The UK government is set to implement a series of reforms aimed at granting local councils increased authority over the types of businesses that can operate on the high streets of Britain. This initiative focuses particularly on betting shops and adult gaming centers (AGCs), with the intention of curbing illegal operations and revitalizing town centers. Additionally, vape retailers will also be impacted by these measures.
According to recent reports from the BBC, the government plans to eliminate the existing 'aim to permit' rule for betting shops and 24-hour slot machine arcades. Currently, this rule creates a presumption favoring the approval of such venues, but the upcoming reforms will necessitate explicit planning permission for AGCs across England that provide 24-hour access to gambling machines. Furthermore, any new retail establishments in England aiming to sell e-cigarettes or vape products will also need to secure planning consent before opening their doors.
Prime Minister Andy Burnham addressed this situation on his Facebook page, referring to betting shops as “dodgy businesses.” He emphasized the government's commitment to empowering local communities by providing them and their councils with greater control over new openings, along with firmer tools to address businesses that may harm community interests. Burnham expressed frustration at how Westminster has overlooked the decline of local high streets, stating, “That ends now.”
An official announcement outlining these changes is expected later today. Responses to the proposed reforms have varied among industry groups and local government officials, with many cautioning that changes in planning regulations alone may not reverse the ongoing decline of town centers.
The Betting and Gaming Council (BGC) has voiced support for enhancing local authority input regarding betting shops. A spokesperson from the BGC remarked, “We support tough action against criminal operators and agree local people should have a proper say over their high streets. But the suggestion that betting shops are spreading unchecked is simply wrong.” They highlighted that the number of betting shops has decreased by over a third since 2019, resulting in nearly 3,000 closures and the loss of over 15,000 jobs. The BGC maintains that licensed betting shops, which still employ around 37,500 people and attract customers to neighboring businesses, should not be conflated with illegal operations.
In a separate response, the Local Government Association characterized the government's strategy as a “positive step” in empowering councils to manage problematic businesses. They believe that the additional powers will aid in revitalizing high streets and addressing issues related to betting and vaping shops, ultimately contributing to the reoccupation of vacant premises.
Compliance consultant Kirsty Caldwell from Betsmart criticized the government’s comparison between regulated betting shops and unregulated vape shops, emphasizing the industry's substantial financial contributions to regulatory frameworks and consumer safety. "How can a sector, which generates circa £4 billion in tax revenue and well over 100,000 jobs nationwide, be classified alongside industries which have no regulatory control whatsoever, and have been proven time and again to be fronts for laundering illicit funds?" Caldwell contended on her LinkedIn page.
These proposed measures emerge in light of a challenging period for the retail betting industry, with several prominent UK operators reducing their number of shops. In August, Betfred announced plans to close 132 of its betting shops in the UK, resulting in more than 600 job losses. CEO Jo Whittaker explained that these closures were necessitated by rising costs due to the UK’s Remote Gambling Duty (RGD) increase, along with economic uncertainties and inflationary pressures. Similarly, Evoke closed 200 William Hill stores in April for similar financial reasons, while Ladbrokes scaled back its presence in Ireland amid unsuccessful sale discussions.
