The UK government has announced sweeping new powers for local authorities to block betting shops, slot arcades, and other businesses deemed undesirable on British high streets.
Prime Minister Andy Burnham has vowed to revoke the “aim to permit” rule embedded in the 2005 Gambling Act, which currently requires local licensing authorities to begin from the position that legal gambling should be permitted.
The rule has long been a target of gambling reform campaigners, who argue it prevents councils from limiting retail gambling based on the existing concentration of venues in an area.
Burnham said: “For many people, the high streets they grew up with have been hollowed out and become unrecognisable over decades of decline. The rise of vape shops, betting shops and rogue operators have replaced the shops, services, and community spaces that people are crying out for.”
He added: “We’re putting communities back in control and giving local people a real say over what opens on their high street. Local councils will be given the powers they need to rein in unwanted shops and bring town centres back to life.”
The government also plans to consult on converting Adult Gaming Centres, commonly referred to as AGCs, to sui generis planning permission, requiring individual approval for each new location.
Secretary of State for Housing, Communities and Local Government Angela Rayner added: “People know when their high street isn’t working for them. Whether it’s the vape shop or betting shops that’s opened with no say from locals, the shopfront that’s seen better days, or the sense that nobody’s in control.”
Rayner continued: “These problems have built up over years, but this government won’t leave councils and communities powerless to crackdown on everyday eyesores that blight our high streets.”
Industry sources who spoke to NEXT.io questioned how effective these policies would actually be at rejuvenating high streets, noting they are principally aimed at blocking new businesses rather than replacing them.
One source said: “Presumably, what they’re doing here is they’re saying we’re going to delete or amend the section, so it depends what you replace it with.”
The government argued in its press release that AGCs have spread rapidly across the country, though publicly available Gambling Commission data tells a different story, with the number of AGCs actually falling from 1,610 in 2015 to 1,415 in 2025.
Betting shops have experienced an even sharper decline over the same period, dropping by roughly a third from 8,995 locations to just 5,825.
Expert sources acknowledged the policy changes could make it significantly harder to open new retail gambling venues or to relocate existing ones, though the long-term impact on the broader sector may remain limited.
One potentially unforeseen consequence highlighted by sources is that the policy could increase the value of existing gambling licences and premises, giving operators a financial incentive to keep even loss-making shops open in anticipation of a sale.
The new rules would also complicate efforts by operators such as Betfred, which has been exploring the conversion of betting shops into AGCs as a strategic option.
The Social Market Foundation welcomed the announcement, with deputy research director Jamie Gollings saying: “This is a significant and welcome step for local democracy and thriving communities. Councils know their high streets better than anyone, yet the ‘aim to permit’ rule has meant they’ve had very little real say over what opens on them.”
Gollings added: “Our research made clear that these venues are proliferating in the poorest communities, are linked to anti-social behaviour, and often fail the basic tests of fairness and harm prevention set out in the Gambling Act itself.”
The retail gambling industry responded far less favourably, warning the combined effect of taxation and tighter regulation could force mass redundancies across the sector and push customers toward unregulated black markets.
One industry insider told NEXT.io: “Lisa Nandy talks about gambling bringing joy to millions, but here’s a Labour Government effectively shaming anyone who likes a bet or smokes a vape — they’ve been captured by campaigners.”
