So, what is a bookmaker? A bookmakers are the people that make betting on football and horse racing possible. The bookmaker collects bets from bettors on the odds of a sporting event. When large bets are made, the bookmaker then balances the odds. Bookmaking has a long tradition in the United Kingdom and as well as in the United States. In the UK it is a regulated industry that contributes a sizeable amount to the overall income of that country. In other countries like Canada and China, all bookmaking is handled through a government operation.
In the UK and other European countries, sporting events and the teams that play in them are often sponsored by bookmakers such as Bet365 or Ladbrokes. Online bookmakers are in a traditional sense a little different than a direct bookmaker. An online bookmaker is considered a betting exchange. Essentially, this makes the online bookmaker a middle man between two bettors. The bookmaker can collect betting fees from the bettors and does not necessarily have to have any part in covering bets.