Gordon Brown Advocates for Machine Games Duty Increase on Category B Slots

Former UK Prime Minister Gordon Brown has called publicly for an increase in Machine Games Duty on category B slot machines located in adult gaming centres and betting shops, with estimates suggesting this adjustment could generate up to £500 million to support households facing rising energy costs, and he indicated the measure would leave bingo halls and pubs unaffected while forecasting that current Prime Minister Andy Burnham would adopt comparable steps.

Details of the Proposed Duty Adjustment

Brown outlined the proposal as a targeted approach to category B machines, which represent specific types of gaming equipment found primarily in dedicated adult venues and betting shops, and he tied the revenue potential directly to relief for energy bills that have climbed in recent periods, whereas the plan avoids extending changes to bingo operations or pub-based machines to maintain those sectors' stability.

Industry responses emerged quickly after the announcement, with the Betting and Gaming Council highlighting risks of faster betting shop closures alongside job reductions, while the British Horseracing Authority pointed to potential drops in racing levy contributions and media rights income plus a possible expansion of unregulated black market activity.

Context Around Category B Machines and Revenue Projections

Category B slot machines operate under defined regulatory classifications that distinguish them from other gaming devices, and Brown's estimate of £500 million rests on modelling that factors in current duty rates applied to these units in adult gaming centres and betting shops, yet the proposal explicitly carves out protections for bingo halls and pubs to prevent spillover effects on those locations.

Industry Body Warnings and Potential Sector Impacts

The Betting and Gaming Council warned that elevating the duty would accelerate closures of betting shops already operating under pressure, leading to direct job losses for staff in those venues, and the British Horseracing Authority added that reduced income from the racing levy and media rights deals could follow, while both groups noted the chance that higher taxes might drive more activity into the black market.

Those monitoring the sector observe that category B machines form a core revenue stream for adult gaming centres and betting shops, so any duty rise would require operators to adjust pricing or volume strategies, although Brown's framing keeps the focus on energy bill support without touching bingo or pub environments.

Political Positioning and Forward Outlook

Brown positioned the suggestion as a straightforward fiscal tool that current Prime Minister Andy Burnham would likely pursue, and this comes amid ongoing discussions in August 2026 about balancing public revenue needs with gambling sector sustainability, where the proposal avoids broad application across all machine types.

Reports from the original announcement detail how the £500 million figure derives from calculations on category B machines specifically, and industry groups continue to emphasize the chain of effects from closures to levy shortfalls without disputing the targeted scope Brown described.

Conclusion

The call from Gordon Brown centers on raising Machine Games Duty for category B slots in adult gaming centres and betting shops to fund energy bill relief, wth clear exclusions for bingo halls and pubs plus predictions about Prime Minister Andy Burnham's direction, while the Betting and Gaming Council and British Horseracing Authority have flagged risks including accelerated closures, employment cuts, levy reductions, and black market growth as immediate points of concern for stakeholders.