Gordon Brown Calls for Machine Games Duty Increase to Ease Energy Costs

Former UK Prime Minister Gordon Brown has urged an increase in machine games duty on gaming machines located in betting shops and adult entertainment centres, with the measure positioned as a way to generate revenue that could reach £500 million and assist households facing higher energy bills. The proposal comes as political attention turns toward potential policy shifts under incoming Prime Minister Andy Burnham, whom Brown indicated would likely back comparable tax adjustments in the gambling sector.

Details of the Proposed Duty Rise

Brown outlined the plan in a statement that highlighted the revenue potential from adjusting machine games duty rates, noting that such a change could deliver substantial funds without requiring new spending commitments from the Treasury. Observers note the timing aligns with ongoing concerns over household energy expenses, and the former prime minister framed the duty hike as a targeted approach that draws from existing gambling activity rather than broad-based taxation.

Industry analysts have tracked machine games duty contributions for years, and data from government records show these machines already generate significant sums through the current duty structure. Brown's suggestion builds on that baseline by proposing an upward adjustment aimed specifically at machines in betting shops and adult entertainment centres, while leaving other gambling formats untouched in the immediate proposal.

Political Context and Expected Support

The call references Andy Burnham's anticipated stance, with Brown stating that the incoming prime minister would probably endorse similar measures once in office. Political reporting indicates Burnham has previously expressed interest in reviewing gambling taxation, though no formal commitment has been detailed yet. Those following the transition note that the suggestion places the issue on the agenda early, giving incoming officials time to assess revenue forecasts before any legislative steps.

Representatives from the Betting and Gaming Council further warned that higher duty rates might accelerate movement toward illegal gambling markets, citing examples from past tax adjustments where unregulated operators gained ground. The British Horseracing Authority added that any contraction in the licensed shop sector would directly affect prize money and racecourse funding that flows through established media rights agreements. Figures shared by these groups estimate that even modest shop closures could reduce annual racing contributions by several million pounds, though exact modelling depends on the final duty rate selected.

Revenue Estimates and Sector Data

Official estimates attached to the proposal indicate the duty increase could yield up to £500 million annually once fully implemented. Government statisticians have previously published machine games duty receipts that place current collections in the hundreds of millions, providing a reference point for calculating the impact of rate changes. Industry bodies have countered with their own projections that factor in reduced machine usage and shop viability, arguing the net gain may fall short of the headline figure if player behaviour shifts or outlets close.

Those monitoring the sector note that adult entertainment centres and betting shops together account for a measurable share of machine games duty, yet remote and online channels have grown faster in recent quarters. This distribution matters because the proposed hike targets only physical machines in the named venues, leaving digital alternatives outside the immediate scope.

Conclusion

The proposal from Gordon Brown sets out a clear revenue target tied to machine games duty while drawing attention to the positions of both the British Horseracing Authority and the Betting and Gaming Council on possible closures, employment effects, and racing funding. As the transition to Andy Burnham's leadership continues, the discussion around these tax measures remains one element of broader fiscal planning. The Racing Post article that first reported the comments provides the primary source for the details outlined here.