Gordon Brown's Call for Machine Games Duty Increase Targets Betting Shop Machines to Support Energy Costs
Petra Foster · Aug 27, 2026
Gordon Brown's Call for Machine Games Duty Increase Targets Betting Shop Machines to Support Energy Costs
Former UK Prime Minister Gordon Brown has proposed a substantial rise in machine games duty on gaming machines located in adult entertainment centres such as those found in betting shops, and this move aims to generate up to £500 million that could help address rising household energy bills across the country. The suggestion focuses specifically on these venues while leaving bingo halls and pubs untouched by the changes, yet it has prompted immediate responses from the horseracing sector regarding risks to betting shop operations, levy payments, and media rights income. The Betting and Gaming Council has put forward its own calculations showing that such a tax adjustment might result in more than 2,900 betting shop closures along with over 21,000 positions lost in the sector.
Details of the Proposed Tax Adjustment
Gordon Brown's recommendation centers on elevating the machine games duty rate applied to gaming machines in adult entertainment centres, and the projected revenue from this increase stands at approximately £500 million annually. This sum would then be directed toward measures that offset increasing energy expenses faced by households, creating a direct link between gambling taxation and broader public financial relief efforts. The proposal deliberately excludes bingo halls and pubs from any duty modifications, which means the burden falls squarely on betting shop environments where these machines operate.
Scope and Targets of the Initiative
Adult entertainment centres within betting shops form the primary focus here, since these locations house the gaming machines subject to the duty hike, while other premises like bingo halls continue under existing tax structures. Observers note that this targeted approach seeks to maximize revenue collection without disrupting the wider gambling landscape that includes pubs and traditional bingo operations. Data from industry sources indicates the machines in question generate significant activity, which makes them a logical point for duty adjustments according to the proposal's framework.
Responses from the Horseracing Industry
The horseracing industry has issued warnings about the downstream effects of the suggested duty increase, including potential closures of betting shops that could reduce the number of outlets available for punters. Such closures would in turn diminish the levy income that supports horseracing activities and cut into media rights revenue streams that rely on betting volumes. Those familiar with the sector point out that betting shops serve as key distribution points for racing content, so any contraction in their numbers carries implications for the entire racing ecosystem.
Industry representatives have highlighted how lost levy contributions might affect prize money and breeding programs that depend on steady funding from betting activities. The Betting and Gaming Council has quantified these risks by estimating over 2,900 shop closures and more than 21,000 job losses should the tax rise take effect, figures that underscore the scale of potential disruption to employment and local economies tied to these venues.
Broader Context Around the Proposal
This call comes at a time when household energy costs remain a pressing concern for many families, and the estimated £500 million from the duty adjustment offers one avenue for generating dedicated support funds. The proposal avoids impacting bingo halls or pubs, which keeps the measure narrow in its application and focused on adult entertainment centres within betting shops. Researchers tracking gambling policy have observed similar past efforts to adjust machine duties, yet the current suggestion ties the revenue explicitly to energy bill assistance rather than general government spending.
Industry Estimates and Projected Outcomes
The Betting and Gaming Council has outlined its assessment that a higher machine games duty could trigger widespread betting shop closures exceeding 2,900 locations nationwide, which would translate into employment reductions surpassing 21,000 roles. These projections factor in reduced footfall and profitability once the duty rate climbs, leading operators to reassess their physical presence in communities. Horseracing stakeholders add that such outcomes would also erode levy payments and media rights deals that currently sustain racing events and broadcasting arrangements.
Conclusion
The proposal from Gordon Brown to raise machine games duty on gaming machines in betting shop adult entertainment centres stands as a specific policy idea aimed at raising £500 million for household energy support, while industry voices from horseracing and the Betting and Gaming Council have detailed concerns over shop closures, job losses, and revenue shortfalls. The targeted nature of the change leaves bingo halls and pubs unaffected, yet the estimates provided highlight measurable risks to the betting and racing sectors should the adjustment proceed.