FanDuel Announces PHX Arena Sportsbook Converting to Lounge

Suns fans will notice a big change coming to PHX Arena.

FanDuel has announced it will be closing its retail sportsbook at the downtown Phoenix arena on July 24. The space will be transitioned into a FanDuel lounge where fans can sit, watch games, and place bets using the FanDuel Sportsbook app. The layout won’t change much, but the betting windows and kiosks will be removed.

The sportsbook opened in September 2021, which was the same day Arizona’s sports betting market went live. The hope was that the central location and the massive crowd attending events at the arena would lead to a thriving retail location. However, the revenue numbers were far lower than expected.

The industry leader found that many bettors at the stadium preferred placing bets from their phone instead of waiting in line for a kiosk or betting window. FanDuel believes that eliminating the retail operation won’t deter people from betting, allowing the company to save money.

While bettors won’t be able to place in-person bets at the lounge, they will still have access to the exclusive terrace, bar, and food service.

Are Lounges the Future of Sports Betting?

FanDuel’s revelation about their PHX Arena sportsbook revenue is hardly a surprise. We have seen mobile betting continue to grow in popularity, dwarfing the revenue being generated by retail sportsbooks. This trend is leading FanDuel and other sportsbook operators to focus on their mobile platforms.

Several operators have begun to consider building lounges instead of traditional retail sportsbooks. This gives visitors the feeling of being at a high-end sportsbook, with the added convenience of being able to bet from the comfort of their own seat.

While Las Vegas sportsbooks will always remain a popular destination for bettors across the US, it seems online operators aren’t finding that same success outside of the city.