A round of shots on β¦ the guy who just hit a five-leg same-game parlay!
That scenario was one of the main takeaways from a study last summer from CGA Strategies, a food and drink consultancy operation. Using Illinois as a test subject, it looked into the effect mobile sports betting has — and will have — on the restaurant and bar world. Its conclusion is not surprising: Sports betting can be a boon to bars and restaurants.
Mobile sports betting linked to increased spend and consumer engagement in Bars and Restaurants presents lucrative opportunities for Operators, CGAβs first study of its kind reveals.
Read more: https://t.co/lGyXfs358g pic.twitter.com/rnm4EAan8o
— CGA by NielsenIQ – Americas (@CGA_Americas) June 10, 2021
For example: Over 20% of bar and restaurant patrons say theyβve engaged with mobile betting apps while at their chosen establishment.Β
And once CGA drilled down into that cohort, the numbers jumped off the page. Seven out of 10 sports bettors said theyβd be likely to stick around to order another drink or two if they had action on a game. Furthermore, nearly 80% of bettors said theyβd stay after the game was over for more fun and frivolity if they won their bet.
Overall, 71% of people who have bet on sports while at a bar/restaurant said theyβd extend their stay if they were watching a game they had bet on. And 12% of those people said they are typically liquor drinkers — adding to the potential for that round of shots mentioned above.
βOperators must offer consumers value they cannot replicate at home in order to become a sports betting destination,β Alexandra Martin, CGAβs analytics director, said in a release detailing the findings. βA predictable schedule of televised games available along with compelling food and drink offers can help bars build sustainable incremental revenue.β
Is it any wonder, then, that Buffalo Wild Wings has teamed up with BetMGM? That Hooters inked a deal with DraftKings? That Philadelphia is going to be home to twoΒ sports betting-themed restaurants — one via famed restaurateur Stephen Starr, the other by Barstool Sports? That Dave and Busterβs is trying to get into the game? That numerous bars and restaurants around the country are making sure their televisions are tuned into whatever game sports fans are looking for?
But wait, there’s more
βSports betting companies want to acquire new users, and theyβve all become experts on digital strategies that work just fine,β said Seth Schorr, the CEO of Fifth Street Gaming and chairman of Downtown Grand Hotel and Casino in Las Vegas. βBut having an omnichannel approach and engaging your customers in person is also super important.β
Schorr has been in the business for over 30 years, with current holdings that run the gamut from casinos to restaurants and seemingly everything else in the combined space. He also counts BettorView as one of his companies. That business provides bars and restaurants with TV screens that show live odds from the mobile sportsbooks legal in that state, along with some analytics thrown in. The company even sends βbrand ambassadorsβ into the bars to help teach people the ins and outs of sports betting.
#BettorView #EatWatchBet Tailgaters Sports Bar and Grill Glendale, AZ pic.twitter.com/QXtz32DTiR
— SilkWithAnE (@bacspeeder) June 16, 2022
And Schorr thinks the relationship between mobile sportsbooks and the food and beverage industry has barely scratched the surface.
βA big piece of the puzzle that is very important that we havenβt started to see yet — but mark my words youβll see it over the next few years — is perks,β Schorr said. βI know the psyche of the gambler pretty well, and while many gamblers gamble to win cold hard cash, they also like earning rewards, getting free meals, getting access to special things that the other guys donβt get access to. Thatβs what Vegas was built on as much as the allure of winning a jackpot.
βThe mobile operator doesnβt have a casino to drive their patrons to,β Schorr continued. βBut working with a restaurant operator so their customer can win free steaks, free wings, access to special seating, special parties –those are ways mobile sportsbook operators can engage their customers and build customer loyalty. The name of the game right now is customer acquisition, but it will very quickly evolve to retention and wallet share. Free bets and odds boosts are good tactics, but so are free steaks and invitations to special Super Bowl watch parties.β
The one true unicorn
While chain restaurants and sports betting companies are in the beginning stages of getting awfully cozy with each other, Brian Vasile has a whole βnuther thing going on.
Heβs the owner of Grand Central in Washington, D.C., and last October, he opened up his own sportsbook inside the restaurant, becoming the only independent sportsbook in D.C.
This sports bar has two kiosks and a betting window. It's cash only. Next year a mobile app will also get up and running. Grand Central is teamed up with @ELYS_Gaming which will handle the technology and hardware/software end of things for a share of the profits. pic.twitter.com/Ab6B8yWMUA
— John Domen (@JDDsays) October 4, 2021
Granted, the sports betting rules in D.C. are β¦ different. Mobile betting is allowed, but citywide only through the much-maligned Gambet. If someone wants to bet with BetMGM, Caesars, or FanDuel, they have to be within a two-block radius (or inside) of Nationals Park, Capital One Arena, or Audi Field.
Sporting two ticket windows and a quartet of kiosks, Vasile — who uses Elys Game Technology for the backend — said heβs thrilled with his decision to open the book, and that itβs been a profitable enterprise thus far.
But itβs also been profitable in other ways.
βFood and beverage is up five to seven percent,β Vasile said. βAnd as betting becomes more and more mainstream, weβre finding patrons who came here just to eat are putting down $5 parlays or $20 on the game thatβs on the TV.β
As a result, Vasile expects food and beverage to go up another few percentage points, providing a real-world example of the CGA study and Schorrβs comments: Introduce the idea of sports betting inside a bar or restaurant, watch how people stay longer and spend more.
In fact, Vasile says heβs been contacted by numerous bar and restaurant owners in Ohio, where sports betting kiosks will be allowed in a certain number of establishments.
And this doesn’t surprise industry vet Schorr one bit.
βPeople like to watch sports with other people, thatβs why they congregate at sports bars,β Schorr said. βPeople like to be there [enjoying] the wings and the beers, and itβs more fun to hear the rooting and the hooting and the hollering from your like-minded fans. Itβs a win-win for the sports bar and the sportsbook.β