Legal Definitions - bookmaker

A bookmaker is an individual or organization that determines and sets the odds for various events, most commonly sports competitions, and then accepts wagers (bets) from the public based on those odds. Their primary role involves managing the financial risk associated with these bets, aiming to ensure profitability regardless of the event's final outcome.

• Example 1: At a major horse racing festival, a person stands behind a counter displaying a board with different odds for each horse in the upcoming race. They accept cash from attendees who wish to bet on a particular horse to win, place, or show.

  Explanation: This individual is acting as a bookmaker because they are calculating and presenting the payout odds for each horse and then receiving bets directly from the public on the outcome of the horse race.

• Example 2: An online platform allows users to bet on the outcome of an international basketball tournament. The website constantly updates the odds for each team to win the championship, as well as for individual game results and player statistics. Users deposit funds and place their bets through the platform.

  Explanation: The entity operating this online platform functions as a bookmaker. It establishes the odds for various potential outcomes of the basketball tournament and accepts wagers from numerous individuals who use its service.

• Example 3: A specialized betting firm offers odds on the results of a popular reality television show, such as which contestant will win the grand prize or be eliminated next. People can place bets with this firm on their predictions for the show's progression and ultimate winner.

  Explanation: In this scenario, the betting firm serves as a bookmaker by setting the financial terms (odds) for different possible outcomes of the reality TV show and receiving bets from the public interested in wagering on its conclusion.