Bookmaker Paddy Power wins legal battle to open shop in Newham

 
PA
17 June 2013

A bookmaker has won an appeal against a London council's refusal to allow it to open a betting shop because of crime concerns.

In what is believed to be the first case of its kind in the UK, Newham Council in east London rejected Paddy Power's licence application for a new shop on the grounds it would attract crime and anti-social behaviour.

The authority also claimed the shop's primary profits would come from gaming machines rather than traditional betting on horses and sports results, and therefore breached the 2005 Gambling Act.

Newham Council said it was the first time such a power has been exercised.

But, following a hearing at Thames Magistrates' Court, a judge rejected the council's argument and gave the green light for the shop to open.

In his written ruling, District Judge Paul Goldspring said: "It has not been proved that the granting of the licence would not be reasonably consistent with (the) objective of preventing crime and disorder.

"Therefore I disagree with the decision of the sub-committee, and in light of the evidence before me (in this appeal), it was wrong.

"I therefore allow this appeal and and regard to the powers available, I grant the licence on the terms originally agreed with the police."

There are about 80 betting shops in Newham, the third highest number in any London borough.

Newham Council said it was "deeply disappointed" with the decision and would consider whether it was a matter for a judicial review.

Councillor Ian Corbett, the authority's executive member for environment, said: "If nothing else, this case has exposed a serious problem and woken up the rest of the country to the fact that the current laws will not prevent the march of the high street bookmakers.

"Taking legal action at a time when our services are under severe pressure is something we have been forced to do because the Gambling Commission refuses to act as a regulator.

"Ministers fail to understand how the legislation is toothless in dealing with the clustering of betting shops and the proliferation of high stakes gaming machines."

Paddy Power, which applied for a licence to operate on Green Street in East Ham in February, said it was "pleased" with the judge's ruling.

In a statement, it said: "Paddy Power makes a positive contribution to local communities in which it operates.

"The UK high street is currently facing unprecedented challenges and our expanding retail presence adds much needed vitality and footfall to localities around the country as well as vital employment.

"Paddy Power is a responsible operator that takes proactive measures to offer a safe and responsible leisure experience for its customers and the community."

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