Gordon Brown Pushes for Higher Machine Games Duty on Category B Slots to Support Energy Relief Efforts

Sage Frank · Aug 27, 2026

Gordon Brown Pushes for Higher Machine Games Duty on Category B Slots to Support Energy Relief Efforts

UK adult gaming centre with category B slot machines and betting terminals in a retail setting

Former UK Prime Minister Gordon Brown has called for an increase in Machine Games Duty on category B slot machines located in adult gaming centres and betting shops, and this move could generate as much as £500 million in additional revenue, according to his estimates. The funds would go toward offsetting rising household energy bills, while the proposal deliberately excludes bingo halls and pubs from any tax adjustments. Brown also indicated that current Prime Minister Andy Burnham would likely follow through with comparable steps in the coming period.

Details of the Proposed Tax Adjustment

Category B machines represent a specific class of gaming terminals found in licensed adult gaming centres along with high street betting shops, and Brown focused his recommendation squarely on these devices. The suggested duty hike targets only this segment, leaving other venues untouched because they operate under different regulatory frameworks and contribute to community leisure in distinct ways. Reports from the period highlight how such a targeted change might deliver substantial public revenue without broader disruption across the wider gambling sector.

Industry Responses and Potential Consequences

Organisations including the Betting and Gaming Council and the British Horseracing Authority responded swiftly with warnings about accelerated closures of betting shops, alongside job losses in retail locations. They further noted that reduced racing levy payments and lower media rights income could follow, while an expanded black market for unregulated gambling might emerge as operators adjust to the new rates. These groups emphasised that the cumulative effects would extend beyond immediate tax collections and affect supply chains connected to horseracing and venue operations.

One analysis circulating at the time pointed to polling data showing that two in five people in Britain support raising taxes on the most harmful slot machines, with modelling suggesting the change could boost public finances by up to £450 million. Such figures appear in coverage from the Social Market Foundation and align with the scale Brown outlined in his public statements.

Betting shop interior showing rows of category B gaming machines and staff areas

Political Context and Forward Projections

Brown framed the duty increase as a practical step that would not affect bingo halls or pubs, and he linked the revenue directly to household energy support measures already under discussion. Observers noted that his reference to Prime Minister Andy Burnham positioned the idea within ongoing government considerations rather than as a standalone initiative from a former officeholder. The timing coincides with broader fiscal pressures in August 2026, when energy costs continue to influence household budgets across the country.

Industry bodies stressed that any duty rise on category B machines would accelerate existing trends of venue closures, and they highlighted risks to employment in areas where betting shops serve as local employers. Reduced contributions to the racing levy could in turn affect prize money and breeding programmes, while media rights deals tied to televised races might see downward pressure. These interconnected effects form the core of the warnings issued in response to the proposal.

Revenue Estimates and Targeted Application

Brown's calculation placed the potential yield at up to £500 million, a figure derived from current volumes of play on category B terminals in adult gaming centres and betting shops. The proposal keeps the adjustment narrow so that bingo halls and pubs remain outside its scope, preserving their existing duty structures. This selective approach reflects an effort to balance revenue generation with minimal interference in other parts of the licensed gambling landscape.

Conclusion

The call from Gordon Brown centres on raising Machine Games Duty specifically for category B slot machines in adult gaming centres and betting shops, with projected proceeds reaching £500 million for energy bill relief. Industry organisations have outlined risks of further shop closures, employment reductions, and declines in racing-related income, while also flagging possible growth in unregulated markets. The suggestion ties into expectations that Prime Minister Andy Burnham may advance similar policies, all set against the fiscal backdrop of August 2026.