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UK Government removing ‘aim to permit’ rule for AGCs following SMF recommendation

As part of SMF’s recommendation, local communities and councils in the UK will have a ‘greater say’ on whether AGCs can operate on their high streets.

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SMF recommendation
Key Points
According to a SMF survey, 44% of individuals aged 14-17 believe the local presence of AGCs heightens gambling interest
The ‘aim to permit’ rule previously limited the ability of local authorities to refuse new licenses for AGCs

Following the Foundation’s High Streets at Stake report in 2025, the UK Government has elected to adopt the Social Market Foundation (SMF)’s recommendation to remove the “aim to permit” rule and grant local councils greater authority over adult gaming centres (AGCs). 

“This is 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,” SMF Deputy Research Director Jamie Gollings said. 

“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.”

The ‘aim to permit’ rule previously limited the ability of local authorities to refuse new licenses for AGCs, but will now provide communities and councils with a ‘greater say’ on whether such establishments can operate on their high streets. 

According to an SMF survey, 44% of individuals aged 14-17 believe the presence of AGCs in their local communities may heighten interest in participating in gambling activity. 

While AGCs currently operating in local communities may face greater regulatory scrutiny, the SMF’s recommendation is “designed to reduce gambling harms” across the “most deprived parts” of the country. 

On 30 June, SMF also called for a higher Machine Games Duty (MGD) rate on Category B gaming machines, arguing the UK tax system should better reflect the level of gambling-related harm associated with higher-stakes land-based products.

In response, the Betting and Gaming Council (BGC) confirmed it fundamentally opposes any increase in MGD rate and believes the SMF report makes no attempt to quantify the venue closures or job losses its proposals would cause.

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