Gordon Brown Urges Tax Increase on Gaming Machines to Offset Rising Energy Costs

Former Prime Minister Gordon Brown has called for a substantial rise in machine games duty on gaming machines located in betting shops and adult entertainment centres, with the measure projected to generate as much as £500 million that could support households facing elevated energy bills. The proposal comes amid ongoing discussions about fiscal measures to address cost-of-living pressures, and Brown indicated the change would spare bingo halls and pubs from any additional burden. He also suggested that current Prime Minister Andy Burnham would likely back the plan, while industry groups have already voiced strong resistance.

Details of the Proposed Duty Increase

Brown outlined the idea in statements reported during August 2026, framing the machine games duty adjustment as a targeted revenue tool that draws from a specific segment of the gambling sector without extending to other venues. According to the Racing Post report, the former prime minister emphasized that betting shops and adult entertainment centres would bear the brunt of the hike, leaving bingo operations and public houses untouched. This distinction aims to protect certain community-oriented gambling sites while directing funds toward energy bill relief programs for households.

The estimated £500 million in additional revenue would flow from higher duty rates applied to gaming machines, a category that includes fixed-odds betting terminals and similar devices. Brown presented the move as a practical step that aligns with broader government priorities on household support, and he expressed confidence that Burnham would view the proposal favorably given shared policy objectives on public finances.

Industry Response and Warnings

The Betting and Gaming Council together with representatives from the racing industry have mounted immediate opposition to the suggestion. They argue that an increase of this scale would trigger significant contraction across the betting shop network, with projections pointing to more than 2,900 closures and over 21,000 associated job losses. Further estimates indicate that racing would face a £70 million shortfall in contributions collected through the levy and media rights agreements.

These figures emerge from industry modeling that factors in reduced machine usage and lower overall footfall once duty costs rise. Observers note that the Betting and Gaming Council has highlighted how such closures could ripple through supply chains and local economies, while the racing sector stresses the direct link between betting shop activity and funding streams that sustain horse racing events and prize money.

Context Within Current Policy Debates

Discussions around machine games duty have gained renewed attention as energy prices remain elevated into August 2026. Brown’s intervention adds to existing conversations about how gambling taxation might contribute to wider fiscal needs, yet the proposal keeps a narrow focus on specific machine types and locations. Industry bodies have countered that the scale of the suggested increase exceeds previous adjustments and could accelerate shifts toward remote betting channels.

Those tracking the sector point out that any duty change would require legislative steps, and the response from the current government under Burnham remains to be seen. Brown’s prediction of support rests on alignment between the two figures on using targeted taxation for social support programs, although formal endorsement has not yet been confirmed.

Potential Economic and Employment Effects

Analyses shared by the Betting and Gaming Council and racing stakeholders describe a scenario where higher machine games duty compresses profit margins at betting shops, prompting operators to reduce outlets and staffing. The cited 2,900 closures would represent a substantial portion of the existing high-street presence, while the 21,000 job losses encompass both direct retail roles and indirect positions tied to the supply of machines and venue services.

The £70 million reduction in racing contributions would affect the levy payments that support the sport’s infrastructure and the media rights deals that broadcast races. Industry estimates suggest these losses could compound if shop closures limit opportunities for on-course and off-course betting activity that feeds into those revenue streams.

Conclusion

The proposal from Gordon Brown centers on raising machine games duty within defined venues to produce up to £500 million for energy bill assistance, while explicitly excluding bingo halls and pubs. Predicted backing from Prime Minister Andy Burnham sits alongside firm pushback from the Betting and Gaming Council and racing interests, which forecast thousands of shop closures, widespread job reductions, and diminished funding for horse racing. As debates continue into late 2026, the outcome will depend on government decisions and further economic assessments of the duty’s reach.