Gordon Brown backs calls for rise in UK Machine Games Duty to tackle fuel crisis
The former prime minister argues that a tax hike on gaming machines would be “urgent, necessary and fair” to help tackle the rising cost of fuel ahead of winter.
UK.- The former prime minister Gordon Brown has put his weight behind calls for the government to consider raising Machine Games Duty (MGD in Britain in a move that could cause a sense of deja vu for the British gambling sector. As when Brown called for a rise in Remote Gaming Duty at around the same time last year, he’s linking the proposal to a specific social economic issue, in this case proposing the fuel crisis.
He made the comments when appearing on the BBC’s Today programme on Wednesday to promote his new book on social inequality and voting behaviour. Brown turned the discussion towards the rising cost of fuel, which has dominated political debate over the past year, and argued that gaming machines could provide a source of revenue to create a “resilience fund” to ease the burden on households.
“Our fiscal rules should never be so inflexible that we can’t do things that are urgent, necessary and fair within our fiscal rules,” Brown said. “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.”
He added: “There are long-term changes that have to be made. But in the immediate future I think Burnham might want to do something along the lines I am suggesting.”
In June, the Social Market Foundation think thank proposed that the MGD rate on Category B slot machines should be increased to 40 per cent, bringing machines in line with the new tax rate on online slots. Category B devices, which can pay out up to £500, are the most common type of electronic gaming machine in UK betting shops, arcades and bingo halls. They are currently subject to a MGD of just 5 per cent on stakes up to 20p, 20 per cent on stakes up to £5, and 25 per cent on stakes above £5.
While not a member of the government, Gordon Brown does still have some weight and served as an advisor to the UK’s last prime minister Keir Starmer. Almost exactly a year ago, he backed the SMF’s proposal for a rise in Remote Gaming Duty, arguing that the measure could be used to pay for the removal of the current two-child cap on child benefits. The proposal was adopted three months later in the Autumn Budget, although the final tax rise was from 21 to 40 per cent rather than the 50 per cent that Brown and the SMF had proposed.
Then-Chancellor Rachel Reeves’ budget of November 2025 also announced a rise in the General Betting Duty on online betting from 15 to 25 per cent from April 2027. However, Machine Game Duty unchanged, along with retail betting duty, while Bingo Duty was scrapped. Brown’s comments at a similar juncture this year seem intended to help build a consensus around a possible hike for land-based gaming in the coming budget to be delivered by new chancellor John Healey.
Current Prime Minister Andy Burnham has already shown a willingness to confront the gambling industry. He has pledged to abolish the 2005 Gambling Act’s Aim to Permit rule to make it easier for local authorities to reject applications for new betting shops and gaming venues. He has also talked up plans to cut business rate relief for gaming halls, although the final details have yet to be announced.
The SMF’s proposal would keep the MGD rate on Category C machines, typically found in pubs, at 20 per cent and that on lower-stake devices at 5 per cent. It argues that this would shift the tax burden to riskier EGMs while protecting the hospitality industry.
According to the think tank, the proposed measure could generate between £275m and £458m a year in extra tax revenue. It also cited polling by Survation of 2,047 adults, which found that 43 per cent supported higher taxation on these machines compared with 11 per cent who favoured cuts. However, the gaming sector, including the trade body Bacta, have strongly opposed the proposal, arguing that it could force venues to close, leading to job cuts and an impact on footfall for other businesses.
