In 1960, the world of betting in the UK was forever changed after it was announced that the British administration introduced the Betting and Gaming Act that permitted betting shops to be open for business throughout the country starting on 1 May 1961. The world has never been the ever since.
How It All Begun
The first betting establishments opened on the 5th day, 55 years ago, and they continued to open at a 100 shops per week. After six months of new laws being in force, there were 10,000 betting establishments operating. The nature of the gambling industry in the UK was changed in the span of just a few months.
Bookmakers who were granted licences to operate in the UK by the Racecourse Betting Control Board were permitted to accept bets with “tote odds” which meant that the amount of the bet was split into winning bets.
It was believed that the new regulations will help in removing gambling that is illegal off the streets and end the practice used by bookmakers of sending runners on physical tracks to collect the money owed by gamblers. This led to the commission of the extortion and criminal activities that required to be eradicated.
In the days prior to the new law being passed the only way gamblers could make a bet off the course was to prove they had enough money to open an account with bookmakers and then placing bets over the phone.
The popularity of betting is growing.
The most significant alteration that took place under the new laws was the shift from being a shady and taboo sport to an increasingly popular and accepted sport. It went from being a nebulous activity to mainstream.
Betting shops offered a secure and controlled environment for gamblers to place their bets without getting caught in a criminal ring, which was common in the days when betting was not controlled in the streets.
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There was a slight stigma attached to betting shops. The establishments had to lighten their windows and weren’t allowed to market or advertise. But, they were in the open, and betting activities could be controlled, making betting an increasingly popular pastime than before the 1960s.
Ladbrokes as well as William Hill were the two major names of the 1960s, and their growth during that time was groundbreaking. They were able to take over several small-scale betting shops like Fred Parkinson, JJ Simonds, as well as Ken Munden. They enticed the working classes and established the standard for the industry which will remain in operation for the next 50 years.
Through the Dark and into the Light
The situation remained relatively the same until 1986. The gambling laws were changed and betting shops granted the right to revamp their appearance and interior. They no longer have to be seen as dark and uninspiring locations. They can now serve cold and hot drinks and paint their walls, offer seating and even put up televisions.
The era of gambling saw four companies take full control over the market. William Hill and Ladbrokes continued to lead the pack, but they were soon joined by the huges from Coral and Mecca as a new era of gambling swept across the UK.
These four brands that caused one of the most significant changes to the law on gambling that affected punters directly. The bookmakers pressed the government to remove the tax that was imposed on all individual bets. The tax was charged at 10 percent on all winnings. It took many years of lobbying from bookmakers to convince the government to eliminate the tax, and in 2002 everything that was put in finally was paid off and the tax was eliminated. It was a significant moment that was shared by many other countries and countries still imposing similar taxes.
It’s the Dawn of the Premier League
Another significant moment for betting shops in the UK was the emergence of the Premier League in 1992. The new branding of the top league in English soccer not just completely transformed the game by granting television rights clubs the opportunity to purchase higher-end players and upgrade their facilities however, it also was an important change for betting in the United States since more gamblers than ever began to wager on football.
Only punters in within the UK were initially allowed to place bets on Premier League games and originally it was decided that players were required to make at least three bets. But the rules were changed after a brief period of time, and betting on only single games was granted the green signal.
It was the initial step to expand betting shops into new territories. The fervor for football’s Premier League led to a need for more betting markets. The rise of online gambling has seen bookmakers meet the demands of gamblers to bet on each and every detail of games like corners, yellow cards, the time of goals scored, as well as throw-ins. This was passed on to betting shops, which also needed to offer the same market inside their stores.
It has spread all over the world to different markets, not just within football, but also in other sports. This led to the development of cash-out and in-play betting. The introduction of these two options has not only been a hit online, but also in the bookmakers as well. have tried their best to ensure that punters who live in the country don’t miss out on the advantages that online customers get.
2001 was the year that saw some of the biggest debated innovations to be a threat to betting shops. A variety of electromechanical devices known as fixed-odds betting terminals (FOBTs) were put in place and the debate over the impact they have on punters and the betting industry has continued to rage on since.
The minimum bets for the machines have to be PS1 however the biggest single payout can’t exceed the PS500 threshold. The speed at which gamblers are able to place bets has been the primary focus of criticism about the machines, and critics have claimed that it promotes gambling addiction and could destroy entire communities by luring players into.
It was also claimed that these machines could be being employed to facilitate money laundering. The cash was deposited into machines, with bets that were low risk being placed. The winnings would be taken out in the form vouchers that could then be exchanged in cash at the betting shop counter.
The term “crack cocaine” is used to describe”the “crack drug of gaming” Bookmakers eventually took action in 2014 under the umbrella of the Association of British Bookmakers made the decision to let punters to establish time and money limitations on FOBTs.
Going Offshore
In the early part in the 20th century, betting shops began to provide online websites for gamblers to bet online without needing to leave the comfort of their homes. The result was a shift in the management of business by several of the major-name betting shops that were branded.
One of the first pioneers of the idea is Victor Chandler. The bookmaker of the same name made the decision to shift his entire business offshore to Gibraltar. The move shifted their customers place bets on offshore, making them tax-free , and was the main reason behind being a major factor in the British Government changing their position regarding gambling tax. The 1st of December, 2014, the Gambling (Licensing and Advertising) Bill resulted in the taxation of online gambling had been changed from a ‘place of supply in order to be a point of consumption. The result was that offshore bookies were not exempt from the wrath of UK tax law.
This law continues to impact betting shops in the present. Some of the largest bookmakers with a brand name are being forced to merge together with Betfair as well as Paddy Power leading the huge mergers. Ladbrokes as well as Coral are two more bookmakers which have been at the center of a merger proposal however they’ve been informed that they have to sell gambling shops in order for the merger is to be completed. This is a trend that is likely to be more frequent in the near future as bookmakers have to deal with financial pressures from the tax reforms imposed by the British government.
Recent data suggests there is a sign that betting shop value may be declining. The value of betting shops had appeared to be at its highest in 2005, when William Hill bought out Stanley’s betting shops for a cost of around PS807,000 per shop. There was speculation recently that Boylesports planned to acquire 360 gambling shops at Ladbrokes and Coral for 277,000 dollars per store. The worth of the betting shops is evidently declining rapidly if these numbers are accurate.
The Future in Their Hands
The internet has had a huge effect on bookmakers. Recent changes to the law have put even greater pressure to bookmakers to adjust to the new conditions. It could be merging with rival competitors or providing a more upscale location to keep their land-based businesses modern.
The betting shops may take the example of casinos that have seen their physical premises suffer from the growth of casinos online. The experience of customers in betting shops is now an important factor for bookmakers, as they attempt to prevent betting shops disappearing since betting on sports online continues to increase.
This is a problem that is not disappearing with mobile gambling being the next step. If bookmakers are able to find more innovative and innovative ways to lure gamblers in, then the future of the betting shops will be the same as they have been, but they are facing difficult times for the betting shops. The number of betting establishments in the UK which means they are a common sight however, that could be changing quickly, with statistics showing that the proportion of betting establishments in the UK has dropped by 43% since the year 1970. It is possible that they are not extinct, however they’re definitely close to becoming endangered.