Bookmakers William Hill have lost their battle to open a new betting shop in Leicester city centre.
The company currently has a basement branch in Cheapside but wanted to move 50 metres to a more prominent site in an empty shop in Market Place.
Leicester City Council's planning officers refused the application to change the use of the former sportswear shop, which has been vacant for more than a year.
They argued a bookmakers in that visible location would undermine work the council had been doing to regenerate the area through its multi-million pound construction of a new market hall and other parts of mayor Sir Peter Soulsby's Connection Leicester project.
William Hill appealed the decision, but a Government planning inspector has backed the council's rejection.
Inspector Jon Hockley concluded the plan would have an "adverse effect on the vitality and viability of Leicester city centre".
He did, however, acknowledge there could be benefits from the shop being filled rather than standing disused.
Leicester's deputy mayor councillor Rory Palmer, who has previously raised concerns about the spread of betting shops in the city centre, said he was pleased with the decision.
He said: "William Hill wanted to take a shop front. We argued having a betting shop front there was not conducive to our wider plans for the market area.
"I am pleased with the result, but I find it frustrating that this is a planning matter.
"I have long argued that elected local councillors should have more powers to prevent betting shops opening up.
"This decision has been made by an unelected official from outside the area. On this occasion he made the right decision in my opinion, but if it had been the other way I would have been very angry."
Coun Palmer said he felt it was better for the shop to remain vacant than for it to be filled by a bookies.
He said: "I've said it before and I'll say it again, I don't have a problem with betting shops but we need to make sure our city centre streets are diverse and vibrant.
"They want a more prominent site and shop front to advertise the highly-addictive fixed odds betting machines they have.
"There is no shortage of book makers with big shop fronts within a 10-minute walk of the Clock Tower.
"I would hope something would happen in that shop unit very soon.
"If it remains empty for a short period it would not be too bad. There are lots of new businesses opening up in the city centre. I don't think anyone would thank us if every other city centre shop became a betting office."
A William Hill spokeswoman said: "We are against the clustering of bookmakers and are supportive of local authorities having the power to stop bookmakers opening.
"But this was not about opening another bookmakers, but us getting a better location which would allow us better marketing opportunities.
"There has not been the explosion in the number of betting offices people think there has.
"The numbers have remained stable, but they are in more prominent positions. As traditional shops in the High Street have shut, betting shops have come out of the side streets and the basements to take their place.
"We do employ 17,000 people in the UK."