US Sports Bettors Show Limited Interest in Online Casinos

Recent data reveals that US sports bettors are far less likely to engage with online casino games than their counterparts globally. According to Optimove, a marketing and technology company servicing gambling licensees, only 2% of US sports bettors transition into multi-product users each month, compared to a global average of 6%. This finding underscores a significant challenge for operators seeking to balance the volatility of sports betting revenue with the more consistent profitability of online casinos.

In the early years of legal US sports betting, many operators focused on hybrid apps combining sportsbooks with casino games. While these hybrids remain popular, disappointing crossover rates have prompted some companies to pivot. Caesars, for instance, has invested heavily in its standalone Caesars Palace app, while DraftKings has acquired Golden Nugget Online Casino to attract dedicated casino players.

However, these efforts have yet to overcome the cultural and structural barriers unique to the US gambling market. As only seven states currently permit online casino gaming, the majority of US players have no legal access to such platforms. This limited availability contrasts sharply with the widespread legalization of online sports betting, accessible to a strong majority of Americans.

Economic Imperative for Crossover

The importance of improving crossover rates is magnified by the financial realities of the industry. Sports betting revenue is notoriously volatile. For example, in December 2024, New Jersey sportsbooks reported a sharp decline in their win rate, dropping to 5.2% of total wagers—down from 8.4% the previous year. In contrast, online casinos in the state continued to grow, setting a single-month revenue record and outpacing sports betting revenue nearly fourfold.

Such data highlights the reliability and profitability of online casino gaming compared to sports wagering. For operators, increasing crossover rates in states like New Jersey could unlock significant revenue potential without waiting for additional states to legalize online casinos. The gap between sports and casino players in the US may be partially attributed to cultural differences. Gali Hartuv, CEO of WarriorLab, a consultancy specializing in iGaming, points to the entrenched culture of land-based casinos and the social nature of sports betting as key factors.

“US culture is ingrained in sports, which is more of a social activity, whereas casino gaming is not,” Hartuv explained. “In most states where casino gaming is legal, everything is land-based, so that’s what players know. They enjoy the communal aspect of watching a game or sharing their bets. Casino gaming lacks that same level of social acceptance.”
Strategies for Improving Engagement

Despite these challenges, experts like Hartuv believe operators can overcome the cultural divide with targeted strategies. He recommends focusing on sports bettors who already display diverse interests, such as wagering on multiple sports, as these players may be more open to exploring casino gaming.

The key is building trust and relationships,” Hartuv said. “Operators need to avoid coming across as just trying to extract more money. Instead, they should offer personalized, low-pressure opportunities to try something new.

Future Prospects for US Operators

While expanding online casino access to additional states could increase the pool of potential crossover players, it’s clear that structural growth alone won’t solve the issue. Operators must also refine their cross-selling strategies and address the cultural nuances of US gambling behavior.

For now, the limited crossover rate remains a missed opportunity. However, with sustained efforts to engage sports bettors and broaden their interests, US gambling companies could unlock the significant revenue potential of online casinos in the years to come.