Bookmaker

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A bookmaker (also called a bookie or turf accountant) is someone or a company that takes and pays out bets on events like sports at agreed odds. The first notable bookmaker, Harry Ogden, stood at Newmarket in 1795, though similar betting activities existed earlier. In Britain, after the Gaming Act of 1845, gambling was mainly allowed at racecourses, helping bookmakers set up around the growing number of tracks. Bookmakers used runners and clock bags to collect bets, and crowds could be large enough that protection mattered. Illegal betting shops existed too, though authorities tried to crack them down.

Today, bookmakers mainly take bets on professional sports such as horse racing, football, and cricket, but many places also offer bets on politics, awards like the Oscars, and other novelty wagers.

How bookmakers aim to make money
Bookmakers don’t rely on the outcome of events; they try to balance the money bet on every side. They can adjust odds or use a point spread to encourage bets on all outcomes. If a big bet comes in, they may lay off risk by taking bets with other bookmakers. The goal is to earn a profit regardless of who wins, acting more like market makers than gamblers on their own bets. Their work is similar to that of actuaries, balancing different possible outcomes.

Britain’s betting industry and regulation
Betting shops were legalized in the UK in 1961, and the industry grew large. At one point there were more than 15,000 shops; today the number is much smaller—about 6,000–7,000 in recent years—largely due to consolidation and the impact of Covid-19. The biggest UK bookmakers are William Hill, Ladbrokes, and Coral.

The UK Gambling Act of 2005 created a new regulatory framework for Great Britain, including advertising rules. The Gambling Commission enforces these rules, and online bookmakers must be licensed in the UK to operate there. Over time, betting in shops and online gambling have both grown, with online options becoming very common.

Other countries
- Germany: since 2012, sports betting has a 5% tax. There are limits on some bets, and the market has seen ongoing changes as online betting laws develop. Sponsorship of major football clubs is common, though laws can affect which brands can appear on shirts.
- Canada: the federal Criminal Code restricts most gambling, with limited exceptions like certain horse racing bets. Regulation is mainly provincial, but the pari-mutuel system for horse racing is federally regulated. The potential sports betting market is seen as very large.
- United States: online gambling rules vary by state. In 2018, the federal ban was lifted for online gambling, but each state now makes its own laws. Some states allow many forms of online betting (e.g., New Jersey, Pennsylvania), while others ban online gambling. Native American tribes also have their own rules. Major operators in some states include DraftKings, FanDuel, and PointsBet.
- Australia: the Interactive Gambling Act of 2001 governs online gambling. Online casinos and poker are generally illegal, but online sports betting is allowed under specific rules. Betting exchanges have faced different legal challenges in various states.
- France: online sports betting is regulated, with separate rules for horse betting. International bookmakers can operate under French law, helped by recent regulatory changes.

Promotions and sponsorship
With more online betting, many bookmakers offer promotions like free bets, often linked to the size of a customer’s first deposit. Advertising and sponsorships are common in televised sports, with bookmakers seen on shirts, stadiums, and event signs. Tobacco sponsorship has faded, and betting companies increasingly sponsor teams and events instead.

In short, a bookmaker brings together people who want to bet with a system that balances risk and aims for a profit, under laws that vary a lot from country to country.