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

You might examine the gambling and gambling industry and believe there’s a lot of healthy competition, with hundreds of brands currently vying for our pennies. Many companies however, though they might appear impartial, are in fact component of the same group, and you’ll likely never know it. As with many markets, there are actually a couple of large players and the remainder are left to scramble for the rest of the custom.
It isn’t just the old high street bookies such as William Hill and Betfred that occupy the top spots from the largest betting company leagues. Many ancient online just bookmakers have beaten the old land based operators, such as Bet365, and also the world’s largest and earliest online exchange, Betfair. Mergers between already large 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 balance as it risks getting a monopoly of some very few massive companies, very much like the energy markets.
In this article we also examine the progression of the united kingdom gambling industry, the dimensions of the gains made along with the progressive change 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 following 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 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 around #4 billion, adding further power to the brand on an global scale. GVC also own and operate sites like sportingbet (although we would not recommend them to wager with), partypoker and Bwin.
Ladbrokes, Britain’s oldest gambling company founded in 1886, and Coral, established at the 1926, have over 200 years experience of being a bookmaker involving them. The group own almost 4000 gambling stores, although were forced to sell over 300 in the merger, and are just two of the most recognisable brands in the British high street.
Coral, began by Joe Coral an on track bookmaker from the 1920’s, grew immediately after legalisation of off-course gaming stores in 1961, becoming among the very first bookies to take advantage. Merging with another company in 1971 to become Coral Leisure the group was obtained by Bass in 1981. In 1997 Ladbrokes chose their first attempt to buy Coral from Bass however this was blocked by the UK Monopolies and Mergers Commission at the time. Coral was offered to Morgan Grenfell, a private equity firm in 1999 and also merged with Eurobet, among the first online betting sites, in the same calendar year. Gala bingo, founded in 1991 and operating over 150 halls with an additional online presence, united with ghostly in 2005 to form 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 from the early 20th century that the firm became a bookmaker for wealthy clients. Falling on more difficult times after WWII that the business was sold for only #100,000. The same legalisation of gambling shops that drove Coral’s increase in 1961 nonetheless reversed the fortunes of Ladbrokes too, who were later floated on the stock market for #1M in 1966. With forays into the resort (Hilton Group) and home advantage industry the Ladbrokes group grew to next biggest UK bookmaker. Before the Coral merger Ladbrokes also acquired BETDAQ, the 2nd biggest betting market, 2013.
The team now generate more than a third of the gains from digital sources and between them have more online customers than any other company. For much more about each brand see our full 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 biggest betting business in the UK with over 2300 shops and only under #2 billion in annual earnings. The operator, which now generates around #200 million in annual earnings and is listed on the FTSE 250, comes from humble beginnings.
In 1934 the company was established by Mr William Hill, who after some early failures and illegal ventures found he could earn money using a loophole that allowed off-course betting using credit or post. Hill’s entered late into the gaming store business, opening their first 5 years after the change in legislation in 1966, as a result of creators belief they were a cancer to society. 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 newest was again sold two years later for #825 million and listed on the London Stock Exchange in 2002.
The William Hill group have experienced some corporate failures over the years but their aggressive strategy, particularly online, has enabled them to dominate the market landscape. Possibly the most well-known bookmaker in the world, mainly down to the fact Hill’s have spread out 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)
Established 2016 (Merger)
paddy-power-betfair
Many mergers are just about money. Coral did not really bring anything fresh to Ladbrokes for instance, but the merger between Betfair and Paddy Power in 2016 to create the third biggest betting brand was surely mutually beneficial to both parties.
Paddy Power, among Ireland’s largest bookmakers, was founded in 1988 but it was the online age that actually saw the brand come to life through its frequently controversial advertising approaches. Holding over 600 stores across the UK and Ireland and boasting retail revenues of nearly #1 billion Paddy Power brought the real world locations, marketing strategy and money to the merger.
Betfair on the other hand had a very distinct history in the betting industry. Located as a peer-peer gaming market as opposed to a traditional bookie in 2000, Betfair became the largest of its type in virtually no time at all. Despite better odds on offer in the exchange, the industry still remains fairly modest (see later) and so in order to compete Betfair established a fixed odds sports publication in 2011. Betfair are the smaller party in the merger, generating less than #500 million in revenue. For this reason 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 digital industry, and believing that just today is the online gambling market larger than the high road (excluding national lottery) which is a fairly impressive performance. When they state in their advents which Bet365 is the worlds favorite online betting company they really are not lying.
Launched in 2000 from a tiny temporary building in Stoke by now multi-billionaire Denise Coates, Bet365 currently produces enormous online revenues and is the biggest private employer in Stoke. They even own the soccer stadium.
Denise started the company by borrowing against her fathers mortar and brick bookmaking company, established in 1974 by Stoke City chairman Peter Coates. Selling the shops to Coral at 2005 Bet365 became an increasingly online only operator where they’ve gained a massive customer base of more than 20+ million people from 200 nations. The manufacturer has the best reputation inside the gambling and gaming sector from both punters and insiders and boasts one of their most loyal customer bases of any business enterprise.
Often mentioned as a success story of British internet business, if you should rule out the offline gaming sector then these men would be the biggest. Multi-award winnings and constantly developing new technology and ideas that the only way this company is moving in the long run is up.
Bet365 Review
Betfred
Ranking 5
Headquarters
Warrington
Revenue
#800 Million
Workers 1000
High Street Shops
1650
Launched 1967
Betfred
The Betfred travel to becoming one of the biggest independent betting companies in the UK is much more heart-warming than most others. Established from a single store 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. According to Warrington the company hasn’t been sold or merged and stays in the same hands as it began in.
Fred Done is known in particular for paying our ancient on Manchester United to win the league double only for them shed on both occasions (1998 and 2012). He also dropped #1,000,000 in a private bet with Victor Chandler (owner of BetVictor) gambling again on Man United, this opportunity to finish higher than Chelsea in 2005 – which they did not. Despite all these misjudgements Fred is also known for inventing the Lucky 15 along with other full cover stakes.
The business has a large gaming store operation, and since buying around 300 stores that Ladbrokes-Coral were made to sell now own in the region of 1650 stores in the UK. Famed for being among the best racing bookmakers Betfred increased their vulnerability in this market by buying the bag at 2011 for #265. This permits them to licence totepool bets to other operators as well as supplying bespoke tote bets others do not have. Regardless of this Betfred’s future looks mixed and will likely hinge on how well they grow on the internet in the coming years.
Betfred Review
888 Holdings Plc
Position 6
Headquarters
Gibraltar
Revenue
#600 Million
Employees 1600
High Street Shops
None
Launched 1997
888-holdings
888 is a thoroughly modern gambling company, there’s absolutely no amorous back story here. Currently part of a somewhat convoluted company structure, 888 Holdings is your gambling arm of parent firm Cassava Enterprises. Initially founded as Virtual Holdings running an early casino site, casino-on-net, by 2 Israeli business guys, the business grew in step with the development of the web.
The newest was renamed 888 in 2002 and despite having a hard hit when online gaming became illegal in several US lands in 2006 has continued to rise in all areas of online gaming. The group operate a sport (888 Sport) and poker website (888 Poker) and many casino (e.g. 888 casino, 777 casino)) and bingo brands (e.g. 888 bingo, 888 ladies, Wink Bingo) with a distribution of 61% casino, 18% poker, 11% sport and 9% bingo.
888 really are a international online specialist which will only grow in the future. The company was fined almost #8M from the gambling commission in 2017 for failure to correctly shield vulnerable gamblers in the UK. This will slow down the aggressive development strategy of the company, although only slightly.
888 Sport Review 888 Casino Review
Kindred Group (Unibet, 32Red, Stan James, et al)
Position 7
Headquarters
Malta
Revenue
#800 Million
Employees 1400
High Steet Shops
100 (Stan James)
Established 1997
Kindred
Kindred is a title that you may likely haven’t heard of, it’s in fact the rebranding of the old Unibet Group Plc following the acquisition of over a dozen other brands.
Quickly becoming one of the largest betting companies in Britain and Europe that the Kindred group includes Stan James, 32Red, Bingo.com and Maria. Unibet is of course the jewel in the crown, the brand has grown to become one of the largest 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 to 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 gaming market share
The pie charts above show a general representation of the supply of gaming revenue in the UK. Offline gambling is still the largest sector as this comprise the federal lottery (28 percent ), in contrast to high street bookies (27 percent ) and land-based casinos (5%) only online betting is larger (40 percent ). The tendency from offline to online is expected 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%), online poker (2 percent ) 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 increasing quickly at around 8 percent per year. Of this total over a third (Number 5 billion +) is made from online gambling, using a demanding split of 60% casino and 40% sports betting.
The sector as a whole is to blame for contributing around #8 billion to the UK treasury every year and directly employs over 100,000 people (possibly up to 500,000 if you include indirect workers ).
High Street Bookmakers And Land Bases Casinos
Supply of high street gambling venuesDespite the constant change towards online betting since the turn of this century there are still about 9000 betting shops in the UK (90% of which are controlled by Coral, William Hill, Ladbrokes and Betfred), 600 bingo halls, 1800 arcades and 150 land-based casinos (63 owned by the Rank Group and 41 by Genting). There are currently in the region of 200,000 gaming machines operated in the united kingdom also, of which around 40,000 will be the contentious fixed odds betting terminals (FOBTs).
The National Lottery (and other lottery) revenues are also contained in the overall gambling revenue figure. This make up to #3.5 billion of the total, with at the region of #250 million moving back to good causes.
High street bookmaking is liable for a similar figure, #3.5 billion yearly, claiming over 95% of their non-remote gambling earnings in the UK. Pool betting (such as the Tote) constitutes 4 percent with other resources, such as on-track bookies, making up only 1 percent.
Land-based casinos generate #1 billion in yearly profits. Just under half of this comes from roulette (44%), a quarter from blackjack (25 percent ), a fifth (20 percent ) form slots and other electronic games and the rest from other tables and games.
Online Betting And Casino
Sports betting distribution in the UKApproximately 57% of internet gambling earnings comes from remote casinos. Of this three quarters derives in slots, with the remainder coming from table along with other games (an opposite trend to land based casinos). Poker, which is classified under casino, generates less than 2% of the total revenue.
Sports gambling is the next biggest sector, producing up to 37% of the overall earnings. Of this around 54 percent stems from football betting, around 32% from horse racing and the rest from different resources (of that tennis constitutes nearly half).
Other sources of revenue include exchange betting (~3%), online bingo (~3%) and swimming betting (~0.5%).
In 2014 the online sector made up 29% of the total market share, by 2016 this had grown to 32 percent. By 2020 the business could approach 50 percent of annual earnings generated from gaming related activities in the united kingdom.
Evolution Of High Street To Internet Betting
Aside from the odd independent bookie and some of the stalls you see at racecourses, all bookmakers today provide online betting. Obviously, it did not used to be this way, and prior to the online age breaking into the industry was easier said than done. For a full history of gambling see our dedicated page.
Pre-1960’S
Prior to 1960 in the UK it was prohibited to take bets 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 put a wager away from the track.
Bookies did still take bets off-course through loop-holes from the law that allowed bets to be obtained by telephone or through postal order. This is the way William Hill began out. In the event that you were wealthy enough of course there were always options open for you, Ladbrokes such as started out as a gentleman’s bookmaker for high profile customers. If you were however a typical working-class lad or lass however, there were very few options open to you.
Even then most betting at the time was for dog and horse racing only. Football betting was largely outlawed, except for low stakes pool betting syndicate games, such as the soccer pools (which still exists now ).
Basically before 1960 betting was not very simple as you needed to attend a race-track to do it (or do it in a back street gaming den). That is unless you’re rich once the law did not actually apply to you and you may bet through discreet retailers.
1960 Betting And Gaming Act And Betting Shops
Gambling 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 invest their cash. The betting action for the first time allowed off-course gaming and from the following year, May 1961, a whole host of new betting shops opened across the length of the country 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 needed to be accumulators with at least 3 or more choices differently you couldn’t bet. The only sports you could put singles on was racing.
Nevertheless this new industry was adopted by the people of Britain, sowing the seed which eventually resulted in the UK becoming the biggest gambling state (per head) in the world.
One of the first individuals to open one of these new gaming stores was Joel Coral and 10,000 stores are reported to have started over the first 6 months. Paradoxically the UK’s now largest high street bookie, William Hill, originally refused to start gambling shops, stating they were a cancer on society. He also reneged in 1966.
1970s And 1980s
The bookmaker industry grew exponentially over the decades following legalisation of high street gambling. By the 1970’s there have been 15,000 stores in the United Kingdom.
This is the time when many of the biggest names we know now made and solidified their reputation. Britain’s earliest bookmakers, Ladbrokes, William Hill and Coral were earning so much that they also started to invest in additional leisure sectors.
1990’S
Despite the huge success of high street bookies from the previous three decades the sector had a limited clientele. The huge majority of punters using betting shops were working class guys and the standing of stores as being seedy dark dens full of smoke and filthy language did not help change this.
Bookies sought to create a bigger customer base by introducing new features, such as live game in shops and fresh football coupons to promote more diverse customers and bets. The removal of this’trebles rule’ on soccer in 1990’s went a fantastic way towards helping the bookies branch out, with punters now able to back singles on a range of sports.
A progressively superior image, wider range of bets and markets, even more televised sports (especially Premier League soccer ) and an ever-increasing disposable income, saw the bundles of bookmakers rise again.
By the mid-1990’s the industry seemed locked down with five massive companies dominating the landscape, together with a couple of independents across the nation. Many believed betting and gambling will be like this forever. That was until the internet came along.
New Millennium And The Internet Online betting 2As that the 1990’s drew to a close a brand new threat started to emerge into the older established order, online gambling. This was more dangerous to the established high street bookies than you may imagine.
High street bookmaking was controlled by various betting and gaming acts and much more importantly bets were taxed (9p/#1 staked). Online gambling however was a tiny bit like the wild west, so you could basically set up in which you desired, launch a site and start taking bets from clients — tax free.
Although preventing tax on gaming bets and winnings was in the time illegal it was almost impossible to police. New companies along with the old high street bookies began to install new sites, mainly based off shore in Gibraltar or Malta, to make the most of this tax free trade (most are still located there now ).
In the late 1990’s and early 2000’s the market share online was very low and although the new unregulated online trade was a concern that it wasn’t widespread enough to cause changes yet. The bookies were making enough from the high street even though tax averting new manufacturers were taking a slice of the profits.
Victor Chandler And Tax
In 1999 Victor Chandler (currently BetVictor) moved his bookmaking business off coast to Gibraltar in protest at the gambling tax prices in the UK, selling his 41 shops to Coral. This enabled Victor to supply gaming chances to global customers, especially from Asia, without paying UK tax. Additionally, it enabled UK punters to bet without paying the 9p/# bet taxation.
It is thought it was this decision that led the then UK chancellor, Gordon Brown, to remove the betting tax in 2001. Saying that although he eliminated the tax paid directly by the punter new taxes were levied on the bookies profits left in the united kingdom and by this point the boat had mostly sailed and many conventional bookies were conducting their online performance from abroad.
2005 Gambling Act
gambling act 2005
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