Casinos Embrace Sports Betting While Sportsbooks Add Casino Games

The gambling world is no stranger to seismic regulatory shifts that trigger market changes practically overnight. The landscape transformation usually forces casino and betting companies to make tough choices – adapt the business strategy to new realities or risk being left behind the competition.

As 2025 welcomes new regimes of sports betting legality across America, casino brands like MyStake face precisely this kind of dilemma. With market saturation reaching its peak, casinos can offset declining revenues by invading the sports betting territory. At the same time, sportsbooks realize that product differentiation is essential to stand out from the intensifying crowd.

Rise of the Sports Betting Category

Sports betting managed to shake America out of its slumber as three years passed since the repeal of PASPA. The feverish growth of the industry leaves no doubt that its upward momentum will continue for years to come.

The American Gaming Association predicts that the legal market will reach its maturity by 2033 when the sports betting handle will hit $158.4 billion.

However, experts warn that the gold rush atmosphere can be misleading. As more states regulate sports betting, the average revenue per adult declines. In 2021, sportsbooks yielded revenue around $53 per adult. The number will supposedly drop to $47 over the next several years.

Why Casinos Want In on Sports Betting

For seasoned casino operators, increasing competition and market saturation are nothing new. The same forces are now reshaping the sports betting landscape now flooded with questionable platforms and promo deals.

Still, the sports betting pie holds tremendous growth potential compared to the relatively stagnant casino industry. Commercial casinos raked in $53 billion in revenue in 2021 – a mere 5% increase since 2019.

The temptation to jump on the sports betting bandwagon becomes even more pronounced considering that 63% of casino visitors also wager on sports. Casino brands have a unique advantage here over stand-alone bookmakers. The existing customer base guarantees at least some built-in demand for sportsbooks.

Large casino chains spent years preparing for this moment. They forged partnerships with experienced sports betting firms. Other casino groups opted to build their own sports wagering operations from scratch.

Appeal of Online Casinos for Sports Betting Sites

In contrast, online sportsbooks did not have established audiences to tap into. But with market saturation approaching, product differentiation is no longer optional.

Simply putting out lines and odds is not enough anymore. Sportsbooks now actively add casino sections to escape the danger of commoditization. Casino games promise to deliver excellent results in terms of both revenue and extended customer lifetime.

The numbers support this assumption. In 2021, casinos accounted for over a third of all online gambling revenue in the country. If the upward trend persists, casino games will drive more than half of the total iGaming income in 2025.

For sports betting platforms, releasing online casino products is a logical retention strategy. Those who bet on sports are likely to engage with slots, blackjack or other casino games.

Risks of the Convergence Trend

While the hybrid model holds much short-term promise, the long-term implications can be less cheering. Brands that try to appeal to several customer groups spread themselves too thin.

The outcome is mediocre, disjointed products that fail to win loyal followings. Without distinct branding and positioning, companies just bounce between customer groups without building much affinity.

For casino operators, lack of sports betting expertise can water down the betting experience. Outsourcing odds compiling to a third-party supplier leads to less flexible lines.

Most sportsbooks utilize generic casino game libraries by external vendors. This commoditized content looks and feels identical across different platforms, leaving operators little room for differentiation.

Neither side can match specialized betting sites in odds quality or dedicated casino brands in game variety. The result is the dangerous middle ground where hybrid platforms fail to be best-in-class in any category.

Laser Focus or Careful Expansion?

The convergence of sports betting and online casinos is one of the defining phenomena in gambling today. Casino brands launch sportsbooks to offset declining revenues and tap into skyrocketing demand for betting. Vice versa, sportsbooks add casino sections to keep customers playing after the final whistle.

While the hybrid model seems like a logical panacea, the risks of spreading the focus too thin are real. Excelling across several gambling verticals requires huge investments that only the largest operators can afford.

For regional casino companies and small sports betting sites, expanding to other verticals can be a step too far. In the long run, laser focus pays off compared to chasing the latest gambling trend.

Still, for gambling giants, adding new verticals is inevitable to retain dominance. If executed thoughtfully, convergence can boost the lifetime value of customers. The future belongs to those brands that can merge sports betting and casinos under a cohesive umbrella brand.