Gordon Brown Calls for Higher Gaming Machine Taxes to Ease Household Energy Pressures

Former Prime Minister Gordon Brown put forward a plan during an appearance on BBC Radio 4’s Today programme that would raise machine games duty on gaming machines located in betting shops and adult gaming centres, with the aim of raising as much as £500 million to offset rising household energy bills triggered by recent price cap adjustments. The suggestion came at a time when energy costs continued to climb for many UK households, and Brown positioned the tax adjustment as one route to generate dedicated funding without drawing from general government budgets.

Details of the Proposed Tax Increase

Under the proposal the machine games duty rate applied to fixed-odds betting terminals and similar devices would increase, targeting revenue streams that already operate under existing gambling taxation frameworks. Brown argued that the additional funds could be directed specifically toward energy bill support programmes, linking the measure directly to the cost-of-living pressures that have affected millions of households. The figure of up to £500 million represents an estimate of the potential annual yield if the duty adjustment were implemented across the specified venues.

Industry Response and Projected Impacts

The Betting and Gaming Council responded by highlighting several consequences that could follow such a duty rise, including an acceleration in betting shop closures that might exceed 2,900 locations nationwide along with associated job losses that could surpass 21,000 positions. Council representatives also noted that the change would reduce annual contributions to British horseracing, currently valued at around £70 million through the levy and media rights agreements. These figures were presented as direct outcomes of reduced machine revenue after the higher duty took effect.

The British Horseracing Authority echoed those concerns, pointing out that community betting shops often serve as key outlets for racing media rights income and that any widespread closures would place additional strain on the sport’s overall financial structure. Observers within the sector have tracked similar patterns in previous years when operating costs rose, and the authority emphasised that racing’s funding model remains sensitive to changes in retail betting volumes.

Context Around Energy Price Pressures

Energy price cap increases have continued to shape household budgets throughout 2026, prompting various proposals for targeted revenue measures. Brown’s intervention on the Today programme placed the machine games duty adjustment within that broader discussion, framing it as a mechanism that could deliver ring-fenced support without requiring new borrowing or reallocation from existing public services. The timing aligned with ongoing reviews of both gambling taxation and energy affordability policies.

Industry analysts have previously examined how duty changes affect machine utilisation rates, noting that higher costs per play can lead to lower overall session lengths and reduced venue footfall. Betting and Gaming Council data cited in responses to the proposal indicated that many betting shops already operate on narrow margins once staffing, licensing and premises expenses are accounted for, leaving limited room to absorb further tax increases.

Potential Effects on Horseracing Funding

British horseracing receives a portion of its income through media rights deals and the statutory levy collected from betting operators, and the British Horseracing Authority has stated that retail betting shops remain an important distribution channel for those payments. A reduction in the number of active shops could therefore compress both direct levy receipts and negotiated media rights values. Racing stakeholders have noted in past consultations that any contraction in the retail estate tends to concentrate remaining activity among larger operators, altering the competitive landscape for smaller venues.

Those monitoring the sector point out that the £70 million figure represents a combined total across multiple funding streams, each of which could face proportional reductions if machine revenue declines. The authority has previously worked with government on levy reform, and the latest proposal adds another variable to ongoing conversations about sustainable financing for the sport.

Conclusion

The proposal from Gordon Brown to adjust machine games duty now sits with policymakers who must weigh the potential revenue gain against the employment and industry effects outlined by the Betting and Gaming Council and the British Horseracing Authority. Data shared by both organisations show the scale of possible shop closures, job reductions and funding shifts that could follow implementation, while the energy price context continues to drive discussions about targeted support mechanisms. Further details on the precise rate change and allocation method would be required before any legislative steps could proceed.