The different ways that politicians have stated they will use the money from gaming taxes

The different ways that politicians have stated they will use the money from gaming taxes

This week, former prime minister Gordon Brown spoke to the radio once more to advocate for an increase in Machine Games Duty in order to alleviate the burden of rising domestic fuel prices this winter.

Brown's demands underscore a more concerning view of the gambling sector held by politicians who seem to have little regard for one of the oldest sectors in Britain. 

Supported by Prime Minister Andy Burnham's awkward classification of retail betting as "dodgy businesses and vape shops," politicians intentionally ignore the benefits of the betting sector, seeing it only as a source of additional tax income.

There are suggestions for a gambling tax to address whatever the current situation is. But the industry is simply that—an industry. The industry runs the risk of going out of business if taxes are tightened further, which would allow the black market to take market share. 

Brown's calls this week will bring back memories, so we are reviewing some of the previous instances in which this playbook has been used and the other situations in which gaming taxes have been suggested as a solution. 

Poverty among children: 2025
This is perhaps the most noteworthy item on the list, given the influence of recency bias. 

The industry lost a propaganda war last year when Brown and colleagues used the industry's extraordinary tax increases as a chance to remove the two-child benefit cap and, if Labor Party statements are to be taken at their value, raise 500,000 children out of poverty.

This one had a lot of campaigning. The billionaire creator of Phones4u and well-known businessman John Caudwell, who had supported Labor in the 2024 election, openly backed Brown's demand for increasing casino taxes.

However, 101 Labor MPs followed suit. Despite strong industry warnings, it seemed inevitable that Rachel Reeves and Keir Starmer would give in to this pressure.

It was always going to be impossible to change the narrative when it was framed as taxing to assist address child poverty during a contentious time full of political speculation. 

The 2024 National Health Service
The Autumn Budget of 2026 included requests to double the levy on online gambling. The Social Market Foundation think group once again supported Liberal Democrat Leader Ed Davey in 2024 when he called the failure to raise the tax "an opportunity missed" for financing the NHS and social care services. 

"This Budget was a missed opportunity to double Remote Gaming Duty, combating the harms of problem gambling while raising money for our NHS and social care," he said in the fall of 2024. Instead of targeting hardworking families, small companies, and family farms, this would have been significantly more equitable.

Rather, the government has once more kicked the can down the road. Liberal Democrats will keep pressuring ministers to take immediate action before more lives are lost.

Reeves refused to give in at the time, possibly due to the pressure's origins, but this didn't stop the Liberal Democrats' campaign, which sought to point to the harm done to society by the online gambling industry. 

Davey claimed that the tax increase would generate between £575 million and £900 million annually, although it was unclear how the increase would affect British gaming spending. However, a year later, Reeves increased remote betting from 15% to 25% and doubled RGD, claiming that these tax increases would generate £810 million in 2026–2027 and £1.155 billion by 2031.

2022's Grassroots Sports
Lower division football teams in the UK had difficulties in 2022 as they dealt with the COVID pandemic and the lack of EFL matchday revenue. 

Bury FC's tragic demise sparked a political movement in favor of grassroots football. The possibility of creating a European Super League further intensified this feeling, which genuinely resulted in contempt for elite teams and a desire for more equitable revenue distribution throughout the football hierarchy.

There were suggestions for a fee to be taken directly from sports betting and applied to lower league clubs as the relationship between football and betting inevitably came under investigation. The gambling business was mentioned as a potential solution to the financial mismanagement of some EFL clubs. 

The 2026 Energy Crisis
After helping 500,000 children escape poverty, Brown has returned to the airways to advocate for a new Labor leader to return to the casino tax well in order to address the winter energy issue. 

Brown is pleading with the government to return to the taxation well in the same week that UK company Entain withdrew from the FTSE 100, underscoring broader problems for a troubled industry where many below the top tier of operators are struggling for their lives. Despite the fact that petroleum giant BP reported a quarterly profit of £4.26 billion in its most recent financial statement, there is an emphasis on gambling as a solution.  

However, the sector should be concerned that, given the government's current attitude against gambling, they might be tempted as a challenging budget approaches in October. 

"Our fiscal rules should never be so unflexible that we can't do things that are urgent, necessary, and fair within our fiscal rules," Brown said in an interview with the BBC's Today program. 

For instance, I would be in favor of a tax on machine games. It is possible to raise up to £500 million without having an impact on bingo halls or bars, but I would tax these Adult Entertainment Centers (AGCs) and use the proceeds to fund crisis assistance and a resilience fund for those who are struggling with their fuel expenses.

Long-term adjustments must be made. However, I believe Burnham may wish to take action along these lines in the near future.

That's an additional £500 million from the sector, only months after tax increases. This is undoubtedly a good cause, but something needs to change or we run the risk of taxing the sector to the point where it can't compete with the illicit market and the negative effects of gambling vanish to an unquantifiable, unmitigated, and unsupportable level.