Are Physical Sportsbooks Still Relevant in the Age of Mobile Wagering?

The recent opening of a new sportsbook at Ocean Casino in Atlantic City by Michael Rubin, founder of Fanatics, and Jay-Z raises an interesting question: why are casinos still investing in physical sportsbooks when the majority of people can place bets from their smartphones?

In states where online sports betting is legal, the convenience and accessibility of mobile apps have drastically changed the landscape. Bettors can now place wagers from the comfort of their homes, during a game at a bar, or even while sitting in the stands at a sporting event. With this level of convenience, the allure of a physical sportsbook seems to have diminished, especially when considering that many sportsbooks inside casinos appear almost empty. So why are casinos still investing millions in these physical spaces?

The Shifting Role of Physical Sportsbooks

It’s easy to assume that physical sportsbooks might be a dying breed, especially with the rise of online betting, but there are a few reasons casinos continue to pour resources into these facilities:

1. Experiential Appeal: A sportsbook inside a casino offers more than just a place to bet—it's about the experience. The huge screens, luxurious seating, and communal atmosphere create a unique environment that bettors can't replicate on their phones. It transforms sports betting into a social activity, much like a sports bar, but with the added thrill of live betting. For many, the sportsbook is less about the wagering and more about the shared excitement with fellow sports fans.
2. Branding and Image: For a casino, having a high-profile sportsbook—especially one backed by names like Rubin and Jay-Z—sends a message about the brand. It positions the casino as a comprehensive entertainment destination, offering everything from gaming tables to high-end restaurants to cutting-edge sports betting. Even if the sportsbook isn’t packed 24/7, its existence can serve as a marketing tool, elevating the casino’s image in the competitive world of hospitality and gaming.
3. Supplementary Revenue: While online betting may dominate, a physical sportsbook still attracts a certain demographic—those who prefer in-person betting or enjoy the atmosphere. Additionally, sportsbooks often serve as gateways to other forms of spending within the casino. Bettors may come for a game and end up playing the tables, dining at a restaurant, or booking a hotel room, increasing the casino's overall revenue stream.
4. Big Events Draw Crowds: Major sports events like the Super Bowl, March Madness, or the NBA Finals can still pack sportsbooks. On these occasions, people enjoy the camaraderie and festive atmosphere that a casino sportsbook offers. The spike in foot traffic during these events justifies maintaining the sportsbook throughout the year, even if it’s quieter on regular days.

Are They a Smart Investment?

Even with these benefits, the question remains: is opening a sportsbook a smart investment in today's digital age? For some, the answer might be no. Running a physical sportsbook comes with significant overhead costs—real estate, staffing, and maintenance—that online apps don’t have. The margins on sports betting are often slim, and with online options so readily available, it's not clear whether the return on investment justifies the expense.

Casinos that don’t have a strong plan to leverage their sportsbooks for other purposes, like drawing in guests for cross-promotions or events, may struggle to make the numbers work. In areas with a high penetration of mobile betting, sportsbooks could become little more than expensive showpieces.

The Future of Sportsbooks

It’s possible that sportsbooks, as we know them, will evolve into something more integrated with the broader casino experience. Instead of just a place to bet, they could become high-end sports lounges or entertainment hubs where fans can enjoy food, drinks, and sports content in a dynamic setting—whether they’re betting or not.

However, for now, the decision to invest in a sportsbook in the age of mobile betting is a gamble in itself. The real winners will be those who figure out how to make the physical sportsbook more than just a place to wager, but a core part of the entertainment ecosystem.

In a world where anyone can wager from their phone, the challenge is no longer about offering betting services but creating a reason for people to leave their homes and step inside the sportsbook. And that might be the hardest bet of all.