Prime Minister Andy Burnham's recent remarks placing betting shops alongside vape shops and dubious operators have sparked significant backlash from the gambling industry. Burnham’s administration plans to eliminate the “aim to permit” principle from the Gambling Act of 2005, which would empower local authorities to deny applications for gambling venues. Starting now, new adult gaming centers (AGCs) will also require planning permission.
The tone of Burnham's announcement was particularly contentious, as he asserted that betting and vape shops have taken over the spaces that communities desire, describing his policy as a measure to control “dodgy businesses.”
Bookmakers contend that this narrative does not reflect reality. Currently, the UK has fewer than 5,900 betting establishments, a decline from nearly 9,000 in 2015. The retail sector, they argue, has been on a downward trajectory for over a decade rather than proliferating unchecked.
Greg Knight, chief executive of JenningsBet, expressed his discontent with Burnham's characterization, labeling 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’s company reports a mixed growth in 2023, with four new shops opened but three closed, resulting in a net gain of just one location. Most of its growth has been through acquisitions. He cautioned that increased scrutiny from councils might stifle future openings, as current applications have already slowed significantly. He also noted that politicians might not appreciate the differences between betting shops and AGCs, which serve distinct purposes.
Representatives from the AGC sector have echoed these concerns. Alistair Gair, communications director at Bacta, pointed out a drop from 1,610 AGCs in 2015 to 1,502 in the previous year. “This is a sector in decline, not one taking over Britain’s high streets,” he stated.
Gair further emphasized that AGCs occupy commercial spaces that could otherwise remain vacant, create jobs, and ensure safe, regulated, low-stakes entertainment. He warned that tightening restrictions on licensed venues may inadvertently drive customers toward illegal alternatives, where regulatory protections are nonexistent.
Some argue that closing or restricting businesses to rejuvenate high streets may not fill them with desired establishments like banks or butchers. Local councils are limited to businesses that can afford to operate in those areas.
Christopher Snowdon of the Institute of Economic Affairs suggested that Burnham has mistakenly identified a symptom of high-street decline as its cause. He noted that betting and gaming establishments have not usurped a booming retail sector; instead, they have become more prominent because decreasing demand and property rents have allowed them to fill vacancies left by traditional shops.
He contended that eliminating these businesses won’t restore vitality to high streets. The ongoing shift towards online shopping and supermarkets has permanently diminished the demand for traditional retail outlets like banks and bookstores, leading to a high street focused increasingly on personal services.
Richard Harris, CEO of Rank, defended the role of betting establishments within communities. During a recent company earnings call, he described Rank’s venues as “community assets,” emphasizing their commitment to providing safe and supervised entertainment. “We try and look after our customers really, really well,” Harris stated.
Industry insiders see a need for more proactive communication. Patrick Jay, a former William Hill executive, suggested that the gambling sector has fallen behind in shaping public discourse. “What we have fundamentally misunderstood is how to fight back,” he explained. He believes a response team would help counter misinformation from opponents more effectively.
Data alone may not fully capture the sentiments of high street visitors, but the gambling sector must continuously demonstrate its community value rather than only when under threat. Vicki Foxcroft, the newly appointed minister in charge of gambling, now faces the complexities of an industry that feels marginalized, a Prime Minister already set in his stance, and a policy that oversimplifies intricate legislative matters.
Few would choose to tackle the challenges that lie ahead, which calls to mind the adage about a traveler in Ireland who, when seeking directions, is advised, "If I were you, I wouldn’t start from here."
