Gordon Brown Proposes Machine Games Duty Increase to Address Household Energy Costs

Former UK Prime Minister Gordon Brown has called for an increase in machine games duty on gaming machines located in adult gaming centres and betting shops, with the measure projected to generate up to £500 million that could support households facing rising energy bills, and this proposal has prompted immediate responses from key industry bodies including the British Horseracing Authority and the Betting and Gaming Council.

Details of the Proposed Duty Adjustment

The suggestion centres on raising machine games duty rates applied to terminals found in adult gaming centres along with betting shops, where the additional revenue would flow toward relief for household energy expenses that continue to climb, while Brown indicated that current Prime Minister Andy Burnham would likely back comparable steps if similar circumstances arose.

Reports from the Racing Post outlined how the former prime minister framed the tax adjustment as a targeted way to capture funds from the gambling sector without broader economic disruption, and the estimate of £500 million represents the upper end of potential collections based on current machine usage patterns across those venues.

Industry Warnings on Shop Closures and Employment

The British Horseracing Authority and Betting and Gaming Council have both issued statements highlighting risks to the betting shop network, including possible reductions in the number of physical locations and associated job losses that could follow higher operating costs, and these groups also pointed to downstream effects on funding streams that support horse racing through existing levy arrangements and media rights agreements.

Observers note that betting shops have already navigated multiple regulatory shifts in recent years, so an elevated machine games duty could accelerate decisions around site viability, particularly in areas where footfall remains modest, while the Betting and Gaming Council has referenced industry estimates that track potential shop reductions and employment impacts without providing exact figures in their initial response.

Connections to Horse Racing Funding Mechanisms

Funding for British horse racing relies in part on contributions tied to betting activity, including levies collected from operators and payments linked to media rights for race coverage, and the British Horseracing Authority has emphasised that any contraction in the betting shop estate could reduce those revenue channels over time, affecting prize money and other support structures within the sport.

Those familiar with the sector point out that gaming machines form a significant portion of income for many betting shops, which means duty increases would directly influence margins, and this in turn could alter how operators allocate resources toward racing-related payments that have remained stable under current tax settings.

Political Context and Timing Considerations

Brown presented the idea at a moment when energy prices continue to pressure household budgets, and his reference to Prime Minister Andy Burnham suggests an expectation of cross-party alignment on using gambling taxation for targeted relief measures, while the timing aligns with ongoing discussions about fiscal tools available to address cost-of-living challenges into August 2026 and beyond.

Analysts tracking government policy have noted that machine games duty has undergone previous adjustments, yet this specific call focuses on adult gaming centres and betting shops rather than wider online or casino operations, and the £500 million projection assumes no major behavioural changes among players that might reduce machine play volumes.

Conclusion

The proposal from Gordon Brown sets out a clear mechanism for raising funds through machine games duty to assist with energy bills, while the responses from the British Horseracing Authority and Betting and Gaming Council draw attention to possible consequences for betting shop numbers, employment levels, and horse racing finances, and further details on implementation would likely emerge through parliamentary channels if the measure advances.