The Local Government Association said councils needed “flexible powers” and the ability to refuse applications for gambling premises near schools, health services and other “sensitive locations”.
However, Allastar Gair, communications director at BACTA, said local authorities already had the power to refuse applications where they believed licensing objectives would be undermined.
He said the sector was “tightly regulated” and continuing to raise standards through “strengthened systems, better training and visible safer gambling measures”.
Mr Gair added: “A new AGC does not open without a full licensing process, council oversight and a detailed risk assessment.
“Operators do not target deprived areas; they take on long term empty units and invest in high streets that need regeneration.”
A spokesman from the Ministry of Housing, Communities and Local Government said the government was committed to giving councils the power to limit gambling shops.
He added: “We’ll do everything we can to halt the decline people are seeing in their towns and high streets.”