Gordon Brown Calls for Machine Games Duty Rise to Support Household Energy Bills

Former UK Prime Minister Gordon Brown put forward a plan to increase machine games duty on gaming machines located in betting shops and adult gaming centres, with the goal of raising up to £500 million that could help cover rising household energy bills during a period of energy price cap adjustments. He outlined this idea during an appearance on BBC Radio 4’s Today programme, where discussions focused on the financial pressures facing households amid ongoing energy cost changes.

Details of the Proposed Tax Adjustment

Brown presented the machine games duty increase as a targeted measure that would draw revenue from the gambling sector without directly affecting other forms of betting activity. The proposal comes at a time when energy price caps have been climbing, and government officials have been exploring various funding routes to ease household burdens. Figures cited in connection with the idea indicate that the duty adjustment could generate substantial sums, potentially reaching the £500 million mark if implemented across betting shops and adult gaming centres throughout the country.

The British Horseracing Authority echoed similar concerns, pointing out the risks to racing finances and the role that community betting shops play in supporting local economies. Data shared by industry representatives shows that many of these shops serve as collection points for betting activity tied directly to horseracing, and reduced numbers could affect both prize money and grassroots participation levels. According to reports covering the proposal, the authority stressed that stable funding streams remain essential for maintaining racing’s position as a major contributor to the UK’s sporting calendar.

Context Around Energy Costs and Tax Policy

Energy price cap increases have placed additional strain on household budgets throughout 2026, prompting various proposals for revenue generation across different industries. Brown’s suggestion ties the machine games duty directly to this issue, framing it as one possible source of support funding. The Racing Post covered the announcement in detail, noting how the former prime minister positioned the change as a way to balance support for consumers while drawing from a sector that has seen consistent regulatory attention in recent years. Those following tax policy developments have observed that machine games duty applies specifically to certain electronic gaming devices, distinguishing it from broader gambling levies.

Betting shop operators have already navigated several rounds of regulatory and tax changes in prior years, and representatives from the Betting and Gaming Council indicated that further increases could accelerate existing trends toward consolidation within the sector. Figures released alongside the warnings show that closures have occurred steadily, with remaining locations often concentrating in larger urban areas rather than smaller communities. This shift has implications for accessibility of betting services and for the collection of racing-related revenues that depend on physical retail presence.

Potential Effects on Horseracing Funding

British horseracing relies on a combination of the betting levy and media rights payments, both of which could face downward pressure if shop numbers decline sharply. The British Horseracing Authority has previously highlighted how community betting shops contribute not only through direct wagering but also by maintaining visibility for racing events among local audiences. A reduction in these outlets, according to the authority’s statements, might lead to lower overall turnover and reduced media rights values over time. Industry estimates suggest that the £70 million figure represents a meaningful portion of racing’s annual support package, and any loss would require alternative funding arrangements to be identified.

Conclusion

The proposal from Gordon Brown has drawn attention to the intersection of energy policy and gambling taxation, with industry bodies outlining concrete estimates on closures, employment effects, and racing contributions. As discussions continue around energy price cap adjustments, the machine games duty suggestion remains one element in broader conversations about revenue sources and sector sustainability. The Racing Post article provides further background on the statements made during the BBC appearance and the responses that followed from the Betting and Gaming Council along with the British Horseracing Authority.