UK Proposes Another Tax Hike for Bookmakers to Help Households Pay Energy Bills

^{Gordon Brown, former UK Prime Minister}

Former UK Prime Minister Gordon Brown has called for a higher tax on gaming machine revenues, including those generated by machines in betting shops. He estimates the measure could raise up to £500 million for the Treasury, with the additional revenue used to help households cover their energy bills, according to the Racing Post.

The proposal comes after energy regulator Ofgem announced that the household energy price cap will rise by 4% from October, reaching its highest level in three years.

Brown’s proposal comes as the gambling industry is already facing a heavier tax burden. From 1 April 2026, the tax on online casino revenues increased from 21% to 40%, while the tax on online betting is set to rise from 15% to 25% in April 2027. Betting on British horse racing will remain taxed at 15%.

Gaming machine revenues are subject to a separate tax in the UK, calculated on gross gaming yield — broadly, the difference between stakes and winnings paid out. Depending on the type of machine, the applicable rate is 5%, 20% or 25%.

Brown did not specify what the new rate should be. In 2025, however, he recommended raising it to 50%, a proposal the government ultimately rejected.

The Social Market Foundation think tank has previously proposed doubling the tax on gaming machines.

The Betting and Gaming Council estimated that such a move could lead to the closure of more than 2,900 betting shops and the loss of over 21,000 jobs, while potentially pushing some customers towards illegal gambling operators.

The British Horseracing Authority has also warned that betting shop closures could hit the sport’s finances. British racing receives funding from bookmakers through the statutory levy as well as revenue from the sale of media rights. Potential losses have been estimated at around £70 million.

BHA chief executive Brant Dunshea said the organisation intends to make the case to the government about the importance of bookmakers to the funding of British racing.