Bookmakers

Bookmakers, or bookies, are individuals or organizations that accept and pay out bets on events, most commonly sports, at agreed-upon odds. They set the odds and manage risk to achieve profit over time by balancing liabilities across possible outcomes. Bets may be placed in physical shops or online through licensed platforms, with online bookmakers now dominant in many markets. They offer a range of markets, including pre-match and in-play betting, various stake levels, and different odds formats such as decimal, fractional, and American. Many bookmakers also provide features like cash-out, allowing bettors to settle or modify bets before an event’s conclusion.

Regulation and licensing: Bookmakers typically operate under licenses from national or regional gambling authorities and must comply with consumer protection, advertising standards, anti-money laundering, and responsible gambling requirements. Age verification and player protection measures are common.

Business model: Revenue comes from the built-in margin or overround embedded in odds, which ensures profit regardless of outcome over time. Balancing the book and managing exposure to high-liability markets is central to risk management. Promotions, bonuses, and loyalty schemes are frequently used to attract customers. In some markets, bookmakers operate alongside betting exchanges where customers bet against each other rather than against the house.

Impact and concerns: The industry is subject to debates on problem gambling, advertising, taxation, and competition. Regulators increasingly emphasize responsible gambling controls and clear disclosure of terms.