Could higher gambling taxes provide a solution to Britain’s rising household costs? Former Prime Minister Gordon Brown believes they could, putting Machine Gaming Duty back under the spotlight with a proposal that could raise to £500 million.
His proposal would focus on adult gaming centres (AGCs), which operate large numbers of gaming machines, while excluding bingo halls and pubs from the measure.
“I would support, for example, a machine gaming tax. Up to £500m can be raised without affecting bingo halls or pubs, but these Adult Entertainment Centres (AGCs), I would put a tax on that and I would use that money to pay for help in the crisis and a resilience fund for people who are facing difficulties with their fuel bills.”
According to him, the proceeds could help finance assistance during the winter fuel crisis and create a resilience fund for households facing financial difficulties.
The argument sounds straightforward. Target a gambling segment capable of generating additional tax revenue and redirect the money towards an urgent public need. Still, the bigger question is whether increasing the tax burden on regulated gambling is sustainable.
Where Does the Government Stand?
Brown has previously pushed for significantly higher gambling taxes. Before the 2025 Budget, he called for Remote Gaming Duty and Machine Gaming Duty to rise to 50%, alongside a 25% General Betting Duty. The government subsequently increased Remote Gaming Duty from 21% to 40%, while General Betting Duty is scheduled to rise from 15% to 25% in April 2027.
Machine Gaming Duty escaped those increases, leaving Brown’s latest intervention focused directly on a tax that affects gaming machines across the retail gambling sector. The proposal has not been adopted as government policy, but it arrives during a period of considerable change for Britain’s gambling market.
The Cost of Another Tax Increase
Supporters of higher taxation can point to a straightforward benefit: additional money for public spending at a time when household finances remain under pressure.
The gambling industry, however, faces a different calculation where higher taxes could increase pressure on betting shops and adult gaming centres, potentially contributing to closures and job losses. British horseracing is also watching the debate closely because the sport benefits financially from retail betting activity through mechanisms including the betting levy and media rights.
There is also a regulatory concern. If operating costs rise sharply for licensed businesses, some industry representatives fear customers could migrate towards offshore gambling websites, where taxation and UK consumer protections do not apply.
The Changing Gambling Landscape
Brown’s proposal lands in a gambling market already facing higher taxes and tighter regulation. Government attention is also turning towards the high street, with measures being considered that could give local authorities greater powers over betting shop applications. Potential changes affecting business rates for adult gaming centres have added another layer to the debate.
The challenge for policymakers is finding the right balance. Gambling taxation can generate substantial public revenue, but increasing it further could affect businesses, employment, racing and consumer behaviour. The question now is whether the additional revenue would outweigh the wider consequences of making the regulated market more expensive to operate.
