Sports betting and casino gambling have more in common than meets the eye. Though they may seem like very different forms of gaming entertainment on the surface, there are actually many overlaps and connections between these two massive industries. Examining some key statistics and trends can shed light on the deep relationship between sportsbooks and casinos.
Sports Betting Rising Tide Lifts Casino Boats
The recent explosion of legalized Paddy Power Betting across America has been an incredible boon for casinos. In 2021, over 30 states have legalized sports wagering in some form, up from less than a handful just three years ago. This rapid expansion has brought sportsbooks into casino venues at a blistering pace.
Research by the American Gaming Association shows that in 2021, sports bettors wagered over $57 billion legally in the U.S. As more states continue to legalize and regulate sports betting, that number is projected to rise to $80 billion by 2024. Casinos are positioned to capitalize on this growth.
Casinos Are Top Spots for Sports Bettors
Today, over 75% of all legal sports bets are made online. However, retail sportsbooks located inside casinos continue to handle a sizable chunk of sports betting activity. Research indicates that in 2021, in-person sportsbooks at casinos and racetracks handled nearly $13 billion in sports wagers.
Many bettors simply enjoy the experience of placing bets in a casino. The excitement, crowds, amenities, and convenience make casinos prime destinations for sports gamblers. Casino companies know this and are investing heavily to attract sports bettors.
Caesars Sets the Standard
Caesars Entertainment provides an ideal case study showcasing casinos’ embrace of sports betting. As of 2022, Caesars offers mobile sports betting in 22 states plus Washington D.C., more than any other operator. The company also runs retail sportsbooks at over 50 casino locations around the country.
Caesars also demonstrates the overlap between sports and casino gamblers. The company reports that over 50% of its sports bettors also play casino games. Additionally, sports bettors wagered 47% more on average at Caesars’ casinos than non-sports gaming patrons. The company estimates sports gamblers contribute a quarter of its annual revenue.
Shared Marketing & Promotions
Joint marketing initiatives also showcase the deep ties binding casinos and sportsbooks. Nearly every major casino operator promotes its sports betting operations alongside table games and slots. Shared marketing campaigns and cross-promotions effectively target both casino gamblers and sports bettors.
For example, BetMGM sportsbook offers free bets to players who achieve certain tier levels in MGM’s casino loyalty rewards program. Caesars Sportsbook provides sports betting credits to Caesars Casino players that hit jackpots. This cross-pollination helps casinos convert sports bettors into casino gamers, and vice versa.
Convergence on Mobile Apps
The interlinking of sports betting and iGaming goes even deeper. Many gaming operators now offer sports betting, casino games, and poker all on a single mobile app.
For instance, DraftKings, which began as a daily fantasy sports site, now operates an integrated app allowing customers to seamlessly bet on sports, play online slots and table games, and wager on pools and lotteries. This convergence mirrors the overlapping interests of many bettors and provides a unified platform serving all their gaming needs.
Shared Tech Infrastructure
Behind the scenes, sports betting and casino gaming rely on some of the same technology infrastructure as well. Cutting-edge platforms have been built specifically to power both sportsbooks and online casinos.
Kambi, a leading global B2B gaming supplier, provides the software to run sports betting for operators like DraftKings, Parx, and Rivers Casino. But Kambi’s platform also seamlessly integrates with casino gaming tech, enabling clients to build innovative “sportsbook and casino” combo products.
Regulatory Frameworks Move in Tandem
Importantly, the regulatory opening of sports betting has also spurred expanded casino gaming in many states. As an increasing number of states legalize online sports betting, many are also permitting online casinos, poker, and lottery products.
In Michigan for example, the commercial casinos leveraged sports betting legalization to also successfully push for legal online casinos and poker. Sports betting paved the way for Michigan’s market to blossom into a nearly $2 billion industry with all forms of gaming now available online.
This pattern demonstrates again how expanded sports betting often goes hand-in-hand with growth opportunities for casinos.
Final Thoughts
While sports betting and casino gaming may appear distinct on the surface, they share deep and multifaceted connections. As legal sports wagering continues expanding across the U.S., including popular markets like NBA betting strategies, casino companies are positioned to capitalize in a major way.
The vast crossover appeal between sports bettors and casino gamers has driven heavy investment from gaming operators. Joint marketing initiatives, integrated mobile products, and shared technology further showcase how intertwined these industries have become. Regulatory momentum around sports betting has also created opportunities for casinos to grow.
So while they offer very different gaming experiences, the worlds of sportsbooks and casinos are increasingly interlinked. Savvy gaming companies recognize the synergies between these forms of entertainment betting. Capitalizing on this relationship appears likely to pay dividends for casinos and sportsbooks alike as the market matures.