Biggest Bookies And The Distribution Of The Gambling Industry In The UK

You might examine the betting and gaming industry and believe there is a whole lot of healthy competition, with hundreds of brands now vying for our pennies. Many companies however, although they may seem impartial, are in fact part of the same group, and you’ll likely never know it. As with many markets, there are in fact a few big players and the remainder are left to scramble for the rest of the custom.
It is not only the old high street bookies like William Hill and Betfred that occupy the best places in the largest betting company leagues. Many early online only bookmakers have already beaten the older land based operators, such as Bet365, and the world’s largest and earliest online exchange, Betfair. Mergers between already huge companies such as Ladbrokes and Coral and Betfair and Paddy Power has generated behemoth bookies. The near future of bookmaking in the united kingdom is in the equilibrium as it risks becoming a monopoly of a very few massive companies, very much like the energy markets.
Within this article we also look at the development of the UK gambling industry, the size of the profits made together with the progressive switch to online betting and gaming.
Largest CompaniesUK Market ShareUK Market SizeEvolution of all GamblingMergers
Largest Betting Firms Ladbrokes-Coral Group Plc (possessed by GVC Holdings)
Position 1
#2.5 Billion
Workers 30000
High Street Shops
Established 2016 (Merger)
William Hill were ousted from top spot following the merger in 2016 of Britain’s second and third largest bookmakers in 2015, completed 2016. The new company, imaginatively named Ladbrokes-Coral Plc, generates almost #2.5 billion in revenue each year and workers over 30,000 people and is listed on the FTSE 250.
In 2018 the new group was further purchased by GVC at a deal worth roughly #4 billion, adding further power to the newest on an international scale. GVC also own and operate websites like sportingbet (although we would not recommend them to bet with), partypoker and Bwin.
Ladbrokes, Britain’s oldest gambling company founded in 1886, and Coral, based in the 1926, have over 200 years experience of being a bookmaker involving them. The group own almost 4000 gambling stores, although were made to sell over 300 in the merger, and so are two of the most recognisable brands on the British high street.
Coral, began by Joe Coral an online bookmaker from the 1920’s, grew rapidly following legalisation of off-course gaming stores in 1961, becoming one of the first bookies to take advantage. Merging with another company in 1971 to become Coral Leisure the team was obtained by Bass in 1981. In 1997 Ladbrokes chose their very first effort to purchase Coral from Bass but that was blocked by the UK Monopolies and Mergers Commission at the time. Coral was offered to Morgan Grenfell, a private equity company in 1999 and merged with Eurobet, among the first online betting sites, in precisely the same calendar year. Gala bingo, founded in 1991 and functioning over 150 halls with an additional online presence, united with ghostly in 2005 to make the Gala Coral Group.
Ladbrokes was started by two men who acted as a commission agents for horses (trained in Ladbroke Hill). Following a move to London in the early 20th century that the company became a bookmaker for rich clients. Falling on harder times after WWII the business was sold for just #100,000. The identical legalisation of betting shops that drove Coral’s increase in 1961 nonetheless reversed the fortunes of Ladbrokes also, who were afterwards floated on the stock exchange for #1M in 1966. With forays to the resort (Hilton Group) and residence convenience industry the Ladbrokes group grew to second biggest UK bookmaker. Prior to the Coral merger Ladbrokes also acquired BETDAQ, the 2nd biggest betting exchange, 2013.
The team now generate over a third of the gains from electronic sources and involving them have more online clients than any other business. For much more about every brand visit our complete reviews.
Ladbrokes Review Coral Review
William Hill Plc
Ranking 2
#1.7 Billion
Employees 16000
High Street Shops
Launched 1934
For a long time William Hill were the largest betting company in the UK with over 2300 stores and only under #2 billion in annual earnings. The operator, which now generates around 200 million in annual profits and can be listed on the FTSE 250, comes from humble beginnings.
In 1934 the company was founded by Mr William Hill, who following some early failures and prohibited ventures found he could earn money by means of a loophole that permitted off-course betting using credit or post. Hill’s entered late into the betting shop industry, opening their first 5 years following the change in law in 1966, due to the creators belief they were a cancer . He relented when he noticed how fast his competitors were getting ahead.
The business changed ownership many times down the years. Bought for 700 million in 1997, the newest has been again sold two years after for #825 million and recorded on the London Stock Exchange in 2002.
The William Hill group have had some corporate failures through the years but their competitive strategy, especially online, has enabled them to dominate the market landscape. Probably the most well known bookmaker in the world, largely to the fact Hill’s have spread outside the UK more than any other bookie, and due to their vast amount they spend on sponsorship and advertising.
William Hill Review William Hill Casino Review
Paddy Power Betfair Plc
Position 3
#1.75 Billion
Employees 8000
High Street Shops
600 (UK + I)
Launched 2016 (Merger)
Many mergers are merely about money. Coral did not really bring anything fresh to Ladbrokes for example, but the merger between Betfair and Paddy Power from 2016 to make the third largest betting brand was surely mutually beneficial to both parties.
Paddy Power, among Ireland’s largest bookmakers, was set in 1988 but it was the online age that actually watched the newest come to life via its frequently controversial advertising approaches. Holding over 600 shops across the united kingdom and Ireland and boasting retail earnings of almost #1 billion Paddy Power attracted the real world locations, marketing strategy and cash to the merger.
Betfair on the other hand had a very distinct history in the betting industry. Located as a peer-peer gaming market rather than a traditional bookie in 2000, Betfair became the largest of its kind in virtually no time at all. Despite better chances on offer in the exchange, the market still remains fairly small (see later) and so to be able to compete Betfair launched a fixed odds sports book in 2011. Betfair would be the smaller party in the merger, making less than 500 million in earnings. For this reason PP shareholders received 52% and Betfair 48 percent of the new firm.
Paddy Power Review Betfair Review
Bet365 Group Ltd
Position 4
#2.3 Billion
Employees 3500
High Street Shops
Established 2000
Bet365 meteoric rise has all come form the electronic industry, and considering that just now is the internet gambling market bigger than the high street (excluding national lottery) that is a pretty remarkable performance. When they say in their advents which Bet365 is the worlds favorite online betting company they really are not lying.
Launched in 2000 from a small temporary building in Stoke by today multi-billionaire Denise Coates, Bet365 currently produces enormous online earnings and is the biggest private employer in Stoke. They even own the football arena.
Denise began the company by borrowing from her fathers mortar and brick bookmaking business, established in 1974 from Stoke City chairman Peter Coates. Selling the shops to Coral in 2005 Bet365 became an increasingly online only operator in the place where they’ve gained a huge customer base of more than 20+ million people from 200 countries. The brand has the best reputation inside the betting and gaming industry from the punters and insiders and boasts one of the most loyal customer bases of any business enterprise.
Frequently mentioned as a success story of British internet business, if you were to rule out the offline gambling sector then these guys would be the greatest. Multi-award winnings and constantly developing new technologies and ideas the only way that this organization is moving in the long run is up.
Bet365 Review
Position 5
#800 Million
Workers 1000
High Street Shops
Launched 1967
The Betfred journey to becoming one of the largest independent betting companies in the UK is more heart-warming than most others. Established from a single store in Salford by Fred that an Peter Done in 1967, the team now have a multi-billion turnover and up to #1 billion in revenues annually. Based in Warrington the company hasn’t been sold or merged and stays in the very same hands as it started in.
Fred Done is famous specifically for paying our ancient on Manchester United to win the league double only for them lose on both events (1998 and 2012). In addition, he dropped #1,000,000 at a personal bet with Victor Chandler (owner of BetVictor) gambling again on Man United, this opportunity to complete higher than Chelsea in 2005 – they didn’t. Despite these misjudgements Fred is also known for inventing the Lucky 15 and other complete cover bets.
The company has a large gaming store performance, and since purchasing around 300 shops that Ladbrokes-Coral were forced to sell now own in the area of 1650 shops in the UK. Famous for being one of the very best racing bookmakers Betfred increased their vulnerability in this market by buying the bag in 2011 for #265. This allows them to enable totepool bets to other operators in addition to providing bespoke tote bets others don’t have. Regardless of this Betfred’s future looks mixed and will likely hinge on how well they grow on the internet in the next several years.
Betfred Review
888 Holdings Plc
Ranking 6
#600 Million
Workers 1600
High Street Shops
Established 1997
888 is a thoroughly modern gambling company, there’s absolutely no romantic back story here. Currently part of a rather convoluted corporate structure, 888 Holdings is the gambling arm of parent firm Cassava Enterprises. Initially founded as Virtual Holdings running an early casino site, casino-on-net, by two Israeli business guys, the company grew in step with the rise of the web.
The newest was renamed 888 in 2002 and despite having a hard hit when online gambling became illegal in several US lands in 2006 has continued to rise in all areas of online gaming. The team operate a sport (888 Sport) and poker website (888 Poker) and several casino (e.g. 888 casino, 777 casino)) and bingo brands (e.g. 888 bingo, 888 ladies, Wink Bingo) with a distribution of 61 percent casino, 18% poker, 11% sport and 9% bingo.
888 are a global online specialist which will only increase in the long run. The company was fined nearly #8M from the gambling commission in 2017 for failure to correctly shield vulnerable gamblers in the UK. This will slow down the aggressive growth plan of the company, although only slightly.
888 Sport Review 888 Casino Review
Kindred Group (Unibet, 32Red, Stan James, et al)
Ranking 7
#800 Million
Workers 1400
High Steet Shops
100 (Stan James)
Launched 1997
Kindred is a name you will likely haven’t heard of, it is in reality the rebranding of the old Unibet Group Plc after the purchase of more than a dozen other manufacturers.
Quickly becoming one of the largest betting businesses in Britain and Europe the Kindred group comprises Stan James, 32Red, and Maria. Unibet is of course the jewel in the crown, the Scandinavian brand has grown to become among the biggest online gaming websites with over 15 million customers.
The future intention of the brand is apparent in their recent history of takeovers, paying #19 million for Stan James (which contains a new real world presence) and #175 million for the top rated online casino 32Red.
Unibet Review 32Red Casino Review
Market Share And Gambling Revenue Distribution
UK offline and online gambling market share
The pie charts above show an overall representation of the supply of gambling revenue in the united kingdom. Offline gambling remains the largest sector as this comprise the federal lottery (28 percent ), compared to high street bookies (27 percent ) and land-based casinos (5 percent ) only online betting is larger (40 percent ). The trend in offline to online is expected to continue in the future.
Within the internet market casino is the biggest (slots 37% and other games 15 percent ), followed by with sports (40 percent ). Exchange gambling (3%), online poker (2 percent ) and online bingo (2%).
The Size Of The UK Gambling Industry
The UK gambling sector currently generates around #15 billion in annual revenues and is increasing quickly at around 8 percent per year. Of this total on a third (Number 5 billion ) is made from online gambling, with a demanding split of 60% casino and 40% sports gambling.
The industry as a whole is to blame for contributing approximately #8 billion to the UK treasury each year and directly employs over 100,000 people (perhaps up to 500,000 if you include indirect employees).
High Street Bookmakers And Land Bases Casinos
Distribution of high street gambling venuesDespite the constant shift towards online betting since the turn of the millennium there are still around 9000 gambling shops in the UK (90 percent of which can be controlled by Coral, William Hill, Ladbrokes and Betfred), 600 bingo halls, 1800 arcades and 150 land-based casinos (63 possessed by the Rank Group and 41 by Genting). There are currently in the region of 200,000 gaming machines operated in the UK too, of which around 40,000 will be the controversial fixed odds betting terminals (FOBTs).
The National Lottery (and other lottery) earnings are also contained in the overall gambling revenue figure. This constitute to #3.5 billion of this total, with at the region of #250 million moving back to good causes.
High road bookmaking is responsible for a similar amount, #3.5 billion annually, claiming over 95 percent of their non-remote gambling revenue in the united kingdom. Pool betting (such as the Tote) constitutes 4% with different resources, such as on-track bookies, making up just 1%.
Land-based casinos create #1 billion in annual profits. Just under half of this stems from roulette (44%), per quarter from blackjack (25%), a fifth (20 percent ) form slots and other digital games and the remainder from various other tables and games.
Online Betting And Casino
Sports betting distribution in the UKApproximately 57 percent of internet gambling revenues comes from distant casinos. Of this three quarters derives in slots, together with the rest coming from table along with other games (an opposite trend to land based casinos). Poker, which is categorized under casino, creates less than 2 percent of the entire earnings.
Sports betting is the second most significant industry, producing around 37 percent of the overall earnings. Of this around 54 percent stems from football gambling, around 32% from horse racing and the rest from different resources (of which tennis makes up nearly half).
Other sources of revenue include exchange betting (~3%), online bingo (~3%) and pool gambling (~0.5%).
In 2014 the online sector made up 29 percent of the entire market share, by 2016 that had risen to 32 percent. By 2020 the industry could approach 50 percent of annual revenues generated from gaming related actions in the united kingdom.
Evolution Of High Street To Online Betting
Apart from the odd independent bookie and some of the stalls you visit at racecourses, all bookmakers now offer online gambling. Obviously, it did not utilized to be this way, and before the online era breaking into the sector was easier said than done. For a full history of gambling see our dedicated page.
Prior to 1960 from the UK it was prohibited to take bets away from horse and greyhound tracks. Gambling was heavily regulated by the government and although illegal operators didn’t exist, overall you’d find it hard to place a wager from the track.
Bookies did take bets off-course through loop-holes from the law that allowed bets to be obtained by telephone or through postal order. This is how William Hill started out. If you were wealthy enough needless to say there were always choices open to you, Ladbrokes such as started out as a gentleman’s bookmaker for high profile clients. In the event that you were nevertheless a normal working-class lad or lass nevertheless, there were very few choices open to you.
Even then most betting at the time was for dog and horse racing only. Football betting was mostly outlawed, except for non stakes pool betting syndicate games, like the soccer pools (which still exists today).
Basically before 1960 betting was not very simple as you needed to attend a race-track to do it (or do it illegally in a back street gaming den). That is unless you were rich once the law did not actually apply to you personally and you may bet through discreet retailers.
1960 Betting And Gambling Act And Betting Shops
Betting shopIn 1960 the authorities eventually embraced the new era. Normal folks had more disposable income in their pockets and they wanted more freedom with how to spend their money. The gambling act for the first time allowed off-course gaming and from the next year, May 1961, a whole plethora of new gambling shops opened across the duration of the nation at a rate of 100 per week.
Betting was largely restricted to horse racing, with rules in place such as the’trebles principle’ on football. This meant all of footy bets needed to be accumulators with at least 3 or more choices otherwise you could not bet. The only sports you could place singles on was rushing.
Nevertheless this new industry was embraced by the people of Britain, sowing the seed which eventually led to the UK getting the biggest gaming nation (per head) in the world.
Among the very first individuals to open one of these new betting shops was Joel Coral and 10,000 stores are reported to have started within the initial 6 months. Ironically the UK’s now biggest high street bookie, William Hill, originally refused to start betting shops, stating they had been a cancer on society. He also reneged at 1966.
1970s And 1980s
The bookmaker sector grew exponentially over the decades after legalisation of high street betting. From the 1970’s there have been 15,000 stores in the uk.
This is the time when a lot of the largest names we know today made and solidified their reputation. Britain’s oldest bookmakers, Ladbrokes, William Hill and Coral were making so much they even started to spend money on other leisure sectors.
Despite the enormous achievement of high street bookies in the past 3 decades the industry had a restricted clientele. The vast majority of punters using gaming stores were working class men and the standing of shops as being seedy dark dens filled with smoke and filthy language did not help change this.
Bookies sought to make a larger customer base by introducing new features, such as live game in stores and new soccer coupons to promote more diverse clients and bets. The elimination of this’trebles rule’ on football in 1990’s went a fantastic way towards helping the bookies branch out, with punters now able to back singles on a selection of sports.
A progressively better picture, wider array of bets and markets, more televised sports (particularly Premier League soccer ) and an ever-increasing disposable earnings, saw the fortunes of bookmakers rise again.
From the mid-1990’s the sector seemed locked down with five massive companies dominating the landscape, along with a few independents across the country. Many thought gambling and gambling will be like this forever. That was until the internet came along.
New Millennium And The World Wide Web Online betting 2As that the 1990’s brought to a close a new threat began to emerge to the older established order, online betting. This was more dangerous to the established high street bookies than you may imagine.
High street bookmaking was regulated by different betting and gaming acts and much more importantly bets were taxed (9p/#1 staked). Online gambling however was a little bit like the wild west, so you could basically set up in which you desired, launch a site and begin taking bets from customers — tax free.
Although preventing tax on gaming bets and winnings was at the time illegal it was almost impossible to police. New companies together with the old high street bookies started to set up new websites, largely based off shore in Gibraltar or Malta, to take advantage of this tax free commerce (many are still located there today).
From the late 1990’s and early 2000’s the industry share online was very low and although the new unregulated online trade was a concern it was not prevalent enough to induce changes yet. The bookies were still making enough from the high street even though tax averting new manufacturers were taking a percentage of the profits.
Victor Chandler And Tax
In 1999 Victor Chandler (now BetVictor) transferred his bookmaking company off coast to Gibraltar in protest in the betting tax prices in the UK, selling his 41 shops to Coral. This enabled Victor to supply gaming chances to global customers, particularly from Asia, without paying UK tax. Additionally, it enabled UK punters to bet without even paying the 9p/# stake tax.
It is thought it was this decision that led the then UK chancellor, Gordon Brown, to remove the gambling tax in 2001. Saying that though he eliminated the tax paid directly by the punter new taxes were levied on the bookies profits earned in the UK and by this stage the ship had mostly sailed and most conventional bookies were running their online operation from overseas.
2005 Gambling Act
gambling act 2005
Eventually the authorities realised that the status quo couldn’t continue forever. This {wasn’t|was not

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