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Newham council's decision to block betting shop goes before judge Newham council's decision to block betting shop goes before judge
(4 months later)
The proliferation of betting shops in poorer areas has led to increasing crime and underage gambling, fuelled by high-speed, high stakes gambling machines, a court will hear on Monday.The proliferation of betting shops in poorer areas has led to increasing crime and underage gambling, fuelled by high-speed, high stakes gambling machines, a court will hear on Monday.
In a test case, Newham council, in east London, will seek to defend its decision to dismiss an application for a new Paddy Power betting shop on the grounds that it would make more money from gaming machines than from traditional betting on horses and sports results. The local authority said that by using the premises primarily for gaming rather than gambling, the licensing conditions of the 2005 Gambling Act would not be met – the first time such a power has been exercised.In a test case, Newham council, in east London, will seek to defend its decision to dismiss an application for a new Paddy Power betting shop on the grounds that it would make more money from gaming machines than from traditional betting on horses and sports results. The local authority said that by using the premises primarily for gaming rather than gambling, the licensing conditions of the 2005 Gambling Act would not be met – the first time such a power has been exercised.
The hearing, at Thames magistrates court, is being heard before a judge and the case is so complex that it is scheduled to last a week, with former Treasury minister and Labour MP for East Ham Stephen Timms due to give evidence.The hearing, at Thames magistrates court, is being heard before a judge and the case is so complex that it is scheduled to last a week, with former Treasury minister and Labour MP for East Ham Stephen Timms due to give evidence.
Using CCTV footage and extensive mystery shopping, the council said it had found evidence of violent robberies in bookies and antisocial behaviour outside the premises. The borough is also reviewing a licence held by William Hill after a test purchase allegedly revealed under-age gambling at a shop in the borough, it said.Using CCTV footage and extensive mystery shopping, the council said it had found evidence of violent robberies in bookies and antisocial behaviour outside the premises. The borough is also reviewing a licence held by William Hill after a test purchase allegedly revealed under-age gambling at a shop in the borough, it said.
When contacted by the Guardian, both Paddy Power and William Hill declined to comment ahead of the hearing.When contacted by the Guardian, both Paddy Power and William Hill declined to comment ahead of the hearing.
Newham, one of the country's poorest areas, has more than 80 betting shops – six per square mile – with five new shops opening each year. Paddy Power has a dozen in the borough and is applying to open three more this year.Newham, one of the country's poorest areas, has more than 80 betting shops – six per square mile – with five new shops opening each year. Paddy Power has a dozen in the borough and is applying to open three more this year.
Driving this, says the borough, are fixed-odds betting terminals (FOBTs), dubbed the crack cocaine of gambling. Ian Corbett, who chairs the council's licensing subcommittee, said a team of private investigators had gathered evidence that "four pounds out of every five bet in the bookies went on the machines. People are not betting on the horses or the dogs. It's the machines they play."Driving this, says the borough, are fixed-odds betting terminals (FOBTs), dubbed the crack cocaine of gambling. Ian Corbett, who chairs the council's licensing subcommittee, said a team of private investigators had gathered evidence that "four pounds out of every five bet in the bookies went on the machines. People are not betting on the horses or the dogs. It's the machines they play."
He claimed that "violence, robbery, street drinking were taking place outside bookies. They are also targeting new immigrants to the area, those who have not been steeped in the Racing Post, who do not understand the odds, especially in the machines."He claimed that "violence, robbery, street drinking were taking place outside bookies. They are also targeting new immigrants to the area, those who have not been steeped in the Racing Post, who do not understand the odds, especially in the machines."
A paper published in the Journal of Gambling Studies by social research institute NatCen last December showed that the greatest concentration of gambling machines could be found in Britain's most deprived areas, "with the highest density of machines mirroring the profile of those most at risk of experiencing harm from gambling".A paper published in the Journal of Gambling Studies by social research institute NatCen last December showed that the greatest concentration of gambling machines could be found in Britain's most deprived areas, "with the highest density of machines mirroring the profile of those most at risk of experiencing harm from gambling".
Corbett said the council wanted first to stop and then reverse the spread of betting shops. "I am not against having bookmakers on the high street. But it is the clustering that we have to stop. I think the area should have 25 to 30 bookies, not nearly 90."Corbett said the council wanted first to stop and then reverse the spread of betting shops. "I am not against having bookmakers on the high street. But it is the clustering that we have to stop. I think the area should have 25 to 30 bookies, not nearly 90."
The council has evidence, he said, "that those using the FOBTs are susceptible to gambling addiction". A poll of 500 punters in Newham by the Campaign for Fairer Gambling, which is backing the council's case, showed that 39% played only the FOBTs. Newham is among the most deprived boroughs in the country, yet the survey found an average spend a play of £55, with one in five punters spending over £100 each time they played.The council has evidence, he said, "that those using the FOBTs are susceptible to gambling addiction". A poll of 500 punters in Newham by the Campaign for Fairer Gambling, which is backing the council's case, showed that 39% played only the FOBTs. Newham is among the most deprived boroughs in the country, yet the survey found an average spend a play of £55, with one in five punters spending over £100 each time they played.
Matt Zarb-Cousin, from the campaign, said: "We have been concerned about FOBTs for some time, and this polling confirms our worst fears. Almost nine in 10 think these machines are addictive, so we think it's time for the government to reduce the maximum stake to £2 per spin."Matt Zarb-Cousin, from the campaign, said: "We have been concerned about FOBTs for some time, and this polling confirms our worst fears. Almost nine in 10 think these machines are addictive, so we think it's time for the government to reduce the maximum stake to £2 per spin."
The government is considering apparently contradictory policies on FOBTs. Under changes to planning laws, the Local Government Association warned last month that, by removing restrictions on planning, ministers were giving the green light to "betting shops and payday lenders" to flood the high street. However, the Department for Media, Culture and Sport said it was looking at lowering the stakes on FOBTs and increasing the length between spins on the machines.The government is considering apparently contradictory policies on FOBTs. Under changes to planning laws, the Local Government Association warned last month that, by removing restrictions on planning, ministers were giving the green light to "betting shops and payday lenders" to flood the high street. However, the Department for Media, Culture and Sport said it was looking at lowering the stakes on FOBTs and increasing the length between spins on the machines.
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