Legalized sports betting spawns opportunity amidst fragmentationVending Times

32 states have legalized some form of legal sports betting. Scores of casinos have opened sportsbooks. A record 46.6 million U.S. adults plan to bet on NFL games this year. Kiosks are among the most frequent kiosk installation in 2021, according to the 2022 Kioks Marketplace Census Report.

The legal sports betting industry is fragmented due to variances in state regulatory structures, license fees, tax rates and other factors. Small retail outlets and online sportsbooks dominate the industry. A panel of industry experts discussed the fragmented industry at the Global Gaming Expo in Las Vegas.

In the early innings of legal sports betting, technology providers have been helping clients get up to speed with sportsbook technology. The industry was less marketing-driven before the Supreme Court ruling. A third party technology provider makes it possible to have a sportsbooks installed faster.

There is a wide variety of business models among sports betting operators. Some states such as California and Texas haven't yet allowed sportsbetting. The next phase of the business model is when operators focus more on serving their clientele. The industry is still young and there are many different business approaches.

Operators are beginning to differentiate product offerings. Technology will allow more diverse types of bets during a game.  Bets on touchdowns, passing yardage and rushing can make a more enjoyable viewing experience for fans.

In tribal markets, the only way for people to bet is to go to a sportsbook. Retail offers an opportunity for customers to engage with the brand. It also gives operators the chance to push promotions between online and onsite.

Sports franchises are using sports betting in their advertising. Sandra Douglass Morgan, president of the Las Vegas Raiders, and Erika Nardini, CEO of Barstool Sports, cited sports gambling as a key to engaging the younger demographic.

The panelists agree that the biggest challenges still include regulatory issues and acquisitions. Cash betting is not going away. Elliot Maras is the editor of Kiosk Marketplace and Vending Times. He brings three decades of experience covering unattended retail and commercial foodservice.