There are places in the United States where one can judge a book by its cover. And its parlays, teases, odds boosts and bonuses that eliminate the vig.
Welcome to the sports-betting surge, a sizzling commodity encompassing roughly half the country. States race to legalize and prioritize this market niche, mimicking the sprawling surge of gaming itself 30 years ago.
The books themselves are not colossal profit centers. But the combined effect of books with bars, gamblers with apps and big-screen sports glorification creates an industry winner. A venue can be tailored to its gambling audience. Big wagers can originate from a small geographic area or a massive open-air room.
Operators consider the upside limitless and the downside limited. Casino Style canvassed leading designers and architects regarding the impact of sports betting on their projects.
Planning for the Mobile Entry
“As the industry continues to embrace the activity in creative ways other than just betting online, we’ll see some very innovative applications at casinos,” says HBG Design principal Dike Bacon. “Who knows? A new-generation sports betting customer could be a new customer that the casino doesn’t currently have.”
Bacon believes the package of mobile and brick-and-mortar components can be lucrative for operators.
“Many industry observers think another 15-20 states may pass legislation in 2021, so it’s clearly a rapidly emerging national trend to be capitalized upon,” he says. “What Penn National, Rush Street, and a number of Indian gaming tribes are doing are diverse examples.
“If mobile sports betting is allowed, how can casinos take advantage beyond a traditional sportsbook area? Mobile sports betting at a brick-and-mortar facility has the potential to be a social or party-type event (post-Covid, of course) which could be a great opportunity to drive revenue across a lot of other amenity platforms.”
There can be great opportunities to connect land-based premises with online accounts and be able to directly interact with the casino and the various amenities those facilities offer, Bacon asserts. This could create an entertainment experience that is beyond just one physical area like the sportsbooks of old. It could become facility-wide.
“As an example, on-site betting could drive higher-profit F&B sales and potentially drive casino play,” he indicates. “The key is creatively intersecting amenities like bars or restaurants with televised events. Brick-and-mortar casinos obviously offer experiences you can’t get on a phone or computer terminal.”
Application of laws varies widely from jurisdiction to jurisdiction.
Where betting is currently legal or on the verge of being legalized, HBG works with clients to study the impact and opportunity of integration of sports betting into larger entertainment experiences and venues.
“A few of our concepts integrate sports betting into the center bar or into existing restaurants or multi-use venues,” Bacon says. “Instead of having a sports betting back room, there is a great opportunity to bring the activity right out to the casino floor, or at least adjacent to the floor, and potentially introduce casino gaming to a new customer.
“Depending on what is allowed in a particular jurisdiction, we will work with clients to either update existing sportsbook areas, move the activity entirely to a new location in the casino or possibly into an existing restaurant, or create an entirely new space. What’s really compelling is the notion that sports betting could potentially attract a younger demographic to the casino. Sports betting can become an integral part of a total entertainment experience that appeals to a wide audience, male and female.”
While sports betting doesn’t generate a lot of revenue by itself, it becomes a marketing tool, especially when combined with enhanced food and beverage sales, potential other types of gaming spend, and maybe even an overnight stay.
There are sporting events going on somewhere all year long, so there are great opportunities to create special event nights, particularly on off nights, and promote them as such.
What should the standard book look like now?
“Modern sportsbooks need to be more open and inviting to all demographics and less intimidating,” Bacon says. “Betting can be more fun and attractive to a much broader customer base if it’s social and communal. This means the creation of larger areas that include open seating or areas with pods, with tables that allow food and bar service but still meet distancing guidelines.
“In a post-Covid era, there may be plenty of underutilized spaces and square footage in a resort. Operators will be looking for new activities or uses for these spaces, and the creation of a modern and entertaining sportsbook could be one of the best.”
One Hill of a Nice Book
William Hill Sportsbook, Ocean Casino Resort Atlantic City
SOSH Architects has worked with the biggest operators in this realm, including FanDuel, DraftKings, William Hill and PointsBet. It has collaborated on more than 25 innovating and world-class gaming destinations.
One of them was the William Hill book at Ocean Casino Resort, an Atlantic City industry leader when it launched in 2018.
“When we were in the early planning stages for the William Hill Sportsbook at Ocean Casino Resort, there was a large tenant space identified in the center of the casino that was ideal to repurpose into a sportsbook,” says Bill Salerno, principal of SOSH Architects. “Not only because it was in the heart of the property, but because it could accommodate a massive amount of A/V and technology equipment that had to go into it. Within the 7,700 square feet of space, we were able to include bar, high top and lounge seating, a 24-hour bar and 17-seat slot bar, and a state-of-the-art video wall with over 1,500 square feet of high-definition LED screens and 330 square feet of sports ticker.
“At Ocean Casino Resort, we wanted to create an attention-grabbing transformation from the existing entertainment tenant space into an exciting and inviting new high-tech, state-of-the-art sportsbook which was more integrated into the rest of the casino,” Salerno adds. “The design objective was to provide guests with a Times Square-esque digital experience to view and immerse themselves in sporting events. Our team took the large space and broke it out into three zones: a wagering counter and general public viewing area, a VIP sofa and club chairs area for a comfortable and intimate viewing experience, and a center concourse with high-tops as a public gathering space.”
Michael Mangini, the director of design for SOSH Architects, says the size of a sportsbook can range anywhere from 2,500 square feet to 12,000 square feet, depending on the operator and the location. A casino book space will vary in size from a stadium sportsbook, for example, and have different program requirements. A larger space can include more amenities like retail, food and beverage, whereas a smaller space can be more digitally driven. It depends greatly on budget and the goals of the client.
“The design (at Ocean Resort Casino) was developed with the intention of a quick construction turnaround—selecting custom FF&E and materials that had fast deliveries—so the venue could be up and running as soon as possible after the sports betting legislation was passed in New Jersey,” he says. “The construction took approximately 12 weeks with an all-in budget of about $10 million.”
Shortly after books like this came into play, mobile betting changed this dynamic. Most patrons bet on their phones. Some brick-and-mortar facilities throughout Atlantic City have been negatively impacted, because customers don’t want to wait in line.
“Mobile phones and the brick-and-mortar venues work hand in hand,” Salerno asserts. “Mobile betting came first with fantasy sports before brick-and-mortar sportsbooks began popping up. Once sports betting legislation was passed, many states required bets to be placed in land-based venues.
“There are three ways to place a bet within a venue, and they’re all important: mobile devices, betting kiosks, and teller windows,” Mangini adds. “The sportsbook venues we design include and support all of these methods. It’s also important to include a space for advocates to talk to and educate players, some of which are new to betting. This also gives the operator an opportunity to capture the player’s information and keep them coming back.”
Mangini indicates that the sportsbook look depends on the operator, the location and the guest experience they want to deliver. He notices a trend of more preference toward expanding amenities to be inclusive and interactive, such as food and drink offerings, retail, and participatory games and events like cornhole, bowling alleys and virtual driving ranges. By incorporating more participatory events and creating an entertainment destination complex, guests will likely stay longer beyond the game.
Salerno sees the sportsbook-operator marriage as an evolving dynamic.
“New advances in technology are happening as we speak,” he says. “It’s critical that sportsbooks keep up-to-date on trends and keep the latest technology and apps incorporated into their interactive experience to keep betting simple and easy for their guests to use. The technology of the sportsbook drives the architecture and design.”
Books Get Bigger and Better
Brett Ewing, principal with Cuningham Group, has a cutting-edge overview of the industry. The marriage between casino gambling and professional sports leagues has opened a financial spigot.
Advancements in betting, display, seating and mobile technologies have led to the creation of modern, comfortable sportsbook spaces with amenities appealing to the increasingly diverse casino attendee base. These venues will be entertainment-based, immersive environments—sports theater, he believes.
“Online betting platforms are growing rapidly, and casino owners are embracing their popularity,” Ewing asserts. “Many operators have already teamed up with or created their own platforms. Analysts predict this usage will increase as sports leagues restart during Covid-19. In response to this growing popularity, on-site sportsbooks are expanding services, as well.”
According to Ewing, the upgrades in many sportbooks include personal LED terminals with high-definition resolution, state-of-the-art odds boards that constantly update and offer opportunities for in-game live wagers, and new full-service bars, ticket windows, and ultra-comfortable seating and VIP areas with their own dedicated theatrical spaces. Operators are also developing new player incentive programs online and in-house.
What about the role sportsbooks play in a property? They could be teamed up with bars or become stand-alone entities.
“Due to state approvals and the convergence of operator-based betting platforms, sportsbooks are earning a lot more attention from owners,” Ewing indicates. “Players are utilizing the technology at a very high rate, and sports betting is making a much faster recovery than other types of gambling; therefore, it makes sense that owners will continue to parlay that popularity into other areas of their properties. We have owners that are looking at both stand-alone venues and venues incorporated into food-and-beverage solutions.”
Cuningham has blended these concepts into design for two properties, not named for confidentiality purposes.
One location fashions a simpler integration of a casino bar and a grab-‘n’-go deli where the sports element both centers and ties the venues together with state-of-the-art audio and video. The other property will be a new, stand-alone sportsbook bar and restaurant within a repurposed space. That venue will have a great outdoor space associated with it as well.
Embracing a New Age
JCJ architect Mike Larson says sportsbook venues vary greatly depending on the client, the property, and the environment. The traditional, large sportsbooks of Las Vegas are not what the industry is seeing now, as both the experience and technology driving those spaces has changed.
“We’re mainly seeing two types of scenarios playing out,” he says. “First is a venue with sports betting that looks and feels much more like a food-and-beverage lounge. They are often fit out with amenities such as sporting activities and buy-out spaces for small to mid-sized groups, with components like private TVs, sound, and video gaming consoles.
“The second scenario is deployment of sports betting technology across the properties in the form of betting kiosks. Both speak to the future of sports betting, which is one that is fully integrated into how the customer experiences the game and the property.
“That can take many forms, whether it’s convenience betting for the guests, or the ability to combine sports betting with other revenue-generating activities such as food and beverage, buy-out events, or traditional gaming.”
Regardless of what style is selected, some design elements are consistent, according to Larson.
“While this will depend largely on the property and their goals, it will all start with creating a beautiful, distinctive and exciting space that supports great service,” he indicates. “Sightlines to the screens are of the utmost importance. You also want to establish various seating types and zones to give options to both guests and operations. These zones and seating types should always create complementary energy, while servicing the range of customers—whether those are bar patrons, traditional race bettors, or small or large groups.
“And since watching sports is often a communal activity, we really welcome the opportunity to create comfortable small group spaces where people can enjoy games with friends, food, and fun. All the details that you can work into these spaces can go far in making sure the guests have a memorable experience, which is one of the most important ways we define a successful project.
“We’ve done group spaces that include things like USB power ports, drink holders, tabletop interactive gaming, dedicated/multiple video screens, and tuned audio specifically for that zone.”
Larger group spaces are also an interesting aspect in that these areas will also enter the property’s group sales inventory, he asserts. Sporting events have long been a place where companies entertain. These spaces are the natural evolution of that, and can give tremendous opportunity to both the event host and the property—especially now that in-person attendance at sporting events is much harder to come by, he notes.
JCJ has worked on a couple of new projects in Mississippi. The rich sports culture in this region brought a tremendous amount of excitement from the sports community, and was well-received, he says.
Larson indicates that as sports betting becomes more prevalent across the nation, JCJ works with many gaming clients to convert existing spaces into sportsbook experiences which expand and complement their current offerings. The company also has several clients in states where sports betting has yet to pass regulatory approvals. In those instances, JCJ is creating multi-faceted spaces designed to serve as sportsbooks at the appropriate time so they are well-positioned to move quickly once that approval takes place.
Where is the industry going?
“I think the keyword here is integration,” he says. “We’re going to see sports betting become more deeply integrated in all aspects of the property—whether that be an integrated resort or a regional casino property. While we’re seeing a lot of specific efforts to bring sports betting online in terms of venues and functional sportsbooks, down the road this will be a product offering that will come up in all project types in terms of how sports betting may be integrated. It’s all about giving the customer a seamless, convenient and fun experience.”
Multi-Faceted Approach
Nick Schoenfeldt, vice president and principal at Thalden Boyd Emery Architects, says the company’s Native American and corporate clients are planning for the inevitability of sports betting. His advice: prepare the space ahead of time. This is especially important prior to an NFL season.
“To the majority of our clients, sports betting is simply another amenity to add to their integrated resort,” he says. “Everyone is planning for one because they all want to be ready. Many of the well-informed operators we communicate with understand the limitations and the risks associated with a sportsbook.
“With an average profit of between 3 percent and 4 percent, the amenity needs to be paired with another, more consistent revenue generator. We are seeing a lot of sports bar concepts surrounding the sports bet to bring a consistent level of activity to the area and to energize to crowd. The ability to cross-use the monitors and televisions saves on A/V costs, which have gotten very capital-intensive.”
Schoenfeldt says TBE’s typical sportsbook has been used in conjunction with a food-and-beverage venue. This helps generate additional revenue from the sportsbook during off hours. The screens and A/V connections can easily be justified if two functions are using the hardware, he says.
Phones are definitely a tool of convenience, but a well-designed sportsbook creates an atmosphere of enthusiasm and team spirit. For operators, it’s all about finding a balance of creating high-energy guest experiences and maximizing potential profitability.
Each book takes on a unique personality.
“Having designed a sportsbook for some of the largest ‘off-Strip’ gaming players, each sportsbook has taken on a unique feel. In certain areas, the ‘vintage’ feels or design direction combined with the technology of a modern sportsbook gives a nod and a wink to the unsavory past of illicit betting and the sleek technology of the 21st century,” he says.
“Novice guests respond well to the ability to follow the action before venturing into the full world of sports betting.
“For the dedicated sports bettor, we provide an area which encourages full immersion of the guest into the sensory world of sports betting. If it be horse racing, European football, or North American Football, the guest has the ability to view everything available. The same monitors, sound equipment and information are available to the intermittent wagerer as the casual observer who might happen to be enjoying the F&B in the area. Sports betting can be intimidating to those not familiar with it.”
Schoenfeldt says that while many people have a mental image of the intensity with which a middle-aged man bets, many women and younger guests who are sports enthusiasts can also be enticed to participate.
“The goal is to provide the most options and opportunities for wagering,” he says. “The built environment can do this by being warm and comfortable. Very high technology harmonized with familiar touchpoints to reassure the guest ensure the best possible experience. This is one place where the supporting role of food and beverage needs to move away from the traditional quantity and focus more on a quality product.”
Sportsbooks may not fit the classic evaluation of revenue per square foot. He says operators need the option of incorporating the book venue into a lesser-used bar or another area, providing flexibility.
“With Covid-19 restrictions in place for the foreseeable future, space is a premium you cannot afford to waste,” he says. “Operators don’t have to start with the biggest and best A/V equipment. By introducing the sports betting kiosks into an existing sports bar or other bar that has a lot of televisions, a functional sportsbook can easily be accomplished in most facilities.
“As the sports betting appeals to a broader base, operators can then reinvest in bigger and better A/V. This is something that needs to be monitored closely, as each casino will look to meet the demands of slightly different populations and demographics.”
