Most people who bet enjoy the thrill of watching live sports games as they place their bets. Those who cannot attend land-based casinos can place their bets on an online sportsbook. The sports betting market is currently around $76.75 billion in the United States and is estimated to be about 83.65 billion by the end of 2022.
More state-of-the-art sportsbooks are being built regularly. There are several reasons why casinos are investing funds and their precious time in retail sportsbooks.
Why casinos are investing in retail sportsbooks
Casinos have expanded their number of sports betting kiosks multiple times in the U.S. As a result, people can sit in the chairs and make their bets. Casinos have created new sources of revenue by bringing new customers into betting. Sportsbooks make money by collecting a commission on the losing bets.
Research shows that Parx’s retail sports betting concepts have spurred massive database growth and increased visitation frequency for growing segments. Online sports betting in Pennsylvania has helped maximize cross-sell opportunities for Parx retail sportsbooks in the state.
How much does it cost to build a retail sportsbook?
The capital you will require to set up a sportsbook depends on where you would like to build it. You need to understand that investing in retail sportsbooks can be risky. To start a sportsbook in Pennsylvania can cost you about $10 million. You will need to get comfy chairs and tables for your visitors. With advanced technology, you can place counters among the tables and chairs and the 360-degree view of games action on flat-screen wall TV.
Most sportsbooks also have entertainment centers, bars, and restaurants, adding to the cost. These venues highly benefit businesses and help generate money to cover sportsbooks expenses.
Cross-sell from retail sportsbooks
Casino industry predictions show that cross-selling is one of the main methods of generating revenue for most sportsbooks. Many operators have reported strong upselling due to the increase in retail sportsbooks. When running a sportsbook, the battle lies in attracting new customers and then getting those customers to bet on the games on offer.
Cross-sell is what drives revenue for most operators. Sportsbook owners now have a choice to accept stabilizing customer numbers or just push for new opportunities. Cross-selling is an important channel for sportsbook operators, especially for marketing operations. Remember that as casinos become a more mainstream pastime, the chances of getting new opportunities diminish.