Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
It’ll never catch on…
Article 7
Why It Took Traditional Bookmakers Years to Go Online
by Ian Sherrington, March 2025
As part of the series – The Online Gambling Industry
Intertops proved the market, but where was everyone else?
When the first online sportsbook launched in 1996, it seemed like the dawn of a new era for sports betting. However, while innovators like Intertops quickly proved the new online gambling market existed and was profitable, major traditional bookmakers such as Ladbrokes and William Hill took several years before entering the digital space.
Why did these established betting giants take so long to go online?
Regulatory Uncertainty
One of the primary reasons was the legal ambiguity surrounding online gambling in the late 1990s. Governments had not yet developed clear frameworks for regulating internet betting, and established bookmakers were wary of entering a market that could potentially jeopardize their existing licenses.
For companies with a strong retail presence, the risk of running afoul of gambling regulators was a significant deterrent.
Technological Hesitation
Unlike startups that were built for the digital age, traditional bookmakers had legacy operations focused on retail betting shops. Transitioning to an online platform required significant investment in technology, infrastructure, and cybersecurity—areas in which these firms had little experience at the time.
For many, the learning curve was steep, and they preferred to wait until technology became more reliable and accessible.
Latest Articles
Fear of Cannibalization
Many bookmakers feared that launching an online sportsbook could reduce foot traffic in their highly profitable brick-and-mortar betting shops. Retail operations were their core business, and there was concern that offering an online alternative might erode that revenue rather than complement it.
This cautious approach led to a slower adoption of digital betting.
Brand Reputation and Trust
In the early years of online gambling, the industry was often associated with unregulated operators and offshore businesses. Established brands like Ladbrokes and William Hill, which had built their reputations over decades, were reluctant to be linked with an industry that lacked credibility in the eyes of regulators and consumers alike.
They waited until online betting had a stronger reputation for legitimacy before making their move.
Infrastructure Challenges
Developing a secure and scalable online sportsbook was no small task in the 1990s. Unlike today’s plug-and-play solutions, early online betting platforms required bespoke software development, secure payment processing, and risk management systems.
Startups, with their agile structures, could adapt quickly, but larger firms had to navigate internal bureaucracy and slow decision-making processes.
William Hill’s Offshore Experiment
William Hill briefly operated an online sportsbook from Antigua in the late 1990s. The company, like several others, chose Antigua because it was one of the first jurisdictions to offer online gambling licenses under the Free Trade & Processing Act of 1994.
However, due to regulatory concerns and pressure from the UK government, William Hill quickly withdrew from the jurisdiction, preferring to wait for clearer legal frameworks before fully committing to online betting.
The man that owned Gibraltar License #001
Victor Chandler and Gibraltar: The Offshore Game Changer
One of the most influential figures in the rise of offshore gambling was Victor Chandler.
After successfully turning around a string of insolvent betting shops, Victor would become an adept business man, and an influential bookmaker.
In the late 1990s, after realizing the potential of offshore gambling, Victor moved his operations from the UK to Gibraltar, a jurisdiction with a much lower tax regime. At the time, UK bookmakers were subject to a 9% betting tax, which customers had to pay either on their stakes or their winnings. By moving to Gibraltar, Chandler was able to offer tax-free betting to UK customers, giving his company a massive competitive edge.
His relocation pressured the UK government to rethink its betting tax policies. In 2001, the UK abolished the 9% betting tax on punters, instead shifting to taxing bookmakers’ profits, a move that allowed UK-based firms to better compete with offshore operators.
Victor Chandler talks about his early years
The Turning Point: Regulation and Market Maturity
As the early 2000s progressed, governments began establishing clearer regulatory frameworks for online gambling. The UK Gambling Act of 2005, for example, provided a well-defined legal environment that encouraged traditional bookmakers to invest in online operations.
By this time, technology had also advanced significantly, making it easier and safer to launch online sportsbooks. Seeing the success of early adopters, major firms finally embraced the digital shift, leveraging their brand recognition to dominate the market.
Conclusion
While startups were able to move quickly, traditional bookmakers took a more measured approach, ensuring that the regulatory, technological, and business landscapes were favourable before they entered the online market.
Once they did, however, their established reputations and financial power allowed them to quickly become dominant players. Today, companies like Ladbrokes and William Hill are key players in the online betting industry, proving that their patience and strategic planning ultimately paid off.
