UK Councils are Losing Battle With Adult Gaming Centres, as Betting Venues Fill Vacant High Streets

Adult Gaming Centres (AGCs) are spreading in the UK, despite local opposition, as betting venues increasingly fill vacant high streets across the country.

In the UK, there are around 1,400 AGCs, which offer 24/7 gambling on slots and other gaming machines. The UK Gambling Commission (UKGC) reported AGCs generated £682.9 million ($919.86 million) last year, an increase of 9.6% from the previous 12 months.

The number of locations has risen by 7% since 2022, despite several councils voicing opposition to existing venues and rejecting applications to open new locations. While councils are rejecting applications, they frequently lose cases on appeal against operators.

Appeal Process Favors AGCs

The planning inspectorate, an independent body that rules on appeals when councils refuse planning permission for a venue, overturned 43 of 62 cases between 2021 and 2024.

A recent application to open a 24-hour venue in Ealing attracted strong local opposition last year. During the consultation period, nearly 2,000 submissions were received, with 1,971 objections and only five supporting the proposal from Pure Gaming.

The council rejected the application, but the operator has since appealed and, based on the results of previous appeals, may gain approval.

Around 40 local councils joined together last year to call for changes to the UK’s gambling laws, which would enable them to have greater control over the number of AGCs.

AGCs Accused of Flaunting Gambling Regulations

Pressure is growing on the government to intervene as reports have surfaced about AGCs failing to comply with regulations to protect problem gamblers.

A BBC investigation revealed venues were not complying with self-exclusion protocols and allowing individuals who had opted in to continue gambling. The UKGC stated that it launched an investigation following the report, but no disciplinary action has been taken.

In January last year, the regulator fined Merkur Slots, one of the leading AGC operators, for failing to meet social responsibility standards.

Greg Fell, president of the Association of Directors of Public Health, said the game centres “concentrate in the most deprived parts of all of our towns and cities. Very few people come out of gambling experiences as winners. Most lose significant amounts of money. Some come to physical, social, or mental harm.”

Fell supports the move from local councils to take full control of how many AGCs are allowed on the high streets. However, as other retail businesses decline, the centres offer stable rent for many areas.

AGCs Provide Much-Needed Revenue

A government spokesperson said, “We’ve already committed to giving councils unprecedented new powers to limit gambling shops on their high street, and we’ll do everything we can to halt the decline that people are seeing in their towns and high streets.”

High street shop closures decreased last year, but there were still 12,804 over the year, averaging 35 per day. AGCs can fill those locations and also contribute to the local economy’s tax revenue.

A spokesperson for Bacta, the UK’s leading trade association representing AGCs, told the Observer, “Adult gaming centres operate under one of the most tightly regulated frameworks in UK gambling.

“New [centres] cannot open without council oversight, a full licensing process and a detailed local risk assessment, and councils already have powers to refuse applications where the licensing objectives would be undermined.”

In its recent budget, the UK chose not to raise taxes on retail gambling, in a bid to protect the high street. Instead, Chancellor Rachel Reeves raised the tax on online slots and casinos.

Many gambling companies have announced plans to close betting shops in response to the higher taxes, which could further pave the way for AGCs to emerge. Ministers stated that any changes to regulations that would grant local councils more authority to decide whether AGCs can open will take time to implement.