• On the surface is the handbook operator.
  • He makes a profit from the persons who place bets with him because he has an edge on every bet. He pays track odds but usually not in excess of 20 to 1.
• The odds at the track are calculated after deducting the 15 percent to 18 percent of the total betting pool which goes to pay taxes and other expenses. The bookmaker pockets that amount.
  • However, he is not a man of unlimited resources.
  • He must balance his books so that he will lose no more on the winner than has been bet on the other horses in a race, after his percentage has been deducted.
  • He cannot control the choices of his customers and very often he will find that one horse is the favorite choice of his clientele.
• His "action," as he calls it, may not reflect the "action" of the track.
  • Therefore, he must reinsure himself on the race in much the same fashion that casualty insurance companies reinsure a risk that is too great for it to assume alone.
  • To do this the bookmaker uses the "layoff" man, who for a commission, accepts the excess wager. (p3)

--  Statement of Hon. Robert F. Kennedy, Attorney General of the United States

1961 JUNE 6, 19, 20, 21, AND 26 - GOV (Senate) - The Attorney General's Program to Curb Organized Crime and Racketeering - Robert Kennedy, James O. Eastland  (D-MS) - [PDF-349p-GooglePlay]