Report Urges Tighter Licensing for Adult Gaming Centers in UK’s Poorest Neighborhoods

Key Moments:

  • The Social Market Foundation (SMF) has reported that approximately one-third of all Adult Gaming Centers (AGCs) are situated in the UK’s most economically disadvantaged 10% of neighborhoods.
  • The number of AGCs nationwide increased by 7% between 2022 and 2024, with significant clustering in deprived areas.
  • The SMF has outlined six policy recommendations aimed at strengthening local regulation, including removing the “aim to permit” rule and increasing council powers.

Concerns Over AGC Distribution in Deprived Communities

A recent report by the Social Market Foundation (SMF) has brought attention to the high concentration of Adult Gaming Centers (AGCs) in the UK’s most economically disadvantaged neighborhoods. The study reveals that roughly one in three AGCs are located within the poorest 10% of areas, and uses the borough of Brent in North London as a central example. Brent has experienced a dramatic sevenfold rise in the costs associated with gambling harm since 2012, highlighting the impact of AGCs in already struggling communities.

Regulatory Challenges and Community Impact

MP Ms Butler expressed concern about these findings, stating that current regulations permit an excessive number of AGCs to operate in deprived areas, often in opposition to local residents’ wishes. Dr. James Noyes, senior fellow at the SMF and report co-author, emphasized that AGCs “risk encouraging gambling amongst children and young people” and may “potentially encourage crime.” He further noted that local councils are “essentially powerless” to stop new premises from opening under current licensing rules.

The report details a 7% rise in AGCs across the nation from 2022 to 2024, with the majority of new sites emerging in disadvantaged neighborhoods. The mandatory “aim to permit” rule, which requires councils to approve most license applications, was highlighted as a significant barrier to effective regulation.

Proposed Policy Solutions

In the report, Ms Butler wrote:

“Scrapping the Aim to Permit rule, among other measures, would ensure local communities are empowered to make a choice on the role that gambling plays in the make-up of their High Streets, and protect some of the most vulnerable in society from exploitation and harm.”

The SMF’s policy proposals include expanding council authority, involving public health directors in local decision-making, raising licensing fees, and doing away with the “aim to permit” rule. Brent Council’s Deputy Leader, Cllr Mili Patel, stated that the council has called for “urgent reforms to put pride back into our ailing high streets” and restore greater local control.

AGC Presence in Deprived Areas: Data Snapshot

Key MetricDetail
AGCs located in poorest 10% of neighborhoods~33%
Among UK areas used as a case studyBrent (North London)
Change in AGC-related harm costs in Brent (since 2012)Sevenfold increase
National AGC increase (2022-2024)7%
  • Author

Daniel Williams

Daniel Williams has started his writing career as a freelance author at a local paper media. After working there for a couple of years and writing on various topics, he found his interest for the gambling industry.
Daniel Williams
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