Adam Roarty is a journalist covering sports betting, regulation, and industry innovation for CasinoBeats. His coverage includes tax increases in the UK, covering breaking stories in the ever-evolving landscape of US betting such as the...
Read Full BioPaddyPower has opened the first retail sportsbook at a casino in the UK, with the Flutter-owned betting company launching Paddy’s Sportsbook at the Hippodrome Casino in London.
The venue will be similar to PaddyPower’s retail shops, which can be found across the UK. The Irish-based operator has 608 shops in the UK and Ireland.
Like the shops, the casino sportsbook will feature live sports, allowing customers to watch and wager on major sporting events.
The Hippodrome’s website says, “Paddy’s Sportsbook is the first of its kind in Europe, bringing together the energy of a sports bar with the excitement of the casino floor.
“Guests can catch every major fixture across 55 HD screens, including a spectacular 10-metre big screen, or settle into private booths with table service.”
New Legislation Allows Sports Betting at Casinos
While retail sportsbooks are common at casinos in the US, the crossover is rare across Europe. In the UK, casinos were prohibited from offering sports betting until this year. A change in legislation, resulting from the Gambling Act Review, has allowed casinos to offer wagering on sports.
Many casinos have already launched sports betting terminals, including Genting and Grosvenor. The latter, which is part of Rank Group, also offers sports betting at its Enracha casinos in Spain.
Rupert Elwood, Managing Director of Retail at Paddy Power, described the partnership as a “dream collaboration.” He added, “At Paddy Power, we’ve always looked to innovate and offer the best customer experience – be that in our high street shops or online.
“Our market is continually evolving, and this incredible partnership with the Hippodrome is a brilliant example of how we will invest in new concepts to broaden our reach and react to changing demand.”
The move into casinos is an effort to mitigate the adverse effects of the legislative change. In addition to allowing sports betting at casinos, venues can also have more slot machines on their floors. As primarily an online operator, Flutter has made cutbacks in response to the regulations.
Sports Betting Helps Increase Casino Revenue as Taxes Rise
The ability for casinos to partner with sportsbooks could be a revenue driver at a time when gambling taxes are set to increase in the UK. Chancellor Rachel Reeves stated this week that gambling companies “should pay their fair share of taxes, and we will make sure that happens.”
Currently, sports betting is taxed at 15% with slots and casino games paying a higher rate of 21%. There have been calls to increase the rates to as much as 50% for casino games, which could have a huge impact on revenue for operators.
On-site sports betting could partly make up for that. Research in the US indicates that online sports betting has a detrimental effect on casino revenue. However, on-site betting boosts casino profits.
UK Gambling Minister Baroness Fiona Twycross advocated the change in legislation to open up new opportunities for casinos. She stated, “This change will allow converted casinos not only to offer a new gambling product but to invest in other parts of their venues, such as sports bars.”
