Gordon Brown Calls for Higher Machine Games Duty to Support Energy Bills
Xander Patterson · Aug 27, 2026

Gordon Brown Calls for Higher Machine Games Duty to Support Energy Bills

Former UK Prime Minister Gordon Brown proposed an increase in machine games duty on gaming machines located in betting shops and adult gaming centres during an appearance on BBC Radio 4’s Today programme, with the goal of raising up to £500 million to offset rising household energy bills amid ongoing energy price cap adjustments. Observers note that the suggestion came at a time when energy costs continued to pressure household budgets across the country, and Brown framed the tax adjustment as one potential revenue stream for targeted support measures. The proposal specifically targets machines in those venues rather than broader gambling categories, which sets it apart from previous tax discussions in the sector.
Details of the Tax Adjustment Suggestion
Brown outlined the plan on the radio programme where he explained how the duty hike could deliver substantial funds without directly affecting other forms of betting, and he pointed to the need for additional resources as energy price caps rose again. Those who followed the broadcast heard him connect the revenue target directly to support programmes for households facing higher utility expenses, while industry analysts quickly began calculating the potential effects on operators who rely heavily on machine income. The timing aligned with broader economic pressures that have kept energy affordability in the headlines throughout recent months.
Responses from Industry Organisations
The Betting and Gaming Council responded by warning that the proposed duty increase would accelerate the closure of betting shops, with estimates suggesting more than 2,900 locations could be at risk, and that job losses might exceed 21,000 positions across the sector. Council representatives also highlighted a potential reduction of around £70 million in contributions to British horseracing through the existing levy system and media rights agreements, noting that many community betting shops serve as key collection points for those funds. The British Horseracing Authority echoed those concerns, stating that the financial stability of racing could face direct pressure if shop revenues decline sharply and if the network of local betting outlets shrinks further.

Operators and trade bodies have pointed out that machine games duty already forms a significant portion of their cost base, and any upward adjustment would arrive at a moment when footfall in high-street locations remains variable. Data shared by the Betting and Gaming Council indicates that the combined impact on employment and racing funding could compound existing challenges faced by smaller venues that operate on narrow margins. The British Horseracing Authority added that community betting shops often act as hubs for racing enthusiasts, and their reduction could indirectly affect attendance and betting activity at racecourses.
Broader Context Around the Proposal
The suggestion builds on previous discussions about how gambling taxation might contribute to public finances, yet Brown’s version ties the revenue explicitly to energy bill relief rather than general spending. Those who reviewed the radio interview noted that he referenced the scale of the energy price cap increases as justification for seeking new sources of funding in the short term. Industry groups have countered that the machines in question already carry regulatory requirements and responsible gambling measures, and they argue that further tax pressure could shift activity toward less regulated channels. The Racing Post reported on the exchange between Brown and the industry representatives, providing detailed figures on potential shop closures and employment effects that have since circulated among stakeholders.
Figures released in connection with the story show that the £500 million target would require a meaningful uplift in the current duty rate applied to gaming machines, although exact percentage changes were not specified during the broadcast. Betting and Gaming Council statements emphasised that many affected shops already contribute through business rates and other local taxes, creating a layered cost structure that could become unsustainable for some operators if machine revenue drops. The British Horseracing Authority underlined the importance of maintaining stable funding streams for prize money and grass-roots programmes that depend partly on the horseracing levy collected through betting shops.
Conclusion
The proposal by Gordon Brown to raise machine games duty remains under discussion following his appearance on BBC Radio 4’s Today programme, with industry responses focusing on the scale of projected shop closures, job impacts, and reductions in horseracing contributions. The Betting and Gaming Council and the British Horseracing Authority have both outlined specific risks tied to the £500 million revenue goal, while the original suggestion links the funds directly to household energy support measures. Observers continue to track how these estimates evolve as further details emerge about the implementation timeline and any adjustments to the duty structure.