Up in smoke
UK councils to get powers to veto new betting shops, restrict AGCs
Feel the Burn: The new UK government of Prime Minister Andy Burnham has announced plans to scrap the “aim to permit” rule contained within the 2005 Gambling Act, which restricts local councils’ ability to refuse new betting shops, and is also introducing a reform that will require planning permission for new adult gaming centers (AGCs). The moves come in a package of measures to improve UK high streets.
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Vapour trail: UK betting shops and AGCs join vape shops in being blamed for the decline in UK high streets, according to the new measures to be introduced by Prime Minister Andy Burnham’s recently reconstituted Labour government.
The measures are among a series announced today in an attempt to reverse the “hollowing out” of the high streets in the UK.
Councils will be “given the powers they need to rein in unwanted shops and bring town centres back to life,” Burnham said.
My aim is true: The “aim to permit” rule as enshrined in legislation means local authorities are limited in their ability to refuse new license applications for both betting shops and AGCs.
Burnham said “the rise of vape shops, betting shops and rogue operators have replaced the shops, services and community spaces that people are crying out for.”
“That’s not on. I said we would improve Britain’s high streets, and that’s exactly what we are starting to do,” he added.
“We’re putting communities back in control and giving local people a real say over what opens on their high street.”
Measures of deprivation: The new rules on AGCs make much of the 24-hour nature of their offerings, and mean planning permission will now be needed.
Officials cited concerns about the high concentration of gambling premises in certain areas, especially deprived communities.
Good gollings, miss mollings: The move was applauded by the Social Market Foundation, which late last year had called for greater licensing powers to be granted to local authorities, including cumulative impact assessments, with no further delay.
Jamie Gollings, co-author of a report entitled ‘High Streets at Stake’ and deputy research director at the Social Market Foundation, said the moves were a “significant and welcome step for local democracy and thriving communities.”
“Councils know their high streets better than anyone, yet the ‘aim to permit’ rule has meant they’ve had very little real say over what opens on them,” he added.
“Our research made clear that these venues are proliferating in the poorest communities, are linked to anti-social behaviour, and often fail the basic tests of fairness and harm prevention set out in the Gambling Act itself.”
“Today’s announcement is exactly what we called for and it puts decision-making back where it belongs – with the councils and communities who have to live with the consequences.”
Counter claim: The aim to restrict new betting shops seems to run counter to the facts on the ground. Data cited by the Financial Times shows the number of betting shops is on the decline, down to under 5,900 from nearer 9,000 in 2015.
The decline is partly down to the moves introduced in 2019 to restrict the stakes and prizes of category 2 machines or FOBTs.
Wrong signal: The Betting & Gaming Council responded to the news, saying that while the industry supports “tough action against criminal operators” and agrees local people should have a “proper say over their high streets,” the suggestion that betting shops are “spreading unchecked is simply wrong.”
“Betting shop numbers have fallen by over a third since 2019. Around 3,000 shops have closed and over 15,000 jobs have already been lost,” it added.
“It is wrong to lump highly regulated, licensed betting shops together with rogue or criminal businesses. Betting shops still support 37,500 jobs, bring vital footfall to neighbouring businesses and, for many customers, are valued community hubs.”
“The real threat to Britain’s hard-pressed high streets is more empty units and fewer local jobs, not businesses rooted in the communities they serve.”
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A gambling ad break: Australia’s government will unveil a major overhaul of gambling regulation in the House of Representatives early next week, Prime Minister Anthony Albanese said. The Interactive Gambling Amendment Bill reportedly reflects compromises between the governing parties over previously proposed advertising restrictions. Rather than imposing a complete ban on gambling advertising, the legislation is expected to restrict free bets, promotional credits and gaming ads. Albanese said he was confident of securing parliamentary support following several years of debate over gambling reform and related consumer protections.
Mansour’s New York complaint
Coming for us: Kalshi CEO Tarek Mansour has argued that New York’s lawsuit against the prediction market operator represents a challenge to the entire event contract industry rather than a narrow dispute over sports trading.
Speaking to CNBC’s Squawk Box, Mansour rejected the idea that the case was simply a states’ rights battle with federal regulators.
New York alleges that Kalshi facilitates gambling by allowing customers to risk money on future events outside their control.
“This lawsuit is not about sports,” Mansour said. “It’s going after all prediction markets in their entirety, the entire business model.”
Standing firm: Mansour claimed the state’s reasoning lacked a “limiting principle” that would distinguish Kalshi contracts from other speculative financial instruments.
“You could copy-paste that lawsuit and apply it against Nasdaq,” he said, arguing that options and other financial products can also resemble gambling.
Kalshi maintains that it operates under federal oversight and spent years securing its regulatory license.
Mansour said the business was complying with every rule imposed upon it and “stands firmly” behind its federal authorization.
The song remains the same: He characterized the litigation as part of a familiar response from incumbent industries confronted by disruptive competition, comparing the contest between prediction markets and sportsbooks with the battles between Uber and taxis or Airbnb and hotels.
The established playbook, he said, was to litigate then legislate and eventually compete once it became clear that consumer demand would persist.
Money talks: Mansour also sought to counter New York’s customer-protection argument by claiming the state’s Kalshi users had collectively made more than $200m this year.
Unlike a sportsbook, he argued, Kalshi does not trade against its customers but connects counterparties and charges a transaction fee.
Those figures were asserted by Mansour during the interview and were not independently substantiated in the discussion.
Taxation was the second pillar of Kalshi’s defense. Mansour said the company had submitted a proposal to the governor that could raise close to $10bn from the prediction market industry over five years, including taxes on operators and customer gains.
He claimed the model could generate substantially more for New York than the state receives from sportsbooks, although he said Kalshi had received no response.
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Against all odds: The CFTC has warned prediction market operators against displaying event contracts using American-style betting odds, saying the format risks misleading customers about the products they are trading. Bloomberg reported that the regulator instructed exchanges, introducing brokers and futures commission merchants to present prices in nominal or percentage terms consistent with derivatives markets. The letter said bookmaker-style odds could encourage greater risk-taking and potentially steer consumers towards higher-margin gambling products.
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Pause for reflection
All out: Bally’s has paused construction of the non-gaming elements of its $1.7bn permanent Chicago casino, escalating its dispute with the city over the introduction of video gaming terminals.
The company told its general contractor, Chicago Community Builders Collective, to halt work on the hotel tower, event center and restaurants while it “resets the pace of construction.”
Work on the casino itself will continue, with Bally’s maintaining its early 2027 opening target.
She’s lost control: Bally’s argues the “uncontrolled proliferation” of VGTs violates its Host Community Agreement with Chicago and could undermine commitments attached to the development, including a $4m annual payment to the city.
It warned the pause could affect the 1,500 union tradespeople working on the project and said it would continue assessing its options while seeking talks with the mayor’s office and City Council.
Alternative facts: The confrontation follows Chicago’s decision to legalize VGTs through an alternative $16.6bn city budget that allocated more than $6m of expected licensing revenue. Bally’s estimates the machines could reduce its annual revenue by $74m and cost hundreds of jobs.
It hired law firm Fahner Rosenberg in June as part of efforts to protect its investment, potentially laying the ground for litigation.
Accel all areas: As Compliance+More reported last week, Chicago’s VGT rollout is already advancing. Accel Entertainment was connected to 17 of the first 39 establishments approved by the Illinois Gaming Board and expects the first venues to begin operating within weeks.
Accel believes Chicago could ultimately become a $1bn-a-year gaming-revenue market.
That estimate underlines the scale of the competitive threat perceived by Bally’s.
The dispute also creates further uncertainty around a project already affected by construction stoppages and a hotel redesign.
Bally’s has until September 2027 to open its permanent casino after securing an extension for its temporary Medinah Temple license, but the latest pause raises the prospect that the gaming floor could open well before the wider resort is completed.
Calendar
Sep 21-24: NASPL, Orlando
Oct 15: Gaming in Spain, Madrid
Sep 29-Oct 1: Regulation and compliance track, SBC Lisbon
Nov 10: Gaming in Germany, Berlin
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