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| Councils try to block spread of betting shops in poor areas | Councils try to block spread of betting shops in poor areas |
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| Local authorities are attempting to block the spread of betting shops in poorer areas, arguing that bookmakers have deliberately targeted deprived regions and blighted high streets with premises used primarily for gaming rather than gambling. | Local authorities are attempting to block the spread of betting shops in poorer areas, arguing that bookmakers have deliberately targeted deprived regions and blighted high streets with premises used primarily for gaming rather than gambling. |
| In a test case, Newham council in east London dismissed an application for a new Paddy Power betting shop on the grounds that it would make more money from gaming machines than from traditional betting on horses and sports results. | In a test case, Newham council in east London dismissed an application for a new Paddy Power betting shop on the grounds that it would make more money from gaming machines than from traditional betting on horses and sports results. |
| The local authority said this meant the application did not meet the licensing conditions of 2005 Gambling Act – the first time such a power has been exercised. | The local authority said this meant the application did not meet the licensing conditions of 2005 Gambling Act – the first time such a power has been exercised. |
| Newham, one of the country's poorest areas, has more than 80 betting shops – six per square mile – with five new shops opening each year. Paddy Power has a dozen in the borough and is applying to open three more this year. | Newham, one of the country's poorest areas, has more than 80 betting shops – six per square mile – with five new shops opening each year. Paddy Power has a dozen in the borough and is applying to open three more this year. |
| Councillor Ian Corbett, who chairs the council's licensing subcommittee, said one road had 18 betting shops. "We need to encourage diversity on the high street. It's just one betting shop after another," he said. | Councillor Ian Corbett, who chairs the council's licensing subcommittee, said one road had 18 betting shops. "We need to encourage diversity on the high street. It's just one betting shop after another," he said. |
| "Betting shops we think generate 80% of their income from fixed-odds betting terminals [FOBTs]. They are not making money from over-the-counter bets any more. I am not against gambling, but this clustering in our borough drives crime. It's a crime generator." | "Betting shops we think generate 80% of their income from fixed-odds betting terminals [FOBTs]. They are not making money from over-the-counter bets any more. I am not against gambling, but this clustering in our borough drives crime. It's a crime generator." |
| Paddy Power said it disagreed with the decision and would appeal, with a hearing set for June in the local magistrates court. Industry experts expect magistrates will consider the matter to be of such seriousness that it will have to go to the high court, potentially halting all applications for new betting shops until it is resolved. | Paddy Power said it disagreed with the decision and would appeal, with a hearing set for June in the local magistrates court. Industry experts expect magistrates will consider the matter to be of such seriousness that it will have to go to the high court, potentially halting all applications for new betting shops until it is resolved. |
| The issue is a vital one for bookies: FOBTs yield £1.4bn a year and machine income generates half of betting shop profits, up from 40% in 2008. | The issue is a vital one for bookies: FOBTs yield £1.4bn a year and machine income generates half of betting shop profits, up from 40% in 2008. |
| However, local authorities say there is a price to pay in terms of crime and addiction, and have warned of an over-concentration on poor high streets. | However, local authorities say there is a price to pay in terms of crime and addiction, and have warned of an over-concentration on poor high streets. |
| In Liverpool, environmental health officers were surprised to find 41 shops open in the deprived borough of Knowsley, with at least 137 FOBT machines. | In Liverpool, environmental health officers were surprised to find 41 shops open in the deprived borough of Knowsley, with at least 137 FOBT machines. |
| The council has banned the opening of new betting shops and instigated a review of the "potential economic and social impact of fixed-odds terminals within betting shops on residents within the borough given the potential for individuals to lose significant sums of money in a short period of time". | The council has banned the opening of new betting shops and instigated a review of the "potential economic and social impact of fixed-odds terminals within betting shops on residents within the borough given the potential for individuals to lose significant sums of money in a short period of time". |
| In the Medway area of Kent, Tory and Labour councillors have joined forces over the issue and called for a meeting with the Association of British Bookmakers (ABB). Medway council says FOBT machines are a particular problem as they offer quickfire casino games allowing players to stake up to £100 on a 20-second spin of the wheel. | In the Medway area of Kent, Tory and Labour councillors have joined forces over the issue and called for a meeting with the Association of British Bookmakers (ABB). Medway council says FOBT machines are a particular problem as they offer quickfire casino games allowing players to stake up to £100 on a 20-second spin of the wheel. |
| Vince Maple, Labour leader on the council, said the ABB had responded "very aggressively" at first. "We are having people contact us losing thousands of pounds and lives being ruined because of gambling debt. When I and the Tory leader of the council, Mike O'Brien, wrote to the industry about our concerns, the ABB said we were making false and offensive suggestions. I don't think that is very constructive." | Vince Maple, Labour leader on the council, said the ABB had responded "very aggressively" at first. "We are having people contact us losing thousands of pounds and lives being ruined because of gambling debt. When I and the Tory leader of the council, Mike O'Brien, wrote to the industry about our concerns, the ABB said we were making false and offensive suggestions. I don't think that is very constructive." |
| The government is consulting over whether to lower the maximum stake on FOBTs from £100 to £2, saying it "cannot ignore the persistent concerns from many stakeholders and local communities about these types of gaming machines and their potential impact on problem gambling". | The government is consulting over whether to lower the maximum stake on FOBTs from £100 to £2, saying it "cannot ignore the persistent concerns from many stakeholders and local communities about these types of gaming machines and their potential impact on problem gambling". |
| The ABB denied there was any problem with the machines and said it had engaged constructively with councils, including Medway. "Gaming machines are a popular product enjoyed by millions of people across the country and machines have been located in betting shops for 10 years without any discernible increase in problem gambling levels," it said. | The ABB denied there was any problem with the machines and said it had engaged constructively with councils, including Medway. "Gaming machines are a popular product enjoyed by millions of people across the country and machines have been located in betting shops for 10 years without any discernible increase in problem gambling levels," it said. |
| It said Newham's decision was based on a "misconception that there must be more profit or turnover from betting than machines to satisfy primary gambling activity. That is simply not the case." | It said Newham's decision was based on a "misconception that there must be more profit or turnover from betting than machines to satisfy primary gambling activity. That is simply not the case." |
| • This article was amended on 2 March 2013 to remove a reference to an ABB meeting in London to discuss the controversy surrounding the machines. The ABB has denied it is holding such a meeting. | • This article was amended on 2 March 2013 to remove a reference to an ABB meeting in London to discuss the controversy surrounding the machines. The ABB has denied it is holding such a meeting. |
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