Experts are cautioning that the UK government's recent move to eliminate the ‘aim to permit’ licensing rule for gambling establishments may necessitate new legislation to modify the 2005 Gambling Act. This could open the door to further reforms in the gambling industry.
The ‘aim to permit’ rule currently directs local councils to approve gambling venue licenses as long as they comply with Gambling Commission policy and guidelines. On August 11, Prime Minister Andy Burnham announced this change as part of an effort to grant more authority to councils over their high streets. As part of this initiative, planning permission will also be required for Adult Gaming Centres, which offer around-the-clock access to gaming machines.
Burnham's announcement, which grouped vape shops with betting shops under the label of “dodgy businesses,” has already drawn criticism from industry leaders.
The repeal of the ‘aim to permit’ rule is not expected to be a simple task, given its integral role in the 2005 Gambling Act. Andrew Lyman, Gibraltar’s Gambling Commissioner and a former director at the UK Gambling Commission, noted, “A fundamental change to an underlying principle of the act (one might say the fundamental principle) would need to be changed by primary legislation.” He suggests potential loopholes through planning changes, but acknowledges this could lead to legal issues and judicial review.
Louisa Clark, an independent licensing consultant and former compliance manager for the Gambling Commission, agrees that amending the Gambling Act through primary legislation is essential. “Aim to permit is written directly into the Gambling Act itself. It can’t be overturned by making a ministerial announcement, changing local policy or Gambling Commission guidance,” she stated. Clark remarked that details surrounding the necessary amendments—whether through a new act or specific bills—will emerge in an upcoming consultation.
The gambling industry's future could be precarious if the government decides to revisit the 2005 Gambling Act. Following the announcement, the Association of Directors of Public Health (ADPH) advocated for a new Gambling Act based on public health principles, calling for measures including a ban on gambling advertising and sponsorship.
Lyman pointed out that the proposed legislative changes could lead to more pervasive debates surrounding the government’s stance on gambling. He warned that any modification to primary legislation might trigger a broader discussion about the future of gambling regulation. He cautioned that a six-week consultation could extend into a more extended process, particularly regarding the role of the Gambling Commission.
While the Ministry of Housing, Communities & Local Government will spearhead a fast-tracked consultation, aiming for a January 2027 implementation, industry experts consider this timeline optimistic, especially if significant legislative changes are required. The current Gambling Act took years to develop and implement, suggesting any modifications could take considerable time as priorities evolve.
Experts express concerns that the announcement was made without thorough planning for its practical implications. Clark noted, “There’s going to be a consultation and that’s going to be the opportunity where we all talk about the implications of this. I think it’s more a political ambition at this point in time.” She remarked that while there may be opportunities for campaigners to push for broader reforms, it’s premature to assume the necessity for a completely new act.
“There’s no need to assume a new act is the inevitable consequence of this situation. We need to be cautious about predicting the scope until we’ve seen the consultation and a draft bill,” Clark added.
Amid gathering challenges for the UK’s retail sector and potential new restrictions, industry executives are rightfully concerned. A particularly alarming prospect, raised by reform advocates, is that existing premise licenses may also come under scrutiny.
Lyman firmly opposes this notion, stating, “The idea that powers should be given to licensing authorities to revoke existing licenses for no good reason other than a moral and social standpoint on gambling is tantamount to anti-gambling zealotry. It presents issues for the rule of law and demonstrates exactly why local council officials or members should not be given such powers.
