport5 plan to invade the UK is now on hold
"we'll concentrate on racing and football, determined bythe North/South preference for two or four legged fare.
Prolly had the rug pulled from under them now they can't use that ruse to mint the cash online.
They became casinos overnight which led to a proliferation of bricks and mortar joinnts on the back of misery.
I wonder if the Spoilsport5 plan to invade the UK is now on hold
"we'll concentrate on racing and football, determined bythe North/South preference for two or four legged fare.
Prolly had the rug pulled from under them now they can't use that ruse to mint the cash online.
If they cut back on sponsorship and advertising, the bookmakers are saying that such activity is a waste of time and money for them. If that is true, why were they doing it before the budget? Prize money will fall as a result of the budget but look at the field sizes of racing this month. November is supposed to be the first month of "proper" NH racing and flat racing is reduced to the margins on AW tracks. But we see every day that here are 9 races on nearly every AW track with most races worth less than £5k to the winner. Despite that, field sizes are good. Jump racing is seeing a steady decline in the number of horses running, not just in the Grade 1 and 2 races where it is even more serious. How much sponsors money is required to keep the AW show on the road? The big difference of course is the lack of a "Cheltenham Festival" equivalent on the flat so owners and trainers are keen to run horses more often which is surely better for punters? Perhaps the rain coming will suddenly lead to 2 or 3 divisions of novice hurdles but I doubt it.
If the betting company goodwin decide to end sponsorship at Plumpton I suggest Captain Pratt and Peter Saville the current owners instruct the company to remove all the many signs Goodwin have been allowed to display there.
They have been allowed to have a massive sign even on the roof of the weighing room all OTTP plus signs all around the winning post.
I suspect Julian Head the head honcho of Goodwin is thinking of trying to keep all the current advertising he has at the track while trying not to sponsor anything there.
As Goodwin does not have online casinos or bingo sites I don't think the proposed changes will matter a lot to them.
Currently all sponsorship and advertising is an acceptable business expense as long as 'wholly and exclusively used for business purposes ' and that includes 'brand awareness website traffic and sales leads' and 100% of money spent is all tax deductible.
It is a pity that global brands such as computer company HP avoid horse racing as the current sponsorship deal they have with Ferrari is a cool $100 million a year or Barclays who have sponsored the premier league for 25 years costing a reported £75 million per year all of their tax bill.
They have been allowed to have a massive sign even on the roof of the weighing room all OTTP plus signs all around the winning post.
I suspect Julian Head the head honcho of Goodwin is thinking of trying to keep all the current advertising he has at the track while trying not to sponsor anything there.
As Goodwin does not have online casinos or bingo sites I don't think the proposed changes will matter a lot to them.
Currently all sponsorship and advertising is an acceptable business expense as long as 'wholly and exclusively used for business purposes ' and that includes 'brand awareness website traffic and sales leads' and 100% of money spent is all tax deductible.
It is a pity that global brands such as computer company HP avoid horse racing as the current sponsorship deal they have with Ferrari is a cool $100 million a year or Barclays who have sponsored the premier league for 25 years costing a reported £75 million per year all of their tax bill.
The barrage of articles in the R Post giving a platform for the whingeing slot/casino addiction peddlars is sickening. Racing has got to find a way of funding itself that doesn't rely on them. The successful campaign to exempt racing from tax rises is hopefully the start of it.
They sold the chance to make money for the sport when they sold the Tote.
trainers been queuing up 24/7 for last 5 yrs to get on TV and tell us they above minimum wage,so why would increase effect them,or like everything else in racing THEY COULD BE LYING
so a CAREER in racing they keep advertising would if racing yds had they way be below the minimum wage ?
Usual garbage from the greatest dolt on the forum
Bookmakers have done did nothing wrong. They are not co-ops or charities. If you dont like their business have a go yourself. Plenty have
They bought a gaming product that was entirely legal and approved by the Gambling Commisssion, developed by some smart techies who demanded 50% of the profits and another chunk to the Govt. which taxed them. If they are so bad, ban them
Now they will kill them off because they were making too much
Typical of this idiot administration that sees someone with a few quid and immediately confiscate it. So much for 'investment and growth ' that was supposed to be its driving force. Why bother? Do well and they take it off you. They dont understand how economies work and crush innovation and entrepreneurs
Every budget the same bollox. Pay your fair share. Nothing about the incopetence that makes it necessary to punish others for their own uselesness. Nothing fair about it. Its state appropriation of private money. And then they burn it
Bookmakers have done did nothing wrong. They are not co-ops or charities. If you dont like their business have a go yourself. Plenty have
They bought a gaming product that was entirely legal and approved by the Gambling Commisssion, developed by some smart techies who demanded 50% of the profits and another chunk to the Govt. which taxed them. If they are so bad, ban them
Now they will kill them off because they were making too much
Typical of this idiot administration that sees someone with a few quid and immediately confiscate it. So much for 'investment and growth ' that was supposed to be its driving force. Why bother? Do well and they take it off you. They dont understand how economies work and crush innovation and entrepreneurs
Every budget the same bollox. Pay your fair share. Nothing about the incopetence that makes it necessary to punish others for their own uselesness. Nothing fair about it. Its state appropriation of private money. And then they burn it
Those poor high street bookies. How I weep for them! Ladbrokes/Coral reported 2024 profits of
1.09 billion. That's right, Billion. How they are suffering!
1.09 billion. That's right, Billion. How they are suffering!
In 2024, Entain reported a net gaming revenue of £5.16 billion, reflecting a 7% increase from the previous year, alongside an underlying EBITDA of £1.088 billion.
Financial Highlights
Net Gaming Revenue (NGR): Entain's NGR for 2024 was £5.16 billion, up from £4.83 billion in 2023, marking a 7% increase. This growth was supported by a strong performance in the fourth quarter, where NGR rose by 13%.
Gross Profit: The gross profit for the year was £3.12 billion, also reflecting a 7% increase compared to the previous year.
Underlying EBITDA: The underlying EBITDA rose to £1.088 billion, an 8% increase from £1 billion in 2023.
Online and Retail Performance: Online EBITDA increased by 11% to £941 million, while retail EBITDA fell by 11% to £261 million.
Market Performance
International Growth: Entain's international NGR grew by 6%, with significant contributions from markets like Brazil, where NGR increased by 41%.
UK and Ireland: The NGR in the UK and Ireland remained flat overall, but there was a notable recovery from a 7% contraction in Q1 to 13% growth in Q4.
Future Outlook
Entain's interim CEO, Stella David, expressed optimism about the company's strategic and operational improvements, indicating a strong start to 2025 and a commitment to delivering shareholder value through continued growth and operational efficiencies.
Overall, 2024 was characterized as a year of transformation for Entain, with a focus on rebuilding and enhancing its market position.
Financial Highlights
Net Gaming Revenue (NGR): Entain's NGR for 2024 was £5.16 billion, up from £4.83 billion in 2023, marking a 7% increase. This growth was supported by a strong performance in the fourth quarter, where NGR rose by 13%.
Gross Profit: The gross profit for the year was £3.12 billion, also reflecting a 7% increase compared to the previous year.
Underlying EBITDA: The underlying EBITDA rose to £1.088 billion, an 8% increase from £1 billion in 2023.
Online and Retail Performance: Online EBITDA increased by 11% to £941 million, while retail EBITDA fell by 11% to £261 million.
Market Performance
International Growth: Entain's international NGR grew by 6%, with significant contributions from markets like Brazil, where NGR increased by 41%.
UK and Ireland: The NGR in the UK and Ireland remained flat overall, but there was a notable recovery from a 7% contraction in Q1 to 13% growth in Q4.
Future Outlook
Entain's interim CEO, Stella David, expressed optimism about the company's strategic and operational improvements, indicating a strong start to 2025 and a commitment to delivering shareholder value through continued growth and operational efficiencies.
Overall, 2024 was characterized as a year of transformation for Entain, with a focus on rebuilding and enhancing its market position.
No they didnt. They posted a loss for the first 6 months of this year
How much tax should they pay? 100%?
Very small increases make a big difference, soemthign most do not understand. They just hear about profits and assume its ok to confiscate them, which ends up destroying the business and disinclines others to have a go and they move elsewhere
How much tax should they pay? 100%?
Very small increases make a big difference, soemthign most do not understand. They just hear about profits and assume its ok to confiscate them, which ends up destroying the business and disinclines others to have a go and they move elsewhere
Just separate the games of chance and horseracing eg bring each product under a different taxation umbrella, and tax it accordingly. As such, no repeated moaning, disingenuity and recrimination, etc, from the bookies; give them a simple taxation structure - keep it simple.
I'm disappointed the government has not brought the new taxation rates immediately or April 2026, and not 2027.
I'm disappointed the government has not brought the new taxation rates immediately or April 2026, and not 2027.
You continue to defy the stupidity meter impossible.
The only loyalty Entain has is to itself and any shareholders.
Doubt they give a monkeys whether horseracing survives or goes to the wall.
Doubt they give a monkeys whether horseracing survives or goes to the wall.
Leif.Sad to say no Xmas bonus for shop staff this year last year all shop and cleaners got 200. Wonder if the ceo gets a bonus last bet I took tonight 5p ew a dog.sad to say it breaks my heart to admit but the shops have gone.Ronnie.
Sad times Ronnie if the shop floor has lost that Brucie Bonus.
Means a lot to those on a low wage given it represents some fashion of recognition and pays for a Xmas prezzie or two.
Steel cold number crunchers don't have a conscience though and find it easy to bin incentives, or even people (numbers/resources).
In your estimation Ronnie, would the shops have died off years ago if it hadn't have been for the introduction of casino-type machines?
The shops lost their soul when they wheeled the damned things in throught the front door in my opinion.
My area manager was frothing at the mouth when he told me they were entering the fray.
All of a sudden there was a push to promote the things at the expense of decent racing punters who walked out when the lunatics moved in.
I walked out soon afterwards.
They obvioulsy anticipated the explosion of an internet presence.
The likes of Dragonbet (see above) have obviously had their noses bent out of joint now they have to pay more for rinsing the crack-cocaine machine addicts.
Have no sympathy.
Means a lot to those on a low wage given it represents some fashion of recognition and pays for a Xmas prezzie or two.
Steel cold number crunchers don't have a conscience though and find it easy to bin incentives, or even people (numbers/resources).
In your estimation Ronnie, would the shops have died off years ago if it hadn't have been for the introduction of casino-type machines?
The shops lost their soul when they wheeled the damned things in throught the front door in my opinion.
My area manager was frothing at the mouth when he told me they were entering the fray.
All of a sudden there was a push to promote the things at the expense of decent racing punters who walked out when the lunatics moved in.
I walked out soon afterwards.
They obvioulsy anticipated the explosion of an internet presence.
The likes of Dragonbet (see above) have obviously had their noses bent out of joint now they have to pay more for rinsing the crack-cocaine machine addicts.
Have no sympathy.
Very sad to see the shops dying, I have been betting over 50 years and have met many really good staff over the years. I always found if you treat them well they will go out of their way to help you.
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