The online gambling industry has been enjoying sustained growth for a number of years, particularly in the UK market, thanks to the proliferation of gambling advertising and improving technologies which make it easier than ever before to gamble. From sportsbooks to casinos to bingo sites, there are now plenty of options facing would-be punters lining up their options for a bet. Yet at the same time, gambling operators are still in the market for new customers, and rely on finding new players to sign up for an account every month to keep their player numbers growing.
There are a number of methods of achieving this goal. Operators can spend big money on TV ad campaigns, or run promotions and other campaigns designed to bring in new players, or encourage existing players to be more active. But in terms of solid, sweeping expansion, especially for more well-established brands, it can be costly and challenging to achieve further market penetration.
One of the most obvious routes for casinos looking to expand their business is the crossover – offering sportsbooks, as well as other complimentary services, to their existing customer base. But why do online casinos see sportsbooks as a particularly lucrative addition to their product lineup, and does the cross-promotion of sports to casino customersmake sense for players?
Why Casinos Are Launching Sportsbooks
Gambling is a tough industry for companies looking to raise their profile. When it comes to attracting new customers, that’s not much easier, and without a sizeable budget and effective approach, becomes harder still. But imagine for a moment you’re in the shoes of a casino operator – you already have potentially tens, hundreds of thousands of players signed up to your casino platform. This is a gift, and certainly a strong platform from which to launch additional services.
Launching a sportsbook without customers is significantly more risky than launching a sportsbook with thousands of customers just waiting to hear about it. By diversifying their product offering to encompass sports betting, alongside their suite of traditional online casino games, casino operators are merely making the most of the assets they have.
By starting with a built in audience, casino operators can get the ball rolling with sportsbooks fairly quickly. And without the same investment required in developing games, or licensing titles from third party operators, it can represent a good value for money way for casinos to diversify and grow.
At the same time, casino gambling is not alone in enjoying rapidly increasing popularity globally – sports betting too is very much on the up. By choosing to diversify their gambling services to this, the next most logical destination for any casino, operators can harness the projected growth across the whole gambling sector.
Do Casino Gamblers Enjoy Sports Betting?
So for operators, this is a key area of synergy, just waiting to be exploited. But is the crossover between casino gambling and sports betting real? As far as players are concerned, is there appetite amongst casino gamblers for sports betting platforms?
It should come as no surprise that there is significant similarity in demographics between casino gamblers and sports betting gamblers. While not an exact match, plenty of online casino players will already bet on sports too, in addition to their online casino gambling. So from this perspective, operators are merely serving the needs of their customers better – by rolling out a sports betting platform. This allows players to continue their loyalty to a single platform, without heading off to a rival sportsbook (which might itself be cross-promoting a casino).
So for gamblers, sports betting works as a crossover, and casino operators that have launched sportsbooks have seen this reflected in their own results. For casinos and players, the synergy makes sense.
Watch Out For More Casino Sportsbooks
When something fits so closely as sports betting and online casinos, it’s often a sign that it’s a pretty solid idea. For casino operators, a sports betting platform is a relatively low cost addition to their services, with a fraction of the investment required you’d see from launching a new online casino brand. They already have the customers, and indeed probably a fair proportion of customers who currently bet on sports, so there’s even less friction than there would be if you were starting a sports betting site afresh.
A prime example of this is partycasino who in the near future may add a sportsbook to their already existing online casino portal. A spokesperson has stated that “the addition of a sportsbook is the next logical step for both the growth of our player base and retention of existing players. There is a definite overlay between casino and sports and this is an opportunity we would like to take advantage of by creating our own bespoke sports betting platform”.
Given the close symmetry between these forms of gambling, it’s hardly surprising so many online casinos are moving into this space. Watch out for more casinos launching sportsbooks in the near future, as operators seek to take advantage of these opportunities to attract new players and encourage existing players to gamble more