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FanDuel shuts down Phoenix sportsbook and shifts to lounge
Due to low performance, FanDuel is closing its retail sportsbook at the Footprint Center in Phoenix.
Located inside the arena where the Phoenix Suns play, the venue was expected to bring steady income to the company. However, it didn’t generate the revenue the company expected. Despite its 7,400 square feet, five staffed betting windows, and 26 kiosks, the in-person wagering option struggled. Most bettors continued to prefer using mobile apps.
As a result, the sportsbook will no longer accept in-person wagers, starting July 24. However, FanDuel will not completely destroy the space. The space will be changed to a FanDuel Lounge, where fans can still place bets via kiosks, just without any in-person staff to accept the bets. While this location didn’t meet expectations, FanDuel is still committed to maintaining a retail presence.
Sports betting lounges in stadiums and arenas remain a popular branding opportunity, especially in states with newly opened or expanding markets. DraftKings and BetMGM, for example, are also pursuing similar strategies. This update also comes as FanDuel reacts to other market changes, including a recent tax hike in Illinois. To help cover the added costs, FanDuel added a $0.50 fee in Illinois.
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