Gordon Brown Proposes Major Hike in Machine Games Duty to Fund Energy Relief

Former UK Prime Minister Gordon Brown has called for a substantial rise in machine games duty on gaming machines located in betting shops and adult gaming centres, with the aim of generating up to £500 million to support households facing higher energy costs. The suggestion emerged during an appearance on BBC Radio 4's Today programme, where Brown outlined how the additional revenue could offset mounting household bills without introducing new forms of taxation.

This proposal arrives against a backdrop of recent adjustments to gambling levies, including the decision to double Remote Gaming Duty to 40 percent starting April 2026. Observers note that Brown's plan targets physical machines rather than online platforms, creating a distinction that some industry analysts say could reshape the tax landscape for land-based operators.

Details of the Proposed Duty Increase

Brown argued that gaming machines in betting shops and adult gaming centres currently contribute lower rates of duty compared with other sectors, and that an adjustment would bring them into closer alignment with broader fiscal responsibilities. The estimated £500 million in additional funds would flow directly toward energy bill support measures, providing relief at a time when many households continue to manage elevated costs. Data from government sources indicate that machine games duty has remained relatively stable in recent years, even as participation in certain venue-based activities has fluctuated.

Industry Responses and Projected Consequences

The British Horseracing Authority and the Betting and Gaming Council have both issued warnings about the downstream effects of such an increase. Representatives from these bodies point out that higher machine games duty could accelerate the closure of thousands of betting shops across the UK, leading to significant job losses in retail and support roles. They further highlight that reduced footfall in betting shops would diminish the horseracing levy and media rights payments that currently sustain much of the racing industry.

Industry estimates referenced in coverage suggest that several thousand venues might become unviable under the proposed rates, particularly in regions where margins already operate under pressure from online competition. The Betting and Gaming Council has also cautioned that an expanded illegal market could emerge if tax burdens push legitimate operators out of business, a development that would remove regulatory oversight and consumer protections.

Context Within Recent Tax Adjustments

The discussion on BBC Radio 4 follows closely on the heels of the Remote Gaming Duty increase scheduled for April 2026, which raised the rate on online gambling activities from 21 percent to 40 percent. That change was presented as part of a broader effort to balance taxation across different segments of the gambling market. Brown's proposal extends similar logic to physical machines, yet it introduces new variables because betting shops rely on a combination of over-the-counter betting, machine revenue, and ancillary services to remain operational.

Those who have tracked gambling policy note that the cumulative effect of multiple duty rises could compress profitability across both online and retail channels. Figures released by regulatory bodies show that machine games duty currently accounts for a meaningful share of total gambling tax receipts, although its growth has lagged behind online sectors in recent reporting periods.

Potential Market and Regulatory Implications

Stakeholders in the racing sector have emphasised that any contraction in betting shop numbers would directly affect funding streams tied to media rights and the statutory levy. The British Horseracing Authority has stated that these payments support prize money, training infrastructure, and welfare programmes for horses and jockeys. A reduction in shop numbers could therefore ripple through the supply chain that underpins British racing.

Meanwhile, the Betting and Gaming Council has drawn attention to employment data, noting that betting shops continue to provide entry-level and skilled positions in high-street locations where alternative retail outlets have declined. Any acceleration in closures would concentrate job losses in communities already experiencing retail contraction. Regulators have yet to publish formal modelling on the precise number of outlets that might close under the proposed duty structure, but preliminary assessments circulated within the industry suggest the figure could reach several thousand within two to three years of implementation.

Conclusion

The proposal advanced by Gordon Brown has placed machine games duty at the centre of ongoing debates about how best to raise revenue for public support programmes while managing the viability of the licensed gambling sector. The responses from the British Horseracing Authority and the Betting and Gaming Council underscore the interconnected nature of tax policy, retail employment, and racing finance. As the April 2026 Remote Gaming Duty adjustment approaches, further clarification on the scope and timing of any machine games duty changes will determine how operators and racing interests adapt their business models.