Our History

1800-1899

The exact origins of bookmaking have been lost in the mists of time. Yet the love of betting, and betting on horse racing in particular, has been ingrained in the English character for centuries. By the 1800’s most betting was transacted between individuals. The largest sums of money were wagered on the Classic races, especially the Derby and the St Leger. Before the arrival of steam and mass transportation that enabled the public to go racing, the sport was largely the preserve of the rich.

One of the great strides forward came through a Lancashire man called Ogden, who is said to have stood up at Newmarket one day and offered prices against all the horses in one race. Betting contracts between punters and their bookies, in which no money changed hands, often led to large debts and ill-will. The 1845 Gaming Act banned such practices and bookmakers began to insist on cash.

Betting shops began to spring up around the country but were quickly outlawed by the Betting Act of 1853. Despite the legislation, around two hundred men are thought to have been running books at the time, mostly on course. In 1886 a certain Mr Schwind and Mr Pennington went into partnership as commission agents, principally with the object of backing horses trained by the former at Ladbroke Hall in Worcestershire.

1900-1949

In 1902 Arthur Bendir joined Schwind and Pennington’s partnership. He founded the company as we know it today and gave it its name after spotting a signpost to Ladbrokes Hall for their first meeting. Not long after his arrival, Bendir changed the emphasis from backing horses to laying them as a bookmaker. His client base grew rapidly, particularly among members of gentleman’s clubs in London including Whites, Carlton, RAC and Athenaeum. Guards’ officers were employed as commission agents and discreetly introduced members of the armed forces as customers.

Four years after Bendir joined, just as street bookmaking was made illegal, Ladbrokes took up residence at Hanover House in the West End. After a seven-year stay, the firm moved to Old Burlington Street in 1913. For the next half-century customer accounts were settled in Georgian splendor over champagne, brandy and cigars. Among the notable employees was England’s first female bookie Helen Vernet, who never earned less than £20,000 per annum. Ladbrokes soon became one of the major firms sending money from off course bookmakers to those on course so as to adjust the starting price odds of individual races. Throughout the 1920’s, 30’s and 40’s business boomed and Ladbrokes grew from strength to strength.

1950 to 1969

Whilst business continued to boom in the late 1950’s, a feeling grew that the company was not moving with the times. Most directors were in their seventies and refused to open accounts to people from humble origins. All was to change when Cyril Stein and his Uncle Max Parker purchased the firm in 1956. No limit betting was almost immediately introduced and the company sponsored its first horse race. Ante post betting was also brought in alongside advertising for new customers. Many of these came from the millions of punters criminalised by the continuing ban on off course gambling.

In May 1961 the Government legalised betting shops under the Betting and Gaming Act. For the next eight years 35 betting shops a week opened in Britain until over 14,000 were established. Stein bought Ladbrokes’ first shop a year later. Whilst draconian restrictions applied to the shops, he used profits from the traditional areas of the business to rapidly expand the retail chain. To encourage non-horseracing punters, he introduced fixed odds football betting and a price war quickly broke out.

There are good days and bad. On the last Saturday of 1963 adverse football results cost the company over £1 million. In the same year Ladbrokes became the first bookmaker to offer odds on a political election (the Conservative Party leadership) and made a profit of £1400. Three years later they took £1.6 million on the General Election – more than on that year’s Derby. In 1967 Cyril Stein became chairman of Ladbrokes and floated the company on the London Stock Exchange. It had five credit offices, 109 shops and a market capitalisation of just under £1 million. Two years later it opened its 400th betting shop and boasted 300 credit office telephones. The race was on to become the world’s biggest bookie.

1970 to 1989

In the first two years of the 1970s Ladbrokes’ Retail estate expanded by 400 shops, taking the total to over 1,100. To cope with the growing infrastructure needed to support as many premises, the firm’s head office moved from central London to Hanover House in Harrow. West End casinos acquired in the late 1960’s and early 70’s were later sold off as greater investment in the shops was required. Quality began to replace quantity throughout the industry and by the end of the decade betting shop numbers have slimmed down to under 10,000. The major players are Ladbrokes, William Hill and Coral.

In the next few years’ horizons began to expand. In 1985 Ladbrokes opened 438 betting shops in Belgium to cater for increased demand. They also moved into the United States, opening at racetracks and in telephone betting theatres, the largest of which was in the industrial heart of Detroit. At home, moves were afoot to modernise the industry. 1986 saw the first major Act of Parliament for well over a decade. Under the new legislation bookmakers were allowed to show television coverage of race meetings and sporting events in their shops, which encouraged punters to stay longer. They also began to serve light refreshments and made significant improvements to customer comfort levels.

Towards the end of the 1980’s Ladbrokes went through a period of diversification. Whilst the improvement of the betting shop empire continued apace, other property interests including the purchase of a number of hotels were to follow. The DIY chain Texas Homecare was also purchased in 1986. In the following year Ladbrokes’ toehold in catering and accommodation allowed them to buy out all Hilton Hotels outside the United States for £645 million. In 1989 the portfolio expanded further with the purchase of Vernons Football Pools. The year saw record profits of £91 million for the betting chain and £302 million across the whole group. Success on all fronts was to lead to twenty years of unbroken profit growth.

1990 to the present day

Ladbrokes marked the dawning of a new decade with the opening of Europe’s biggest betting shop. A whole wall was dedicated to a giant television screen showing live racing and sports events. By now Ladbrokes had 1900 shops across Britain, Ireland and in Belgium. The last of the three caught up with the other two following the introduction of race-by-race betting on the horses in November of that year.

Moving with the times, the company allowed telephone customers to bet with debit cards in 1991. Two years later they were the first firm to open for evening racing in the months between April and August. After a 37-year stint at the helm Cyril Stein stepped down, but not before the firm outlined plans to develop off track betting facilities in the Argentine capital Buenos Aires.

Along with pubs and other retail premises, bookmakers were allowed to open on Sundays in 1994. New legislation also allowed people to see through the windows of bookmakers for the first time. Posters and television screens displayed the services available inside as advertising was finally permitted. Amid pessimistic predictions for the industry, the National Lottery was launched. Ladbrokes greeted the arrival of the new kid on the block with the £50million purchase of three London casinos from City Clubs: Maxims, Chesters and the Golden Horseshoe. It was business as usual.

Further de-regulation of shops in 1995 allowed Ladbrokes to increase the size of televisions in their premises. Shop windows were now allowed to advertise forthcoming events and the range of snacks and provisions was greatly expanded. Elsewhere, Texas Homecare was sold to supermarket giants Sainsbury’s for a £90 million profit. 1996 saw the introduction of slot machines with a ten-pound jackpot into the retail estate. Customers could now bet on the Irish Lottery in shop as well as the 49’s game. The Government cut betting duty from 7.75 per cent to 6.75 per cent and customer tax was cut from 10 per cent to nine per cent.

Electronic point of sale technology was introduced for the first time in 1996, paving the way for fully automated bet capture and settlement. Two years later Ladbrokes bought Britain’s third biggest bookmaker Coral but was quickly ordered to divest itself of the company by the Monopolies and Mergers Commission. Ladbrokes may not have hit the jackpot but customers did as maximum payouts on slot machines were increased to £15.

In 1999 Ladbrokes bought the Stakis Hotel chain and re-branded them as Hilton. In turn, Ladbrokes was re-branded as Hilton to reflect the increased size of the hotel group within the business. In 2000 Ladbrokes made its first move onto the Internet with the launch of betting services for web users and those with interactive televisions and phones. The business expanded rapidly and quickly became an integral part of the company.

Ladbrokes has continued to invest ever since. Over £50 million is spent every year on new shops, shop design and in store technology to create the most advanced betting experience in the world. It currently boast 2,141 shops in Britain, Ireland and Belgium. The abolition of betting tax in 2001 dramatically boosted betting turnover and has allowed Ladbrokes to create thousands of new jobs. The move has also enabled the introduction of new products such as fixed odds betting terminals. Partnerships in Spain and Italy have also allowed for investment in nascent retail markets elsewhere on the continent.

When shareholders approved the sale of Hilton International Hotels to Hilton Hotel Corporation in January 2006 the group was renamed Ladbrokes plc. It currently employs 14,000 people around the world, in 2006 over £12billion was staked with Ladbrokes and it has the second biggest retail presence on the high street after the post office. Ladbrokes has customers in over 200 countries and has been for many years the world’s biggest bookmaker.