Casino operators continue to eye the sports betting market as a significant growth opportunity, yet many hesitate to launch sportsbooks. This reluctance often springs from persistent misconceptions: that sportsbooks are prohibitively expensive, complicated to operate, and unlikely to yield adequate returns without substantial investment. However, insights from the market and experienced providers like Altenar suggest otherwise.
As player expectations shift, the integration of casinos and sportsbooks is becoming increasingly advantageous. Bookmakers can serve as a cost-effective method for acquiring new players, and cross-selling esports clients into casino games can elevate overall player value. Multi-product players often yield higher lifetime value (LTV), which signifies that merging these segments can decrease acquisition costs and boost revenue across the board.
**Myth #1: Launching a sportsbook is too complex**
A common belief is that establishing a sportsbook requires extensive development efforts, long implementation timelines, and niche operational know-how. The reality is that success hinges greatly on partnering with a provider experienced in integration. More importantly, casino operators no longer need to cultivate internal sportsbook proficiency from the outset. Through managed trading services and comprehensive 24/7 support, providers increasingly position themselves as partners rather than mere technology suppliers, allowing operators to focus on business growth while outsourcing sportsbook management.
**Myth #2: Sports is a lower-margin product**
There's a prevalent notion that sportsbooks yield lower profit margins compared to casinos. In truth, sports betting can achieve impressive margins, particularly as operators incorporate higher-margin offerings like Same Game Parlays and player prop bets. In the US, player props can yield margins nearing 9%, and Same Game Parlays can provide even greater returns. Moreover, the value of a sportsbook extends beyond direct revenue. Major sporting events routinely entice players back to the platform, fostering wider engagement and creating further opportunities for casino play. Rather than detracting from casino income, sportsbooks can enhance overall profitability by adding diverse revenue streams and catalyzing player activity across both sectors.
**Myth #3: The return on investment is uncertain**
A significant concern revolves around whether sportsbooks can justify their costs through adequate returns. While market dynamics vary, successful implementations increasingly highlight that sportsbooks deliver value that surpasses direct betting income. Their principal advantage lies in boosting customer retention, extending player lifetime value, and furnishing operators with additional chances to re-engage players during key sporting events. Every major tournament presents a new opportunity for engagement, while weekends filled with major fixtures offer another reason for customers to return. Live events frequently facilitate cross-selling between sportsbook and casino products.
**Altenar’s real case study**
UK operator L&L Europe serves as a prime example of how sportsbooks can bolster existing casino businesses rather than complicate them. For nearly a decade, L&L Europe cultivated a thriving online casino enterprise, amassing over 2 million players through seven brands, including AllBritishCasino, PubCasino, and QuickBet. The company operated solely in the casino vertical until 2022.
Recognizing shifting player preferences in the UK market, L&L Europe collaborated with Altenar to introduce sportsbook as an extension of its existing entertainment platform. The approach focused on scalability across various brands, backed by sophisticated front-end tools, promotional capabilities, localized sports content, and continuous support for trading and risk management.
The results were remarkable. Between 2023 and 2026, the number of sportsbook users quadrupled in the first year and tripled again in the subsequent period. Monthly sportsbook gross gaming revenue surged by 312%, demonstrating that rather than being an isolated segment, the sportsbook amplified player retention, unveiled new cross-selling opportunities, and heightened engagement throughout the operator's brand portfolio.
Charlie Williams, Commercial Director at Altenar, remarked: "We still hear operators describe sportsbook as if it’s a completely separate business that competes with casino. In reality, the strongest results come when both products are designed to complement each other through optimized player journeys. Sport creates recurring moments of engagement. If those moments are supported by the right technology, personalization, and operational expertise, sportsbook becomes much more than an additional vertical – it becomes a driver of reduced acquisition costs, higher retention through cross-selling, and increased long-term player value."
As competition intensifies in regulated markets, operators are increasingly focusing on retention and long-term value rather than just acquisition. Viewed from this perspective, sportsbooks are evolving from mere add-ons to essential components for creating a resilient and engaging gaming environment.
