1850: Paddy Power are ruing their generosity and reckon they had lost about £1million after promising to refund losing bets on any horse that finished second to an SP favourite.

Paddy Power, head of communications, said: "On the last day of the Festival we offered a helping hand to punters after a tough week for them - and ended up getting our arms bitten off.

"There couldn't have been a worse result but it has been an absolute dream of a week and at least there will be a few people at Cheltenham next year!"

1820: Ben Clarke of Hills says Kauto Star's win cost the bookies a fortune - but it's not enough to spoil what's been a great week for them.

He says: "It was a huge blow and has cost the industry the best part of £10 million, but that would barely cover the interest on what punters have already lost and it's been a fantastic week for the bookies."

1700: More reaction is coming in to Kauto Star's Gold Cup success, with Ladbrokes estimating it cost bookies in excess of £5 million.

Turnover on the Cheltenham Festival showpiece topped a staggering £50 million and the layers were the only ones not cheering when the red-hot favourite landed the big race.

Sent off the 5/4 favourite, Kauto Star dealt a body blow to the bookies who had been celebrating a great Festival going into the final day.

David Williams, spokesman for Ladbrokes said: "It was a horror result. The one horse we'd been fearing all week has dealt us a body blow.

"We'll be counting the cost late into the night but we reckon punters have taken the best part of five million quid out of our coffers."

Ladbrokes celebrated one of their best ever Festival days on Thursday with six favourites being beaten but the tables were well and truly turned on the final day at the Festival.

"The punters have fought back and their revenge has been vicious. Once the smoke clears we'll know who won the war but, for now, Kauto is off our Christmas card list," added Williams.

Kauto Star is 7/4 with the Magic Sign to successfully defend his crown in next year's Cheltenham Gold Cup.

1630: Kauto Star is as short as 2/1 for the Cheltenham Gold Cup in 2008 following his first victory in chasing's blue riband event on Friday.

Paul Nicholls' charge joined the list of racing greats with an impressive success under jockey Ruby Walsh.

The 5/4 favourite, the highest-rated chaser since Desert Orchid, won his sixth race of the season in a pulsating renewal, with his only scare coming at the last, where he once again made a slight error.

The seven-year-old beat Exotic Dancer, with 40/1 chance Turpin Green back in third, and the success was especially sweet for owner Clive Smith, who in addition to bagging over £200,000 for winning the race, also picked up the lion's share of a £1million bonus offered by betting exchange firm Betfair.

And more prize money could be on the way judged on the reaction of the bookies - with Hills offering just 2/1 that Kauto Star repeats the feat in 12 months time.

Stan James quote 3/1 and Neil Morrice, their media and on-course representative, said: "You could only be bowled over by the raw power Kauto Star displayed when Ruby Walsh asked him to take charge of proceedings and, as a seven-year-old, he is entitled to go on improving.

"Paul Nicholls now has an embarrassment of riches with both Kauto Star and 6/1 second favourite Denman for next year's Gold Cup."

Meanwhile Kauto Star's storming victory cost Paddy Power a total of over £780,000 after the worst possible result for the bookmaker.

For the final day of the Cheltenham Festival, Paddy Power had promised to refund punters' losing bets on any horse that finished second to an SP favourite.

Kauto Star duly obliged for a £470,000 payout to winning punters and with second favourite Exotic Dancer well backed since his Paddy Power Gold Cup win in November the bookie refunded a further £350,000 on top.

Paddy Power, head of communications for the bookie, said: "On the last day of The Festival we offered a helping hand to punters after a tough week for them - and ended up getting our arms bitten off. There couldn't have been a worse result."

1540: Wichita Lineman Lineman has received a 10/1 quote from Stan James for the 2008 World Hurdle following his impressive Cheltenham Festival triumph today.

The Jonjo O'Neill-trained gelding was already set for victory when Black Harry fell at the last and powered to a 12-lengths success over Air Force One.

Neil Morrice, media and on-course representative for Stan James, said: "Even though Jonjo already has the 5/1 joint favourite for next season's World Hurdle in Black Jack Ketchum there remains a chance he will also target Wichita Lineman at the stayers' championship and if that happens he would merit the greatest respect.

"He looked better and stronger the further he travelled today."

1540: Wichita Lineman Lineman has received a 10/1 quote from Stan James for the 2008 World Hurdle following his impressive Cheltenham Festival triumph today.

The Jonjo O'Neill-trained gelding was already set for victory when Black Harry fell at the last and powered to a 12-lengths success over Air Force One.

Neil Morrice, media and on-course representative for Stan James, said: "Even though Jonjo already has the 5/1 joint favourite for next season's World Hurdle in Black Jack Ketchum there remains a chance he will also target Wichita Lineman at the stayers' championship and if that happens he would merit the greatest respect.

"He looked better and stronger the further he travelled today."

1455: Katchit secured theTriumph Hurdle spoils when winning in easy fashion today and has been slashed for the Champion Hurdle in 2008.

The Alan King-trained juvenile scored in effortless style, in a race which was his biggest challenge to date.

Blue Square immediately installed him as a 14/1 chance for next year's Champion Hurdle while Bet Direct are as short as 8/1.

Kate Miller PR for Blue Square said: "Kachit actually picked up one of our sponsored races at Market Rasen in September. He was a shock result having beaten the heavily odds on favourite It Is Me that day, and has never really looked back.

"His initial quote was at 33/1 and, although there weren't many takers that day, it was definitely too big in hindsight!

"Today was without doubt his stiffest test yet, but he made it look easy, and it was visually his best performance since hurdling."

Bet Direct's Stephen McDonald said: "That was a hugely impressive performance and we have no qualms about being bottom price."

1215: Running through the races we've yet to mention so far today at the Cheltenham Festival, we'll start with the Brit Insurance Novices' Hurdle at 2.35pm where Flight Leader is the one for money.

He's 11/2 from 13/2 with bet365 and it could be linked to the fact that the form of his last run - behind Blazing Bailey and Inglis Drever in the Cleeve Hurdle - was given a huge boost by the displays of that pair in the World Hurdle yesterday.

Honourable Spider is the one that stands out in the Christie's Foxhunter Chase at 4.00pm.

He's in from 14/1 to 11/1 with Premierbet while Sky Bet are 10/1 from 11s.

The Grand Annual at 4.40pm is proving a lively betting heat and both Hasty Prince and Jacks Craic merit a mention.

The former, who is trained by Jonjo O'Neill, is 7/1 from 10/1 with Paddy Power while John Spearing's Jacks Craic is 14s from 20s with bet365.

Finally, in the concluding County Hurdle, there's been a big each-way plunge on Arcalis.

Hailing from the in-form Howard Johnson yard and flagged up by Pricewise this morning, he's been chopped into 20/1 from 40/1 by VC Bet.

1105: The opposition to Kauto Star in the Gold Cup (see 1020 bulletin) continues, with Stan James (7/4 from 13/8) the latest firm to ease his odds.

The Triumph Hurdle kicks off the final day of the Festival at 2.00pm and Stan James have cut Degas Art to 8/1 from 10s while easing favourite Lounaos half a point out to 9/2.

The Wantage-based firm have also seen money for Lightning Strike in the race and cut him to 25/1 from 40s.

Neil Morrice, media and on-course representative for Stan James, said: "With our five place bonus there has been increased trading in the Triumph and Degas Art is the one for money.

"Our clients are live to the fact that Howard Johnson's horses are acquitting themselves well this week and as an unbeaten hurdler his credentials are rock solid."

1020: It's the final day of the Cheltenham festival today, with the Gold Cup at 3.15pm the undoubted highlight.

It's a fascinating betting heat which revolves around the clear favourite Kauto Star and the early signs are that plenty of punters are looking to oppose Paul Nicholls' star.

His price hasn't been cut by any firms yet this morning - but Paddy Power (13/8 from 6/4), Sporting Odds (13/8 from 6/4) and VC Bet (7/4 from 6/4) have all pushed his odds out.

Those being backed against him include State Of Play and Turpin Green.

The former, flagged up by the influential Pricewise at 8/1 with Stan James is now into 7s while Turpin Green has been clipped into 50s from 66s by Sporting Odds.