Local criminal drinking house wine? (7)
I believe the answer is:
alcohol
'wine?' is the definition.
(wine is a kind of alcohol)
'local criminal drinking house' is the wordplay.
'criminal' indicates an anagram.
'drinking' indicates putting letters inside.
'house' becomes 'ho' (abbreviation for house).
'local' anagrammed gives 'alcol'.
'alcol' going around 'ho' is 'ALCOHOL'.
(Other definitions for alcohol that I've seen before include "solvent" , "lager, perhaps" , "The hard stuff" , "Booze" , "I could get you pickled" .)