The gambling industry expressed strong discontent in response to Prime Minister Andy Burnham's recent remarks, which categorized betting shops alongside vape shops and disreputable operators in his assessment of the declining high streets in Britain.
Burnham's government is aiming to eliminate the "aim to permit" principle from the Gambling Act of 2005. This change would grant local authorities enhanced powers to deny applications for new gambling premises. Additionally, any new adult gaming centers will now require planning permission.
However, it was Burnham's choice of words that sparked the most backlash. He stated that betting and vape shops had taken the place of desired community services and shops, pitching the policy as a measure to curb "dodgy businesses."
From the perspective of the bookmakers, the narrative seems distorted, or even fabricated, compared to the actual situation. The number of betting shops in Britain has decreased to under 5,900, from nearly 9,000 in 2015, indicating a contraction in the retail sector over the past decade rather than unchecked growth.
JenningsBet CEO Greg Knight criticized the Prime Minister’s comparison, branding it an affront to employees and patrons alike. He posed a rhetorical question: “What sort of ‘dodgy’ business provides employment for 40,000 people, finances the entire British horseracing industry, and pays billions in taxes and rates?”
Knight explained that while JenningsBet managed to open four shops this year, it also had to close three, resulting in a net growth of just one outlet, mostly achieved through acquisitions. He warned that if councils are given increased discretion to refuse applications, new openings could nearly cease altogether, especially as applications are already dwindling. He expressed concern that politicians might be confusing betting shops with adult gaming centers, which are distinct types of businesses often lumped together in official communications.
The adult gaming center sector shares similar sentiments. Bacta communications director Alistair Gair noted that the number of such venues has dropped from 1,610 in 2015 to 1,502 last year. “This is a sector in decline, not one taking over Britain’s high streets,” Gair asserted.
Gair emphasized that adult gaming centers fill commercial spaces that might otherwise remain vacant, create jobs, and provide a supervised environment for low-stakes entertainment in regulated, alcohol-free settings. He cautioned that limiting these licensed premises could drive customers to unregulated alternatives, lacking the same safeguards.
Addressing the broader issue of high street decline, Christopher Snowdon from the Institute of Economic Affairs argued that Burnham has mischaracterized the situation. He contended that the presence of betting and gaming establishments is not displacing a vibrant retail scene but is rather a result of changing market dynamics, where these businesses have become more noticeable as many traditional retailers have vacated their spaces due to decreased demand.
“The notion that the high street can be revitalized by eliminating the few remaining businesses that are operational is misguided,” Snowdon wrote.
He highlighted that structural changes, particularly the rise of supermarkets and online shopping, have diminished the need for banks, bookshops, and other traditional retailers. The high street is likely evolving to comprise services that require in-person visits, like bars, cafes, and hairdressers, while vacant properties may increasingly be converted into housing.
Imposing restrictions on legitimate operations won’t reverse this evolution, and crafting new legislation to tackle issues in some vape shops and barbers may simply replace missed enforcement of existing regulations.
In defending the gaming industry, Rank CEO Richard Harris stated during the company’s year-end results call that Rank considers its venues to be “community assets,” providing gambling supervision and safe entertainment. He reiterated their commitment: “We try and look after our customers really, really well.”
On the other hand, some industry leaders believe there needs to be a more proactive approach. Patrick Jay, a former William Hill executive now serving as a consultant, claimed that the gambling industry has lacked effective leadership and has been outmaneuvered by its opponents who have shaped the prevailing public narrative.
“We have fundamentally misunderstood how to fight back,” Jay explained. He asserted that the landscape has changed, urging the industry to establish a social media response team to counteract misleading critiques and maintain a positive narrative.
Statistics alone cannot fully encapsulate the sentiments of those who frequent high streets. The industry must consistently demonstrate its local impact, not just when facing threats.
As the newly appointed minister responsible for gambling, Vicki Foxcroft will need to address these challenges. She steps into a role where the industry feels it has been misrepresented, and the Prime Minister has already set the tone with his chosen rhetoric, coupled with a policy announcement that masks intricate legislative issues ahead.
