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Sports betting is a rapidly growing industry worldwide, be it traditional or online. The online betting segment is dominating traditional betting, but there is one segment that has gained significant traction in recent years. Yes, we are talking about retail betting. There is some evidence that shows retail betting has remained a lively and profitable part of the global gambling sector.
According to The Business Research Company, the global gambling market was valued at approximately $540.3 billion in 2023, reflecting a compound annual growth rate (CAGR) of 2.0% since 2018. It is projected to expand from $540.3 billion in 2023 to $744.8 billion by 2028, growing at a CAGR of 6.6%. From 2028 to 2033, the market is expected to continue its growth at a CAGR of 3.6%, reaching a value of $888.1 billion by 2033.
Retail betting is still relevant to the gambling industry, where many people still prefer physical betting on sports. As technology is booming, the digital version of online betting platforms and retail betting businesses are also expanding their presence by launching more powerful and user-friendly retail betting solutions for the physical sportsbook.
In this guide, we’ll understand the core of retail betting, how it differs from online sports betting, the key features it has, the future it holds, and many more.
𝑫𝒐𝒎𝒊𝒏𝒂𝒕𝒆 𝑺𝒆𝒂𝒎𝒍𝒆𝒔𝒔 𝑩𝒆𝒕𝒕𝒊𝒏𝒈 𝑺𝒐𝒍𝒖𝒕𝒊𝒐𝒏𝒔. 𝑪𝒍𝒊𝒄𝒌 𝑩𝒆𝒍𝒐𝒘 𝑻𝒐 𝑪𝒐𝒏𝒕𝒂𝒄𝒕 𝑼𝒔 𝑻𝒐𝒅𝒂𝒚!
In a nutshell, retail betting refers to placing wagers on sports in person that takes place in physical locations, such as dedicated betting shops, land-based casinos, and bingo halls. In the digital world where online betting is dominating, traditional betting channels continue to offer an immersive experience that many bettors still prefer. It embraces more socialization and a hands-on approach, typically involving cash transactions. This makes retail betting an ideal activity for those who prefer more face-to-face interactions while betting on their favourite teams or sports.
Retail betting activity is a straightforward process for bettors and operators. Bettors walk into the land-based betting shops or casinos and analyze the odds before placing bets at the counter. Some bookmakers also offer more advanced tech betting terminals that are self-serviceable, providing operators and users with greater autonomy.
Unlike online betting, where bets are placed by adding online money into the wallet, in physical betting, bettors place wagers through cash or cards, and the winnings are also paid out instantly in the same manner, mostly in cash. This type of betting requires faster management and efficient flow to increase profitability.
Retail betting offers various types of betting options to cater to a wide range of interests and preferences. Below mentioned are the different types of retail betting options offered by retail bookmakers:
Fixed odds betting
This is the most popular and common type of betting, where bettors pre-predict their potential winnings by analyzing the predetermined odds. Many bettors and operators prefer this betting option due to its simplicity and higher profitability.
Pool betting
In this betting option, multiple bettors contribute to the shared pool, with the winner splitting the total winnings. This type of betting option is highly appealing for sports like Horse racing, where bettors can win higher payouts.
Parimutuel betting
This betting option is similar to pool betting. However, this betting is typically focused on Horse Racing or greyhound racing. The bettors place their wagers into a pool, and odds are varied depending on the betting activity. The outcomes are completely unpredictable here but it offers higher returns when betting against public sentiments.
Each type brings distinctive opportunities for land-based betting operators to attract different customers with different preferences and demographics related to the betting. And that, in turn, increases both profitability and engagement.
Physical Presence
In the online betting activity, bettors can place their wagers from their betting software or app, but in retail betting bettors need to be physically present at the gambling venue/location in order to place their wagers and collect winnings.
Cash Transaction
Unlike online betting, many retail sportsbooks deal in cash transactions rather than online. However, some bookmakers also offer other payment options like cards to facilitate smooth transaction flow. Bettors place wagers using real cash and collect their winnings in the same manner.
Immediate Interaction
Retail sports betting requires face-to-face physical interaction and bettors must be present with bookmakers at the betting venue physically. This imposes trustability into a bettor who most likely prefers personal service and gets instant resolvement of their queries related to their bets.
Immersive Experience Focused
One of the unique aspects of retail betting is the unparalleled experience. Many sportsbooks provide larger screens where live sports games are displayed with more in-depth insights about the games. This creates an immersive experience for sports fans and bettors alike.
While retail betting and online betting share the same concept and attributes; however, there are some differences that make both retail and online versions of betting distinct from each other. Explore them below:
Accessibility and Convenience
On-site betting: On-site betting requires a physical presence at the land-based betting spot/shop/venue during its operating hours.
Online betting: Online platforms operate 24/7 and are easily available from any location with an internet connection. Many operators operate their betting business via websites or apps.
Social Interaction
On-site betting: As on-site gambling requires physical presence, the operators often hold live events that allow bettors to share their thoughts, share tips, or have casual conversations with fellow bettors.
Online betting: Online platforms often offer community features like forums; however, this lacks direct in-person interaction.
Payment Methods
On-site betting: In the physical betting activity, bettors need to pay cash at the counter in order to place bets, offering immediate exchange and a sense of tangible money management.
Online sports betting: Online betting, on the other hand, offers a wide range of payment options, including e-wallets, credit cards, and bank transfers to allow bettors to choose their preferred option for transaction.
Bonus & Promotions
On-site betting: Traditional sports betting operators often offer promotions and bonuses for their bettors to keep them coming back for more.
Online sports betting: Online betting operators offer a variety of promotions and bonuses to their first-time and existing users to keep them retained. They offer weekly, monthly, or even daily bonuses to their users.
While land-based betting offers more reliability and a secure feeling; however, being an on-site betting activity, it has some potential drawbacks as well. It is also important to look at both of its sides: Good and Bad. By understanding retail betting's strengths and weaknesses, operators can carefully weigh up both options. Below are mentioned its key advantages and disadvantages:
Advantages
Retail betting provides opportunities to interact with staff members and other bettors in person, fostering trustability and enhancing the overall experience.
Immediate Payouts
Being present on-site the payouts are distributed in cash immediately to winners after the game is finished or decided, offering instant gratification.
Lively Atmosphere
Retail betting operators offer larger displays to immerse into the game with other bettors and fans, adding to the thrill of betting.
No Internet Required
In on-site retail betting, bettors don't need any internet connectivity to place wagers on their favourite sports or teams.
Regulated Environment
Unlike online betting platforms, retail betting is fully regulated by all gambling laws and is completely secure, offering an assurance of a fair betting experience.
Expert Assistance
Bettors, especially those who are new to gambling at on-site retail betting venues, can get expert opinions and advice that can help them make informed decisions and reduce the risk of losing too much.
Real-time Information Access
As the games that are displayed are live and the information is in real-time, bettors can make decisions and place their bets according to the latest feeds they are getting from the system.
Instant Support & Resolvent
Bettors facing any sort of issues related to their bets or require assistance in using the system, there are always staff members available to help them out with their problems.
Disadvantages
Limited Accessibility/Convenience
The potential drawback of retail betting is it requires physical presence and is limited by location and bettors can use service in the operating hours.
Potentially Longer Queues/Wait Times
Not every, but in some situations, bettors may have to wait in long queue lines to buy bet slips or access the system, especially during the peak session of sports.
Limited Betting Options (Sometimes)
Some on-site retail betting systems only offer some limited betting options like limited betting market and sports coverage as compared to online platforms.
No Bonuses/Promotions (or fewer)
Many operators only offer promotions, bonuses, and events that are exclusive to the physical sportsbook.
Undoubtedly, retail sports betting offers a unique experience; however, the industry is facing major challenges. Explore them below:
Online Sports Betting Platform Making Competition One-Sided
Online betting is a multi-billion industry and constantly surging all over the world. There are countless online platforms on the internet that offer unmatchable and flexible experiences. They also offer a wide range of betting markets, sports coverage, multiple betting options, and many more. This makes the on-site retail sports betting market tough to come out of. Nowadays, bettors mostly prefer online platforms due to the greater accessibility and experience that physical betting venues don't offer.
Operational Costs are Higher
Maintaining a land-based sports betting shop or machine is a lot complex and costly as well. Also, rent, staff management, and other utilities to keep the business running require a heavy cost as it's not a one-time-only service.
Regulatory of Retail Betting
Betting in sports is a form of gambling, and gambling is prohibited in many countries. Acquiring a gambling license is a must in order to establish a land-based betting business without any complications. Also, as mentioned, not every country and state within them allows gambling; therefore, to operate such a business needs a different license authorized by the state government.
Want to open a sports betting shop? Then, you have to understand the structured process that covers legal, operational, and strategic considerations. You need legal smarts, money plans, and good service. Here’s how to start.
Know the Laws
Each state or country has its own rules. Some are strict. Some are not. Get the right licenses. Talk to a lawyer who knows gaming law.
Pick a Good Spot
Find a place with lots of people. Near sports bars or stadiums is good. Target sports fans. Make it easy for them to find you.
Get a Betting System
You need good software. It handles bets, odds, and payments. Many companies sell ready-made systems. Therefore, choose a trustworthy sportsbook software provider and get a betting system that fits your budget and also fulfills your needs. It must be safe and easy to use.
Find Money
Starting this business costs money. You need cash for rent, licenses, software, staff, and ads. Plan how to get the money. Use savings, loans, or investors.
Find Partners
Work with sports groups if you can. This builds trust. It can get you special bets. Work with payment companies, too. They handle money safely.
Make it Fun
Customers should feel welcome. Train staff to be friendly and helpful. Offer many bet types. Make payouts fast and easy.
Tell People About It
Ads are key. Use flyers and signs. Work with local teams for deals. Use social media and online ads, too. Make your shop known.
Follow the Rules
Laws and trends change. Keep up with them. The rules change. Sports change. Customer tastes change. Follow all rules to avoid problems.
Starting a sports betting shop is a big deal. Good plans and action can make a great place for fans to bet.
Sports betting is growing fast. Retail sportsbooks are changing to keep up. Here are some key trends to watch.
Mobile and Retail Unite: Many people use mobile betting apps. Retail sportsbooks will connect with these apps. This lets people bet on their phones. They can also enjoy the in-person sportsbook. This mix brings more customers to both. It makes betting more convenient.
In-Play Betting Rises: People enjoy betting during games. This is called in-play or live betting. Retail sportsbooks will offer more of this option. They will show real-time game stats. They will display live, changing odds. This keeps fans excited and engaged. It adds to the game's excitement.
Better Fan Experience: Sportsbooks will become more fun and inviting. Imagine big, clear screens to watch the games. Picture comfortable seats and good food and drinks. The goal is a better way to watch and bet. This creates a social and lively atmosphere. People can enjoy the game together.
More Rules: More states legalizing sports betting means more rules. These rules protect players and the games. Sportsbooks must be open about how they work. They must prevent underage gambling. They must offer help to problem gamblers. They must keep player data safe from hackers. These rules build trust plus make the betting experience even more immersive. They make betting safer for everyone. Fair rules mean fair games.
Data is Key: Data is very important for sports betting as bettors completely rely on them for making any betting decisions before placing bets. It helps set good odds. Sportsbooks use special tools to look at data. They study past game results. They check player stats. They find trends. This helps them make smart bets. It also makes betting more fun. Good data use means better bets for all.
More Ways to Pay: People want to pay for bets easily. Sportsbooks will offer more choices. They will add digital wallets like PayPal. They may use services like Apple Pay. Some may accept crypto like Bitcoin. This makes putting money in easy. It makes taking money out easy, too. More choices mean happier players.
Team Partnerships: Sports teams will work with sportsbooks. This lets fans bet while they watch. Teams can show sportsbook ads in their stadiums. Sportsbooks can offer special deals to fans. This helps teams make more money. It helps sportsbooks get more customers. It gives fans a new way to enjoy the game. It's a win for all.
Virtual and Esports: People bet on virtual sports. These are computer-simulated sporting events that provide more immersive experience. People also bet on esports events. Retail sportsbooks may add these betting options. This attracts younger fans and video game enthusiasts. It expands the customer base.
The future of retail sports betting is promising. Businesses must use new technology. They must focus on providing good and engaging services to customers. They must adapt and move with the latest trends to stay competitive. This ensures a dynamic and more amazing betting experience.
𝑫𝒐𝒎𝒊𝒏𝒂𝒕𝒆 𝒕𝒉𝒆 𝑴𝒂𝒓𝒌𝒆𝒕. 𝑺𝒆𝒂𝒎𝒍𝒆𝒔𝒔 𝑹𝒆𝒕𝒂𝒊𝒍 𝑩𝒆𝒕𝒕𝒊𝒏𝒈 𝑺𝒐𝒇𝒕𝒘𝒂𝒓𝒆. 𝑪𝒐𝒏𝒕𝒂𝒄𝒕 𝑼𝒔 𝑻𝒐𝒅𝒂𝒚
Retail sports betting is booming. It gives sports fans a fun, hands-on way to bet. Casual and serious bettors can enjoy games and try their luck. Retail sportsbooks offer a safe and exciting place to bet.
Betting in person has perks. You can socialize with others. It feels secure. You can even get advice from experts. Many people like this better than online betting.
But there are downsides. Not everyone can get to a sportsbook. And betting can become addictive. It's important to be aware of these risks.
More states are making retail sports betting legal. Technology is improving the experience. This means better betting for all fans. New and experienced bettors can find something they like.
DC Kumawat is the CEO of Orion InfoSolutions, a leading provider of IT solutions to businesses of all sizes. He has over 14+ years of experience in the IT industry. He is a passionate advocate for the use of technology to improve business performance.