bookmaker

A bookmaker is an individual or organization that accepts bets on events with set odds and pays out winnings according to those odds. The bookmaker acts as the house, offering a book of bets and taking stakes from customers. The aim is to earn profit from the built-in margin or overround, which is the excess of the sum of the implied probabilities over 100 percent. Bookmakers adjust odds to balance liability across outcomes and to attract bets on less popular events.

Operations and products typically include fixed-odds betting on sports such as football, basketball, tennis, and motorsports, as well as horse racing and greyhound racing. In addition to traditional pre-event bets, many bookmakers offer in-play or live betting, where odds change as events unfold, and features such as early cash-out or enhanced odds. Some markets also include pool betting (parimutuel) or other bet types, where payouts depend on the size of the pool rather than fixed odds.

Regulation and licensing are central to the bookmaker industry. Licensed operators must comply with consumer protection rules, advertising standards, anti-money laundering measures, age verification, and responsible gambling requirements. Regulatory regimes vary by jurisdiction; prominent examples include licensing authorities in the United Kingdom, Malta, Gibraltar, and various European and international bodies.

Market structure often places traditional bookmakers in competition with betting exchanges, where customers bet against each other rather than against a house. Online bookmakers operate across national borders but are bound by local laws, licensing, and tax regimes. The term “bookmaker” is commonly used for the house offering bets, while the business model centers on managing risk, setting fair odds, and delivering a range of betting options to customers.