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Local Government Association: Extra powers and lower machine stakes are needed to tackle betting shop clustering

New research which reveals for the first time that rates of problem gambling are higher in areas with clusters of betting shops shows why extra powers are needed to tackle the saturation of bookmakers across their communities, councils said recently.

Analysis of betting shop loyalty card holders shows that 28 per cent of those living within 400 metres of a cluster of betting shops are problem gamblers, compared with 22 per cent of those who don't live near them.

Those living in areas with a higher number of bookmakers were also more likely to be problem or at-risk gamblers compared with those in areas with fewer betting shops. However, the increased risk of being a problem or at-risk gambler was greater among those living near a cluster of betting shops. This suggests that clusters themselves may be associated with particular risks.

With figures showing 18 per cent of problem gamblers in the UK have debts of between £20,000 and £100,000, the Local Government Association (LGA), which represents more than 370 councils in England and Wales, is urging government to give councils new licensing powers to help tackle gambling harm.

The LGA says the findings show why cumulative impact tests need to be introduced to enable councils to reject applications for new betting shops where there are already existing clusters of shops. The Government is set to include a similar power for alcohol licensing in the Police and Crime Bill.

The LGA also wants the current £100 maximum stake on Fixed Odd Betting Terminals (FOBTs) in betting shops reduced to bring them in line with maximum stakes on other gaming machines allowed on high streets.

Last year Newham Council submitted the largest ever Sustainable Communities Act proposal to government, calling for stakes to be reduced to £2. Government is now supposed to be negotiating on this issue with the LGA and Newham but progress has been slow.

Ahead of another round of talks this week, the LGA and Newham are calling on government to take note of the new research and urgently launch the overdue triennial review of machine stakes.

Cllr Tony Page, the LGA's Licensing spokesman, said:

"Councils up and down the country are frustrated by the lack of powers they have to curb the number of betting shops on our high streets. The LGA and councils have long argued that betting shop clustering has a detrimental impact on local high streets, but this ground-breaking research now clearly shows the risks it has for individuals as well.

"With rates of problem gambling higher among those who live near clusters of bookmakers, it is essential that councils have the ability to stop further clusters of betting shops and that the issue of FOBT stakes is addressed.

"As well as leading to spiralling debt, problem gambling can impact on individuals and their families' physical, mental and emotional health and wellbeing as well as having a wider impact on society through crime and disorder.

"Councils are not anti-bookies but a new cumulative impact test - which the LGA has previously urged government to introduce - would give them the power to veto new shops in areas already saturated by betting shops.

"This new research indicates higher levels of problem and at-risk gamblers living near clusters of betting shops and emphasises the need for government to look at these issues again."

Sir Robin Wales, Mayor of Newham, said:

"Betting shops across the UK boast more than 34,000 FOBTs. These machines have much higher stakes compared with gaming machines available elsewhere on the high street.

"In November 2014 Newham Council submitted the largest ever Sustainable Communities Act proposal to cut the maximum FOBT stakes from £100 to £2. Government should speed up progress by having collaborative meetings with us and the LGA on proposals to tackle betting shop clustering.

"This new research highlights that it is now even more imperative that the Government launches the triennial review of machine stakes, which is overdue, and seriously takes into consideration this compelling research to protect local communities up and down the country."

Notes

  • The research was undertaken by Geofutures on behalf of the Responsible Gambling Trust. It found that 28 per cent of betting shop loyalty card holders who lived within a 400 metres of a cluster of betting shops were problem gamblers compared with 22 per cent of those who did not.
  • The LGA is backing a Private Members Bill tabled by the Rt Revd Dr Alan Smith, the Lord Bishop of St Albans. The Betting Licences (Category B2 Gaming Machines) Bill would boost councils' powers to tackle the prevalence of FOBTs on local high streets.
  • A ComRes survey found 72 per cent of MPs want tougher regulations of Fixed Odds Betting Terminals. 81 per cent of MPs believe FOBTs have a negative effect on vulnerable groups, 66 per cent of MPs say the machines have a negative effect on local communities and 62 per cent of MPs believe they have a negative effect on UK high streets.
  • Nearly 100 councils have backed a Sustainable Communities Act proposal submitted by Newham Council to government to reduce maximum stakes from £100 to £2. The Government rejected the proposal but is now due to be in discussions with the LGA and Newham after an appeal was lodged.
  • Unique visitors to gambling support website www.gamcare.org.uk more than doubled between 2013/14 and 2014/15, from 513,988 to 1,219,931. Calls to Gamcare's support service increased by 33 per cent between the same period, from 30,648 to 40,946.
  • Nearly a fifth (18 per cent) of callers to Gamcare's support service in 2014/15 disclosed debts of between £20,000 and £100,000.
  • Counselling sessions delivered by Gamcare's increased by 29 per cent between 2013/13 and 2014/15 from 34,789 to 44,955. 
  • There were 9,308 customer incidents related to gambling activity in betting shops requiring police assistance in 2013/14 in England - an average call out of 179 times per week – according to the Gambling Commission.

Contact

Alan Harris

020 7664 3147
alan.harris@local.gov.uk

 

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