The London borough which has EIGHTY TWO betting shops (that’s six per square mile)
- - Newham Council is in court because they say bookies fuel street crime
- - Legal battle with Paddy Power could allow other councils to refuse licences
- - Borough is one of Britain's poorest, but has some of the most betting shops
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On high streets where many shops still lie empty as they recover from the worst recession in Britain since the 1930s, one type of business has continued to thrive in the economic gloom.
Bookmakers have swamped the UK's shopping parades – with numbers up 25 per cent since 2008 - and in one London borough, Newham, there are currently 82 - six per square mile.
Around almost every corner in this generally deprived part of East London are shops where people can stake £100 a spin on casino-style gambling machines, which are as addictive as crack cocaine.
Yesterday Newham Council was in court to defend its decision to block plans for a new Paddy Power shop, and if they win it could lead to hundreds of betting shop licences nationwide being turned down or revoked.
Concentrated: This graphic shows the main areas which have been saturated by betting shops in Newham, East London, which has 82 bookmakers
The local council say these bookmakers, often open for 14 hours a day, fuel violent crime, street drinking and underage gambling.
A source from within the council said: ‘We mapped out where crimes and disorder take place and compared that with where the betting shops are – and it lit up like a Christmas tree'.
Earlier this year they rejected an application for the new betting shop on the grounds that it would make more money from gaming machines than from traditional betting on horses and sports results, saying this meant it fell foul of the 2005 Gambling Act.
Battle: Critics say that betting shops are filled with fixed odds betting terminals, which are as addictive as crack cocaine
Councillor Ian Corbett, chairman of the licensing sub-committee, said: ‘We are the first council to invoke the primacy clause to reject a licence application, as we are unconvinced that at least half of the gambling on premises would have been traditional betting.
‘We are increasingly concerned about the number of gaming machines in Newham and their impact on our high streets.
‘Not only that, we are concerned at the high proportion of incidents of crime and disorder and that betting shops are part of the problem.’
Paddy Power has said it will not comment until the case ends, with a decision due by magistrates on Wednesday.
Contrast: Newham is one of Britain's poorest boroughs yet it has one of the highest number of bookies in the country, raising questions about whether bookmakers target poor areas
Ali Mil, 32, who runs a phone card stall on Green Street, where the Paddy Power could still appear if they win the legal battle, says that these shops are damaging lives.
'They have a bad effect on young people, it's too easy to lose money. It brings problems to the area. The gambling creates problems: fighting in the streets, drinking. There is a bigger problem coming in the future,' he told the Independent.
Until now, town halls have complained that they can block betting shop applications only if there is evidence that there will be an increase in crime, a threat to the vulnerable, or there is proof of unfair gambling, which is difficult to establish before a shop has opened.
Legal fight: Newham is locked in the courts with Paddy
Power as the council tries to stop the opening of another
betting shop in their area, as they say there are too many
(examples in East Ham, above left to bottom right)
Previous decisions to reject applications have often been
overturned on appeal. In many cases, councils withdraw
their objections as they are liable for costs if they lose.
This has led to accusations that councils are being ‘bullied’
by expensive legal teams brought in by the bookies.
The Association of British Bookmakers said previously that Newham’s decision to throw out the application was ‘at odds with the Gambling Commission’s advice and guidance on this issue.
‘There is a misconception that there must be more profit or turnover from betting than machines to satisfy primary gambling activity. That is simply not the case.'
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