Sports betting remains illegal in California, but momentum is certainly building to potentially legalize it in the near future. As one of the most populous states, California could very easily become the largest sports betting market in the country.
In anticipation to this, professional sports teams across CA are already making plans to capitalize on this new, highly lucrative revenue stream by incorporating on-site betting lounges and mobile betting options into their stadiums and arenas.
Betting lounges and partnerships
In the NBA, the Sacramento Kings, Golden State Warriors, Los Angeles Lakers and LA Clippers could all look to add on-site betting lounges similar to the deal the Phoenix Suns struck with FanDuel in 2021.
The Suns’ 7,400 square foot lounge at the Footprint Center features 40 TVs, a 35-foot video wall, 26 self-service betting kiosks, and an outdoor terrace would help add to this pull. The NBA is also integrating mobile in-app betting through its League Pass product. This could serve as a model for the four California teams.
This actually highlights how this momentum for legalized gambling, in part, is being fueled by online platforms. Their popularity comes with inviting offers and bonuses as seen on casinos.com, which have gained traction over the last few years.
With its premium amenities and prime LA location, an on-site sportsbook at SoFi Stadium could be another major draw. The NFL’s Rams and Chargers, who share the $5 billion stadium in Inglewood, are also prime candidates to add a physical sportsbook. In 2023, NFL owners approved a measure allowing teams to have betting lounges in their stadiums (with teams keeping all sportsbook revenue up to $20 million before sharing with the league).
California’s five MLB teams – the Dodgers, Angels, Giants, Padres and Athletics – will surely take note of the sportsbooks that have opened at Nationals Park in Washington D.C. and Chase Field in Phoenix. Caesars operates a 22,000 square foot sportsbook at the Diamondbacks’ Chase Field that features betting windows and kiosks, a full-service bar and restaurant, and private event space. The Nationals have a BetMGM sportsbook open year-round at their stadium.
The state’s three NHL teams and three MLS teams are likely to follow suit as well – and quickly. The NHL’s Washington Capitals already have a Sportsbook at their home Capital One Arena. MLS’s D.C. United has a sportsbook at Audi Field. Expect the Sharks, Kings, Ducks, Galaxy, LAFC and Earthquakes to pursue similar partnerships across California.
Mobile betting integration
As we mentioned, more sports teams are increasingly pushing mobile betting options inside their venues to engage fans and generate greater revenue. The NBA is a prime example of this, recently adding in-app betting to its League Pass streaming service.
This allows fans to place live bets on games directly within an app. Integrating betting into teams’ own mobile stadium apps is becoming a key strategy to keep fans engaged during live events. For example, the San Francisco 49ers’ app lets fans order food and drinks to their seats. Adding betting functionality to these apps could entice fans to wager and interact more during games. Eat, drink, bet – sounds great.
Mobile betting integration is an important step here if these plans are to be added quickly and efficiently, especially for fan engagement, with younger fans expecting more immersive, gamified experiences. Teams that seamlessly blend betting into their mobile offerings will no-doubt stand to deepen fan connections and loyalty.
Potential revenues
The revenue potential from in-stadium sportsbooks and mobile betting integration is, unsurprisingly, significant. MLB’s Arizona Diamondbacks expect their new sportsbook at Chase Field to generate $40-50 million annually.
In the NFL, teams can keep all sportsbook revenue up to $20 million before sharing with the league, incentivizing them further to build high-end betting lounges. And these lounges aren’t simple by any means – think luxury within every corner.
Across all leagues, betting fans are becoming more valuable customers too. Deloitte found that people who bet on games attend 75% more games and spend 22% more per game than non-bettors. Capturing this avid fan segment through betting amenities could substantially boost gameday revenues.
On top of this, sportsbook partnerships provide guaranteed revenue for teams through naming rights, sponsorships and marketing fees. For example, the Washington Capitals’ sportsbook at their arena includes an upfront payment and annual revenue share. As more states legalize sports betting, teams are racing to claim their share of this lucrative market. You will see more and more of this across America, not just California.
As more states legalize sports betting, teams are racing to incorporate high-end betting lounges and mobile options into their stadiums – easily boost engagement and revenue.
The rise of online casinos is further blurring the lines here, offering fans a one-stop-shop for all their gambling needs. While there are valid concerns around responsible gambling, the industry is taking steps to protect vulnerable players through new technology and education. As digital platforms continue to evolve, fans can look forward to an increasingly immersive and personalized experience that combines the thrill of live sports with the excitement of betting.
The future of sports entertainment has taken a bold step forward. While still keen to hold onto it’s traditional stadiums and fans, the path ahead is undoubtedly intertwined with the world of online gambling.