December Sports Betting Index (SBI)

In the chart below, we present our RubinBrown Sports Betting Index (SBI). The SBI is based on our proprietary index of the leading sports betting states in the U.S. To continue to best reflect current market conditions, we’ll occasionally adjust the components of the index. To better compare competitive conditions, our index numbers focus in on a group of mature, competitive states. Therefore, a state with an index score of 1.15 had a raw index score of 15% greater than the average, while a 0.90 index score shows a 10% lower than average result.

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December’s Results in Context

December’s data revealed lower than usual holds across the board, with no state surpassing the 10% overall hold threshold for the second time in three months. The industry-wide hold of 5.8% is the lowest total of the year, and we need to go back to February of 2022 (4.9%) to find the last time the market could not breach the 6% mark. This was largely driven by a series of "customer-friendly" outcomes, particularly in the NFL, which led to reduced margins for operators. While both online and retail sportsbooks felt the impact, the results varied significantly depending on the betting channel.

It should also be noted that these lower holds are in a month when NFL teams became eliminated from contention and NFL future bets were recorded as revenue.
Among states that report separate figures for retail and online betting, eight saw aggregate retail losses for the month. These results raised some interesting questions among our team. Below, we share some of that internal debate.

The Bigger Picture

Rather than focusing solely on how retail sportsbooks performed relative to mobile, we should examine the channel’s importance in the broader industry of gaming. Retail books serve as a vital entry point for bettors, fostering brand loyalty and enhancing the in-person sports viewing experience. Their value extends beyond revenue, handle and hold percentages—they are an essential part of the ecosystem, offering a distinct experience that attracts patrons that can differ from those being served by digital platforms  These alternative retail options can range from the immersive experience of a casino sports book to the increased engagement when watching a game at the local bar, or in some states, it can be the speed and anonymity of a lottery outlet.

In discussions about the sports betting industry, there’s a persistent tendency to categorize everything under one broad label: gambling. But is buying a $2 lottery ticket truly the same as putting $200 into a slot machine? Is placing a $50k cash wager on the Eagles the same as throwing $10 into a Super Bowl square? To some, all of these are just different shades of the same activity. Yet, for those of us in the industry, the distinctions are stark.

This oversimplification is part of the challenge when analyzing market trends, particularly when comparing retail and mobile/online sports betting. The numbers for December tell an interesting story, but without the right context, they paint an incomplete picture—one that suggests it was simply a rough month for all operators, with retail sportsbooks suffering the most. In reality, there’s much more at play.
 

The Nuance of Retail Sportsbooks

Retail sports books occupy a unique space in the sports betting ecosystem. Unlike mobile platforms, which offer thousands of betting markets and limitless parlay combinations, retail books often have regulatory restrictions and primarily cater to in-person bettors looking for traditional wagers like money lines, spreads, and totals. It is a social event that often includes food and beverage service while patrons enjoy the action with others sharing the experience.

Most retail locations do offer kiosks, allowing for a more streamlined betting experience. However, the retail environment isn’t necessarily designed for parlays, as the process of exploring and building multi-leg bets is better suited to a more personalized environment. This limits the ability of retail books to fully capitalize on the higher hold that these parlays typically generate.

As the industry evolves, it’s important to avoid the trap of oversimplification. Just as not all forms of gambling are the same, not all sportsbooks operate under the same conditions. By reframing the conversation, we can better appreciate the nuances of retail sports books and their place in the ever-changing world of sports betting.
 

The Even Bigger Picture: Retail’s True Value

Despite the month’s numbers, one thing remains certain: on Super Bowl Sunday, every one of these retail sportsbooks will be packed. The energy of a retail book during a major sports weekend is something that is out of reach for a digital environment. That excitement spills over into the rest of the property as bars and restaurants are full, casino floors see increased play, and hotel occupancy and room rates climb.

These brick-and-mortar sportsbooks are not designed to be major profit centers in isolation; they serve the bigger purpose of driving foot traffic. When evaluating their performance, focusing solely on bottom-line hold percentages misses the point. Unlike mobile, which operates with significantly lower overhead and different customer behaviors, retail books create an atmosphere that enhances the entire gaming experience.

Yes, December may have been an off month for hold, but the long-term value of retail sports books extends far beyond a single month’s revenue. They are a cornerstone of the in-person gaming experience, drawing bettors in and elevating the overall property performance. That’s the real story, and it’s one that needs to be told.
 

Published: 02/11/2025

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