Removing ‘Aim to Permit’ from the Gambling Act 2005 Would Mark a Fundamental Licensing Shift for UK Betting Shops

The UK government is considering removal of the ‘aim to permit’ principle from the Gambling Act 2005. This would constitute a fundamental change to the licensing framework for betting shops, according to an interview published by G3 Newswire.

The principle was introduced to move away from the earlier demand test that had operated under the Betting, Gaming and Lotteries Act 1963 and the 1968 casino legislation. It has never delivered automatic permission. Applicants must still satisfy the licensing objectives, meet Gambling Commission standards, and comply with local authority gambling policy. Local authorities already refuse gambling premises applications despite the existing provision.

Risks from Timing and Expanded Local Discretion

The timing of the proposed removal raises particular difficulties. Local gambling impact assessments have only just been introduced to let councils examine proximity to schools, concentrations of betting shops, and evidence of problem gambling. These tools have not yet had an opportunity to operate. Removing ‘aim to permit’ before seeing whether this new mechanism works would be premature.

Removal at this stage could make it considerably harder for operators to obtain new premises licences. Licensing committees might interpret the change as a government signal to restrict the market. Greater discretion for the hundreds of local authorities in England and Wales would likely increase inconsistency between neighbouring boroughs. Applications could become more expensive, requiring expert evidence on crime, problem gambling, and related issues. Planning reforms would add another layer of bureaucracy for betting shops and adult gaming centres alike.

Existing licences would remain unaffected and continue under current review mechanisms. However, the shift risks allowing general resident opposition to influence decisions beyond the evidence that impact assessments are meant to provide. One past Clapham application saw around 2,000 residents sign a petition alleging crime and prostitution; the shop opened and operated for years without those predicted harms materialising. Elements of the old demand test could return through the back door when assessments focus on premises concentrations.

Proportionate Response to Demonstrated Harm

The proposal reverses a central liberalising element of the 2005 Act and swings the pendulum back toward restriction. Councils would face their own costs to produce and update impact assessments, conduct consultations, and audit local areas. The interviewee questioned whether the scale and cost of this response match the evidenced problem the government seeks to address.

Operators facing more refusals are likely to consider appeals, though courts remain reluctant to overturn decisions by elected local representatives. The sector will adapt, as it has before. Yet the core issue is whether broad changes to a principle governing an entire lawful, heavily regulated industry represent a proportionate step or an overreach that should await clearer evidence from the new impact assessment regime.

Reporting: G3 Newswire

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