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Having a bet is a pastime for many in Britain and abroad and most of us couldn’t imagine a time when we were unable to gamble freely. We take it for granted that we will be able to wager on pretty much any event or market from around the world and the huge competition in high street and online bookmaking means we also expect good prices and prompt payouts from our bookies when we do bet.
For most of recorded history however having a bet was fraught with difficulty and uncertainty. Before the Victorian era wagers were simply placed between men under a gentleman’s agreement and this was usually a straight up bet with no odds, there was also not much you could do if someone ran off with your stake and/or winnings.
Things didn’t get much easier in the 1800’s. Early bookmakers were often illegal and those that were legal were tightly regulated and only allowed to practice at licensed tracks and courses. It was the 1960’s that saw the biggest change in bookmaking as off course gambling was legalised resulting in the rise of the betting shop, and subsequently when the internet was invented, online gambling.
In this article I talk about the early days of bookmaking, the first bookies, changes in the law and the way we bet, the rise of online bookmakers and the future of online betting.
The Gambling Commission has today announced new rules which online operators must follow to make gambling safer and fairer. The new rules, which follow an open consultation, will ensure operators verify customers’ age and identity details faster which will benefit consumers. Cookie Casino is a fresh new online casino that launched in April 2020 ready to bring you When Was Gambling Made Legal In The Uk all kinds of gaming treats including over 2000 games and low wager free spins bonuses! Fancy 220 Free Spins and €/$200 Bonus? The Cookie Casino welcome bonus is available to new customers only.The First Bookmaker
Betting is older than written history itself, people have been taking bets on anything they can think of since before money was even invented.
Most early wagers were crude, often with just two possible outcomes. One would bet on one side to win, such as the Roundheads to win the English civil war, and the other would bet on the alternative outcome, the Cavaliers to win.
Odds were rarely used and most wagers were effectively taken at ’evens’. This is fine if you are predicting an evenly matched event but in life we know things are rarely even. This could be even worse if you were betting on a horse as quite often the bet choice was ’Horse X to win’ vs ’Horse X not to win’, hardly an even bet (in most cases).
Bookmakers on the other hand are people who lay actual odds creating a ’book’ encompassing multiple scenarios or results, which, if balanced, will always ensure a profit. With this new type of business, rather than two people pitting their wits against each other over one possible outcome, a bookmaker will take multiple bets for several outcomes from different sources. If they have their prices right then this should always ensure a profit.Harry Ogden
Back in the 1700’s the new sport of horse racing was really beginning to take off among the upper and middle classes in Britain.
The Lancastrian, Harry Ogden, set up a pitch on Newmarket heath close to Britain’s oldest and most famous racecourse in the 1790’s. He was close enough to the course that he and his punters could see the racing but far enough away that he didn’t get hassled from the owners of the course.
Rather than pricing all horse the same Harry realised that as some horses were better than others they will have different chances of winning, therefore he set different prices across the field. This gave punters a choice, for the first time they could bet tactically deciding whether to go for more security by backing the favourite, but with low returns, or taking more of punt on an outsider, less likely to win but will pay out more if it does.
The clever thing that Harry Ogden did however was to build in a profit margin into his book. On balance the odds he set never quite reflected the real chances of the result, for example, a 10/1 horse priced by Ogden may have an actual chance of winning more like a 12/1. The art of bookmaking was born and gambling has never been the same since.
Of course it is likely there were others doing similar things around the same time, however it is Harry Ogden who was recorded in the annals of history.History of British Gambling LawsEarly Gambling Law
In the very earliest days it was the Bible that was used to discourage people from betting, cited as a sin, having a punt could easily land you a spot in hell.
Of course this didn’t really work and having a bet among friends became common place in European culture. In 1190 The King of England (Richard I) and France (Phillip) created the first known gambling law. This outlined who would or would not be allowed to gamble and for how much, of course they excluded themselves. The punishment involved a good whipping and a fine paid to the church.
The rise of the sport of horse racing in the 1600’s onward increased betting and gaming as leisure activity, gambling was also spreading to sports such as cricket and pub games. Gaming Acts resulted in 1739 and 1745 banning wagers on a wide range of pub games, including roulette and darts. This had little effect on those who played behind closed doors however – such as the majority of the aristocracy.
Like many aspects of British culture early gaming and gambling laws were brought in to control the working classes. By the 1800’s however gambling had become rife in all classes of society requiring a more stringent set of laws.Early Bookmakers
There were three big problems with the rise of independent bookies like Harry Ogden in the early 1800’s.
The first issue was a lack of regulation. There were no specific laws to ensure that bookmakers paid out correctly (or even at all) and conversely, unprotected away from the course, bookies were often lynched by sore losers and other unscrupulous agents. Most bets therefore were placed with a written contract and this meant courts were becoming clogged up with debt settling cases. The government now took the view that if you were stupid enough to bet, or lay odds, you shouldn’t receive legal protections.
Secondly the government of the day did not much like the fact that all this gambling was going on tax free, like most pleasures in in life they are only acceptable if you can tax it (e.g. smoking).
Finally this was the Victoria era and gambling was a heathen pursuit, an ungodly practice that poisoned the soul. Like most other ’fun’ things the Victorians wanted to have full control of all public vices.Gaming Act 1845
In response to the opinion that gambling was having damaging social effects in the 19th century a House of Lords select committee was formed. The committee set out a series of recommendations that resulted in the first piece of legislation brought in by parliament in England to help control gambling was the 1845 Gaming Act.
The act did not make betting illegal but rather sought to discourage the practice by making all wagers unenforceable as a legal contract. This meant bookmakers, or bettors, could run off with the money and the law would offer you no legal protections.
The Act was set up this way to give police more powers over the working classes while still allowing gambling to take place amongst the upper classes and elite. How very British to have a law that applies differently based on your class!
Parts of the 1845 Act remained in place right up until 2007. Namely sections 17 and 18 which made cheating illegal, punishable by two years in jail and a £200 fine (a huge amount back then), and any gambling contracts void in the eyes of the law.
If caught accepting bets you now could be imprisoned and so few bookies now risked the exposure of the racetrack. Whether the Gaming Act did much to stop illicit gambling away from racetracks is unlikely, many carried on regardless as if the Act didn’t exist in various betting houses and dens.1853 Betting Act
The 1845 Act didn’t make betting illegal and so what ensued was a huge expansion of betting houses. According to Charles Dickens a house had ’sprung up on every street’.
The 1853 Betting Act was therefore brought in making it illegal to use or keep any property for the purposes of betting or gaming.
In combination with the 1845 Act this effectively outlawed off track betting. In reality the result was a huge increase in on-street gambling instead.Legalisation Of On Track Betting
What the Gaming and Betting Acts of 1845 and 1853 did do for sure is help create the Britain’s love of a day out at the horse racing. The Acts allowed restricted forms of gambling at designated race tracks and I doubt the government could have predicted how popular this would be with the public.
New Victorian social reforms, such as paid holiday for workers for the first time, a growing middle class and new forms of advertisement coupled with the new technological advance of the railway saw attendances grow sharply. New race courses opened all over the country in response to this demand and special excursion trains were put on to allow all classes of people to attend the new meetings.
This is one reason why today Britain plays host to some of the oldest and most famous courses (Newmarket, Epsom, Cheltenham, etc.,) and races (St Leger, Guineas, Gold Cup, Derby, Oaks, etc., ), all of which attained a large part of their prestige at this time.Greyhound Racing – Working Class Gambling
Having licenced gambling at race courses was all well and good and maybe for one week each year working families could travel to one for a day out. For the most part however having a bet was largely restricted to those who could afford to attend races or send agents on their behalf to place bets.
Brought over from America, Greyhound racing took off in the UK in the 1920’s with the first characteristic oval track opening at Belle Vue in Manchester in 1926. Most greyhound tracks were within inner cities and driven by increasing living standards and worker affluence they flourished at this time.
Dog racing offered a way for working class people to have a bet on their own doorsteps. Most meetings were scheduled in the evening to allow workers to attend after work.
The great depression in the 1930’s had little effect on the rise of the sport and the Tote (see later) began operating at track. Following the end of WWII attendances spiked with reportedly over 30 million people attending course in 1946, that’s more than the whole population of Britain at the time.
The gaming act in 1960 in combination with the rise of other sports and games and television saw greyhound racing decline from over 100 tracks to now around 20. Read more about the demise of greyhound racing in our article.The Football Pools
It was difficult to bet legally on anything other than horse or greyhound racing in the middle decades of the 20th Century. Many in the aristocracy had ’places’ they could go and play various games or bet for money without interference but for those in the working class there was not much facility.
When the football pools came along in 1923, founded by John Moores Littlewoods in Liverpool, it offered working class men a means to have a punt on the football that was full of fun but cost very little. A national obsession was born. The game escaped the gambling laws of the time as it was cited as a game of skill rather than chance, the low stakes nature of the game and popularity amongst workers helped it to survive. The government did tax it well though, 40% for most of its existence.
Various companies started a football pool but the two most famous were Littlewoods and Vernons and they distributed coupons outside major football games and factories. The lure of the game was the ability to win potentially tens of thousands of pounds for fraction of a penny for each line.
The football pools remained the most popular weekly ’betting’ coupon up until 1994 when it was eventually superseded by the National Lottery in the hearts of the nation. You can however still play the pools online if you like.The 1960 Betting and Gaming Act
The biggest change in the history of Gambling in the United Kingdom came in 1961 when Harold McMillian’s government legalised betting shops under the 1960 Betting and Gaming Act. This was an unusual move for a conservative politician but it ultimately reflected the times.
The early 1960’s was a time for change, people demanded more freedom to do what they wanted, and placing a bet changed overnight from something you did at licenced tracks and in seedy back alleys to a national institution.
I won’t cover the act itself in much detail, if you would like to read more about this see our article on Gambling Licences and Law.Lifting Restrictions
Over the next 40 years gambling law became more and more relaxed as restrictions were progressively listed. For example, it was only in the early 1990’s that the trebles rule was lifted on football betting. This stipulated all football bets must be multiple bets with 3 or more selections up to this point.Changing Tax Law
Until 2001 all bets placed in the UK carried a betting levy, this was a 9p in the pound tax that could be paid either on your stake or on your winnings. By the mid 1990’s many traditional British bookmakers were begging to move abroad to avoid the betting levy. Victor Chandler (now BetVictor) famously moved to Antigua in the late 1990’s allowing them to run a tax free book for eastern clients.
Fearing an exodus abroad Gordon Brown (then chancellor) issued a review of gambling, chaired by an old teacher of mine, Sir Alan Budd. The review resulted in a new law that instead taxed bookies 15% on their gross profits. For the first time punters could gamble tax free – although in reality punters were still paying this tax as bookies increased their odds margins to compensate.
In the internet age many bookies could get around this tax by basing their online operations abroad, this is why you see so many betting sites based in Gibraltar or Malta. In 2014 the law therefore changed again to a point of consumption tax. This now meant if you took bets from the UK you had to pay the tax, win, win for the government. This was enforceable under the new Gambling License (see next).
See our article for more about gambling and betting tax for more.2005 Gambling Act and the Gambling Commission
The same 2001 review that resulted in changes to the tax laws around gambling also recommended that all gambling legislation should be streamlined into a single Act with a regulator to be set up to enforce it. This resulted in the 2005 Gambling Act and the new regulator, the Gambling Commission.
Before the 2005 act anyone could set up a website anywhere in the world and take bets from UK customers. Not only did this not result in any tax for the government it also meant punters had little protection from crime and fraud.
The 2005 Act was principally focused around creating an open and honest industry where vulnerable people were protected and fraud minimised. The new act also oversaw the new National Lottery (as well as other lotteries) to ensure maximum proceeds were given to good causes.
All bookmakers and betting sites were now required to possess a Gambling Commission licence in order act as a bookmaker in the UK, no matter where they are based. This act still applies today, to gamble safely in Britain you should only bet with licensed operators. To find out more about the 2005 Act and the Gambling commission read our licencing article.2014 Gambling Bill
An amendment to the 2005 Gambling Act was brought in in 2014. This effectively closed loopholes that allowed companies based abroad to advertise in the UK without a gambling licence. It also changed the tax arrangements to ensure all operators must pay tax on UK profits irrespective of their location.
Much of the legislation today focuses around protecting vulnerable people, such as under 18’s, from gambling. Massive fines are now levied to companies who fail to promote responsible gambling in particular.
As the world of betting progressively moves online it is becoming harder for law makers to ensure they can police the whole landscape. Saying that the UK in general is ahead of the curve on its gambling laws and better positioned than most countries moving forward.Ladbrokes - Oldest Bookmaker Still Around Today
The oldest bookmaker that still exists today is Ladbrokes, I think they can claim the crown of the oldest bookmaker in the world as well as in the UK.
Back in 1886 two gentlemen known as Schwind and Pennington went into partnership together acting as commission agents for horses trained at Ladbroke Hall in Worcestershire. Pennington was the trainer Schwind the agent, Schwind’s job as commission agent was to back the horses trained by Pennington.
In 1902 the pair were joined by Arthur Bendir who founded the Ladbrokes name, based on the Ladbroke Hall sign. Some say the same was a pun on the words ’broke lads’ although this seems to have been thought up afterwards.
Bendir changed the business model of the company from just backing horses trained at Ladbroke Hall by also betting against other horses. This model made the company both punter and bookmaker.
The new bookmaker achieved almost instant success and quickly moved to the Strand in London, upgrading to Hanover Square in 1906 and as a sign of their success ended up in Mayfair in 1913.
From their Mayfair location Ladbrokes established themselves as an exclusive bookmaker for high class clients and aristocrats. This model worked well until the outbreak of WWII, following the war facing a dwindling list of clients and an outdated business model the company was eventually sold in 1956 to Mark Stein and his nephew Cyril for just £100,000.
Five years later off-course betting was legalised in the UK and Ladbrokes opened some of the first betting shops. The company were embraced the new times and were innovators, they were the first to introduce the fixed odds football coupon for example. By 1966 the company floated for £1,000,000, ten times what the Stein family bought the company for.
Ladbrokes have never looked back and having merged with Coral in 2016 are now the biggest betting and gaming brand in Britain and one of the biggest in the world. In 2015 the company revenue approached nearly £2 billion and they now employ over 15,000 people and still maintain 400+ shops (including Coral shops). It goes to show there is a lot of money in modern bookmaking.The Totalisator Board – The Tote
Until the legalisation of off course gambling nearly all official wagers were placed at the racecourse on horse or greyhound racing. Following the 1845 and 1853 gaming and betting acts the government were now able to monitor and even tax this form legal betting from on-course bookmakers.
In 1928 the government w
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Having a bet is a pastime for many in Britain and abroad and most of us couldn’t imagine a time when we were unable to gamble freely. We take it for granted that we will be able to wager on pretty much any event or market from around the world and the huge competition in high street and online bookmaking means we also expect good prices and prompt payouts from our bookies when we do bet.
For most of recorded history however having a bet was fraught with difficulty and uncertainty. Before the Victorian era wagers were simply placed between men under a gentleman’s agreement and this was usually a straight up bet with no odds, there was also not much you could do if someone ran off with your stake and/or winnings.
Things didn’t get much easier in the 1800’s. Early bookmakers were often illegal and those that were legal were tightly regulated and only allowed to practice at licensed tracks and courses. It was the 1960’s that saw the biggest change in bookmaking as off course gambling was legalised resulting in the rise of the betting shop, and subsequently when the internet was invented, online gambling.
In this article I talk about the early days of bookmaking, the first bookies, changes in the law and the way we bet, the rise of online bookmakers and the future of online betting.
The Gambling Commission has today announced new rules which online operators must follow to make gambling safer and fairer. The new rules, which follow an open consultation, will ensure operators verify customers’ age and identity details faster which will benefit consumers. Cookie Casino is a fresh new online casino that launched in April 2020 ready to bring you When Was Gambling Made Legal In The Uk all kinds of gaming treats including over 2000 games and low wager free spins bonuses! Fancy 220 Free Spins and €/$200 Bonus? The Cookie Casino welcome bonus is available to new customers only.The First Bookmaker
Betting is older than written history itself, people have been taking bets on anything they can think of since before money was even invented.
Most early wagers were crude, often with just two possible outcomes. One would bet on one side to win, such as the Roundheads to win the English civil war, and the other would bet on the alternative outcome, the Cavaliers to win.
Odds were rarely used and most wagers were effectively taken at ’evens’. This is fine if you are predicting an evenly matched event but in life we know things are rarely even. This could be even worse if you were betting on a horse as quite often the bet choice was ’Horse X to win’ vs ’Horse X not to win’, hardly an even bet (in most cases).
Bookmakers on the other hand are people who lay actual odds creating a ’book’ encompassing multiple scenarios or results, which, if balanced, will always ensure a profit. With this new type of business, rather than two people pitting their wits against each other over one possible outcome, a bookmaker will take multiple bets for several outcomes from different sources. If they have their prices right then this should always ensure a profit.Harry Ogden
Back in the 1700’s the new sport of horse racing was really beginning to take off among the upper and middle classes in Britain.
The Lancastrian, Harry Ogden, set up a pitch on Newmarket heath close to Britain’s oldest and most famous racecourse in the 1790’s. He was close enough to the course that he and his punters could see the racing but far enough away that he didn’t get hassled from the owners of the course.
Rather than pricing all horse the same Harry realised that as some horses were better than others they will have different chances of winning, therefore he set different prices across the field. This gave punters a choice, for the first time they could bet tactically deciding whether to go for more security by backing the favourite, but with low returns, or taking more of punt on an outsider, less likely to win but will pay out more if it does.
The clever thing that Harry Ogden did however was to build in a profit margin into his book. On balance the odds he set never quite reflected the real chances of the result, for example, a 10/1 horse priced by Ogden may have an actual chance of winning more like a 12/1. The art of bookmaking was born and gambling has never been the same since.
Of course it is likely there were others doing similar things around the same time, however it is Harry Ogden who was recorded in the annals of history.History of British Gambling LawsEarly Gambling Law
In the very earliest days it was the Bible that was used to discourage people from betting, cited as a sin, having a punt could easily land you a spot in hell.
Of course this didn’t really work and having a bet among friends became common place in European culture. In 1190 The King of England (Richard I) and France (Phillip) created the first known gambling law. This outlined who would or would not be allowed to gamble and for how much, of course they excluded themselves. The punishment involved a good whipping and a fine paid to the church.
The rise of the sport of horse racing in the 1600’s onward increased betting and gaming as leisure activity, gambling was also spreading to sports such as cricket and pub games. Gaming Acts resulted in 1739 and 1745 banning wagers on a wide range of pub games, including roulette and darts. This had little effect on those who played behind closed doors however – such as the majority of the aristocracy.
Like many aspects of British culture early gaming and gambling laws were brought in to control the working classes. By the 1800’s however gambling had become rife in all classes of society requiring a more stringent set of laws.Early Bookmakers
There were three big problems with the rise of independent bookies like Harry Ogden in the early 1800’s.
The first issue was a lack of regulation. There were no specific laws to ensure that bookmakers paid out correctly (or even at all) and conversely, unprotected away from the course, bookies were often lynched by sore losers and other unscrupulous agents. Most bets therefore were placed with a written contract and this meant courts were becoming clogged up with debt settling cases. The government now took the view that if you were stupid enough to bet, or lay odds, you shouldn’t receive legal protections.
Secondly the government of the day did not much like the fact that all this gambling was going on tax free, like most pleasures in in life they are only acceptable if you can tax it (e.g. smoking).
Finally this was the Victoria era and gambling was a heathen pursuit, an ungodly practice that poisoned the soul. Like most other ’fun’ things the Victorians wanted to have full control of all public vices.Gaming Act 1845
In response to the opinion that gambling was having damaging social effects in the 19th century a House of Lords select committee was formed. The committee set out a series of recommendations that resulted in the first piece of legislation brought in by parliament in England to help control gambling was the 1845 Gaming Act.
The act did not make betting illegal but rather sought to discourage the practice by making all wagers unenforceable as a legal contract. This meant bookmakers, or bettors, could run off with the money and the law would offer you no legal protections.
The Act was set up this way to give police more powers over the working classes while still allowing gambling to take place amongst the upper classes and elite. How very British to have a law that applies differently based on your class!
Parts of the 1845 Act remained in place right up until 2007. Namely sections 17 and 18 which made cheating illegal, punishable by two years in jail and a £200 fine (a huge amount back then), and any gambling contracts void in the eyes of the law.
If caught accepting bets you now could be imprisoned and so few bookies now risked the exposure of the racetrack. Whether the Gaming Act did much to stop illicit gambling away from racetracks is unlikely, many carried on regardless as if the Act didn’t exist in various betting houses and dens.1853 Betting Act
The 1845 Act didn’t make betting illegal and so what ensued was a huge expansion of betting houses. According to Charles Dickens a house had ’sprung up on every street’.
The 1853 Betting Act was therefore brought in making it illegal to use or keep any property for the purposes of betting or gaming.
In combination with the 1845 Act this effectively outlawed off track betting. In reality the result was a huge increase in on-street gambling instead.Legalisation Of On Track Betting
What the Gaming and Betting Acts of 1845 and 1853 did do for sure is help create the Britain’s love of a day out at the horse racing. The Acts allowed restricted forms of gambling at designated race tracks and I doubt the government could have predicted how popular this would be with the public.
New Victorian social reforms, such as paid holiday for workers for the first time, a growing middle class and new forms of advertisement coupled with the new technological advance of the railway saw attendances grow sharply. New race courses opened all over the country in response to this demand and special excursion trains were put on to allow all classes of people to attend the new meetings.
This is one reason why today Britain plays host to some of the oldest and most famous courses (Newmarket, Epsom, Cheltenham, etc.,) and races (St Leger, Guineas, Gold Cup, Derby, Oaks, etc., ), all of which attained a large part of their prestige at this time.Greyhound Racing – Working Class Gambling
Having licenced gambling at race courses was all well and good and maybe for one week each year working families could travel to one for a day out. For the most part however having a bet was largely restricted to those who could afford to attend races or send agents on their behalf to place bets.
Brought over from America, Greyhound racing took off in the UK in the 1920’s with the first characteristic oval track opening at Belle Vue in Manchester in 1926. Most greyhound tracks were within inner cities and driven by increasing living standards and worker affluence they flourished at this time.
Dog racing offered a way for working class people to have a bet on their own doorsteps. Most meetings were scheduled in the evening to allow workers to attend after work.
The great depression in the 1930’s had little effect on the rise of the sport and the Tote (see later) began operating at track. Following the end of WWII attendances spiked with reportedly over 30 million people attending course in 1946, that’s more than the whole population of Britain at the time.
The gaming act in 1960 in combination with the rise of other sports and games and television saw greyhound racing decline from over 100 tracks to now around 20. Read more about the demise of greyhound racing in our article.The Football Pools
It was difficult to bet legally on anything other than horse or greyhound racing in the middle decades of the 20th Century. Many in the aristocracy had ’places’ they could go and play various games or bet for money without interference but for those in the working class there was not much facility.
When the football pools came along in 1923, founded by John Moores Littlewoods in Liverpool, it offered working class men a means to have a punt on the football that was full of fun but cost very little. A national obsession was born. The game escaped the gambling laws of the time as it was cited as a game of skill rather than chance, the low stakes nature of the game and popularity amongst workers helped it to survive. The government did tax it well though, 40% for most of its existence.
Various companies started a football pool but the two most famous were Littlewoods and Vernons and they distributed coupons outside major football games and factories. The lure of the game was the ability to win potentially tens of thousands of pounds for fraction of a penny for each line.
The football pools remained the most popular weekly ’betting’ coupon up until 1994 when it was eventually superseded by the National Lottery in the hearts of the nation. You can however still play the pools online if you like.The 1960 Betting and Gaming Act
The biggest change in the history of Gambling in the United Kingdom came in 1961 when Harold McMillian’s government legalised betting shops under the 1960 Betting and Gaming Act. This was an unusual move for a conservative politician but it ultimately reflected the times.
The early 1960’s was a time for change, people demanded more freedom to do what they wanted, and placing a bet changed overnight from something you did at licenced tracks and in seedy back alleys to a national institution.
I won’t cover the act itself in much detail, if you would like to read more about this see our article on Gambling Licences and Law.Lifting Restrictions
Over the next 40 years gambling law became more and more relaxed as restrictions were progressively listed. For example, it was only in the early 1990’s that the trebles rule was lifted on football betting. This stipulated all football bets must be multiple bets with 3 or more selections up to this point.Changing Tax Law
Until 2001 all bets placed in the UK carried a betting levy, this was a 9p in the pound tax that could be paid either on your stake or on your winnings. By the mid 1990’s many traditional British bookmakers were begging to move abroad to avoid the betting levy. Victor Chandler (now BetVictor) famously moved to Antigua in the late 1990’s allowing them to run a tax free book for eastern clients.
Fearing an exodus abroad Gordon Brown (then chancellor) issued a review of gambling, chaired by an old teacher of mine, Sir Alan Budd. The review resulted in a new law that instead taxed bookies 15% on their gross profits. For the first time punters could gamble tax free – although in reality punters were still paying this tax as bookies increased their odds margins to compensate.
In the internet age many bookies could get around this tax by basing their online operations abroad, this is why you see so many betting sites based in Gibraltar or Malta. In 2014 the law therefore changed again to a point of consumption tax. This now meant if you took bets from the UK you had to pay the tax, win, win for the government. This was enforceable under the new Gambling License (see next).
See our article for more about gambling and betting tax for more.2005 Gambling Act and the Gambling Commission
The same 2001 review that resulted in changes to the tax laws around gambling also recommended that all gambling legislation should be streamlined into a single Act with a regulator to be set up to enforce it. This resulted in the 2005 Gambling Act and the new regulator, the Gambling Commission.
Before the 2005 act anyone could set up a website anywhere in the world and take bets from UK customers. Not only did this not result in any tax for the government it also meant punters had little protection from crime and fraud.
The 2005 Act was principally focused around creating an open and honest industry where vulnerable people were protected and fraud minimised. The new act also oversaw the new National Lottery (as well as other lotteries) to ensure maximum proceeds were given to good causes.
All bookmakers and betting sites were now required to possess a Gambling Commission licence in order act as a bookmaker in the UK, no matter where they are based. This act still applies today, to gamble safely in Britain you should only bet with licensed operators. To find out more about the 2005 Act and the Gambling commission read our licencing article.2014 Gambling Bill
An amendment to the 2005 Gambling Act was brought in in 2014. This effectively closed loopholes that allowed companies based abroad to advertise in the UK without a gambling licence. It also changed the tax arrangements to ensure all operators must pay tax on UK profits irrespective of their location.
Much of the legislation today focuses around protecting vulnerable people, such as under 18’s, from gambling. Massive fines are now levied to companies who fail to promote responsible gambling in particular.
As the world of betting progressively moves online it is becoming harder for law makers to ensure they can police the whole landscape. Saying that the UK in general is ahead of the curve on its gambling laws and better positioned than most countries moving forward.Ladbrokes - Oldest Bookmaker Still Around Today
The oldest bookmaker that still exists today is Ladbrokes, I think they can claim the crown of the oldest bookmaker in the world as well as in the UK.
Back in 1886 two gentlemen known as Schwind and Pennington went into partnership together acting as commission agents for horses trained at Ladbroke Hall in Worcestershire. Pennington was the trainer Schwind the agent, Schwind’s job as commission agent was to back the horses trained by Pennington.
In 1902 the pair were joined by Arthur Bendir who founded the Ladbrokes name, based on the Ladbroke Hall sign. Some say the same was a pun on the words ’broke lads’ although this seems to have been thought up afterwards.
Bendir changed the business model of the company from just backing horses trained at Ladbroke Hall by also betting against other horses. This model made the company both punter and bookmaker.
The new bookmaker achieved almost instant success and quickly moved to the Strand in London, upgrading to Hanover Square in 1906 and as a sign of their success ended up in Mayfair in 1913.
From their Mayfair location Ladbrokes established themselves as an exclusive bookmaker for high class clients and aristocrats. This model worked well until the outbreak of WWII, following the war facing a dwindling list of clients and an outdated business model the company was eventually sold in 1956 to Mark Stein and his nephew Cyril for just £100,000.
Five years later off-course betting was legalised in the UK and Ladbrokes opened some of the first betting shops. The company were embraced the new times and were innovators, they were the first to introduce the fixed odds football coupon for example. By 1966 the company floated for £1,000,000, ten times what the Stein family bought the company for.
Ladbrokes have never looked back and having merged with Coral in 2016 are now the biggest betting and gaming brand in Britain and one of the biggest in the world. In 2015 the company revenue approached nearly £2 billion and they now employ over 15,000 people and still maintain 400+ shops (including Coral shops). It goes to show there is a lot of money in modern bookmaking.The Totalisator Board – The Tote
Until the legalisation of off course gambling nearly all official wagers were placed at the racecourse on horse or greyhound racing. Following the 1845 and 1853 gaming and betting acts the government were now able to monitor and even tax this form legal betting from on-course bookmakers.
In 1928 the government w
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