Labor new PM hopeful may embrace new gambling tax, bring in extra £460m in windfall

• Andy Burnham is the most likely new hopeful for the Labor PM position, with Keir Starmer on his way out
• Burnham has been a long-time proponent of acting tougher on the gambling industry, targeting pernicious segments and increasing tax
• Whether he acts on these previous vows remains to be seen, providing that Burnham does make the UK premiership

The UK has had difficulty agreeing on its gambling sector, with regulators, trade bodies, policymakers and the public often at odds about what should be achieved, by what means and how soon.

But the new Prime Minister hopeful, Andy Burnham, who may be replacing the unfortunate Labor incumbent Keir Starmer, has openly spoken about the ills gambling causes in his view and has sought to further address his concerns through a legal framework.

Gambling hawk might be the UK’s new Labor PM

Burnham has voiced certain concerns about the sector, arguing that "slot sheds" or adult gaming centers, as they are known officially, have been a common sight in the United Kingdom and on high streets, but have also led to societal ills, with many located specifically in what are considered economically deprived areas.

While Burnham will have more immediate priorities on his agenda, he may reap immediate political dividends if he chooses to pass a new tax on the AGCs segment, while also calling for tougher action on how such venues are regulated and how they may be allowed to expand.

One of the floated ideas by a think tank is to double the machine games duty to 40% from the current 20%, a measure that is currently supported by 43% of the public, as per a Social Market Foundation poll, which indicates that people are fairly open to the idea of increasing the tax on AGCs.

Huge boost to tax revenue - but more challenges for casinos and bookies

The measure could generate an estimated tax windfall in the area of £275m and £458m, which will add to the £600m that the sector is currently contributing. The SMF proposal, though, does make a few exemptions.

While bookmakers and casinos will be similarly affected, fruit machines found at pubs will be left alone - these machines are considered Category C and D, as opposed to the Category B machines that AGCs are.

Burnham has not commented himself on whether he would immediately act on regulating AGCs, although this is the signal that observers who have followed his political career have received from him.

Whether any of this, includng a Burnham premiesrhip, comes to pass remains to be seen.

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