The Role and Dynamic World of Bookies
A bookie—short for bookmaker—is a key player in the world of sports betting. Bookies facilitate gambling by setting odds, accepting and placing bets, and paying out winnings on behalf of their customers. But their role goes beyond these basic functions and is embedded in a complex and legally intricate world.
Key Takeaways
- The term ‘bookie’ is slang for ‘bookmaker.’
- Bookies are responsible for setting odds, accepting bets for customers, and managing payouts, usually around sports events.
- The primary objective of a bookie is to maintain balanced demand by adjusting odds to have an even distribution of bets placed on different outcomes.
Understanding Bookies
Bookies generally do not profit from betting themselves; instead, they earn through a transaction fee known as the ‘vigorish’ or ‘vig.’ They might also extend credit to bettors. A bookie could be an individual or an entity like a larger company.
Although traditionally linked with illegality, being a bookmaker has gained legitimacy with the progressive legalization of sports betting. However, the permissibility of different types of gambling still varies by state. The landmark ^2018 Supreme Court ruling^ allowed states the option to legalize sports betting, making it a lucrative enterprise without the associated legal jeopardy.
A Brief History of Bookies and Sports Betting
Throughout much of the 20th century, sports betting was predominantly legal only in Nevada, creating a robust black market elsewhere. Bookies either operated illegally within organized crime rings or provided betting opportunities to friends and family in a less structured environment. However, the 2018 Supreme Court ruling invalidated the Professional and Amateur Sports Protection Act, lifting the federal ban on state-regulated sports betting and instigating a rapid expansion.
Since that decision, the volume of legal sports betting has surged, setting revenue records with combined gambling revenues including iGaming reaching $52.99 billion in 2021.
How Bookies Set the Odds
Bookies employ complex systems and often seek help from statistical experts to calculate odds. These odds, represented as ’lines’ or ‘money lines’ and ‘spreads,’ are critical for balancing their books. The objective is always a balanced book, ensuring an even amount of betting on either side of a contest to mitigate risk.
A bookie’s strategy might include adjusting odds based on bettor behavior, game-day events, or other unforeseen factors such as injuries or bad weather, always aiming to manage risk to assure earnings.
Legal Landscape and Risks of Being a Bookie
While legal in many states, sports betting remains entirely unlawful in some. Thus, legality for bookies is location-dependent, with 33 states having thus far legalized it post-2018. However, it remains essential for bookies to operate within legal frameworks to avoid penalties.
Revenue and Earnings: How Bookies Make Money
Bookies earn through charging a commission or vig on bets. Typically, this fee hovers around 10% but can be higher for prominent events like the Super Bowl. Successful bookmaking hinges on achieving a balance where income exceeds payouts.
Potential Profits and The Bottom Line
Legalizations have opened new legitimate revenue streams in sports betting. Industries, from seasoned casinos to family-themed enterprises like Walt Disney, have entered the sector, suggesting vast growth potential. Yet, prospective bookies should assess the financial requirements and emotional resilience needed, recognizing that gambling frequently results in loss.
Nonetheless, formerly operating in the shadows, the profession of the bookmaker has now positioned itself as legally and commercially viable, benefiting from recent legislative shifts.
If you or someone you know struggles with gambling, contact the National Problem Gambling Helpline at 1-800-522-4700 or chat with a specialist.
Related Terms: odds, spreads, money lines, vigorish, legal sports betting, black market.
References
- Legal Information Institute. “Gambling”.
- Supreme Court of the United States. “Murphy, Governor of New Jersey, et al. v. National Collegiate Athletic Assn. et al.”, Pages 30-31.
- University of Nevada, Las Vegas, William S. Boyd School of Law. “The Professional and Amateur Sports Protection Act (PASPA): A Bad Bet for the States”, Pages 281-282, 288.
- Wisconsin Legislated Reference Bureau. “States Are Placing Bets on Sports Betting: Will it Pay Off?” Page 1.
- American Gaming Association. “Interactive Map: Sports Betting in the U.S.”
- American Gaming Association. “AGA Commercial Gaming Revenue Tracker”.
- Forbes. “U.S. Gambling Revenue to Break $44 Billion Record in 2021”.
- American Gaming Association. “97% of Expected $10 Billion Wagered on March Madness to Be Bet Illegally”.
- BossAction. “How to Be a Bookie?”
