UK gambling tax proposal sends shudders through industry

Britain’s gambling industry is facing renewed pressure after former prime minister Gordon Brown called for a significant increase in taxes on gaming machines, a proposal that has sparked warnings of betting shop closures, job losses and a fresh hit to British horseracing.

Speaking on BBC Radio 4’s Today programme, Brown argued that raising machine games duty (MGD) could generate substantial funds to help households cope with rising energy bills.

“I would support, for example, machine gaming tax – up to £500 million could be raised,” Brown said.

The proposal has alarmed both the betting and racing industries, which say higher taxes on gaming machines could accelerate the decline of Britain’s betting shop network.

Racing is particularly exposed because it receives funding through betting levy payments and media rights agreements linked to retail gambling activity.

British Horseracing Authority chief executive Brant Dunshea told reporters the sport would seek constructive engagement with the government to underline the economic importance of betting shops and racing.

“We want to engage in a positive way with government to help them understand the importance of betting shops and in particular what they bring to the communities where they’re located, and help them understand the value of our product, our sport, in that context,” Dunshea said.

In an echo of what is happening in Australia, industry groups argue that additional taxation could drive customers towards unregulated operators while reducing employment and tax revenues.

The debate comes amid wider scrutiny of gambling, with ministers also considering measures aimed at making it easier for local authorities to block new betting shop applications.