What Is a Bookmaker? How Betting with Australian Bookies Works

A bookmaker is a company that offers sports betting, which lets you bet on the results of real sporting events. Sports betting is popular in Australia, where punters bet on racing and sport with licensed bookmakers and the TAB, partly because you can follow your favourite teams and players while you bet.

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 horse racing, AFL, NRL, soccer and other sporting events.
• The payout percentage (the share of all stakes paid back to punters) is generally put at about 90–98%, higher than that of lotteries and tote betting on 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, or bookie, is a company that takes bets on the results of sporting events, such as which team will win.

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 legalised.

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 legalised 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 legalised 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.

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 punters feel they can make better use of their own judgement than with games of pure chance.

Set a Budget Before You Bet

Sports betting is easy to start, so it is worth deciding how much you can afford to lose before you place your first bet. Treat this amount as the cost of your entertainment, not as money you expect to get back.

While you are still learning how odds and markets work, keep your stakes small. This lets you see how bets are settled without risking large amounts.

Never chase losses by betting more to win back money you have lost. Because the bookmaker’s margin applies to every bet, raising your stakes after a loss usually only makes the loss bigger.

Higher Payout Percentage Than Lotteries and Tote Betting on 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, 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 punters 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

At a bookmaker, the odds are fixed the moment you place your bet, which is why your own knowledge can inform your decisions.

In pari-mutuel betting, as used in horse racing (in Australia, the tote run by the TAB), the odds are not set when you place your bet. They become final only when betting closes. This system is designed so that the house is unlikely to lose money, and punters face a built-in cost equal to the operator’s commission.

Bookmakers, by contrast, use fixed odds (fixed-odds betting). The bookmaker sets the odds first, punters place their bets knowing those odds, and the odds are locked in the moment the bet is placed.

This means that a punter who knows the AFL well, for example, can look at the odds for its matches and judge whether a price looks like good value. Fixed odds do not in themselves give you an edge, however.

Most bookmakers can be used from a smartphone, so it is easy to check odds and place a bet before a match starts.

Bet on Events Beyond Sports, Such as Elections

If you are interested in betting but do not watch many sports, specials (also called novelty markets) 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 “Who will win the next season of a popular reality TV show?” to topics of wider public interest such as “Who will win the next Australian federal 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 AFL, NRL, cricket, soccer and basketball, you can bet on individual sports such as boxing and tennis, indoor sports such as ten-pin 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 part of the appeal of sports betting for many punters. 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 and the conditions for watching 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

AFL and NRL

AFL (Australian Football League) and NRL (National Rugby League) matches, where available

Soccer

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

Tennis

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

Baseball

MLB (Major League Baseball)

Horse racing and matches in cricket, basketball, American football, table tennis, rugby, 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. Before you sign up, make sure the bookmaker is licensed in an Australian state or territory.

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 registering usually takes about 10 minutes.

Online bookmakers licensed in Australia are often called corporate bookmakers. Choose a bookmaker licensed in an Australian state or territory (the ACMA publishes a register of licensed interactive wagering services that anyone can check), and compare the sports it covers, the betting markets it offers 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 wagering providers, including bookmakers, usually require identity verification (KYC).

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 organisations and is required at many bookmakers. The exact process and timing vary by operator.

You will mainly need two documents: a photo ID, such as a passport or driver’s licence, 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 debit card or a screenshot of your bank account. Documents are submitted through an upload page on the site.

Since 11 June 2024, online and phone wagering providers in Australia cannot accept credit cards, credit-related products or digital currencies (cryptocurrency) as payment for bets.

In many cases you can complete verification as soon as your account is created, so to avoid delays later, it is a good idea to finish verification when you sign up.

Ways to Bet at a Bookmaker

Head-to-Head (H2H) and Match Result (1X2)

The basic bet on who will win, with no line 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 (sometimes labelled 1X2). In sports without draws, such as tennis, it is usually offered as a two-way head-to-head (H2H) bet.

Line Betting

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

With a line bet that includes a draw option, if the result is a draw once the line is applied, bets on either team lose. 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 return when a bet wins. All odds in this article are decimal odds, the standard format in Australia, which include the stake. For example, if you bet A$10 at odds of 6.00 and win, you receive $10 × 6 = $60, including your stake, so your profit is $50.

Cash Out

A feature 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.

Multi

A multi combines several selections into a single bet. If any one of the selections loses, the whole bet loses. The same bet is called a parlay in the US or an accumulator in the UK. A same game multi combines several selections from one match.

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, line 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. In Australia, in-play betting on sport cannot be offered online; it is allowed by phone call or in person at a venue.

Are Bookmakers Safe?

Some punters worry that betting online will expose them to fraud. A bookmaker that takes bets online from people in Australia must be licensed in an Australian state or territory, and you can check whether a provider is licensed on the register of licensed interactive wagering services published by the ACMA. The minimum age for gambling in Australia is 18. Sites without an Australian licence are not covered by Australian protections such as BetStop.

Bookmakers Need a Licence to Operate

To operate as an online bookmaker, a company must obtain and maintain a licence from a regulator. In Australia, online bookmakers are licensed in a state or territory. A licence is a permit that authorises the company to operate as a bookmaker under the rules set by that regulator.

Before a licence 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 licence is issued only once these standards are met.

A licence is not held permanently once it has been granted. Licensees are audited on an ongoing basis, and a licence 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 and events.

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 operate under their own terms and conditions. If a punter breaks those terms, the bookmaker may void bets or withhold winnings, and in the worst case the account may be suspended or closed, so that the punter can no longer use that bookmaker.

Read the Terms Before You Bet

Every bookmaker has its own terms and conditions, and the details vary from one bookmaker to another.

The terms cover things such as maximum winnings, how void bets and cash out are settled, and account verification. Knowing these rules in advance helps you avoid surprises when a bet is settled or when you ask for a withdrawal.

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 tips or report their own results is not a problem. Some organisations, 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.

If you want to take a break from betting, BetStop, the National Self-Exclusion Register, lets you exclude yourself from all licensed Australian online and phone wagering providers in one step. The National Gambling Helpline on 1800 858 858 is free, confidential and open 24 hours a day, 7 days a week.

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

Sports betting lets you predict the results of sporting events held around the world, and betting with licensed bookmakers is popular in Australia, especially on horse racing, AFL and NRL.

Online bookmakers in particular have a higher payout percentage than lotteries and tote betting on horse racing, and they let you bet on a wide range of sports, from major sports such as AFL, NRL 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 towards a loss over the long run.

Predicting which team will win is simple enough that sports betting is easy to understand, even for people who are new to betting.