Bookmakers
Or legalised bandits...
Bookmaking was legalised in the UK in 1961 and the number of
shops reached 15,000 but has since dropped to around 8,000. By
adjusting the odds in their favour the bookmaker will aim to
guarantee a profit by achieving a balanced book.
When large bets come in a bookmaker can also try to lay off
the risk by buying bets from other bookmakers. Most bookmakers
do not generally attempt to make money from the bets themselves
but profit from the event regardless of the outcome.
There are two main types of bookmakers, on course and off
course. On course bookmakers are usually small bookmakers and
take bets for the meeting they are attending, though some
concentrate on the away meetings.
Off course bookmakers are dominated by the big three
Ladbrokes, William Hill and Coral. Another form is the betting
exchanges, although technically not a bookmaker they have become
popular over the last few years.
Betting exchanges allow the individual to place bets on
horses to win or lose. So by using the exchanges the individual
can effectively become a bookmaker for the day.