UK MPs have piled pressure on the government to change the laws surrounding planning permission for adult gaming centres (AGC) and high street betting shops.
In a House of Commons debate led by Dawn Butler, MP for Brent East, politicians lambasted the “aim to permit” clause of the UK Gambling Act, which limits the power local councils have to refuse applications for new gambling establishments.
During her speech in the Commons, Butler took aim at the sector and accused operators of targeting the most vulnerable areas of Britain.
Feryal Clark, Labour MP for Enfield North, added: “Even if an area already has multiple betting shops or adult gaming centres, and even if constituents object and harm is well-documented, councils are still legally pushed towards approval.
“The “aim to permit” rule is an outdated rule that stacks the deck in favour of gambling companies, as it tells councils to say yes to new gambling premises even when they have serious concerns.
“We need to remove the automatic legal bias in favour of gambling operators and allow councils such as Enfield to make decisions based on evidence, community impact and local need, rather than a law that loads the dice against local communities.”
AGCs came in for particular scrutiny from Butler, who cited a £95,000 fine handed to Merkur Group related to social responsibility failings after staff members in its Stockport location failed to interact with a customer who gambled for over 16 hours across a period of less than two days.
Butler has long-campaigned for changes to the “Aim to Permit rule”, however, other notable names from local councils across the UK, including Greater Manchester Mayor Andy Burnham, have urged for “key reforms” to give councils more power to reject licence applications and consider local debt in planning decisions.
Retail remains on the rocks
Despite the assertions of the MPs, the actual number of betting venues continues to decline as retail faces the same economic challenges as other high-street-dependent industries, as well as the continued rise in popularity of online gaming.
In the case of AGCs, the actual number of venues decreased by 36 in the last financial year to 1,415 compared to 1,451 at the end of the previous financial year, according to UKGC figures. More widely, the overall number of retail premises decreased by 1.1% in the financial year.
While retail gambling was largely spared by the upcoming changes to the UK’s tax framework announced in Chancellor Rachel Reeves’ autumn budget, its interconnectedness to online operations means that venues still risk closing as operators seek to cut costs to mitigate the impact of changes.
The potential of job losses and venue closures risks further damaging the embattled high street, according to advocates for gambling’s presence, which includes members of Butler’s Labour Party.
“From independent retailers and cafés to pubs and social clubs, many of the places that give our town centres their character are under intense pressure. Rising costs, changing consumer habits and the lingering effects of the pandemic have made survival harder than ever,” said Mary Glindon, Labour MP for Newcastle upon Tyne East and Wallsend, in a statement released by the UK Betting and Gaming Council (BGC).
“Many of my colleagues in Parliament will never have set foot in a betting shop. Yet for millions of people across the country, these are enjoyable places of leisure and social interaction. Policy works best when it reflects that everyday reality, rather than relying on assumptions or outdated classifications.”
80:20 rule must remain
Alongside “Aim to Permit”, a further area for contention for AGCs is the continuing uncertainty surrounding changes to the “80/20 rule”, which mandates that no more than 20% of machines at AGCs can be category class B slots that allow stakes of up to £2 and jackpots of up to £500.
Before the general election in July 2024, the Conservative Government had considered adjusting the ratio to 50/50 or abandoning the rule altogether.
However, in April, the industry was left frustrated after Labour confirmed that it would be halting any planned changes as it acknowledged “concerns about the strength of protections for vulnerable people in the adult gaming sector”.
In his end-of-year review, Joseph Cullis, President for the industry body Bacta, described the reforms as “critical” for the industry
He said: “We will continue to press for progress on long-promised reforms, particularly the 80:20 machine ratio change. This reform is critical for sustainability, investment and for supporting the UK manufacturing and supply chain that depends on a healthy land-based sector.”
However, Butler was adamant that such liberalisation should be avoided, and also suggested that AGCs are exploiting loopholes by using iPads for gaming, which are classed as lower stake machines.
“That is how [AGCs] get away with having more B3 machines, which are the most addictive machines where you can put in £20 and lose it in a minute. That is why the rule should not be liberalised,” she told the Commons.