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Friday 4 October 2013

Betting Shops Dragging High Streets Down

The LGiU had an interesting blog on the economics of betting shops.  This is one of the most frequent areas of complaint by residents about the quality of the High Street.  The proliferation of betting shops despite their unpopularity with the public at large is a constant source of frustration.

The reason that the companies want to multiply their outlets is that the most profitable part of the business is what used to be called one armed bandits. In the industry jargon these are called Fixed Odds Betting Terminals, and doesn't that name say it all.  The more you have of these the more profit you make, since they are one of the most addictive forms of gambling, and the industry targets people until they are totally drained of cash.  However, companies are limited to not more than four of these terminals per outlet, so the economics pushes more outlets.

It is hard for local authorities to resist this spread, as the various legal challenges to Brent decisions have shown from time to time.  We can take enforcement action against a single shop that sub divides into two to form two outlets, and therefore eight machines.  A second problem is that a property can have permission for "financial services" like a bank, but then does not need to change use class to become a betting shop.  We had a separate issue some years ago, when the former McDonalds in Harlesden High Street became a betting shop.  As it was moving down the use class order, it na gain did not have to apply for planning permission, and the Council was powerless to stop the development.

This is all deeply damaging socially, since gambling is not only bad for the direct victims, but the extra demand pushes up the prices of retail space for the other shops.  The increasing reliance on the machines means that even the numbers of jobs generated by bthe betting shops is reducing.


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