Las Vegas— Six years have passed since lawmakers allowed casinos to operate outside Nevada. Retail sportsbooks have changed a lot since then. What began as a promising chance for brick-and-mortar casinos is now a low-margin option, industry executives said on Monday.
In May 2018, the Supreme Court ended the federal sports betting ban. This led to the opening of retail sportsbooks, giving casinos a new way to attract customers. These books are mostly viewed as global online operators, like 22Bet Kenya. They aim to draw in customers for profitable casino games, dining, and spending at the venue. This approach is better than seeing each one as a separate revenue source.
“There’s less need for sportsbooks and more for distribution,” said Caesars Digital SVP Dan Shapiro at the Global Gaming Expo in Las Vegas on Monday.
The Superbook at Westgate Casino, by the Strip, and Circa Sportsbook downtown are top spots for sports betting. Many U.S. casinos are now reducing the space for stand-alone sportsbooks. This comes years after they were allowed to open.
“The sportsbook is set to shrink, and sports betting will spread more around the property,” Shapiro said.
Rise and Fall of Retail Betting
The media and public are buzzing about sports betting. This excitement comes from billions in marketing, bonus bets, and promotions. Leagues have also joined in to support this trend. All these factors generated a lot of hype around legal sports betting.
Yet, recent growth has increasingly come via online wagering. Mobile sportsbooks are gaining ground in many states. With options for both in-person and online betting, users enjoy more bet types. Online platforms also keep getting better.
Sportsbooks like DraftKings, FanDuel, BetMGM, Caesars, Hard Rock, and ESPN BET let you bet on your phone. They use their own technology. This allows thousands more bets than six years ago. Back then, sports betting outside of Nevada had begun.
Kiosks might play a bigger role in in-person sports betting. But industry officials think that the costs of running a physical sportsbook will be higher. Also, the space for low-margin games will be less typical.
Future of Retail Sports Betting
Industry leaders note that physical sportsbooks aren’t disappearing entirely. They create buzz on the casino floor. They also draw in younger customers, unlike slot or table game players.
Yet, casinos seem increasingly reluctant to pour large capital into traditional retail sportsbook spaces. Caesars launched retail books at many top spots in states where sports betting is legal. Yet, it has changed its retail sportsbook at Rocket Mortgage FieldHouse in Cleveland. It also backed out of plans to open a book at Raynham Park racetrack in Massachusetts.
Penn is renovating its former Barstool retail sportsbooks as ESPN Bet. This investment is a rare move since investors want the company to focus on in-person gaming.
Online betting is expanding rapidly. Users can place thousands of bets on different sports events and leagues. They can do this from almost anywhere.
Operators are shifting their attention to digital platforms. This change comes from the higher profit margins seen in parlays and single-game parlays. Retail sportsbooks will keep operating.
Their broader purpose is to draw guests onto the property, encouraging them to eat, drink, or explore other gaming options. Officials in the industry say they need to find ways to match the convenience of mobile wagering.
