A bookmaker, bookie, or turf accountant is an organization or a person that accepts and pays out bets on sporting and other events at agreed-upon

odds In probability theory, odds provide a measure of the probability of a particular outcome. Odds are commonly used in gambling and statistics. For example for an event that is 40% probable, one could say that the odds are or When gambling, o ...

History

The first bookmaker, Harry Ogden, stood at Newmarket in 1795, although similar activities had existed in other forms earlier in the eighteenth century. Following the

Gaming Act 1845 The Gaming Act 1845 ( 8 & 9 Vict. c. 109) was an act of the Parliament of the United Kingdom. The act's principal provision was to deem a wager unenforceable as a legal contract. The act received royal assent on 8 August 1845. Sections 17 and ...

, the only gambling allowed in the United Kingdom was at race tracks. The introduction of special excursion trains meant that all classes of society could attend the new racecourses opening across the country. Runners working for bookmakers would collect bets in clock bags. Cash flowed to the bookmakers who employed bodyguards against protection gangs operating within the vast crowds.Dick Kirby, ''The Race Track Gangs'', The Peeler issue 7 July 2002, 'Friends of the Met Police Museum' Illegal betting shops were fined, but some, like Bella Thomasson, ran betting businesses that the police appeared to turn a blind eye to.

Range of events

Bookmakers in many countries focus on accepting bets on professional sports, especially

horse racing Horse racing is an equestrian performance activity, typically involving two or more horses ridden by jockeys (or sometimes driven without riders) over a set distance for competition. It is one of the most ancient of all sports, as its bas ...

and

association football Association football, more commonly known as football or soccer, is a team sport played between two teams of 11 Football player, players who almost exclusively use their feet to propel a Ball (association football), ball around a rectangular f ...

Indian Premier League The Indian Premier League (IPL) is a professional Twenty20 (T20) cricket league in India, organised by the Board of Control for Cricket in India (BCCI). Founded in 2007, it features ten city-based Professional sports league organization, fr ...

cricket. However, a wider range of bets, including on political elections, awards ceremonies such as the

Oscars The Academy Awards, commonly known as the Oscars, are awards for artistic and technical merit in film. They are presented annually by the Academy of Motion Picture Arts and Sciences (AMPAS) in the United States in recognition of excellence i ...

, and novelty bets are accepted by bookmakers in some countries.

Operational procedures

By "adjusting the odds" in their favour (paying out amounts using odds that are less than what they determined to be the true odds) or by having a point spread, bookmakers aim to guarantee a profit by achieving a 'balanced book', either by getting an equal number of bets for each possible outcome or (when they are offering odds) by getting the amounts wagered on each outcome to reflect the odds. When a large bet comes in, a bookmaker may also try to ''lay off'' the risk by buying bets from other bookmakers. Bookmakers do not generally attempt to make money from the bets themselves but rather by acting as

market maker A market maker or liquidity provider is a company or an individual that quotes both a buy and a sell price in a tradable asset held in inventory, hoping to make a profit on the difference, which is called the ''bid–ask spread'' or ''turn.'' Thi ...

s and profiting from the event regardless of the outcome. Their working methods are similar to those of an

actuary An actuary is a professional with advanced mathematical skills who deals with the measurement and management of risk and uncertainty. These risks can affect both sides of the balance sheet and require investment management, asset management, ...

, who does a similar balancing of financial outcomes of events for the assurance and

insurance Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to protect ...

industries.

Gambling industry by country

United Kingdom

In 1961,

Harold Macmillan Maurice Harold Macmillan, 1st Earl of Stockton (10 February 1894 – 29 December 1986), was a British statesman and Conservative Party (UK), Conservative politician who was Prime Minister of the United Kingdom from 1957 to 1963. Nickn ...

's Conservative government legalised betting shops, with tough measures enacted to ensure that bookmakers remained honest. A large industry has grown since. At one time, there were over 15,000 betting shops. Now, through consolidation, they have been reduced to between 9,100 and 9,200 in 2013. This number has reduced further to 6,219 as of March 2022, largely as a result of Covid-19 and the forced closure of shops on the UK high street. The group of the largest bookmakers in the country, known as the "Big Three", comprises William Hill,

Ladbrokes Ladbrokes Coral is a British gambling company. Its product offering includes sports betting, online casino, online poker, and online bingo. The Ladbrokes portion of the group was established in 1886, and Coral in 1926. In November 2016, th ...

, and

Coral Corals are colonial marine invertebrates within the subphylum Anthozoa of the phylum Cnidaria. They typically form compact Colony (biology), colonies of many identical individual polyp (zoology), polyps. Coral species include the important Coral ...

. The United Kingdom's Gambling Act 2005 introduced a new regulatory system for governing gambling in Great Britain. This system includes new provisions for regulating the advertising of gambling products. These provisions of the Act came into effect in September 2007. It is an offence to advertise in the UK, gambling that physically takes place in a non-

European Economic Area The European Economic Area (EEA) was established via the ''Agreement on the European Economic Area'', an international agreement which enables the extension of the European Union's single market to member states of the European Free Trade Asso ...

(EEA) or, in the case of gambling by remote means, gambling that is not regulated by the gambling laws of an EEA state. The Gambling Commission is the body that makes sure all sites and operators follow the new restrictions. In addition to the Gambling Act of 2005, according to the new gambling bill, online gambling sites are only allowed to offer services within the United Kingdom, if they are registered at the UK Gambling Commission. Improved TV coverage and the modernisation of the law have allowed betting in shops and casinos in most countries. In the UK, on-track bookies still mark up the odds on boards beside the racecourse and use tic-tac or mobile telephones to communicate the odds between their staff and to other bookies, but, with the modernisation of United Kingdom bookmaking laws, online and high street gambling are at an all-time high. A so-called super-casino had been planned for construction in

Manchester Manchester () is a city and the metropolitan borough of Greater Manchester, England. It had an estimated population of in . Greater Manchester is the third-most populous metropolitan area in the United Kingdom, with a population of 2.92&nbs ...

, but the government announced that this plan had been scrapped on 26 February 2008.

Germany

The law on betting on horse racing and lotteries was passed by the German legislature and came into force on 1 July 2012. Since then, a tax of 5% of the bet must be paid to the tax authorities for all sports betting (offline and online). This affects the entire sports betting market in Germany. Many of the bookmakers are sponsoring some of the major football teams in the major European football leagues, although

Werder Bremen Sportverein Werder Bremen von 1899 e. V. (), commonly known as Werder Bremen, Werder or simply Bremen, is a German professional sports club based in Bremen. Founded on 4 February 1899, Werder are best known for their professional association foo ...

are currently fighting the German courts for the freedom to continue featuring bookmaker Bwin on their shirts, as Germany and France take action against online gamers. For example, as of 1 January 2020, Germany bettors will not be able to bet more than €1,000 a month. The latest amendment of the ITG states that. New online sportsbook laws are expected shortly in Germany, as this law is only temporary: the expiration date is set to be on 20 June 2020.

Canada

The fundamental law governing gambling activities in Canada is the federal Criminal Code (the "Code"). Sections 201 to 206, including section 206, make all types of gambling, betting and lotteries illegal throughout Canada with very limited exceptions, such as betting-mutuel on horse racing (provided for in section 204). While the federal Code is the applicable prohibitionist law, all regulations (and regulatory bodies) are provincial, with one exception - pari-mutuel betting on horse racing, which is regulated by the federal Canadian agency Pari-Mutuel. However, this law has many critics, as it is believed that the Canadian sports betting market can generate $25 billion a year.

United States

Attempts to restrict operators of foreign gambling websites from accessing their domestic market resulted in a 2007 ruling against the US government by the

World Trade Organization The World Trade Organization (WTO) is an intergovernmental organization headquartered in Geneva, Switzerland that regulates and facilitates international trade. Governments use the organization to establish, revise, and enforce the rules that g ...

. However, common online gambling laws in the United States still don't exist – it differs from state to state. All forms of online gambling are illegal within the states of

Utah Utah is a landlocked state in the Mountain states, Mountain West subregion of the Western United States. It is one of the Four Corners states, sharing a border with Arizona, Colorado, and New Mexico. It also borders Wyoming to the northea ...

and

Hawaii Hawaii ( ; ) is an island U.S. state, state of the United States, in the Pacific Ocean about southwest of the U.S. mainland. One of the two Non-contiguous United States, non-contiguous U.S. states (along with Alaska), it is the only sta ...

, while the states of

Delaware Delaware ( ) is a U.S. state, state in the Mid-Atlantic (United States), Mid-Atlantic and South Atlantic states, South Atlantic regions of the United States. It borders Maryland to its south and west, Pennsylvania to its north, New Jersey ...

Pennsylvania Pennsylvania, officially the Commonwealth of Pennsylvania, is a U.S. state, state spanning the Mid-Atlantic (United States), Mid-Atlantic, Northeastern United States, Northeastern, Appalachian, and Great Lakes region, Great Lakes regions o ...

and

New Jersey New Jersey is a U.S. state, state located in both the Mid-Atlantic States, Mid-Atlantic and Northeastern United States, Northeastern regions of the United States. Located at the geographic hub of the urban area, heavily urbanized Northeas ...

took a different approach: almost all forms of online gambling are legal in these states. These are the only US states where online casino sites can be legally registered. It is important to mention that Native Americans have their own gambling legislation - the Indian Gaming Regulatory Act of 1988. However, they need their state's approval to be able to offer their services online. The Supreme Court overturned the federal ban on online gambling in 2018. However, while online gambling and casinos are legal, each state has its own rules. In Pennsylvania and New Jersey, the legal bookmakers are DraftKings, FanDuel and Pointsbet. Mississippi, New Jersey, Delaware, Nevada and West Virginia are on the road to legalisation, but Nevada and New Jersey have already passed laws. Most analysts predict the trend towards legalization of online gambling will continue in more and more US states.

Australia

Some bookmakers have taken to using betting exchanges as a way of laying off unfavourable bets and thus reducing their overall exposure. This has led to insecurity from some TABs in Australia, state-run betting agencies that attempted to deny Betfair an Australian licence by running unfavourable ads in the media regarding the company. When

Tasmania Tasmania (; palawa kani: ''Lutruwita'') is an island States and territories of Australia, state of Australia. It is located to the south of the Mainland Australia, Australian mainland, and is separated from it by the Bass Strait. The sta ...

granted Betfair a licence despite these efforts, the Western Australian state legislature passed a law that specifically criminalised using betting exchanges from within the state; however, the law was later ruled to be unconstitutional. As a result, internet gambling in Australia required a new legal framework. The Interactive Gambling Act 2001 regulates the online gambling market in Australia, together with all its amendments. The last amendment was introduced on 13 September 2017. This bill states that online casinos, online poker and live betting are illegal in Australia. The Australian Communication and Media Authority (ACMA) is the regulatory body responsible for all supervising online gambling activities. Online sports betting is legal, however.

France

Online sports betting in France is divided into two sections: Autorité de Régulation des Jeux en Ligne (ARJEL) regulates online sports betting, while online horse betting is regulated by the law "Decree 2010-498 from 17 May 2010. International bookmakers are allowed to enter the French market, thanks to the Law No. 2010-476 from 12 May 2010.

Internet gambling

With the increasing number of online betting exchanges, betting exchanges are now providing free bet offers in an attempt to lure customers away from the competition. These free bets are generally based on the size of the deposit made into the gambling account. For example, if a customer deposited £20, the betting exchange would deposit an additional £20 for the customer to use. Free bet rules vary depending on the betting exchange.

Sponsorships

Most televised sports in the United Kingdom and the rest of Europe are now sponsored wholly or partly by Internet and high street bookmakers, with sometimes several bookmakers and online casinos being displayed on players' shirts,

advertising Advertising is the practice and techniques employed to bring attention to a Product (business), product or Service (economics), service. Advertising aims to present a product or service in terms of utility, advantages, and qualities of int ...

hoardings, stadium signs and competition event titles. Sponsors are especially highlighted in the football category since football fans present a significant percentage of the bookmakers' target group. With the recent banning of tobacco sponsorship and the significant commercial budgets available to the gaming industry, sponsorship by car manufacturers, alcoholic drinks, soft drinks and fast-food marketers is being rapidly replaced by sponsorship from gaming companies in the Far East and Europe.

References

{{Authority control Accountants Gambling terminology