Former Prime Minister Calls for £500 Million Gaming Machine Tax Hike

Written By Craig Simpkin | Published at August 26, 2026

The former Prime Minister, Gordon Brown, has called for an increase in tax paid on gaming machine profits in a bid to raise £500 million for the UK economy.

And Brown claims that his plan is supported by Andy Burnham, the current incumbent at 10 Downing Street.

However, a possible outcome of such a move would be the mass closure of betting shops, which in turn could see thousands of jobs lost – as well as permanently damaging the sport of horse racing.

Energy Crisis

Speaking on Radio 4's Today programme this morning, Brown – who served as Prime Minister for nearly three years between 2007 and 2010 – has claimed that hiking Machine Game Duty (MGD) would help to offset the impact of fuel bill increases, which are set to rise by 4% from October.

The former Labour leader would like to see to see the government make financial contributions to the hardest hit households, with extra gambling tax revenue cited as one possible source.

And the Scotsman has revealed his belief that Burnham is onside with his plan, commenting that the PM would ‘want to do something along the lines I am suggesting.’

Brown commented:

“I would support, for example, machine gaming tax – up to £500 million could be raised.
“I would put a tax on that and I would use that money to pay for help in the crisis and resilience fund for people who are facing difficulties with their fuel bills.
“I think Andy Burnham, I know him well, will want to do something along the lines I am suggesting.”

Prior to the Autumn Budget last year, Brown called upon the then chancellor, Rachel Reeves, to hike Remote Gaming Duty to 50% and Machine Gaming Duty to the same percentage – although called for an additional £100 million in support to be donated to horse racing.

Ultimately, Reeves increased Remote Gaming Duty to 40% but froze Machine Gaming Duty, so John Healey – her replacement as chancellor and close confidante of Burnham – might be inclined to revisit Brown’s recommendation in his first budget this autumn.

Doubling Up

It was back in June that the Social Market Foundation (SMF), an influential think tank with support inside the government’s ranks, called for the rate of tax paid on Category B gaming machines – those found in betting shops and Adult Gaming Centres, rather than casinos – to be doubled.

As well as reducing gambling harm, argued the SMF, an additional amount between £275 million and £458 million would be raised in tax revenue for the Treasury.

However, such a move would hit already beleaguered high street betting shops hard, with the Betting and Gaming Council claiming that such a move would lead to:

More than 2,900 betting shops closing
21,000 jobs lost
£70 million in contributions to horse racing wiped out

Betfred, one of the UK’s biggest employers within the domestic gambling sector, has already announced plans to close 132 shops in the coming weeks and months – at a cost of around 600 jobs.

Material Impact

With other firms seeking cost-cutting measures in the wake of Reeves’ tax grab, around 540 shops have been closed in the past year or so by Paddy Power, William Hill, Coral and Ladbrokes. And that has seen approximately 4,500 jobs wiped out.

Another sector that would be hurt by an increase in Machine Gaming Duty would be bingo halls, which offer the games alongside their traditional bingo action.

And Rank Group CEO Richard Harris, who oversees their Mecca Bingo brand, has warned of the dire consequences of a duty hike.