Labour MP Dawn Butler has called on the government to push for councils to put a stop to the “rapid spread” of betting shops, but the governing party’s members’ views on gambling do not always line up. 

Butler’s Brent East constituency, she noted, already has more than 100 gambling premises, which she said has pushed her to campaign to call for more preventative measures against companies targeting the high streets.

A familiar topic has arisen, the question of whether bookmakers target more vulnerable communities, as Butler notes: “Why are there barely any betting shops in Canary Wharf but rows of them in places like Bethnal Green?”

“It’s not by accident”

Butler argued that Aim to Permit makes it easy for betting companies to target less wealthy areas, stating that “It’s time to end it.”

The Aim to Permit clause currently limits the power of local councils to refuse applications for new gambling establishments. Some politicians, both at the local and national level, have been calling for local governments to gain greater powers to prevent betting businesses from setting up in their areas.

An element to consider here is rent and expenses, with retail betting firms often setting up shop in areas with the lowest rental costs. This does mean, however, that more disadvantaged areas often see the most betting shops, something reform campaigners and other public figures believe is predatory.

In Butler’s case, the MP highlighted the widespread social harm caused by gambling, describing it as a public health crisis, and urged for changes to these planning laws that enable gambling operators to target ‘vulnerable’ and ‘disadvantaged communities’.

A clash of opinion

In contrast, fellow Labour MP Richard Baker has recently underlined the importance of the UK’s regulated betting industry, describing it as a key contributor to local economies, public services and grassroots sport.

Speaking about his constituency of Glenrothes and Mid Fife in an op-ed for Politics Home, Baker highlighted the role betting shops play in sustaining high street footfall and creating jobs. 

He said that modern betting shops support towns that have seen years of economic pressure, asserting: “Every job matters.”

Baker also emphasised the sector’s broader economic impact, pointing to its £6.8bn annual contribution to the UK economy, £4bn in tax revenues, and 109,000 jobs across the country.

He noted the deep ties between betting and sport, with regulated operators investing at every level. Both of these arguments are long-running, having been made by the Betting and Gaming Council (BGC) on countless occasions over recent years amid an extensive debate on UK betting regulation.

Meanwhile, whilst acknowledging the harm caused by unregulated gambling, Baker warned against over-regulation that could drive consumers toward the black market.

He also added: “As a Labour MP, I want a tax regime that is fair, progressive and economically sound – one that protects the public, supports jobs, and rewards responsibility. More than ever, we need businesses that are investing and contributing.”

Is it really a problem?

As Butler said, Brent East already has more than 100 gambling premises, but could this be an anomaly?

The UK’s retail betting sector has undergone significant changes over the past decade, driven by regulatory updates, shifting consumer habits, the growth of online gambling and COVID-19. 

From a peak of around 9,100 shops in 2013, the number of UK betting shops had fallen to approximately 5,995 by March 2023 – a 34% decline.

Much of this downturn followed the government’s decision in 2019 to reduce maximum stakes on fixed-odds betting terminals (FOBTs) from £100 to £2. 

Major operators responded swiftly such as William Hill which closed around 700 shops, Ladbrokes/Coral planned up to 900 closures, and Betfred projected 500 shop closures – collectively threatening over 10,000 jobs across the industry.

In 2020, the pandemic meant the sector saw additional closures, with William Hill confirming a further 119 shops would not reopen due to permanent declines in footfall. That year also saw Betfred close approximately 59 shops.

Despite the contraction, the sector remains a key employer in many local areas. However, its share of total sports betting revenue continues to shrink, with the online channel now dominating the market.

Tax reform looms

As political debate around gambling intensifies, the industry now faces fresh uncertainty over potential tax changes. 

The Labour Treasury’s consultation on betting taxation closed on 21 July, and while no official recommendations have been published, reports suggest that significant reforms are pending.

Among the proposals, figures like Labour MP Alex Ballinger are pushing for the introduction of a single unified gambling tax, combining Remote Gaming Duty, General Betting Duty and Pool Betting Duty into one rate. 

Supporters argue this would simplify the system and provide clarity for operators, while critics warn it could increase costs, threaten jobs and impact vital funding for sport and safer gambling initiatives.

With Chancellor Rachel Reeves under pressure to boost public finances, the industry is bracing for a move that could shape the future of the betting sector for years to come.

Fresh inquiries

Meanwhile, last month the All-Party Parliamentary Group (APPG) on Gambling Reform has launched a new inquiry, led by Conservative MP Sir Iain Duncan Smith, to examine the future of gambling regulation in the country.

The inquiry aims to address gaps in the Government’s Gambling Act White Paper, focusing on stronger online protections, stricter advertising rules, and increased local authority powers.

Smith, a critic of current betting enforcement and ads, has emphasised the need for a regulatory framework fit for the digital age – something the Gambling Act review White Paper aimed to achieve, but many reform advocates feel did not.