The agency won a pitch against M&C Saatchi. The business moves from Engine.
The Gala Coral Group-owned brand put the ad business up for pitch in April ahead of a planned increase in marketing spend this year.
The brand currently spends £2 million on above-the-line advertising but is expected to increase this figure given growing competition in the market after the 2007 Gambling Act, which allowed betting brands to advertise on TV and radio.
Coral has traditionally focused most of its spend on in-store and direct marketing, but DLKW Lowe will create a brand campaign due to run later this year.
The appointment was made by Gala Coral's head of marketing, Olly Raeburn, who declined to comment on the decision.
Engine won the Coral business in 2009 after a pitch. It will continue to handle the below-the-line business through Partners Andrews Aldridge, and the Engine-owned consultancy Edwards Groom Saunders will remain in charge of media planning. The7stars was appointed to handle media buying last year.
Coral is the UK's third-largest retail bookmaker with a 20 per cent market share. Gala Coral's other businesses include Gala Bingo and Gala Casino, which are not affected by the review.
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