Certified Anti-Money Laundering Specialist Certification (CAMS) Practice Exam

What role does a bookmaker serve in gambling transactions?

1. A facilitator for lottery ticket sales

2. A broker who holds money for gamblers and charges a fee

3. A financial advisor for gambling investments

4. A regulatory body overseeing gambling activities

The correct answer is: A broker who holds money for gamblers and charges a fee

The role of a bookmaker in gambling transactions primarily involves acting as a broker for bettors. Bookmakers accept bets on various events (such as sporting events) and manage the money involved in those transactions. They set odds for different outcomes, allowing them to balance the bets placed by different gamblers. When bettors place their wagers, the bookmaker holds the money until the event concludes and the results are known. If a bettor wins, the bookmaker pays out the winnings based on the odds set. In this context, the bookmaker charges a fee through the odds, which is embedded in the amount paid out compared to the original bet placed. This function of holding and managing funds, while maintaining the integrity of the betting process, clearly distinguishes bookmakers from facilitators of lottery ticket sales, financial advisors, or regulatory bodies. Bookmakers focus on facilitating betting rather than overseeing or advising on gambling practices.