Coral has expressed surprise at reports sponsorship of British races by bookmakers could be banned.
The British Horseracing Authority is still waiting on news from the government regarding the formulation of a Racing Right, a way to help fund the sport to replace the current Levy system.
Under current regulations, bookmakers who are based offshore do not have to contribute as much to the Levy as those based in Britain.
The proposed move could be seen in some quarters as a way to reduce that shortfall, but given 51 per cent of races in Britain last year were sponsored by bookmakers, plenty of new supporters would need to be found quickly.
Coral has backed the Group One Eclipse Stakes at Sandown since 1976 and that association would be forced to end under the new proposal.
“I would be very surprised if racing is seriously considering such an illogical proposal that could threaten the future of some of the longest standing sponsorships in the sport,” Coral’s PR director Simon Clare said.
William Hill, who back such major events as the Ayr Gold Cup and the King George VI Chase at Kempton, has sponsored races for nearly 60 years.
The BHA admitted the “Levy leakage” was harmful to the sport but did not want to be drawn into taking sides.
“The current Levy leakage, with the vast majority of remote betting activity not being captured, causes real economic damage to British Racing,” a BHA statement said.
“However, we don’t comment on speculation and are happy to reinforce our long-standing position that betting firms are highly valued partners of our sport.”
Ladbrokes and Betfred declined to comment at this stage.