The event is named in memory of the racehorse Lanzarote (1968–1977), the winner of the Champion Hurdle in 1974, and was first run in 1978.
He finished his hurdling career with a total of 20 wins from 33 starts.
After achieving a further three victories as a chaser, Lanzarote was made the second favourite to win the Cheltenham Gold Cup in 1977.
The event was temporarily switched to Carlisle in 2006, and upon its return to Kempton in 2007 there was a substantial increase to its distance.
Its regular length was extended by 5 furlongs (1,006 metres), and there were an additional two hurdles to jump.