LONDON, United Kingdom (AFP) — Gambling firm Betfred said Thursday it had “no choice” but to end its sponsorship of all five British horse racing Classics following a tax increase announced in last week’s budget.

Finance Minister John Healey raised machine games duty (MGD) to 25 per cent from 20 per cent, though he did not increase it to the 40 per cent some had feared.

Betfred said more than 1,000 jobs were at risk in its shops alone.

Chairman and co-founder Fred Done had intimated prior to the announcement that the company would end its deal to back both the 1,000 and 2,000 Guineas at Newmarket, the Derby and Oaks at Epsom and the St Leger at Doncaster if Healey raised MGD.

Betfred took over sponsorship of the Derby, Oaks and St Leger in 2023 and added the Newmarket Classics in a deal from 2025 onwards.

A Betfred spokesman 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.”

Amy Starkey, managing director of the Jockey Club’s London hub, said: “While we are naturally disappointed that Betfred have taken the decision not to renew their sponsorship of the Derby and the Guineas Festival at Newmarket, we understand their reasons for doing so and know this was not an easy decision for them.”

Starkey added: “We are currently in conversations with a number of interested prospective partners that share our ambitions for the future of both events.”

British Horseracing Authority chief executive Brant Dunshea last week warned that a rise in duty would have a “devastating impact”.