Lisa Nandy will stay on as Culture Secretary in Andy Burnham’s cabinet, drawing a positive response from the UK gambling industry as operators push for a more competitive tax environment following steep duty increases.
The Betting and Gaming Council confirmed it looks forward to continuing its relationship with Nandy, who was first appointed to lead the Department of Culture, Media and Sport under former Prime Minister Keir Starmer in 2024. The retention signals continuity at a time when the regulated gambling sector faces significant fiscal pressure.
Grainne Hurst, chief executive of the BGC, said the trade body would build on what she described as a constructive relationship developed since Nandy first took office. The culture secretary has previously recognised the regulated betting and gaming sector’s contribution to the UK economy, supporting 109,000 jobs and generating £4 billion in tax annually.
“Our members contribute £6.8 billion to the UK economy and bring joy to many millions of adults who enjoy betting and gaming safely each year,” Hurst noted, adding that the sector invests in sport and supports racing across the country.
Tax changes looming over the sector
The industry’s warm words come against a backdrop of substantial tax increases announced under the previous government. Remote gaming duty rates nearly doubled to 40 per cent, while a new remote betting duty rate of 25 per cent will take effect in April 2027, up from the previous 15 per cent rate.
Those increases have prompted concern among operators that the UK risks pricing itself out of international competitiveness, particularly as licensed operators compete not only with each other but with a growing illegal gambling market that pays no tax and offers no consumer protections.
The BGC has made clear it intends to work closely with new Chancellor John Healey to ensure the UK maintains a stable, internationally competitive tax and regulatory environment. The organisation argues that excessive taxation could drive players toward unlicensed sites, undermining both Treasury revenue and player safety.
Illegal gambling market emerging as central concern
Beyond taxation, Hurst highlighted the growing threat posed by the illegal, unregulated gambling market. The black market operates outside the framework of consumer protections, safer gambling tools, and age verification systems that licensed operators must provide under UK law.
The BGC has consistently argued that overly restrictive regulation or punitive taxation risks pushing consumers toward these unlicensed alternatives, where there is no recourse for disputes, no limits on stakes or deposits, and no safeguards for vulnerable players.
Working with Nandy and ministerial colleagues, the industry body said it would focus on supporting economic growth, raising standards across the regulated sector, and tackling the illegal market, which it views as a direct threat to both public safety and the sustainability of the licensed industry.
Continuity and the broader political picture
Nandy’s retention offers stability for an industry that has faced a turbulent regulatory period. Since the government launched its review of the 2005 Gambling Act, operators have navigated changing political winds, shifting public attitudes toward gambling advertising and affordability, and the looming implementation of a statutory levy to fund gambling harm prevention and treatment.
The Culture Secretary oversees not only gambling regulation but also broadcasting, digital policy, and sport, making the role a key interface between government and multiple industries that intersect with betting and gaming.
Andy Burnham’s appointment as Prime Minister marks a shift in leadership, but Nandy’s continuity in the role suggests that major policy directions on gambling may remain broadly consistent in the near term. The BGC’s statement reflects an industry eager to maintain dialogue with a minister it sees as having developed an understanding of the sector’s economic role.
The sector now turns its attention to how Healey, the new Chancellor, will approach the tax question. With the remote gaming duty increase already legislated and set to take effect next year, any adjustment would require fresh primary legislation or regulatory intervention, a process that could prove politically sensitive given public attitudes toward gambling and the Treasury’s need for revenue.
The £4 billion in annual tax the sector generates makes it a significant contributor to public finances, a point the BGC is likely to emphasise as it makes its case for a more balanced approach to taxation and regulation.
Based on reporting by Evening Standard.