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A Bit of sports Betting History: U.K.
by John Coates
There is a long history of betting in the U.K. It started not long after the Pilgrims made their way to the New World during the reign of Charles the Second, a king who was known to favour horseracing. Then, 300 years ago, Queen Anne founded the Ascot Racecourse, which is owned by the monarchy. There is still a race named after her, the Queen Anne Stakes. By the time rebellious colonists were chucking tea into Boston harbour, titled English gentlemen were striking wagers with each other on Newmarket Heath and gradually bookmakers came into being, ensuring a market for those who wished to back their fancies.
Not long after the invention of the telephone, punters were betting with bookmakers on the blower. This was legal, but giving cash bets to runners on the street was not. The police often took a cut from these runners and the illegal bookies they worked for. In 1961, Harold Macmillan’s Conservative Government decided this corruption was unacceptable, noting it was silly that cash betting was illegal while telephone betting was not. As a result, cash betting shops were legalized, though tough measures were enacted to ensure that bookmakers were honest. A large and respectable industry grew. At one time there were over 15,000 betting shops in the U.K. Now, through consolidation, they have been reduced to about 8,500.
After legalization, the government initiated a betting tax. It worked, so naturally it was increased, resulting in underground tax-free betting on the Internet and offshore. The Labour Government addressed the problem by replacing the onerous betting tax on turnover to a 15% tax on the gross profits or drop. As a result, most leading U.K. bookmakers who were trading offshore agreed to return to the U.K. Ladbrokes and Coral moved their telephone and Internet business back home from Gibraltar. William Hill was operating from Antigua and Ireland and they too are now
in England. Stanleys returned from Malta. Bet365USA abandoned its offshore plans and moved to large modern premises in Stoke-on-Trent, the historic Midlands city at the heart of the Potteries, forever associated with Josiah Wedgwood and Royal Doulton. Their servers are located in the old MI5 building in London—computers purring in the rooms where James Bond used to chat up Miss Moneypenny. Of the leading players, only Victor Chandler in Gibraltar and Sportingbet in Alderney have opted to stay offshore. The others felt that the 15% Gross Profits Tax was a reasonable price to pay for a better lifestyle for their staff and better technical infrastructure.
U.S. bettors venturing onto a U.K.-based site will be struck by the sophistication of the bet offerings that have become standard fare in the U.K. They have Yankees, Canadians (also known as Super Yankees), Trixies, Patents, Lucky 15s, Goliaths, even a Heinz, so called because it contains 57 bets. With the favourable betting tax, U.K. sportsbooks are applying their experience to compete in the U.S. market. There are no reduced payout Parlays. English punters wouldn’t tolerate them. You get the true cumulative odds at standard juice. This means 47/1 for a six-team Parlay, not the 40/1 usual offering.
The innovation that produced the Scorecast in soccer (you predict the player who will score the 1st goal and the correct score in the match for a huge payout) is being applied to American sports. Bet365USA allows you to sell points as well as buy them, up to 7 points either way.
They also allow you to create your own Teaser, perhaps 5 points from one side, 6 from another, and 7 from the third.
The biggest advantage of the U.K. sportsbook is the regulatory environment. Customers know they will be treated fairly—and paid! Disputes are referred to IBAS, the Independent Betting Arbitration Service. The address of IBAS is on the web sites of the sportsbooks mentioned. A U.K. bookmaker must have a betting permit. Before it is granted he will be thoroughly checked by police.
If he loses his permit, and anyone can object to its renewal, he is out of business.
While the law on betting in the U.S.A. remains contradictory, the outlook for the experienced, regulated U.K. sportsbook is as sunny as the smile on the Queen’s face when one of her horses wins at Royal Ascot. The U.S. bettor can make his wagers in the safe knowledge that he is
dealing with a good, honest business.
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