Bookie

What Is a Bookie?

A bookie (short for bookmaker) is an individual or organization that facilitates gambling—most commonly on sporting events. Bookies set odds, accept bets, and pay out winnings. Their core role is managing bets so the business remains profitable while complying with applicable laws.

Key Takeaways

• Bookies set odds, accept wagers, and pay winners.
• They make money primarily by charging a fee on bets called the vigorish (vig).
• Bookmakers seek to balance bets on each outcome to lock in profit from the vig.
• A 2018 U.S. Supreme Court decision removed a federal ban on most state-level sports betting, leading many states to legalize regulated sportsbooks.

How Bookies Make Money

Bookies rarely profit by placing their own bets. Instead, they collect a fee—the vigorish or vig—on each wager. The vig is effectively a built-in margin that ensures the bookmaker earns money if bets on opposing outcomes are balanced.

Other revenue and risk-management tactics include:
* Adjusting odds to attract bets on the less-popular side and balance liabilities.
* Charging higher vig on marquee events.
* Extending credit or loans to bettors (often on a short-term basis).
* Using hedging strategies with other bookmakers or exchanges to limit exposure.

Typical vig rates are around 10% of the bet amount, though rates vary by event size and competition.

How Odds Are Set

Bookies use statistical models, historical data, and market information to establish lines (moneylines) and spreads (point spreads). Odds-setting considers:

• Team and player performance metrics
• Injuries, weather, and other event-day variables
• Betting patterns and volumes (to rebalance liability)
• Prices from other sportsbooks or exchanges

Odds and lines are dynamic and may change as new information arrives or as the distribution of bets shifts. The goal is to create a pricing structure that draws action on both sides so the bookmaker profits from the vig rather than outcomes.

Evolution and Legal Context

Historically, legal sports betting in the U.S. was limited, which fueled an extensive black market for bookmaking. Many informal or illegal bookies operated outside regulation, sometimes connected to organized crime.

In 2018, the U.S. Supreme Court struck down the federal prohibition that had prevented states from authorizing sports betting. Since then, numerous states have established regulated sportsbooks and licensing regimes, creating lawful opportunities for bookmakers and driving substantial growth in legal betting revenue.

That said, legality still varies by state and by the type of wagering. Where betting remains prohibited, bookmaking conducted outside regulatory frameworks is unlawful.

Is Being a Bookie Illegal?

Not necessarily. Becoming a legal bookmaker requires operating within the regulatory and licensing framework of the jurisdiction where betting is offered. Many states now license sportsbooks and require compliance with consumer-protection, anti-money-laundering, and tax rules. Running an unlicensed bookmaking operation is illegal in jurisdictions where betting is prohibited.

Responsible Gambling

Bookies and regulated sportsbooks typically provide tools and resources for responsible gambling (limits, self-exclusion, and disclosures). If gambling causes harm, seek help through local helplines and treatment resources.

Bottom Line

A bookie is a risk manager and market maker for wagers. Profit comes mainly from the vigorish and from skillfully setting and adjusting odds to balance action. While the legal landscape in many places now supports licensed bookmaking, operating outside of regulation remains unlawful in jurisdictions that prohibit betting.