BISHOP Auckland will have five betting shops, after an attempt by two established bookmakers failed to block a new outlet.

Betfred, which has more than 600 branches in the UK, will move into 130 Newgate Street, despite efforts by Ladbrokes and William Hill to block the plan.

Magistrates yesterday granted Betfred permission to move into the former Wager Turner solicitors building, rejecting its rivals' claims that there is no demand for the extra shop.

Glynn Wales, chairman of the South Durham bench sitting at Bishop Auckland Magistrates' Court, said: "This would improve choice for the people in Bishop Auckland. It could unlock a new market."

Betfred is expecting to make only £6,000 profit in its first year, based on a prediction that its new shop, which will cost £100,000 to renovate, will increase gambling in Bishop Auckland by ten per cent, the court heard.

Richard Taylor, for William Hill, said: "There are four offices and there just isn't demand for a fifth. You can't squeeze any more out of this market."

However, four customers spoke in favour of the new outlet.

Kevin Roe, from Bishop Auckland, said: "It would be a bit more choice and variety and you could get better prices."

Mark Stebbings, a Betfred development manager, said: "In my view, this is ideal for a betting shop. It would be very convenient for people sitting in Hogans to pop across the road and make a bet.

"Betting has gone through the roof. Things have never been better for bookmakers."

Speaking after the magistrates' decision, Mr Stebbings said: "We're very happy and will be opening as soon as possible. We look forward to serving the people of Bishop Auckland."

Magistrates also granted William Hill permission to move to alternative premises in Newgate Street. The company's existing outlet was run at a £25,000 loss last year, the court heard.

The court also heard that £77,550 is gambled in betting shops in Bishop Auckland every week.