What Is a Bookmaker? How Sports Betting Works for Beginners

A bookmaker is a company that offers sports betting, which lets you bet on the results of real sporting events. Because you can follow and support your favorite teams and players while you bet, sports betting is popular around the world, and a growing number of online casinos now offer it as well.

What You Will Learn

• A bookmaker is the operator that takes sports bets and acts as the house.
• You can bet money on your predictions for the results of soccer, baseball and other sporting events.
• The payout percentage (the share of all stakes paid back to bettors) is generally put at about 90–98%, higher than that of lotteries and pari-mutuel horse racing.

This article takes about 13 minutes to read.

What Is a Bookmaker? The House Behind Sports Betting, with More Than 200 Years of History

A bookmaker is a company that lets you bet on the results of sporting events around the world, such as which team will win. The act of placing these bets is called sports betting.

Bookmaking has a long history that goes back to 18th-century Britain, and betting shops run by bookmakers can still be found across Europe today.

Bookmaking Took Hold in Britain in the 1790s

Bookmaking is generally traced to the 1790s, more than 200 years ago, when Harry Ogden began offering odds on racehorses and taking bets at Newmarket Racecourse in England, home of races such as the 1,000 Guineas and the 2,000 Guineas.

At first there was opposition, with some arguing that the practice did not fit the traditions of horse racing. Bookmaking gradually became very popular, however, and in 1961 betting shops were legalized.

For this reason, Britain is often described as the home of sports betting, and the sports industry and bookmakers remain closely linked there today.

William Hill and Ladbrokes: Britain’s Oldest Bookmakers Move Online

William Hill is one of Britain’s best-known bookmakers and a household name across Europe. Founded in 1934, it opened betting shops in many locations after they were legalized in 1961, allowing customers to place sports bets in person. In recent years it has closed and consolidated many shops, and the focus of its business has shifted online.

Ladbrokes, another of Britain’s best-known bookmakers, is even older. It was founded in 1886 as a commission agent for racehorses trained at Ladbroke Hall in Warwickshire, and it also grew into a large chain of betting shops after they were legalized in 1961. Ladbrokes merged with Coral in 2016 to form Ladbrokes Coral, which was acquired in 2018 by GVC Holdings (renamed Entain in 2020). Like William Hill, it now does much of its business online.

William Hill launched its online betting business in 1998, allowing customers to bet over the internet without visiting a shop. The world’s first online casino opened in 1996, so online casinos and online sports betting started at almost the same time.

What Makes Bookmakers Appealing

One feature of bookmakers is that your knowledge of the sport you bet on can inform your decisions. For this reason, some bettors feel they can make better use of their own judgment than at an online casino.

Use Bonuses to Reduce Your Out-of-Pocket Cost

As sports betting has grown in popularity, the number of bookmaker sites and online casinos that offer sports betting has risen sharply in recent years. To make their sites known, many bookmakers now give new customers a bonus when they sign up.

You can use this bonus to place real sports bets and collect winnings if your prediction is correct. A no-deposit bonus lets you try sports betting without using your own money, but the bookmaker’s margin still applies.

Some bookmakers also run a promotion called a risk-free bet. With a risk-free bet, part of your stake is returned (for example, as a bonus) even if the bet loses. It lets you try betting while limiting your actual losses, but keep in mind that wagering requirements and maximum amounts apply.

Higher Payout Percentage Than Lotteries and Pari-Mutuel Horse Racing

The payout percentage is the share of the amount bet that is paid back on average. It is the flip side of the bookmaker’s margin (also called the vig or juice), which is the share the bookmaker keeps.

The bookmaker payout percentage is generally about 90–98%, depending on the market. Put another way, the bookmaker’s margin is 2–10%, and the rest is paid back, on average, to bettors as a whole. Because there is a margin, however, betting at random over the long run still leads to a net loss. Because online betting does not require physical shops, operators have lower overheads, which is said to be one reason the payout percentage can be this high.

Odds Are Locked In When You Place Your Bet

Your knowledge can inform your decisions because at a bookmaker, the odds are fixed the moment you place your bet.

In pari-mutuel betting, as used in horse racing, the odds are not set when you buy your ticket. They become final only when betting closes. This system is designed so that the house is unlikely to lose money, and bettors face a built-in cost equal to the operator’s takeout.

Bookmakers, by contrast, use fixed odds (fixed-odds betting). The bookmaker sets the odds first, bettors place their bets knowing those odds, and the odds are locked in the moment the bet is placed. Fixed odds do not in themselves give you an edge, however.

This means that a bettor who knows the Premier League well, for example, can look at the odds for its matches and judge whether a price looks like good value.

Availability depends on your country or region, but most bookmakers can be used from a smartphone, which makes them easy to try for bettors who know a particular sport well.

Bet on Events Beyond Sports, Such as Presidential Elections

If you are interested in betting but do not watch many sports, specials (novelty bets, sometimes called prop bets) are a good option. Many bookmakers let you bet not only on sports but on a wide range of future events.

Markets range from questions such as “Who will win Best Director at next year’s Academy Awards?” and “Will it snow in the UK this Christmas?” to topics of wider public interest such as “Who will win this year’s presidential election?” During the 2020 US presidential election, the odds on whether Joe Biden or Donald Trump would win were widely reported in the news. You can therefore bet on entertainment, politics and other areas even if you know little about sports.

The range of sports is also wide. Besides major sports such as soccer, baseball and basketball, you can bet on individual sports such as boxing and tennis, indoor games such as bowling and darts, and, more recently, esports titles such as Counter-Strike and Call of Duty.

Watch Matches Live with Live Streaming

Watching the action is an essential part of sports betting. With money on the line, it is natural to want to see the result as it happens, and this is where live streaming helps. Live streaming lets you watch sporting events as they are played.

You are not limited to the matches you have bet on. Streamed matches can sometimes be watched once you have registered (some bookmakers require a deposit or a bet first). Which matches are streamed, the conditions for watching and the regions where streams are available vary by bookmaker.

If paying for a subscription to watch leagues from other countries seems expensive, a bookmaker’s streaming service is one option.

Matches Available via Live Streaming

Soccer

The Premier League, Serie A, La Liga, the Bundesliga, the Champions League, the World Cup and more

Baseball

MLB (Major League Baseball)

Tennis

The Australian Open, the US Open, the French Open, Wimbledon and some tour events

Matches in basketball, American football, table tennis, rugby, cricket, ice hockey, futsal and other sports may also be available. Coverage varies by bookmaker and competition, so check the bookmaker’s official website.

How to Get Started at a Bookmaker

Once you have signed up on a bookmaker’s official website and made a deposit, you can start betting right away. Some bookmakers give you a bonus just for signing up, so if you are hesitant to deposit straight away, start with a bookmaker that offers a no-deposit bonus.

Start by Signing Up with a Bookmaker

The first step is to register with a bookmaker. Go to the bookmaker’s official website, enter the required information and create an account. There are only a few fields to fill in, so even first-timers can finish registering in about 10 minutes.

Bookmakers differ in what they offer, from no-deposit bonuses to generous ongoing promotions. Choose a licensed bookmaker and compare the wagering requirements and minimum odds of its bonuses, the sports it covers and the quality of its customer support. Another approach is to sign up with several bookmakers and then pick the one you will use most.

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Documents You Need After Signing Up

Online gambling sites, including bookmakers, usually require identity verification (KYC) before your first withdrawal (crypto casinos, which deal only in cryptocurrency, may not require it).

Identity verification is the process in which you submit documents so that the bookmaker can confirm that the name, address and other details you entered when creating your account are correct. It is carried out to prevent misuse such as money laundering by criminal organizations and is required at many bookmakers. Whether verification is required, and when, varies by operator.

You will mainly need two documents: a photo ID, such as a passport, driver’s license or national ID card, and proof of address, such as a recent utility bill or bank statement. You may also be asked for proof of the payment method you used for deposits and withdrawals, such as a photo of your credit card or a screenshot of your bank account. Documents are submitted through an upload page on the site.

In many cases you can complete verification as soon as your account is created, so if you do not want to wait for your first withdrawal, it is a good idea to finish verification when you sign up.

Ways to Bet at a Bookmaker

1X2 / Moneyline

The basic bet on who will win, with no handicap or other adjustment. In sports with draws, such as soccer, it is usually offered as a three-way choice of home win, draw or away win (a 1X2 bet, also called a three-way moneyline). In sports without draws, such as tennis, it is usually offered as a two-way moneyline.

Handicap

A bet on which team will win after a handicap has been applied to one of the teams, similar to the point spread in US sports. The handicap can be applied to either team.

With a standard three-way handicap, if the result is a draw once the handicap is applied, the stake is not returned. With Asian handicap lines that use whole numbers, however, the stake is refunded (with quarter lines such as 0.25 or 0.75, half the stake may be refunded).

Over/Under (Totals)

A bet on whether the combined score of both teams will be higher (over) or lower (under) than a line set in advance. For example, an over 2.5 bet wins if the two teams score a combined 3 or more.

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Basic Bookmaker Terms

These are the basic terms worth learning first.

Odds

The multiplier used to calculate your payout when a bet wins. All odds in this article are decimal odds (European odds), which include the stake. For example, if you bet $10 at odds of 5.00 and win, you receive $10 × 5 = $50, including your stake. In the US, the same price is usually shown as American odds; for example, decimal odds of 5.00 are +400.

Cash Out

A feature, used mainly in live betting, that lets you settle a bet before the event ends, either to lock in a profit when the bet is going your way or to limit your loss when it is not.

Parlay

A parlay (also called an accumulator or multi) combines several bets into a single bet. If any one of the selections loses, the whole bet loses.

Fixed Odds

Odds that apply from the moment you place your bet, so later changes in the odds do not affect your payout. Bookmaker odds are fixed in this way.

Market

A general term for the types of bets a bookmaker offers. For a soccer match, for example, the markets include the match result, handicap and over/under.

Live Betting

Betting on a match that is already in progress, also called in-play betting. The odds change as the match unfolds.

Are Bookmakers Safe?

Some bettors worry that gambling online will expose them to fraud, but all of the bookmakers we cover on this site operate under licenses from national or regional regulators. Sports betting is legal only in some countries and, in the US, only in some states, so check the law where you live and the minimum age (18 or 21, depending on the jurisdiction) before you sign up.

Bookmakers Need a License to Operate

To operate as an online bookmaker, a company must obtain and maintain a license from a national or regional regulator. A license is a permit that authorizes the company to operate as a bookmaker under the rules set by that regulator.

Before a license is granted, the applicant is audited against strict standards, such as compliance with the relevant laws and having enough funds to cover payments to customers. A license is issued only once these standards are met.

A license is not held permanently once it has been granted. Licensees are audited on an ongoing basis, and a license can be revoked if a breach of the rules is found. A licensed bookmaker is therefore an operator that meets the issuing jurisdiction’s standards and is under its supervision.

Many Bookmakers Sponsor Sports Teams and Events

Many bookmakers are large businesses, and some of them sponsor sports teams.

For example, a crypto sportsbook became the shirt sponsor of a Premier League club in 2020, and a long-established British bookmaker has served as the official betting partner of another Premier League club. A company that operates publicly under its own name is easier to check, which is one sign that it is a genuine business.

What to Watch Out For When Using a Bookmaker

Bookmakers that offer sports betting operate under their terms and conditions. If a bettor breaks those terms, the bookmaker may confiscate bonuses or winnings, and in the worst case the account may be suspended or closed, so that the bettor can no longer use that bookmaker.

Check the Wagering Requirements and Minimum Odds When Using a Bonus

Some bookmakers offer a no-deposit bonus or a deposit bonus when you sign up, and bonuses may also be available through ongoing promotions.

Every bonus comes with its own terms. The details vary by bookmaker, but almost every bookmaker bonus sets a wagering requirement and minimum odds.

The wagering requirement is the total amount you must bet before a bonus can be converted to cash, that is, before it can be withdrawn. For example, if you receive a $100 deposit bonus with an 8x wagering requirement, you need to place $100 × 8 = $800 in total bets.

The minimum odds are the lowest odds a bet must have to count toward the wagering requirement. For example, if the minimum odds are 1.50, bets at odds below 1.50 do not count toward the wagering requirement (they are not added to your total bets).

There are many other conditions as well, so always read the full terms and conditions on the bookmaker’s official website.

Beware of Scams Selling Tools and Betting Systems

Interest in bookmakers rises with every major sporting event. Many people bet for the first time at these moments, and some scams target these beginners.

Some individuals and groups try to take your money with completely baseless methods, such as pitching a “guaranteed profit” betting system or selling a “tool that raises your expected value.”

Legitimate betting communities exist too. A group whose members simply share picks or report their own results is not a problem. Some organizations, however, use such communities as a front to take people’s money, so be careful.

This applies especially to communities that recruit on social media. Before joining, check whether they ask for a membership fee or for you to buy a product, whether they back up their claimed winning record, and whether the people running them can be identified.

Arbitrage Betting Is Prohibited at Many Bookmakers

Arbitrage betting (sure bets) is a technique that uses differences in odds between bookmakers to bet on more than one outcome of the same match. In theory, it avoids a loss whatever the result, but in practice many bookmakers prohibit it in their terms.

Suppose, for a simplified example that would not occur in practice, that two soccer teams, A and B, are playing. Bookmaker X offers odds of “A: 1.50, B: 2.50” and Bookmaker Y offers “A: 2.50, B: 1.50.” If you bet on B with Bookmaker X and on A with Bookmaker Y, in theory you would come out ahead whichever team wins.

This kind of arbitrage may look effective, but many bookmakers ban it in their terms and conditions. It is often detected through monitoring of odds and betting histories, and if it is discovered, it can lead to account restrictions or refused withdrawals. Avoid arbitrage betting.

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Summary: Payout Percentages Are High, but Betting at Random Still Loses to the Margin Over Time

Sports betting, in which you predict the results of sporting events held around the world, is a very popular form of gambling in Europe.

Online bookmakers in particular have a higher payout percentage than lotteries and pari-mutuel horse racing, and they let you bet on a wide range of sports, from major sports such as baseball and soccer to indoor sports and esports. Bookmakers still build a margin into their odds, however, so if you keep betting without any analysis, you will trend toward a loss over the long run.

Simply predicting which team will win is enjoyable enough on its own, so sports betting is easy to get into, even for bettors who mainly play casino games.