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, who runs Epsom as 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.
“(Betfred chairman) Fred (Done) and his team are hugely passionate supporters of racing and have been great partners for our four British Classics, and we look forward to hopefully working with them again at some point in the future.
