Gordon Brown Urges Higher Machine Games Duty to Create Energy Relief Fund
Mia Baumann · Aug 27, 2026
Gordon Brown Urges Higher Machine Games Duty to Create Energy Relief Fund
Gordon Brown, who served as UK Prime Minister from 2007 to 2010, has proposed a substantial rise in Machine Games Duty on gaming machines found in betting shops and adult gaming centres, a move designed to generate as much as £500 million for a crisis and resilience fund that would help cover household energy bills during difficult periods.
The suggestion focuses specifically on adult entertainment centres and leaves bingo halls along with pubs untouched, which means the tax adjustment would apply only to certain licensed premises that operate slot-style machines.
Details Behind the Proposed Tax Adjustment
Under the plan the additional revenue would flow directly into support for families facing high energy costs, creating a dedicated pool of money that could activate when household bills spike unexpectedly or when broader economic pressures intensify.
Those who have examined similar tax changes note that Machine Games Duty already applies to gaming machines in various venues, yet the current rates would increase markedly if the proposal moves forward, shifting the financial burden onto operators of betting shops and adult gaming centres while sparing other sectors of the gambling industry.
Industry Response and Projected Consequences
The Betting and Gaming Council has issued a direct warning about the possible fallout, stating that the higher duty could trigger more than 2,900 betting shop closures across the country, eliminate around 21,000 jobs, and reduce contributions to horseracing by roughly £70 million each year.
These figures come from industry estimates that model how reduced profitability would force operators to scale back operations, and the council has highlighted that such closures would remove not only employment opportunities but also local economic activity tied to the shops themselves.
Scope of the Measure and Targeted Venues
The proposal deliberately excludes bingo halls and pubs, which means operators in those locations would continue paying the existing duty rates while betting shops and adult gaming centres absorb the full impact of any increase.
Observers note that this targeted approach aims to concentrate the revenue raise on premises where gaming machines form a core part of the business model, thereby avoiding broader disruption to other forms of licensed gambling entertainment.
Data from the sector shows that gaming machines in betting shops and adult gaming centres already generate significant turnover, yet the Betting and Gaming Council argues that further taxation would accelerate existing pressures from online competition and changing consumer habits.
Funding Purpose and Economic Context
The crisis and resilience fund would channel the expected £500 million into direct assistance for household energy bills, providing a buffer during periods of price volatility or seasonal demand spikes.
Those familiar with government spending patterns point out that such earmarked funds often address immediate cost-of-living challenges, and the former prime minister's suggestion frames the tax increase as a way to link gambling sector revenue with wider social support needs.
According to the Racing Post report covering the announcement, the initiative arrives at a time when energy affordability remains a recurring policy concern, although the exact timing of any legislative steps has not been confirmed.
Potential Ripple Effects on Related Industries
The Betting and Gaming Council has also emphasised the knock-on effect for horseracing, where betting shop revenue helps sustain prize money and breeding programmes, and the projected £70 million shortfall would arrive at a moment when the sport already navigates shifting regulatory and commercial landscapes.
Industry analysts have modelled scenarios in which shop closures concentrate in certain regions, potentially leaving gaps in community betting facilities and reducing footfall for nearby businesses that benefit from passing trade.
Conclusion
The call from Gordon Brown sets out a clear mechanism for raising revenue through Machine Games Duty while protecting specific parts of the gambling sector, yet the Betting and Gaming Council has outlined concrete risks around closures, employment, and support for horseracing that would require careful evaluation before any policy change advances.
As the debate continues, stakeholders on both sides will examine how the proposed £500 million target aligns with actual machine turnover figures and whether alternative revenue routes could achieve similar support for household energy costs without the projected economic side effects.