Gordon Brown Advocates for Increased Machine Games Duty to Support Household Energy Costs While Racing Industry Voices Concerns Over Potential Closures
Ines Baumann · Aug 27, 2026
Gordon Brown Advocates for Increased Machine Games Duty to Support Household Energy Costs While Racing Industry Voices Concerns Over Potential Closures
Gordon Brown has put forward a proposal to raise machine games duty on gaming machines located in betting shops and adult entertainment centres with the aim of generating up to £500 million that could help cover rising household energy bills and the plan specifically excludes bingo halls along with pubs from any such increase according to details released in the call for action.
British horseracing leaders responded quickly by highlighting risks to the sport's financial stability because the higher tax rate might speed up the rate of betting shop closures which in turn would reduce income from the betting levy and from media rights agreements that support racing events and operations across the country.
Details of the Proposed Tax Adjustment
The former prime minister outlined that the adjustment to machine games duty targets only certain gaming machines and leaves bingo halls plus pubs untouched so that the measure focuses resources on supporting energy bill assistance while data from industry estimates point to potential revenue of £500 million if implemented at the suggested level and the proposal comes at a time when household costs continue to climb for many families.
Those familiar with the betting sector note that gaming machines in betting shops and adult entertainment centres have long contributed through existing duty rates yet Brown argued that an increase remains necessary to bridge funding gaps without broader impacts on other parts of the leisure industry and the distinction drawn between venue types forms a core element of the suggestion.
Response from Horseracing Leadership
Leaders within British horseracing warned that the tax hike could accelerate closures among betting shops which serve as key outlets for off-course wagering and such closures would likely diminish contributions to the sport through the statutory betting levy along with payments tied to media rights for race coverage and broadcasting deals that sustain prize money and track maintenance.
Observers have pointed out that racing depends heavily on steady income streams from the betting industry and any reduction in shop numbers could create a spiral where fewer locations lead to lower overall turnover and therefore smaller payments back into the sport's ecosystem which already faces pressures from shifting consumer habits and regulatory changes.
Industry Estimates on Closures and Job Impacts
The Betting and Gaming Council released figures estimating that the proposed duty increase would result in more than 2,900 betting shops shutting down along with over 21,000 job losses across the sector and a reduction of around £70 million in annual contributions to racing from betting activities and these projections form part of the council's assessment of how the tax change might ripple through the wider gambling and leisure economy.
Figures like these connect directly to concerns about employment in local communities where betting shops often provide jobs and the council's calculations incorporate expected drops in machine usage as well as overall footfall declines that follow from higher operational costs passed on through taxation and the same data links the potential losses to reduced support for horseracing initiatives that rely on those contributions.
Broader Context Around the Call
Brown's intervention highlights a targeted approach to raising funds for energy bill relief and the emphasis on protecting bingo halls and pubs shows an attempt to limit spillover effects into other entertainment venues while the focus stays on machines in betting shops and adult centres where usage patterns differ and revenue potential appears higher according to the outlined estimates.
Those tracking policy developments in gambling taxation note that previous adjustments to machine games duty have influenced business decisions on machine numbers and shop viability and the current proposal adds another layer to ongoing discussions about how tax levels balance revenue generation against industry sustainability and the racing sector's reliance on betting turnover.
Potential Effects on Racing Finances
Horseracing bodies have stressed that media rights income and levy payments represent vital support for the sport and any acceleration in shop closures could reduce those streams at a time when racing seeks stable funding for events and participant welfare and the £70 million figure cited by the Betting and Gaming Council illustrates the scale of the projected shortfall if the tax change proceeds as suggested.
The warnings also extend to the possibility of fewer betting options available to the public which might further compress turnover and create a feedback loop affecting multiple stakeholders from trainers to racecourses and the interconnected nature of these finances means changes in one area like machine duty can influence outcomes far beyond the immediate tax base.
Conclusion
The proposal from Gordon Brown to increase machine games duty on specific gaming machines sets up a clear set of trade-offs between potential revenue for energy support and risks to betting shop viability along with downstream effects on horseracing income and the estimates provided by the Betting and Gaming Council supply concrete numbers on closures, jobs, and contributions while racing leaders continue to voice their concerns about long-term sustainability and the story remains focused on these elements as reported in coverage from sources such as the Racing Post.