Casinos Struggle to Compete with Sports Book Industry As March Madness Approaches
The NCAA March Madness tournament is right around the corner, and sports fans are beginning to feel a growing hole in their pockets. According to a recent finding by the American Gambling Association, only 3% of wagers from last year’s tournament were placed through American casinos. PayPerHead.com, the leading sportsbook software company, is expecting a record amount of wagers and new agents as Selection Sunday fast approaches.
“The NCAA March Madness Tournament is one of the busiest times for the sportsbook industry,” explained Nate Johnson, Product Manager of PayPerHead.com. “We’ve seen March Madness eclipse Super Bowl numbers before, and we’re anticipating another crazy tournament this year.”
Throughout 2018, several states in the US legalized sports gambling, allowing citizens the option to place wagers on sporting events through casinos. Even though legalized sports betting is expected to contribute to an increase of legalized wagers through casinos, the sports book industry is still expected to dominate the gambling industry.
“Once a player has been placing bets through a specific platform for years, it’s hard to get them to switch.” Johnson explained. “Gamblers are extremely superstitious. Even though larger Casinos are beginning to offer sports gambling, many are staying right where they are.”
In 2018, it was estimated that March Madness gathered a total of $10 billion dollars in wagers, with the large majority being placed with offshore sportsbooks. According to PayPerHead.com, individual PayPerHead agents are set to make $10,000 from the March Madness Tournament alone.
“If an agent has between 7-10 players, the monthly cost is about $520.” Johnson explained. “It makes sense that we’re seeing an increase of new agents before March Madness if the average profit is $10,000 during the tournament.”
Throughout February, PayPerHead has seen a sharp increase of sign-up traffic and new agents creating their own sportsbooks. The company states that they expect this trend to continue well throughout March and April.