September 1st 2024.
The gambling industry has transformed into a multi-billion pound sector over the past six decades, ever since the first betting shops opened their doors. It all started when Harold Macmillan's government made the bold decision to legalize betting shops, unleashing a force that has never been tamed. It was on this day 64 years ago that the Betting and Gaming Act was announced, giving bookmakers the green light to start operating the following year. This groundbreaking reform aimed to modernize outdated gambling laws, allowing bookies and casinos to take bets over the counter.
Within a few months, the days of street runners carrying bets and cash were long gone, replaced by thousands of bustling betting establishments. Fast forward to the digital age, and the UK gambling industry has expanded to encompass multiple platforms, sports, and subjects, including South American Esports and live virtual football at Ladbrokes' Champions Stadium - things that policymakers could have never imagined back then.
Professor Leighton Vaughan Williams, a renowned gambling expert, points out some of the significant changes that have taken place since the 1960s when Elvis Presley topped the charts and a loaf of bread cost a mere 6p. "Back then, most gambling was illegal street betting, with 'bookies' runners' placing bets on behalf of punters," he says. "The government was receiving no benefit from this, so they introduced taxes five years later. It was a game-changer."
Before the reforms were announced on September 1, 1960, gambling laws were confusing and outdated, allowing only the wealthy to take advantage of loopholes. Anyone wanting to place a bet had to prove they had enough credit to set up an account with a bookmaker and conduct all transactions over the phone. But with the new changes, the floodgates opened, and the number of bookmakers skyrocketed. In the first six months alone, 10,000 betting shops had opened, along with 1,000 casinos in the following five years.
The first betting shops were simple and bare, with strict laws forbidding any form of entertainment that would entice customers to linger. Gamblers would choose their stakes from blackboards and hand a slip to the cashier, similar to a telegram. The changes came just in time for the 1961 Epsom Derby, which saw Psidium, a 66/1 outsider, take home the victory. The opening day at a London bookmaker was described by a BBC reporter as being "like being in a small Post Office."
Professor Williams notes that before the 1980s, betting shop windows were frosted to prevent people from seeing inside, and there were no carpets or coffee - anything to discourage customers from staying too long. "But now, it's a mainstream leisure activity, no longer seen as something shady where punters hide in cloth caps and constantly look over their shoulders," he says.
The then-chairman of the Racecourse Betting Control Board, Sir Dingwall Latham Bateson, believed that legalizing betting shops would not lead to an increase in gambling. "I think the betting shops will simply replace what was previously done illegally," he stated. However, this presumption was put to the test as the industry experienced a boom in both legitimate bets and the involvement of organized crime.
With advancements in technology, the betting industry has undergone a major revolution, causing concern over potential harm to customers. In the same year that the government announced the reforms, notorious gangsters the Krays opened Esmerelda's Barn, a gambling club in London's West End, where they hosted many high-profile celebrities. Subsequent governments have made further reforms, such as Gordon Brown's decision to abolish betting duty in the 2001 Budget. However, the industry's rapid growth, fueled by new technology, has been the biggest deviation from what policymakers had envisioned.
According to the Gambling Commission, revenues in the betting and gaming sector reached a staggering £15.1 billion in the year ending March 2023. Interestingly, the late John Aspinall's gambling activities played a significant role in convincing the 1960 government to relax gambling laws. The wealthy socialite had found a way around the outdated rules by holding exclusive events in luxurious private residences in Belgravia and Mayfair. With the reforms in place, Aspinall went on to open the Clermont Club, a popular casino where the elite could gamble in lavish surroundings. His activities, combined with a shift towards a more permissive society, were instrumental in persuading the conservative government to legalize casinos and betting shops.
The gambling industry has seen a tremendous growth over the past six decades, going from a mere sector to a multi-billion pound trade. It all began when Harold Macmillian's government took the bold step of legalizing betting shops, setting off a chain reaction that has yet to be restrained.
64 years ago today, the Betting and Gaming Act was announced, paving the way for bookmakers to open their doors the following year. This landmark reform aimed to abolish the outdated laws surrounding gambling, allowing bookies and casinos to finally take bets over the counter. It didn't take long for the traditional street runners to become a thing of the past, as thousands of establishments started thriving.
Fast forward to the digital age, and the UK gambling industry has expanded tremendously, operating across various platforms, sports, and subjects. Who would have thought that South American Esports or live virtual football at Ladbrokes' Champions Stadium would even be a possibility back then?
Professor Leighton Vaughan Williams, a renowned gambling expert, highlights some of the major changes that have occurred since the 1960s, a time when Elvis Presley was topping the charts and a loaf of bread only cost 6p. "Back in 1960, gambling was mostly illegal and done through 'bookies' runners' who would place bets on behalf of the punters. The government was not benefiting from this at all. However, with the opening of the first betting shops in 1961, the government introduced taxes five years later," he explains.
Before the reforms were announced on September 1st, 1960, gambling laws were complex and often exploited by the wealthy. To place a bet on horse racing or any other sport, one had to demonstrate that they had enough credit to open an account with a bookmaker and conduct all their transactions over the phone.
The changes brought about by Macmillian's Conservative government led to a surge in the number of bookmakers, with over 100 opening every week. In the first six months alone, there were already 10,000 in existence, and within five years, around 1,000 casinos had also been established. The first betting shops were rather plain and simple, with strict laws prohibiting any fancy decorations or amenities that would encourage punters to hang around.
Gamblers would choose their stakes from chalkboards and then hand a slip, similar to a telegram, to the cashier. These changes came just in time for the 1961 Epsom Derby, which saw Roger Poincelet's 66/1 outsider, Psidium, emerge as the winner. A BBC reporter who visited a London bookmaker on the opening day likened the experience to being in a small post office.
"In those days, betting shop windows had to be frosted to prevent people from seeing inside, and there were no carpets or coffee to prevent punters from lingering around," Prof Williams recalls. "But now, it has become a mainstream leisure activity, rather than a shady affair where punters would hide in their cloth caps, constantly looking over their shoulders."
However, not everyone shared the same optimism about the reforms. Sir Dingwall Latham Bateson, the chairman of the Racecourse Betting Control Board at the time, stated in an interview with the BBC that he didn't believe the opening of betting shops would lead to an increase in gambling. "I believe that the betting shops will simply legalize what has been done illegally," he said.
But unfortunately, this presumption was put to the test, not just by the surge in over-the-counter bets but also by organized criminals who saw an opportunity to make a fortune. As technology continued to advance, the gambling industry underwent a revolution, raising concerns about potential harms.
In the same year the government announced the reforms, the infamous Kray twins opened a gambling club named Esmerelda's Barn in London's West End, attracting numerous celebrities. Subsequent governments have continued to reform the industry, with Gordon Brown scrapping betting duty in the 2001 Budget. However, the industry's unprecedented growth, fueled by new technology, has been the most significant departure from what policymakers had envisioned.
According to the Gambling Commission, revenues in the betting and gaming sector reached a whopping £15.1 billion in the year to March 2023. Interestingly, the gambling activities of the late John Aspinall, a well-known socialite, greatly influenced the government's decision to relax the laws in 1960. He had found a way to bypass the archaic regulations by hosting exclusive events in private residences in Belgravia and Mayfair. After the reforms, Aspinall opened the luxurious Clermont Club, which quickly became a favorite spot for the wealthy to indulge in gambling in a lavish atmosphere. His activities, combined with the societal shift towards a more permissive attitude, played a crucial role in the government's decision to give the green light to casinos and betting shops.
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