Gordon Brown Urges Tax Rise on Gaming Machines to Support Energy Bills

Former UK Prime Minister Gordon Brown has called for a significant increase in machine games duty on gaming machines located in adult entertainment centres and betting shops, with the move projected to generate up to £500 million that could help cover household energy bills. The proposal focuses strictly on physical slot and gaming machines in those specific venues while leaving bingo halls and pubs untouched, and it arrives at a time when the UK gambling and horseracing sectors already face mounting pressures.

Data from industry observers shows the tax adjustment would target high-stakes machines in betting shops and adult centres, where revenue streams have remained robust despite broader economic challenges. Brown’s suggestion frames the extra duty as a direct contribution toward easing energy costs for households, and it aligns with ongoing discussions about how gambling taxation might support public finances without affecting every sector equally.

Details of the Proposed Duty Increase

The plan specifies higher rates of machine games duty applied only to machines in adult entertainment centres and betting shops, sparing bingo halls and pubs from any additional burden. Estimates indicate the change could deliver as much as £500 million annually, funds that would then support measures aimed at household energy relief. This approach keeps the scope narrow, concentrating the impact on venues where machines generate substantial play volume while avoiding disruption to other parts of the leisure industry.

Those tracking the sector note that physical machines remain a core revenue driver in betting shops and adult centres, and any duty rise would directly affect operators who rely on these devices for daily turnover. The proposal does not extend to online gambling or other forms of betting, keeping the focus on land-based equipment in the named locations.

Industry Response and Projected Effects

The Betting and Gaming Council responded by highlighting potential downsides, including warnings that the tax hike could trigger more than 2,900 betting shop closures along with over 21,000 job losses. The group also pointed out that the change might reduce contributions to racing by around £70 million, a figure that matters because racing relies on funding streams tied to betting activity. These projections come from industry modeling that factors in reduced machine numbers and lower overall revenue once the higher duty takes effect.

Operators in the affected areas have already begun reviewing site viability, and some locations may see reduced machine counts or full closures if the duty increase moves forward. The Betting and Gaming Council has emphasized that these outcomes would ripple through supply chains, affecting staff, suppliers, and local economies that depend on the footfall generated by betting shops.

Context Within Current Sector Pressures

The call for higher machine games duty surfaces while both the gambling and horseracing industries navigate continued economic headwinds, including rising operational costs and shifting player habits. Brown’s suggestion positions the tax rise as one way to channel gambling revenue toward immediate household needs, particularly energy bills that have stayed elevated in recent periods. Observers note that the proposal arrives amid broader debates about how taxation can balance public support programs with industry sustainability.

Figures shared by the Betting and Gaming Council illustrate the scale of potential change, with the projected closures and job losses representing a substantial portion of the current betting shop network. The £70 million reduction in racing contributions would further strain an industry already adjusting to lower attendance and competing entertainment options, though the proposal itself remains limited to physical machines in adult centres and betting shops.

Conclusion

Gordon Brown’s proposal for an increased machine games duty targets a defined segment of the gambling sector, aiming to raise up to £500 million for household energy relief while exempting bingo halls and pubs. The Betting and Gaming Council has outlined significant operational consequences, including thousands of closures and job reductions, plus lower funding for racing. As discussions continue into August 2026, the focus stays on how this specific tax adjustment might reshape land-based gaming venues and the wider ecosystem they support.