Ever wondered what the slang ‘bookie’ means? If you are into sports betting, you must have surely heard about it. Haven’t you? If you haven’t, this article is for you. Through this article, I will tell you all about the term bookie and its origin, plus everything you need to know, so keep reading.
What is a bookie?
A bookie is a colloquial term derived from the word ‘bookmaker,’ a profession that has been sound for decades, particularly in the UK’s well-established legal gambling industry. Bookies are also found online at reputable gambling sites.
Origin of the term ‘bookie’
The first official bookmaker is believed to have operated at Newmarket racetrack in England in the 18th century, marking the beginning of a long history. However, the term bookie didn’t become widely used until off-course betting was relegalized in the UK in 1960. Before this, bookies were only allowed to operate on track.
But when the change in the legislation happened, betting shops slowly began to emerge on British high streets, under the ownership of companies like Ladbrokes and William Hill. Bookies recorded odds and bets in a large ledger, known as a “book.” This practice led to the term “bookmaker” being coined, referring to the person responsible for managing the book.
This led to the popular phrase “going to the bookies” being a common expression. The 1960s saw the growth of betting shops, making it easier for people to visit and gamble. Now the books are available both online and offline.
What do bookies do?
The main role of a bookie (bookmaker) is to analyze sporting events and to predict the odds offered to the bettors. This contains event analysis, assessing the event dynamics, team dynamics, players, and other factors. The bookies are the ones who calculate the odds using mathematical probability to determine the likelihood of each outcome. It is the bookie who also sets the odds of different matches, which are seen as the betting odds in sportsbooks.
Example for a bookie setting odds for a tennis match:
Consider a tennis match between two evenly matched players, Novak Djokovic and Rafael Nadal. A skilled bookmaker will set odds that reflect the probability of each player winning while also making sure a profit margin.
Initial odds:
- Novak Djokovic: -120
- Rafael Nadal: +100
However, if a large number of bets are placed on Djokovic, the bookmaker will adjust the odds to:
- Novak Djokovic: 150
- Rafael Nadal: +130
This adjustment shows the increased chance of Djokovic winning while also letting people bet on Nadal to balance the book.
Understanding the source of income of the bookies
Bookies, also known as bookmakers, don’t typically profit from placing bets themselves. Instead, they earn money by charging a transaction fee, known as the ‘vigorish’, shortly called vig, on their customers’ bets. This fee is usually a small percentage of the bet. Bookies also offer loans to the bettors that generate interest income. There are individual bookies and organizational bookies. The individual bookies operate solo and manage their own books just by themselves, and the organizational bookies are companies that employ multiple bookmakers, and they work for these entities.
Is being a bookie legal or illegal in the US?
The US Supreme Court landmark decision in 2018 paved the way for sports betting legalization across the country, leaving it up to individual states to decide. As a result, 38 states have legalized sports betting, effectively legitimizing bookmaking operations within that jurisdiction. Bookies can now operate legally by paying taxes and contributing to the state revenues. However, still some states prohibit sports betting, making bookmaking illegal within their borders.
Conclusion
Now you know who a bookie is and all about bookies or bookmakers. Through this article, we have covered what a bookie is, its origin, the role of a bookie, along with an example, and the source of their revenue. So that the next time you hear the slang bookie, you will know all about it.
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