Licensing board breached rules while refusing new Inverness betting shop
William Hill looks set to open a new betting shop in Inverness after successfully challenging Highland Licensing Board's opposition to it.
The board said vulnerable people attending a nearby drug and alcohol centre would be tempted to gamble.
However, councillors have now conceded that they did not allow William Hill to challenge this claim.
The board also said its reason for refusing permission had been based on speculation and not evidence.
William Hill proposes opening the shop in Pumpgate Street.
The company was refused a licence following a hearing held by the board. William Hill lodged an appeal.
The board members' decision not to challenge the appeal follows legal advice.
In a statement, the board said it accepted making a "breach of natural justice".
It added: "It is also accepted by the board that there was no evidence before the board to suggest that there was a likelihood or probability of the harm from gambling they thought it possible might occur.
"This aspect of the reason for refusal had therefore been based on speculation, and would be held, therefore to be unreasonable."