Yes there's a betting shop in every main street , even in large villages. So do you have places to bet in main streets across the US ?
Bedstor: how did the old way lead to fraud? There was always a betting slip, the receipt, showing the odds taken and bet made.
Of course, the punters (clients) often thought they were defrauded when paid but that was because most of them were incapable of the maths involved in settling bets like yankees and other combinations, even doubles, when there were odds at 13/2, 11/8, 6/4, '6/4 on' (which is, of course, 4/6

) and so forth. The fraud problem was mostly, as it was on the racecourse, that the bookmaker would welsh (disappear when due to pay out too much). In practice the runners, and the bookies, relied on being trusted locally in the town. Everybody knew who they were and that's how they established a clientele.
The reason for street betting being illegal was to protect ordinary people from gambling debts. The better off simply opened credit accounts. One reason why racecourses had much greater attendances years ago was that cash betting there was , naturally, legal. The half day off work enjoyed by shopworkers and Saturdays were marked by enormous crowds at bigger meetings.The Derby was held in midweek and attracted far more people than it did post the late 60s.It's now held on a Saturday.
The internet, though, has made betting fraud more obvious in the case of jockeys cheating as accomplices to gamblers.On the internet it is possible for anyone,even a part time recreational gambler, to back a horse to lose a race.The ease of this makes it attractive to part time crooks too

The result has been a few ludicrously inept attempts at fixing; one jockey is accused of jumping off his horse whilst going over a fence, another of dropping his hands and waiting for others to overtake when right in front of the grandstand; but it remains a possible problem for the racing industry.
Naturally, jockeys are regularly sent out on animals that do not run to their best form but that's normal ( and
expected by owners and trainers

)