Gordon Brown Pushes for Machine Games Duty Increase to Support Energy Bill Relief

Gordon Brown, the former UK Prime Minister, 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 that could offset rising household energy bills, and this proposal surfaced during an appearance on BBC Radio 4's Today programme where he outlined the potential revenue boost from higher taxation on these devices.

Details of the Proposed Tax Adjustment

The suggestion focuses on adjusting machine games duty rates, which currently apply to fixed-odds betting terminals and similar equipment, while Brown argued that such a change would deliver meaningful funds without broader economic disruption, and industry observers note that this comes after recent modifications to gambling taxation including the planned doubling of Remote Gaming Duty to 40 percent starting in April 2026.

Those who track fiscal policy in the sector point out that the £500 million figure represents an estimate tied directly to increased duty levels on physical gaming machines, yet the proposal has immediately triggered responses from key stakeholders who warn of downstream effects on employment and related industries.

Industry Warnings and Potential Consequences

The British Horseracing Authority and the Betting and Gaming Council have both issued cautions about the plan, highlighting risks that include the closure of thousands of betting shops, significant job losses across the retail betting network, reductions in funding streams that support horse racing through the levy system and media rights agreements, plus the possibility of accelerated growth in unregulated illegal gambling markets, and these concerns build on existing pressures from the earlier tax adjustments that take effect in 2026.

Representatives from these organisations have emphasised that higher machine games duty could alter the financial viability of many high-street locations, leading operators to reassess their physical footprints while data on shop numbers and staffing levels already shows contraction in some regions, and the combined impact might extend beyond direct employment to affect supply chains and local economies that rely on betting-related activity.

Context Within Broader Tax Reforms

This latest call arrives against the backdrop of the Remote Gaming Duty increase scheduled for April 2026, which applies to online gambling platforms and has already prompted operators to review pricing structures and player incentives, while the machine games duty proposal targets a separate segment of the market that remains rooted in physical premises, creating a layered set of tax measures that affect both digital and land-based operations.

Analysts who follow these developments note that the Remote Gaming Duty change doubles the rate from its prior level, and the proposed machine games duty hike would add further pressure on venues that combine retail betting with gaming machines, although no immediate legislative timeline has been attached to Brown's suggestion at this stage.

Stakeholder Reactions and Market Implications

Betting and Gaming Council members have referenced internal modelling that projects shop closures in the thousands if duty rates rise sharply, with corresponding reductions in the racing levy contributions that help sustain the sport's prize money and infrastructure, and the British Horseracing Authority has echoed these points by stressing the interconnected nature of retail betting and racing media rights deals that generate essential revenue.

Industry estimates suggest that any expansion of the illegal market could offset some of the intended revenue gains from higher duty, as players shift activity away from regulated sites, and those monitoring enforcement trends observe that such shifts have occurred in other jurisdictions following tax increases on gaming machines.

Conclusion

The proposal from Gordon Brown continues to generate discussion among policymakers and industry groups, with the focus remaining on balancing potential revenue for energy support against the operational challenges outlined by the British Horseracing Authority and the Betting and Gaming Council, while the upcoming Remote Gaming Duty adjustment in April 2026 provides additional context for how multiple tax changes may interact across the sector.