Sportsbooks and casinos go hand in hand. In Las Vegas, most casinos have a sportsbook section. The same trend has spread in the online casino space. Many new operators open with sites that feature both sports betting and casino gaming.
So, what’s the link between online casinos and betting websites? Why are many casinos offering sports betting these days?
It Starts with Regulation
Starting an online casino requires a license from a state-sanctioned regulatory body. In the UK, the right authority is the Gambling Commission. In Malta, the MGA does this job. In the US, operators can only acquire licensing in states that permit online gambling: New Jersey, Pennsylvania and Delaware, to name a few.
Although regulators have different licenses for different applicants, they often have a license that incorporates both sports betting and casino gambling. If you want to start a gambling website, you can ask for a license that gives you the powers to offer both services.
A license to provide both sports betting and casino gaming can be expensive initially. But over time, it provides better returns for investors. Here’s how:
Increasing Market Reach
You own an online casino. And you have access to a market where both sports betting and casinos are allowed. What would be the best way to maximize your returns? For many businesses, offering all legal gambling products is the right answer.
Many gamblers bet on sports as well as play slots and poker. Others prefer to bet on sports rather than play slots. Either way, an operator with both products will make money from customers interested in either casino gaming or sports wagering.
Sometimes a casino operator will need a sports betting license to reach some previously inaccessible markets. The US is an excellent example. More than twenty states permit sports betting. But only about five jurisdictions offer online casinos.
In light of that information, a forward-thinking online casino can benefit greatly for applying for a sports betting license. They don’t need to look for a different website or app. All they need is a license and the right software.
To Increase Appeal
Let’s get this out of the way. Online casinos don’t need to add sports betting to their websites to add appeal. In many cases, people who love slots and table games look for the best casinos and not necessarily those with betting services.
That is why top rated casino Dreamz.com has been surging in popularity over the years even though it doesn’t provide sports betting. The casino has a loyal fan base that visits it to play its 1800+ games and claims its generous bonuses.
That said, some players prefer to play at casinos with sportsbooks. These players do not specialize in one form of gambling. They play slots for an hour and spend the next hour betting on football.
To ensure they increase their appeal to a wider range of gamblers, some casinos don’t feel satisfied until they add sports betting to their catalogs. That’s alright.
For Competition Reasons
Casinos are known to go out of their ways to beat competition. They can offer bonuses with no commitments at all. Or they can reimburse your losses in the form of cashback programs to sway you away from competitors.
In light of that information, a lot of casinos with sportsbooks have them to beat competition. They want to have something their primary competitors lack even if it means paying for a license and betting software.
Of course, providing a sportsbook is one thing. Providing quality betting services is what’s important. So, before you join a casino with a betting section, ensure it offers quality services for both products.
Partnering with Sports Franchises
Casinos don’t really need sportsbooks to partner with sports companies. But it makes more sense for a gambling business to offer sports betting if it wants to capture the attention of sports bettors.
Let’s say a casino is based in the UK. Partnering with a Premier League football club can give it much needed visibility. It also makes it easier to advertise to football fans now that they have something of interest from the casino.
To be clear, sports partnerships are huge money makers for both casinos and sports companies. The franchises earn tens of millions of euros through sponsorship deals. On the other hand, gambling companies get visibility to tens of millions of fans.
Increasing the Bottom Line
Many online casinos introduce sports betting to their sites to increase their profits. Online gambling is a business, anyway. Of course, the decision is made after a lot of deliberation. Some companies built their brand as a bingo site or as a poker website.
Adding sports betting to their website might not be the best decisions. On the other hand, some casinos feel it’s better to offer what they are best at rather than to add sports betting and impact their brand negatively.
However, the potential to add revenue at the end of the year is too tempting for many casinos. A sportsbook doesn’t need much attention. Software does most of the work. And as a result, casinos can afford to provide both sports betting and casino gaming on the same application.
Again, the amount of money in sports betting is just too huge. It’s not like offering scratch cards or craps to a casino with slots. Sports betting is an entire industry that generates billions of euros for operators every year.
There’s a lot of money to be made in the sports betting industry. So, don’t be surprised if your favorite online casino adds a sportsbook to its website. That said, you’ll need to make a crucial decision: should you bet at a separate sportsbook or use a casino with a betting section?
Importantly, look where you get value for your money. A casino that offers betting website looks great. But don’t forget about maximizing your profits. If your favorite casino has low betting odds, look for a different site for betting. That’s the best decision for you.