What Is a Bookmaker? How Bookies Work and Betting Rules in the UK

A bookmaker, or bookie, is a company that offers sports betting, which lets you bet on the results of real sporting events. In the UK, bookmakers and betting shops are part of everyday life. Many people enjoy following and supporting their favourite teams and players while they bet, and a growing number of online casinos now offer sports betting 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 football, tennis 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 pool betting on horse racing (such as the Tote).

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 on high streets across the UK 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 off-course betting shops have been legal in Great Britain since 1961, under the Betting and Gaming Act 1960.

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

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

William Hill is one of Britain’s best-known bookmakers. 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. 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 judgement than at an online casino.

Set a Budget Before You Bet

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, and it is easy to place more bets than you intended. Before you start, decide how much you can afford to lose, and treat that amount as the cost of your entertainment.

While you are still learning how odds and markets work, keep your stakes small. This lets you get used to betting without putting large amounts at risk, but keep in mind that the bookmaker’s margin applies to every bet.

If you lose, never chase your losses by betting more to win the money back. Stop when you reach the limit you set, and come back another day if you still want to bet.

Higher Payout Percentage Than Lotteries and Pool 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 (also called the overround), 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 pool betting on horse racing (in the UK, the Tote), 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 bettors face a built-in cost equal to the operator’s deduction.

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.

What they do allow is for a bettor who knows the Premier League well, for example, to look at the odds for its matches and judge whether a price looks like good value.

Most bookmakers can be used from a smartphone, and some also run betting shops, so bettors who know a particular sport well can easily put their knowledge to use.

Bet on Events Beyond Sports, Such as Elections

If you are interested in betting but do not watch many sports, specials (also called novelty 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 “Which party will win the next UK general election?” 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 football, horse racing and cricket, you can bet on individual sports such as boxing and tennis, indoor games such as snooker 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, letting you watch 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

Football

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

Horse racing

UK and Irish racing (where offered)

Tennis

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

Matches in baseball, 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 straight away. Before you register, check that the bookmaker is licensed by the Gambling Commission, which you can do on the Commission’s public register of licensed businesses.

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. Choose a bookmaker licensed by the Gambling Commission (you can check the public register), 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 bookmakers licensed by the Gambling Commission must verify your age and identity (KYC) before you can deposit or bet.

Identity verification is the process in which the bookmaker confirms that your name, address, date of birth 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. The bookmaker may also ask you for further documents later, for example before a withdrawal.

If you are asked for documents, you will mainly need two: a photo ID, such as a passport or driving licence, and proof of address, such as a recent utility bill or bank statement. You may also be asked for proof of your payment method, such as a photo of your debit card. Documents are submitted through an upload page on the site.

If a bookmaker requests documents, it is a good idea to upload them as soon as you can, so that you do not have to wait when you make your first withdrawal.

Ways to Bet at a Bookmaker

Match Result (1X2) / Match Winner

The basic bet on who will win, with no handicap. In sports with draws, such as football, it is usually offered as a three-way Match Result (1X2: home win, draw, away win). In sports without draws, such as tennis, it is usually a two-way Match Winner bet (called a moneyline in the US).

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 price that shows how much a winning bet pays. In the UK, odds are traditionally shown as fractions. At 5/1, a £10 bet wins £50 and returns £60 including your stake. The same price in decimal odds is 6.00 (£10 × 6.00 = £60). In the US, the same price is usually shown as American odds of +500.

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.

Accumulator (Acca)

An accumulator (acca, called a parlay in the US) combines several selections into one 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 football 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. A bookmaker that takes bets from people in Great Britain, online or in a betting shop, needs a licence from the Gambling Commission, which regulates gambling under the Gambling Act 2005. The minimum age for betting is 18. Northern Ireland has its own, separate gambling law.

You can check whether a bookmaker holds a licence on the Gambling Commission’s public register of licensed businesses. Bookmakers without a Gambling Commission licence are not regulated by the Commission, so the protections that come with a GB licence, such as dispute resolution and GAMSTOP self-exclusion, do not apply to them.

Bookmakers Need a Licence to Operate

To operate as a bookmaker, a company must obtain and maintain a licence from a regulator. In Great Britain, the licence comes from the Gambling Commission. 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 assessed 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 regulator’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.

One long-established British bookmaker, for instance, has been the official betting partner of a Premier League club. A company that operates openly under its own name is easier to research, which is one indication 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 bettor breaks those terms, the bookmaker may withhold winnings, and in the worst case the account may be suspended or closed, so that the bettor can no longer use that bookmaker.

Read the Terms Before You Bet

Every bookmaker sets 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. For example, they explain what happens to your bet if a match is abandoned or postponed, and when you may be asked to verify your identity.

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

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 football teams, A and B, are playing. Bookmaker X offers odds of “A: 1/2 (1.50), B: 6/4 (2.50)” and Bookmaker Y offers “A: 6/4 (2.50), B: 1/2 (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.

Whatever your approach, keep your betting under control. If you want to take a break from online betting, GAMSTOP is a free self-exclusion scheme that covers online gambling sites licensed in Great Britain. If gambling is becoming a problem for you or someone close to you, the National Gambling Helpline, run by GamCare, is free and open 24 hours a day on 0808 8020 133 for England, Scotland and Wales.

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 popular form of gambling in the UK, where bookmakers and betting shops are part of everyday life.

Online bookmakers in particular have a higher payout percentage than lotteries and pool betting on horse racing (such as the Tote), and they let you bet on a wide range of sports, from major sports such as football and horse racing to indoor sports and esports. Bookmakers still build a margin into their odds, however, so if you keep betting without any analysis, you will tend to lose 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.