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

You might examine the gambling and gaming industry and believe there is a lot of healthy competition, with hundreds of brands currently vying for our pennies. Many businesses however, though they might seem independent, are in reality component of the exact same group, and you may never know it. Like many markets, there are in fact a couple of big players and the remainder are left to scramble for the remainder of the custom.
It is not just the old high street bookies like William Hill and Betfred that occupy the best places in the largest betting company leagues. Many ancient online just bookmakers have beaten the older land based operators, such as Bet365, and also the world’s largest and first 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 UK is in the equilibrium as it risks becoming a monopoly of some very few massive businesses, very much like the energy markets.
In this article we also examine the progression of the UK gambling industry, the size of the gains made together with the progressive switch to online betting and gambling.
Largest CompaniesUK Market ShareUK Market SizeEvolution of GamblingMergers
Largest Betting Companies Ladbrokes-Coral Group Plc (owned by GVC Holdings)
Ranking 1
Headquarters
London
Revenue
#2.5 Billion
Employees 30000
High Street Shops
4000
Launched 2016 (Merger)
ladbrokes-coral
William Hill were ousted from top spot after the merger in 2016 of Britain’s second and third biggest bookmakers in 2015, completed 2016. The new company, imaginatively named Ladbrokes-Coral Plc, generates nearly #2.5 billion in revenue every year and employees over 30,000 individuals and is listed on the FTSE 250.
In 2018 the new group was farther bought by GVC in a deal worth roughly #4 billion, adding additional capability to the newest on an international scale. GVC also own and run websites such as sportingbet (though we wouldn’t recommend them to wager with), partypoker and Bwin.
Ladbrokes, Britain’s oldest betting company founded in 1886, and Coral, based in the 1926, have over 200 years experience of being a bookmaker between them. The group own almost 4000 betting shops, although were forced to sell over 300 from the merger, and are two of the most recognisable brands on the British high street.
Coral, started by Joe Coral an online bookmaker in the 1920’s, grew rapidly following legalisation of off-course betting shops in 1961, becoming among the very first bookies to make the most. Merging with another company in 1971 to become Coral Leisure the team was acquired by Bass in 1981. In 1997 Ladbrokes chose their first attempt to buy Coral from Bass but this was blocked by the UK Monopolies and Mergers Commission in the moment. Coral was sold to Morgan Grenfell, a private equity firm in 1999 and merged with Eurobet, among the very first online betting sites, in the exact same calendar year. Gala bingo, founded in 1991 and operating over 150 halls with an additional internet presence, united with ghostly in 2005 to make the Gala Coral Group.
Ladbrokes was launched by two guys who acted as a commission representatives for horses (trained in Ladbroke Hill). After a move to London from the early 20th century the firm became a bookmaker for rich clients. Falling on more difficult times after WWII the company was sold for just #100,000. The identical legalisation of gambling shops that drove Coral’s increase in 1961 nonetheless reversed the fortunes of Ladbrokes also, who were afterwards floated on the stock market for #1M in 1966. With forays to the hotel (Hilton Group) and home advantage sector the Ladbrokes group grew to second largest UK bookmaker. Prior to their Coral merger Ladbrokes also obtained BETDAQ, the 2nd largest betting market, 2013.
The group now generate more than a third of their profits from digital sources and involving them have more internet customers than any other company. For more about each brand see our complete reviews.
Ladbrokes Review Coral Review
William Hill Plc
Position 2
Headquarters
London
Revenue
#1.7 Billion
Workers 16000
High Street Shops
2300
Established 1934
william-hill
For a very long time William Hill were the largest betting company in the UK with over 2300 stores and just under #2 billion in annual revenues. The operator, that now generates around 200 million in annual earnings and is listed on the FTSE 250, comes from humble beginnings.
In 1934 the company was founded by Mr William Hill, who after some early failures and prohibited ventures found he could make money by means of a loophole that permitted off-course betting using post or credit. Hill’s entered late into the betting shop industry, starting their first 5 years following the change in legislation in 1966, due to the creators belief they were a cancer . He relented when he noticed how quickly his opponents were getting ahead.
The business changed ownership many times down the years. Bought for #700 million in 1997, the brand has been again sold two decades later for #825 million and listed on the London Stock Exchange in 2002.
The William Hill team have had some corporate failures over the years but their aggressive strategy, particularly online, has allowed them to dominate the market landscape. Probably the most well-known bookmaker in the world, mainly down to the fact Hill’s have spread outside the UK over any other bookie, and due to their vast amount they spend on advertising and sponsorship.
William Hill Review William Hill Casino Review
Paddy Power Betfair Plc
Ranking 3
Headquarters
Dublin
Revenue
#1.75 Billion
Workers 8000
High Street Shops
600 (UK + I)
Launched 2016 (Merger)
paddy-power-betfair
Many mergers are just about money. Coral didn’t really bring anything new to Ladbrokes for example, however, the merger between Betfair and Paddy Power from 2016 to create the third biggest betting brand was certainly mutually beneficial to both parties.
Paddy Power, one of Ireland’s largest bookmakers, was founded in 1988 but it was the online age that really watched the brand come to life via its frequently controversial advertising approaches. Holding over 600 stores across the united kingdom and Ireland and boasting retail earnings of almost #1 billion Paddy Power attracted the real world places, advertising strategy and money to the merger.
Betfair on the other hand had a very distinct history in the gambling industry. Located as a peer-peer gaming market rather than a traditional bookie in 2000, Betfair became the largest of its kind in no time in any way. Despite better odds on offer in the market, 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 are the smaller party in the merger, making less than #500 million in earnings. Because of this PP shareholders received 52 percent and Betfair 48 percent of the new company.
Paddy Power Review Betfair Review
Bet365 Group Ltd
Position 4
Headquarters
Stoke-on-Trent
Revenue
#2.3 Billion
Workers 3500
High Street Shops
None
Launched 2000
Bet365
Bet365 meteoric rise has all come form the electronic industry, and considering that only now is the internet gaming market bigger than the high street (excluding national lottery) which is a fairly impressive performance. When they state in their advents which Bet365 is the worlds favorite online gambling company they really are not lying.
Launched in 2000 from a tiny temporary building in Stoke by today multi-billionaire Denise Coates, Bet365 currently produces enormous online revenues and is the largest private employer in Stoke. They own the soccer stadium.
Denise started the business by borrowing against her fathers mortar and brick bookmaking business, established in 1974 from Stoke City chairman Peter Coates. Selling off the shops to Coral at 2005 Bet365 became an internet only operator in the place where they have gained a massive customer base of more than 20+ million people from 200 nations. The brand has the best reputation inside the betting and gaming industry from the punters and insiders and boasts one of their most loyal customer bases of any business.
Often mentioned as a success story of British internet business, if you should rule out the offline gambling sector then these guys are the biggest. Multi-award winnings and continuously developing new technologies and ideas the only way that this company is moving in the long run is up.
Bet365 Review
Betfred
Position 5
Headquarters
Warrington
Revenue
#800 Million
Employees 1000
High Street Shops
1650
Established 1967
Betfred
The Betfred travel to getting one of the largest independent gambling companies in the united kingdom is much more heart-warming than others. Established from one shop in Salford by Fred an Peter Done in 1967, the group now have a multi-billion turnover and up to #1 billion in revenues annually. Based in Warrington the company has never 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 shed on both events (1998 and 2012). In addition, he lost #1,000,000 at a private bet with Victor Chandler (proprietor of BetVictor) gambling again on Man United, this time to finish higher than Chelsea in 2005 – which 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 betting shop performance, and since buying around 300 shops that Ladbrokes-Coral were forced to sell now own at the region of 1650 shops in the united kingdom. Famous for being one of the best racing bookmakers Betfred improved their exposure in this market by purchasing the tote at 2011 for #265. This permits them to enable totepool bets to other operators as well as supplying bespoke tote bets others don’t have. Regardless of this Betfred’s future looks blended and will likely hinge on how well they grow on the internet in the next several years.
Betfred Review
888 Holdings Plc
Position 6
Headquarters
Gibraltar
Revenue
#600 Million
Workers 1600
High Street Shops
None
Established 1997
888-holdings
888 is a thoroughly modern betting company, there’s absolutely no romantic rear story here. Currently part of a somewhat convoluted corporate structure, 888 Holdings is the gaming arm of parent company Cassava Enterprises. Originally founded as Virtual Holdings conducting an early casino site, casino-on-net, by two Israeli company guys, the company grew in step with the development of the internet.
The brand was renamed 888 in 2002 and despite taking a hard hit when online gambling became illegal in many US territories in 2006 has continued to rise in all areas of online gaming. The team run a sports (888 Sport) and poker site (888 Poker) along with many casino (e.g. 888 casino, 777 casino)) and bingo brands (e.g. 888 bingo, 888 ladies, Wink Bingo) using a distribution of 61% casino, 18 percent poker, 11% game and 9 percent bingo.
888 really are a international online specialist which will only grow in the long run. The business was fined nearly #8M by the gambling commission in 2017 for failure to correctly protect vulnerable gamblers in the united kingdom. This may slow down the aggressive growth plan of the business, although only slightly.
888 Sport Review 888 Casino Review
Kindred Group (Unibet, 32Red, Stan James, et al)
Ranking 7
Headquarters
Malta
Revenue
#800 Million
Employees 1400
High Steet Shops
100 (Stan James)
Established 1997
Kindred
Kindred is a name you may likely not have heard of, it’s in reality the rebranding of the older Unibet Group Plc after the acquisition of over a dozen other manufacturers.
Quickly becoming one of the biggest betting businesses in Britain and Europe that the Kindred group comprises Stan James, 32Red, Bingo.com and Maria. Unibet is of course the jewel in the crown, the brand has grown to become among the biggest online gaming websites with over 15 million clients.
The future goal of this brand is clear from their recent history of takeovers, paying #19 million for Stan James (which includes a new real world existence ) and #175 million to the top rated online casino 32Red.
Unibet Review 32Red Casino Review
Market Share And Gambling Revenue Distribution
UK offline and online gaming market share
The pie charts above show a general representation of the supply of gambling revenue in the united kingdom. Offline gambling remains the biggest sector as this include the federal lottery (28 percent ), in contrast to high street bookies (27%) and land-based casinos (5 percent ) only online betting is larger (40 percent ). The tendency from offline to online is predicted to continue in the future.
Within the internet marketplace casino is the largest (slots 37% and other games 15%), followed closely with sports betting (40 percent ). Exchange gambling (3 percent ), online poker (2%) and online bingo (2%).
The Size Of The UK Gambling Industry
The UK gambling sector currently generates roughly #15 billion in annual revenues and is growing rapidly at around 8 percent per year. Of this total on a third (Number 5 billion +) is made from online gaming, with a rough split of 60% casino and 40% sports betting.
The industry as a whole is responsible for contributing around #8 billion to the UK treasury each year and directly employs over 100,000 people (perhaps up to 500,000 in the event that you include indirect workers ).
High Street Bookmakers And Land Bases Casinos
Supply of high street gambling venuesDespite the constant shift towards online gambling because the turn of this millennium there are still about 9000 gambling shops in the UK (90% of which can be controlled by Coral, William Hill, Ladbrokes and Betfred), 600 bingo halls, and 1800 arcades and 150 land-based casinos (63 owned by the Rank Group and 41 by Genting). There are in the region of 200,000 gambling machines operated in the UK also, of which approximately 40,000 are the controversial fixed odds betting terminals (FOBTs).
The National Lottery (along with other lottery) earnings are also included in the overall gambling revenue figure. This make up to #3.5 billion of this total, with in the region of #250 million moving back to great causes.
High street bookmaking is liable for a similar figure, #3.5 billion annually, claiming over 95 percent of the non-remote gambling revenue in the united kingdom. Pool gambling (such as the Tote) makes up 4% with other sources, such as on-track bookies, making up just 1 percent.
Land-based casinos generate #1 billion in annual profits. Just under half of this comes from roulette (44%), per quarter from blackjack (25 percent ), a fifth (20 percent ) kind 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 3 quarters derives in slots, with the rest coming from table along with other games (an opposite trend to land based casinos). Poker, which can be classified under casino, generates less than 2 percent of the entire revenue.
Sports betting is the next most significant sector, producing up to 37% of the overall earnings. Of this around 54 percent stems from soccer betting, around 32 percent from horse racing and the remainder from different sources (of which tennis constitutes nearly half).
Other sources of revenue include exchange gambling (~3%), on line bingo (~3%) and swimming gambling (~0.5%).
In 2014 the online sector made up 29 percent of the entire market share, by 2016 that had grown to 32%. By 2020 the business could approach 50 percent of annual earnings generated from gaming related actions in the UK.
Evolution Of High Street To Online Betting
Apart from the peculiar independent bookie and a number of the stalls you visit at racecourses, all bookmakers today provide online gambling. Obviously, it did not utilized to be this way, and before the online era breaking into the industry was easier said than done. For a complete history of gaming see our dedicated page.
Pre-1960’S
Prior to 1960 in the UK it had been illegal to take bets from horse and greyhound tracks. Betting was heavily regulated by the government and although prohibited operators didn’t exist, overall you would find it hard to place a wager away from the monitor.
Bookies did take bets off-course through loop-holes from the law that allowed bets to be taken by phone or through postal order. This is the way William Hill started out. In the event that you were wealthy enough of course there were always choices open for you, Ladbrokes such as started out as a gentleman’s bookmaker for high profile clients. If you were however a typical working-class lad or lass nevertheless, there were quite a few choices open for you.
Even then most gambling at the time was for dog and horse racing only. Football gambling was largely outlawed, except for low stakes pool betting syndicate games, such as the soccer pools (which still exists now ).
Basically before 1960 betting wasn’t very easy as you had to attend a race-track to do it (or do it in a rear street gambling den). That’s unless you’re rich when the law did not actually apply to you and you may bet through discreet retailers.
1960 Betting And Gaming Act And Betting Shops
Betting shopIn 1960 the authorities finally embraced the new age. Normal folks had more disposable income in their pockets and they wanted more freedom with how to spend their money. The betting action for the first time allowed off-course gaming and from the following year, May 1961, a whole host of new gambling shops opened across the duration of the nation in a rate of 100 a week.
Betting was largely restricted to horse racing, together with principles set up like the’trebles rule’ on soccer. This meant all of footy bets necessary to be accumulators with at least 3 or more choices otherwise you couldn’t bet. The only sports you could place singles was racing.
Still this new industry was embraced by the people of Britain, sowing the seed that eventually resulted in the UK becoming the biggest gaming nation (per head) in the world.
Among the very first people to open one of these new betting shops was Joel Coral and 10,000 shops are reported to have opened over the first 6 months. Paradoxically the UK’s now largest high street bookie, William Hill, initially refused to start gambling shops, saying they were a cancer on society. He also reneged in 1966.
1970s And 1980s
The bookmaker sector grew exponentially in the years after legalisation of high street gambling. By the 1970’s there were 15,000 stores in the uk.
This is the time when many of the largest names we know today made and solidified their standing. Britain’s earliest bookmakers, Ladbrokes, William Hill and Coral were making so much that they even began to invest in additional leisure sectors.
1990’S
Regardless of the huge success of high street bookies in the past three decades the sector had a restricted clientele. The vast majority of punters utilizing betting shops were working class men and the standing of shops as being seedy dark dens filled with smoke and foul language didn’t help to change this.
Bookies sought to create a bigger customer base by introducing new features, such as live sport in stores and fresh football 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 outside, together with punters now able to back singles on a range of sports.
A progressively superior image, wider array of bets and markets, more televised sports (especially Premier League football) and an ever-increasing disposable income, saw the fortunes of bookmakers rise again.
By the mid-1990’s the sector seemed locked down with five enormous companies dominating the landscape, along with a couple of independents across the nation. Many thought gambling and gaming will be like this forever. This was until the internet came together.
New Millennium And The World Wide Web Online betting 2As the 1990’s brought to a close a brand new threat started to emerge into 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 various betting and gaming acts and more importantly stakes were taxed (9p/#1 staked). Online gambling however was a little bit like the wild west, you can essentially set up in which you wanted, launch a site and begin accepting bets from clients — tax free.
Although avoiding tax on gambling bets and winnings was in the time illegal it was nearly impossible to police. New firms together with the old high street bookies started to install new sites, largely based off shore in Gibraltar or Malta, to make the most of the tax free trade (most are still based there now ).
From the late 1990’s and early 2000’s the market share online was still very low and even though the new unregulated online trade was a concern that it wasn’t prevalent enough to induce changes yet. The bookies were still making enough from the high street though taxation avoiding new manufacturers were now taking a percentage of the profits.
Victor Chandler And Tax
In 1999 Victor Chandler (now BetVictor) moved his bookmaking company off shore to Gibraltar in protest at the betting tax rates in the united kingdom, selling his 41 stores to Coral. This allowed Victor to supply betting opportunities to global customers, especially from Asia, without paying UK tax. It also enabled UK punters to bet with no even paying the 9p/# bet taxation.
It is believed it was this decision that led the then UK chancellor, Gordon Brown, to remove the gambling tax in 2001. Saying that though he removed the tax paid directly by the punter new taxes were imposed on the bookies profits left in the UK and by this point the boat had mostly sailed and many traditional bookies were conducting their online operation from abroad.
2005 Gambling Act
gambling act 2005
Finally the authorities realised the status quo couldn’t last forever. This {wasn’t|was not

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