UK Government Plans to Scrap ‘Aim to Permit’ Gambling Licensing Rule

In its 11 August announcement, the government said the current rule limits councils’ ability to reject applications for new betting shops and adult gaming centres, including venues offering round-the-clock access to gaming machines.

Prime Minister Andy Burnham said the government was:

putting communities back in control and giving local people a real say over what opens on their high street.

However, the announcement represents an intention to change the law rather than an immediate repeal. The existing licensing framework remains in force while the government consults on the proposals and prepares the necessary legislation.

Section 153 of the Gambling Act 2005 requires licensing authorities to “aim to permit” the use of premises for gambling when an application complies with Gambling Commission guidance, the authority’s licensing policy and the Act’s three licensing objectives.

Those objectives are preventing gambling from contributing to crime or disorder, ensuring gambling is conducted fairly and openly, and protecting children and vulnerable people from harm.

The rule does not mean councils must approve every application. Authorities can refuse licences or impose conditions where there is evidence that a proposal conflicts with the licensing objectives or local policy.

Nevertheless, the Gambling Commission’s guidance says authorities should generally seek to regulate gambling’s impact rather than begin from a position of preventing premises from opening.

Councils are also prohibited from rejecting an application simply because they believe there is insufficient local demand. Moral opposition to gambling is not, by itself, a valid ground for refusal.

Removing the statutory presumption could therefore materially change how applications are assessed, particularly in areas where residents and councils are concerned about the clustering of betting shops or gaming centres.

The repeal would sit alongside two further changes affecting land-based operators. The segment remains commercially significant, with betting shops, bingo halls, casinos and arcades generating a combined £1.2bn in the second quarter of 2025.

The government intends to require adult gaming centres to obtain planning permission, closing a route that currently allows some venues to open under the same planning classification as ordinary shops. The government expects those planning proposals to take effect at the beginning of 2027.

A separate reform will introduce Gambling Impact Assessments, giving licensing authorities a clearer mechanism for identifying areas where additional gambling premises could create a cumulative risk to the licensing objectives.

The legislation enabling those assessments has already been approved but is not yet in force. According to a House of Commons Library briefing, the government expects the assessments to become available by the end of 2026 once supporting guidance has been completed.

Even then, councils will not receive an unrestricted veto. Gambling Impact Assessments must be evidence-based, and individual applications will still need to be considered on their merits.

The Betting and Gaming Council has challenged the suggestion that betting shops are spreading unchecked.

A BGC spokesperson told The Sun that licensed betting shops should not be grouped together with rogue or criminal businesses. The council said betting-shop numbers had fallen by more than a third since 2019, with approximately 3,000 premises closing and more than 15,000 jobs lost.

Its response reflects the BGC’s wider call for balanced regulation. The trade body has also warned that UK black-market betting has grown substantially since 2019, arguing that overly restrictive policies could push consumers towards unlicensed operators.
The Social Market Foundation, which previously recommended removing the rule, welcomed the announcement. Deputy research director Jamie Gollings said:

Councils know their high streets better than anyone.

For retail gambling operators, the eventual commercial effect will depend on the wording of the legislation and how individual councils use their expanded discretion. The proposal also forms part of a broader policy debate over the economic impact of UK gambling reforms.

The reforms appear principally directed at future applications rather than existing licensed venues. However, operators planning new locations may face greater variation between local authority areas, more demanding evidence requirements and closer scrutiny of local concentration and community impact.

Until the consultation and legislative process is complete, “aim to permit” remains part of the law. The government’s announcement nevertheless signals a significant shift: local opposition and cumulative high-street impact could soon carry considerably more weight in gambling-premises decisions.