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This situation changed towards the end of the 19th century when gambling was finally allowed. However, this was only legal if gambling was regulated by the government-run Totalisator Board (the Tote) at selected tracks and courses. This institution could set odds and re-channel profits back into the Treasury. Later on came the legalisation of the Football Pools, which was another betting phenomenon. This emerged as an exception and they were “classed as a low wager competition” and were legally allowed to exist. Fast-forwarding to the 1950s, black market betting continued unabated and the government “had neither the resources nor the motivation to stop it.” As a result, the government licensed off-site betting shops under the Betting and Gaming Act of 1960 and the betting levy at the same time that remained in place until 2001. Since the Tote limited gaming to race courses and greyhound tracks It was illegal to take bets off-site unless these were made by post or over the phone. With the new Act of 1961 followed the opening of the first betting shops in 1961. There was a condition attached to this which said that bookmakers were to be charged a new levy of 6.75%. Bookmakers then “passed this on to punters in the form of a 9% betting tax.” Regarding paying this tax, it could either be paid at the time of placing the bet or on the winnings. Most elected to pay at the time of placing their bets, as a 9% tax on winnings could be relatively hefty indeed.
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