FanDuel Shutters Physical Sportsbook Amid Weak Results

FanDuel has decided to shutter its PHX Arena retail sportsbook in Arizona, citing poor results. The arena, which hosts the Phoenix Suns, a prominent National Basketball Association (NBA) franchise, was supposed to be an excellent venue for the company’s operations, tapping into the fanfare and excitement surrounding home games.

FanDuel to Reform Major Venue as Footfall and Financial Results Weak

However, results have been moribund at best, with the 7,400 square feet property failing to move the needle for the company. FanDuel also overshot with its investment, bringing in five betting windows and 26 self-service kiosks, with the retail operations continuing to post losses all the same.

There simply was not enough footfall or people interested in visiting the retail sportsbook to place a wager, with mobile sports betting hoovering up the bulk of the sports betting handle as it has always been.

FanDuel is not abandoning the venue completely, however, as the company has chosen to turn it into a FanDuel Lounge, which will allow people to come and use self-serving kiosks.

However, there will be no retail workers accepting wagers anymore. The sportsbook-arena model has not lost its appeal, however, with betting companies continuing to court such establishments, especially in those states that are currently expanding or have recently expanded their gambling ecosystem.

Brands such as BetMGM, DraftKings, and FanDuel see the value in maintaining these physical venues to remind punters of who the top dogs in the industry are. In the meantime, FanDuel has had to deal with the fallout of the Illinois tax increase, to which the company responded by introducing a surcharge.

In-person sports wagers will no longer be accepted starting on July 24, giving punters and the business enough time to transition.