Since the launch of online sports betting in Pennsylvania, approximately 90% of all wagers have been online. Yet casinos have spent millions of dollars building state-of-the-art sportsbooks. Based in Pennsylvania Penn National Gaming leveraged the Barstool brand to build Sportsbooks Bar Stool in two new mini-casinos in 2021. A Barstool Sportsbook at Penn National Racecourse’s Hollywood Casino opened in March 2022 in time for March Madness.
There are various reasons why casinos have invested valuable funds and playing space in retail sports betting. In some casinos, sports betting leads cross-selling table games and increase traffic. In the “American Sports Betting and Online Gambling Primer 3.0”Morgan Stanley analysts have highlighted how sports betting is creating a new revenue stream and attracting new customers.
Sports betting attracts new customers and increases revenue
Penn National Gaming often quote how Sportsbooks Retail Bar Stool increase visits from a younger demographic.
“Our retail Barstool Sportsbook concepts have driven database growth and increased visitation in younger segments, while increasing gaming and food and beverage spend,” said CEO Jay Snowden.
In Penn National Gaming’s February 2022 earnings call, Barstool’s sportsbook was reportedly “very profitable and offers significant cross-selling opportunities.”
During Penn National Gaming Results for the 1st quarter of 2022 presentation, they noted that Barstool Sportsbooks helps maximize cross-selling opportunities. Comparing Q1 2019 to Q1 2022 in properties with retail sports betting, Penn National saw a 53% increase in Theo board game for 21 to 44 year olds. The Theoretical Win (Theo) is the expected house win for a player, based on the total amount wagered by the player and the game played.
Play Pennsylvania has contacted select PA casinos for comment. However, they said they could not comment beyond those made during investor calls.
FanDuel Sportsbook at Valley Forge Casino
the FanDuel Sports Betting is only 1,800 square feet, and Forge Valley Casino is one of the smallest casinos in Pennsylvania. The retail bookmaker opened in March 2019 and benefits from the power of the FanDuel name and proximity to the main lineone of the richest postal codes in the country.
CEO and President of Boyd Gaming Kent Smith said on the second quarter 2019 earnings conference call:
“As we look at sports betting for our Mississippi and Valley Forge properties, the profit is nice and incremental, but it’s really about the extra traffic it drives into the building that supports the casino, which whether it’s table games or slots that support restaurants and support other parts of the building. We’ve seen good traction. That’s really about generating traffic for us.
Cross-selling from retail sportsbooks
Other operators reported strong cross-selling due to retail sports betting.
Bill Hornbuckle, CEO of MGM said on the company’s recent earnings call:
“In 2021, 42% of our new database registrations came from BetMGM. We anticipate that this rapidly growing group of omnichannel customers will be able to switch seamlessly between our online and offline offerings. »
In 2019, Caesars touted the benefits of sports betting in casinos. To Harrah’s Gulf Coast Casino in Biloxi Mississippi, the property saw a 10% increase in footfall month-over-month, a 300% increase in beverage sales, and improved overall gaming revenue from new-to-brand and reactivated customers thanks at new sports betting.
“The sports betting landscape continues to evolve and Caesars Entertainment is leading the industry in providing fans with new and innovative ways to engage with sports-related content while placing their bets in a sports book. or through a mobile app,” said Christian Stuartexecutive vice president of games and interactivity at Caesars Entertainment.
During Caesars Q3 2021 results, the CEO Tom Reeg said to have seen a “extremely” high increase in Caesars Rewards sign-ups and cross-visits.
“One of the areas where we’re particularly active is the high end of the market, the high rollers that are new to our system, where we’re willing to take large sports bets, and we’re seeing those customers work their way into our high limit rooms.
How much does it cost to build a bookmaker?
The first legal sports bet in Pennsylvania was placed on November 15 at the Hollywood Casino at the Penn National Race Course. PA casinos set up temporary locations before building larger permanent sportsbooks.
Here is a timeline showing when some of them open, along with their price tags:
- August 2019 Parx Casino Sportsbook: $10 million
- Sept. 2019 Rivers Casino Pittsburgh Sportsbook: $5 million
- Oct 2019 Rivers Casino Philadelphia Sportsbook: $5 million
Main image of Barstool Sportsbook at Hollywood Casino Morgantown by Katie Kohler