Betting Shops: How They Work and Make Money, Their Pros & Cons

^{Pictured: The Westgate Las Vegas betting shop spans 30,000 square feet, featuring a 220-foot-long and 18-foot-tall 4K video wall.}

Betting shops — also called sportsbooks, bookmaker’s shops or betting points — are physical venues where you can place bets on sports, horse racing, and other events. While their popularity has declined with the rise of online betting, they still offer a unique in-person experience.

What is a Betting Shop?

A betting shop is a licensed location where wagers can be placed on a variety of sporting and non-sporting events. Nowadays, bookies position their betting shops as an entertaining and multifunctional environment.

How Bookmaker’s Shops Work

You can place bets in two main ways:

• With a cashier (face-to-face)
• Via betting terminals (self-service machines/kiosks)

Fanatics Sportsbook self-service betting kiosk

Most betting shops accept both pre-match and live (in-play) bets. Many also allow account registration, ID verification, and on-site viewing of events.

Despite the conveniences of physical betting shops, online betting platforms are growing more popular every year.

How Sportsbooks Make Money

Bookmaker’s shops make money by taking bets on various events and building in a small edge called the bookmaker’s margin. They set odds slightly in their favor so the total implied probability exceeds 100%.

This margin means the bookmaker profits in the long run regardless of whether an individual player wins or loses. The more bets players place, the more often the margin works in the bookmaker’s favor — so their main interest is in keeping players active and betting frequently.

To calculate the margin, use the following formula:

(1/O₁ + 1/O₂ + ⋯ + 1/O_n − 1) × 100

where O₁, O₂, …, O_n are the decimal odds for each outcome, and n is the number of outcomes.

Example: In a basketball game between the Los Angeles Lakers and the Golden State Warriors, the bookmaker’s analysts give the Lakers a 60% chance and the Warriors 40%. With a 5% margin, they add it proportionally to each side.

Without the margin, the odds would be 1.67 for the Lakers and 2.50 for the Warriors. After adding the margin, they become 1.59 and 2.38, respectively.

What Kinds of Bets Can You Place at a Betting Point?

Betting shops typically offer a wide variety of wagers, from simple to more complex:

• Straight bets — a single wager on one specific outcome, such as a team to win or a player to score.
• Parlays — a combination of multiple selections on one ticket; all must win for the bet to pay out, but the potential payout is higher.
• Teasers — bets that adjust point spreads or totals in your favor in exchange for lower odds. Common in sports like basketball and American football.
• Specialty bets — unique or niche markets, including horse racing, boxing, esports, political elections, and entertainment events.