Saving Retail Sportsbooks
Mobile betting apps are where people are betting, but there is a place for retail sportsbooks, if they're done correctly.
The Bulletin Board
THE LEDE: The slow death of retail sportsbooks doesn’t need to happen.
ROUNDUP: NJ tax rate deal; Canadian ad restriction bill; Alberta launch timeline; BetRivers’ poker success.
NEWS: Ontario to review gambling impact and crackdown on gray market.
QUICK HITTER: The latest on the HG Vora-Penn fight.
AROUND the WATERCOOLER: That's just the way it is; Some things'll never change.
STRAY THOUGHTS: Waiting for news on California.
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The Lede: Retail Sportsbook Closures Are a Radar Blip Worth Watching
The closure of FanDuel’s sportsbook inside PHX Arena, the home stadium of the Phoenix Suns, isn’t a significant story in and of itself, but it does speak to a larger trend in the retail betting space: The closures of the sportsbook at Churchill Downs, Progressive Field, Audi Field, and the failure of betting kiosks in Ohio.
As Eilers & Krejcik Gaming (a newsletter sponsor) noted, “The closure marks the continuation of the decline in U.S. retail betting, which generated approximately $500 million in gross gaming revenue (GGR) in 2024, down from approximately $700 million in 2021.”
However, the issue is the brick-and-mortar sportsbook itself. As I said about horse racing last week, maybe it’s time to rethink the way physical sportsbooks are packaged to the consumer. If the revenue is coming from bets, there is a significant problem. A physical sportsbook can’t compete with a mobile app.
Even when they are inside a physical sportsbook, many bettors will turn to their phones to place wagers. Mobile betting helps them skip long lines, eliminates the need for carrying cash, and provides access to a broader range of betting options, simplified bet tracking (no physical tickets), and updated odds.
Physical sportsbooks need to offer more than just a betting counter and large TVs. They need to provide an experience that bettors are willing to pay (through the nose) for.
The old model, where the sportsbook’s amenities are a thank you for visiting and betting, no longer works. Those same amenities (and newer, swankier ones) should be the draw. Just like bottle service, people will pay for luxury amenities, such as VIP sections or private betting suites, as well as high-end bar and dining options.
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Roundup: NJ Tax Rate Deal; Canadian Ad Restriction Bill; Alberta Launch Timeline; BetRivers’ Poker Success
New Jersey online gambling tax rate deal [NJ.com]: It looks like New Jersey will join Maryland, Louisiana, Illinois, and Colorado, as NJ.com is reporting, “With a week to go before the deadline, Gov. Phil Murphy and legislative leaders are finalizing a deal on a new state budget that would include tax hikes on cigarettes, luxury homes, and online gaming in New Jersey.” According to NJ.com, the rate will increase to no more than 20% — Murphy originally proposed an increase to 25%.
Canadian online gambling ad restriction bill advances [Covers.com]: Senator Marty Deacon’s Bill S-211, the National Framework on Sports Betting Advertising Act, has advanced to the Canadian Senate’s Transport and Communications Committee after its second reading. The bill, similar to an effort in 2024, would increase restrictions on online sportsbook ads. As STTP previously reported, “The bill has been framed as a response to the surge in ads following the regulation and launch of online gambling in Ontario. The previous effort passed the Senate, but was upended by Canada’s special election.”
Alberta timeline to launch regulated online gambling market [Covers.com]: Alberta plans to launch its regulated online gambling market by early 2026, Minister Dale Nally said at the 2025 Canadian Gaming Summit. The iGaming Alberta Act, passed in May 2025, sets the legal framework for private sportsbooks and casinos to compete with the lottery-run Play Alberta site. According to Covers, decisions on advertising rules and tax rates will be finalized in the fall of 2025, following consultations with operators, casinos, and First Nations.
BetRivers Poker’s successful multi-state rollout [Pokerfuse]: So far so good for Rush Street Interactive’s newly expanded BetRivers Poker network: “The newly expanded BetRivers Poker network is showing successful early signs, with solid tournament participation marking a successful first weekend following its multi-state rollout and the launch of shared liquidity.” According to Pokerfuse, RSI reported no significant technical issues and has increased its tournament guarantees after a surge in participation. Previous STTP coverage of BetRivers Poker.
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News: Ontario Gambling Faces Review and Crackdown
Ontario’s gambling industry is coming under scrutiny, with Minister of Tourism, Culture, and Gaming, Stan Cho announcing a review of the online and brick-and-mortar industries at the Canadian Gaming Summit.
“The review will look for ways to ‘enhance efficiency’ and cut red tape for industry, hopefully driving more economic benefits for the province.”
“The review will assess opportunities to enhance efficiency and reduce red tape across both our online and land-based markets,” Cho said, via Geoff Zochodne’s reporting for Covers. “We can make things more efficient, cut some of the red tape, and get more value out of the industry.”
In a separate article, Zochodne highlighted Ontario’s crackdown on unregulated offshore sports betting and casino operators, as the Alcohol and Gaming Commission of Ontario (AGCO) is intensifying efforts against “grey market” entities.
Over 80% of gray market operators have transitioned to the regulated market since 2022, but 20% is still a significant number. Ontario Attorney General Doug Downey warned that patience with non-compliant operators is running thin: “We’ve given the grey market ample opportunity to transition to the legal market, and now we’re getting tougher.”
The AGCO is targeting advertising and payment channels to disrupt illegal operations, as it tries to level the competitive playing field between regulated and unregulated operators and add consumer protection.
Quick Hitter: HG Vora-Penn Fight, Isn’t Slowing Down
The battle between activist investor HG Vora and Penn Entertainment is still being waged, as a ceasefire remains out of reach following the June 17, 2025, Penn shareholder meeting and the election of new board members.
HG Vora nominated three new board members: William Clifford, Johnny Hartnett, and Carlos Ruisanchez. Penn had already accepted Hartnett (former Superbet CEO) and Ruisanchez (former Pinnacle CFO) in April, and both were elected as expected.
HG Vora stated that 55% had voted with its gold proxy card, which included all three of its nominees. However, Penn rejected Clifford’s nomination and reduced the board seats available from three to two, sparking a contentious dispute.
None of the shareholder votes are binding, leaving the board’s position precarious but without immediate consequences.
HG Vora also claimed that over 60% of shareholders voted against Penn’s executive compensation plans, signaling dissatisfaction with the company’s leadership, particularly CEO Jay Snowden, and the company’s inability to establish itself in digital gaming, citing the failed Barstool partnership and the subsequent $1.5 billion ESPN Bet deal.
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Around the Watercooler
Social media conversations, rumors, and gossip.
In response to a Legal Sports Report article on Neil Bluhm’s influence in getting the Illinois per-wager fee passed (and I agree with Kane, it’s a wonderful piece), Sporttrade CEO Alex Kane highlighted something that we all know: wealthy and powerful individuals influence policy in their respective industries.
I understand the point Kane is making, but it’s missing a key bit of context.
These casino companies are investing hundreds of millions to billions of dollars in their properties, employing hundreds to thousands of people, and driving local economies and tax revenue. The idea that they wouldn’t or shouldn’t have a say in policy is idealistic.
As Chris Grove responded, “It’s also always been this way, and has been this way very openly and visibly. States trade regulatory capture for some amount of control over some amount of gambling and revenue from gambling.”
When a state awards these companies gaming licenses, there are explicit or implicit guarantees about competition. Some states have exclusivity zones baked into the cake. In others, it’s more of a handshake agreement, or simply left to their lobbying abilities, which Bluhm and others are justly exercising.
Protectionism is common across businesses. Even when it’s not explicitly in the lease, a strip mall landlord is sensitive to their tenants’ businesses and is unlikely to allow a similar business to rent in the same plaza, as it signals to every other tenant that the landlord doesn’t care about your business, just your rent.
Shouldn’t a casino receive the same consideration and treatment?
DraftKings and FanDuel are rightfully frustrated that states are increasing their tax burdens soon after going live. It really isn’t fair. On the other hand, when they successfully counter these efforts, they high-five and congratulate themselves. Well, what’s good for the goose is good for the gander.
I get the frustration (Sheldon Adelson’s ability to prevent legalized online gambling a decade ago made me see red). Still, just like the cannibalization debate needs to be viewed from both perspectives, disruption versus protectionist policies require the same open-mindedness.
And as I wrote in Friday’s feature column, the disruptor often becomes the protectionist:
“Just like DraftKings and FanDuel pushed back against DFS 2.0, which they believed was encroaching on their territory, there are products and companies that I’m sure wouldn’t sit well with major sweepstakes operators or Kalshi a couple of years down the road.”
People who want access to a product and those offering the product may cry foul when protectionist policies block their path. Still, in a regulated market like gambling, which comes with incredibly high barriers to entry and requires massive investment, future influence should be seen as an extension of the license.
I routinely use this line (that I believe was said by Dr. Katherine Spilde at a conference I attended a decade ago): “If you dig a billion-dollar hole in the ground and employ several thousand people, you tend to have a lot of say on future gambling expansions.”
Stray Thoughts
STTP is still awaiting confirmation of the anti-sweepstakes bill in California. Casino Reports has seen the bill and has some reporting on it here, and the Social & Promotional Games Association (SPGA) has responded.
And yes, as I alluded to on X, it appears secondary efforts are also likely:
If you’re keeping score, that’s an anti-sweepstakes bill (that could have some other components), a possible DFS regulation bill, and the potential for the California Attorney General, Rob Bonta, to weigh in on DFS.
Fun times.