Legal Definitions - bookmaking

Bookmaking refers to the activity of accepting and documenting wagers (bets) from multiple individuals on the outcome of future events. The person or entity performing this activity, known as a bookmaker or "bookie," typically sets the odds, manages the financial transactions, and aims to profit from the difference between the bets placed or a commission on the winnings.

• Example 1: Professional Sports Betting Website

  Imagine an online platform that allows users to place bets on the results of various professional football games each weekend. The platform establishes the odds for each game, accepts wagers from thousands of users, and maintains detailed digital records of every bet placed, including the amount, the chosen team, and the potential payout. After the games conclude, the platform processes payments to winning bettors and collects from those whose bets lost.

  This illustrates bookmaking because the online platform is actively taking (accepting) bets from numerous individuals and systematically recording them on specific future events (football games). It manages the financial transactions based on the outcomes, which is the core function of a bookmaker.

• Example 2: Local Underground Operation

  Consider an individual in a neighborhood who secretly accepts cash bets from friends and acquaintances on the outcome of local amateur boxing matches. This person keeps a handwritten ledger, noting each bettor's name, the amount wagered, and their chosen fighter. They calculate the payouts based on informal odds they set and settle up with the winners after each fight.

  This is a clear instance of bookmaking because the individual is taking bets from multiple people and recording them in a systematic way for a future event (the boxing match outcome), intending to manage the betting pool and potentially profit from the activity.

• Example 3: Political Election Wagering

  Suppose a group of friends decides to bet on the outcome of a national presidential election. One friend volunteers to "run the book," meaning they accept bets from everyone else on which candidate will win. They record each person's wager and chosen candidate in a spreadsheet, establish a payout structure, and agree to collect from the losers and distribute funds to the winners once the election results are certified.

  This scenario demonstrates bookmaking because one individual is taking and recording bets from others on a future event (the election result), managing the wagers and payouts, even if it's on a small, informal scale among acquaintances.