Bookmaking

A bookmaker, bookie, or turf accountant is an organization that, or a person who, takes bets on sporting and other events at agreed-upon odds.

Bookmakers in the United Kingdom focus betting on professional sports, especially horse racing and association football however, a wider range of bets, including on political elections, awards ceremonies such as The Oscars, and novelty bets can also be placed.

By adjusting the odds in their favour or by having a point spread, bookmakers will aim to guarantee a profit by achieving a 'balanced book', either by getting an equal number of bets for each outcome or (when they are offering odds) by getting the amounts wagered on each outcome to reflect the odds. When a large bet comes in, a bookmaker may also try to lay off the risk by buying bets from other bookmakers. Bookmakers do not generally attempt to make money from the bets themselves but rather by acting as market makers and profiting from the event regardless of the outcome. Their working methods are similar to that of an actuary, who does a similar balancing of financial outcomes of events for the assurance and insurance industries.

Depending on jurisdiction, bookmaking may be legal or illegal, and is often regulated. In the United Kingdom, since 1 May 1961, bookmaking has been legal and even has been a small contributor to the British economy, with a recent explosion of interest with regard to the international gaming sector industry. However, gambling debts were unenforceable under English law until the Gambling Act 2005. Many bookmakers are members of IBAS, an industry organisation used to settle disputes.

Bookmaking is generally illegal in the United States, with Nevada being a notable exception due to the influence of Las Vegas.

In some countries, such as Singapore, Sweden, Canada, and Japan, the only legal bookmaker is owned and operated by the state. In Canada, this is part of the lottery program and is known as Sport Select.

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