The breaking news on Sunday morning that reigning champion Binocular will not contest Tuesday's Stan James Champion Hurdle led to plenty of reaction from bookmakers.

Paddy Power were the first firm to refund all antepost bets on Nicky Henderson's charge, and they were soon joined by both William Hill and Stan James Kate Miller, spokeswoman for William Hill, said, 'With many people holding Antepost bets since Binocular's win last year, his last-minute exit could have left punters on the backfoot before Cheltenham has even started. However, William Hill are prepared to take a six-figure blow so the meeting can be started on a level playing field.'

Meanwhile Neil Morrice, of sponsors Stan James, said: "Due to the circumstances of the enforced defection of Binocular from our race, Stan James will refund all Champion Hurdle bets struck on the horse prior to today's news. As big race sponsors we feel compelled to treat the betting public in the fairest way by making this concession, whilst also transferring the offer of a free bet should Binocular win to the race's new joint-favourite, Hurricane Fly.

"We share the disappointment of Binocular's defection with his sporting connections."

More bookmakers followed suit, with Sky Bet quick on their rivals' heels.

Matt Doyle of Sky Bet said: 'The loss of the favourite from the Champion Hurdle field is a massive blow for punters and we have taken the decision to refund all win and each-way single bets placed on Binocular.'

Whilst Betfred also made a similar move mid-afternoon.

Betfred boss Fred Done said, "I'm absolutely gutted that Festival week has started with this news and due to the exceptional circumstances of Binocular's defection I have decided to refund all ante-post bets on the horse including all multiple bets. I have punters who backed the Nicky Henderson horse just after he won last year's Champion Hurdle, and because of the manner of its withdrawal it only seems right to give punters their money back. I know AP McCoy very well and he will be gutted not to get the chance to defend his title on Binocular."

Betfair have decided to void all bets on the Champion Hurdle matched between 8am and 10am after consulting the BHA.

"We have taken the decision to void all bets matched between 8am this morning and the point at which the markets were suspended for the confirmation of the final declarations (approx 10am this morning)," said the exchange firm's spokesman Tony Calvin.

"We have done this following consultation with the British Horseracing Authority, who have confirmed that Binocular effectively became a non-runner at 8am."

Menorah is the new favourite with many firms for the highlight of Tuesday, although Paddy Power have Hurricane Fly at the top of their revised betting.