What is Retail Sports Betting and How to Start Your Betting Shop

While online betting is gradually taking over the industry, retail sports betting still plays an important part. In 2024, it accounted for nearly 40% of the total industry revenue.

Retail sports betting happens in physical locations, where customers place bets in person rather than online. In betting shops, people can watch matches and engage with each other. Besides, some players still prefer in-person betting because of immediate cash transactions. These are experiences that online betting cannot fully replace. 

If you plan to open a sports betting business, considering various aspects is the key to success. In this guide, we will explain all the essentials of retail sports betting you need and give you practical steps for setting up your betting shop business. 

The Anatomy of Modern Retail Betting Operations

Betting shops feel a lot more personal. The face-to-face interaction with staff gives opportunities for questions, betting advice, and building relationships that create loyal customers. The typical retail betting shop includes several essential elements:

• Betting counters for accepting wagers, providing betting slips, and processing payouts.
• Self-service betting terminals.
• Digital screens or traditional boards showing current odds and markets.
• Viewing areas with screens displaying live sports events.
• Cash handling equipment, card terminals, and secure storage.

Retail betting shops work under stricter regulations than many online operations:

• Specific licensing for in-person betting, besides general gambling permits
• Location restrictions often apply (distance from schools, maximum density in areas)
• Staff must receive training on responsible gambling and age verification
• Regular inspections by regulatory authorities
• Cash handling regulations for anti-money laundering compliance

These regulations vary by jurisdiction. Some markets require separate licenses for retail and online operations, while others permit combined licenses under unified regulatory frameworks.

Technology That Powers the Betting Shop Experience

Behind every successful retail betting business lies a technological infrastructure that balances reliability, security, and user experience. 

Modern retail betting shops rely on integrated retail solutions that manage everything. These systems handle:

• Odds management: Creation and adjustment of betting markets
• Risk management tools: Liability tracking and automatic odds adjustments
• Cashier modules: User-friendly interfaces for staff to process bets and payouts
• Customer management: Player tracking, limits, and exclusion capabilities
• Reporting tools: Financial reconciliation and regulatory compliance reporting

Turnkey Sportsbook vs Sportsbook API

For new market entrants, turnkey sports betting solutions offer significant advantages in speed and simplicity: 

• Pre-configured sportsbook software packages that include all essential betting shop components
• Hardware specifications and recommended vendors for physical equipment
• Ready-to-use operational procedures and staff training materials
• Regulatory compliance frameworks adaptable to specific jurisdictions

API integrations form the backbone of betting operations. They create seamless connections between different components: 

• Odds feed integration: Connecting to centralised odds providers for real-time market data
• Terminal-server communication: Enabling self-service betting terminals to interact with the central system
• Payment processing: Linking to card payment networks and cash handling systems
• Data synchronisation: Coordinating information between retail and online platforms when applicable

Below you can see a comparison of the available options, albeit the initial investment amount not reflective of Digitain.

Building Your Retail Betting Business

Starting a successful retail betting business takes thoughtful planning. Every choice plays a key role in how well you can compete in this fast-moving market. We will discuss the main factors, including location, licensing, finances, and some ways to promote your operation.

Choosing Your Location

The foundation of any successful betting shop begins with thorough market analysis and strategic site selection. The ideal location combines:

• High foot traffic areas with people who match the usual betting customer profile.
• Proximity to sports venues, popular pubs, or entertainment districts.
• Corner locations with high visibility. 
• Easy access to transportation.

Find locations matching most of these descriptions. They perform better than less visible spots, even within the same area.

Licensing and Regulations 

Getting licensed is one of the challenging parts in starting a retail betting shop, and the process differs widely by jurisdiction. It typically includes:

• Business entity registration
• Premises license application
• Personal licensing for key staff and ownership
• Technical certification (ensuring systems meet regulatory standards)
• Anti-money laundering procedures
• Responsible gambling policies

Licensing may take from 2-3 months to over a year if the market is heavily regulated. You should also expect to spend between €9,000 – €46,000 on legal consulting, depending on complexity.

Getting Hardware Essentials

The hardware and physical setup of a betting shop are major investments that directly affect the customer experience. A typical betting shop requires:

• Self-service betting terminals (€2,700 – €6,500 each)
• Cashier stations with computers, displays, and cash drawers (€1,400 – €2,800 per station)
• Thermal printers for betting slips (€270 – €550 each)
• Display systems for live events and odds (€4,500 – €13,500)
• Networking equipment with redundant connections
• Security systems, including CCTV and alarms
• Cash handling equipment, including counters and safes (€2,800 – €6,500)

Hiring Staff for Your Betting Shop

Your staff should provide great service, keep operations running smoothly, and follow regulations. Even small shops usually have a manager in charge, with team members taking bets and paying out winnings. Here is a list of the essential staff:

• Shop manager: Overall responsibility for operations and compliance
• Cashiers/Customer service staff: Processing bets and providing assistance
• Risk analyst (possibly part-time or shared): Monitoring betting patterns
• Maintenance technician (typically on call): Supporting hardware and systems

A small betting shop requires 5-7 staff members to cover operating hours. This typically takes 25-30% of operational expenses.

Investment, Costs, and Revenue Forecasting

If you are planning to start a retail betting shop, you should understand how finances work. With careful management, your business can be highly profitable. 

Below, you can see a breakdown of the initial investment and ongoing expenses. Keep in mind that these are approximate amounts.

Revenue in retail betting primarily derives from the betting margin, i.e., the difference between true odds and the odds offered to customers. A well-run betting shop usually earns margins of 7–10% of total bets. A successful mid-sized shop might see €92,000 – €275,000 in monthly turnover, generating €6,500 – €28,000 in gross profit before covering running costs. 

Please note that this is a rough estimate, and real numbers may vary based on different factors.

Promoting Your Betting Business

Local Marketing Strategies

Successful retail betting shops use their physical presence and connections to attract customers. Their real strength is being part of the community, so the smartest shops focus on local strategies that build loyalty. Here are some strategies to consider:

• Supporting local sports teams 
• Rewarding regular customers with special odds or perks
• Eye-catching exterior displays to highlight current promotions
• Hosting community events for major sporting events

Targeted advertising in local media

Promotions and Special Offers

Promotions can give customers extra reasons to visit in person. The key is to keep offers fresh and exciting. Here are some promotions you can implement:

• Shop-specific enhanced odds
• Cash-back or near-miss offers
• Accumulator bonuses
• Refer-a-friend incentives
• Time-specific promotions

Integrated Omni-channel Approach

Combining retail and online betting creates major advantages. You can offer customers a smoother experience and more reasons to come back. These are some ways to link in-person and online betting:

• Shared wallet systems: Customers can deposit in-shop for online use
• Cross-channel loyalty programmes: Points earned both in-shop and online
• Bet tracking across platforms: Viewing retail bets online and vice versa
• In-shop digital activation: Shop visits trigger online bonuses
• Online-to-retail promotions: Digital offers redeemable only in the shop

While this approach often needs advanced API integrations, it can significantly boost customer loyalty and lifetime value.

Challenges in Retail Sports Betting and Mitigation Strategies

Regulatory Complexities

Challenges:

• Frequently changing compliance requirements
• Variations in regulations across jurisdictions
• Stringent responsible gambling obligations
• Comprehensive record-keeping requirements

Mitigation Strategies:

• Work with legal consultants familiar with local regulations
• Implement configurable compliance systems that adapt to changes
• Establish automated age verification procedures
• Develop comprehensive staff training programs on compliance
• Schedule regular regulatory audits and updates

Technical Risks

Challenges:

• Hardware failures during peak betting periods
• System downtime affecting customer confidence
• Fraud attempts targeting physical operations
• Cash handling security concerns

Mitigation Strategies:

• Implement redundant systems and backup procedures
• Establish preventative maintenance schedules
• Deploy fraud detection algorithms for unusual betting patterns
• Install comprehensive security systems, including CCTV
• Create detailed incident response procedures
• Maintain spare equipment for rapid replacement

Market Challenges

Challenges:

• Growing competition from online platforms
• Changing consumer preferences toward mobile betting
• Higher operational costs compared to digital-only operators
• Limitations on market reach due to physical location

Mitigation Strategies:

• Develop unique in-shop experiences unavailable online
• Create community-focused atmospheres that digital cannot replicate
• Implement hybrid strategies connecting physical and digital experiences
• Focus on customer segments preferring in-person interaction
• Emphasise immediate cash payouts as a competitive advantage

Why Choose Digitain?

Working with an experienced technology provider reduces risks and speeds up the launch of your retail betting business. Digitain offers a complete platform designed to support operators entering or growing in this sector.

The Digitain ecosystem includes:

• Centrivo Platform: Provides the betting engine for both retail and online channels
• Turnkey Retail Solution: Combines software, terminal specifications, and operational procedures
• API Integration Suite: Offers flexible connection options for custom implementations
• Advanced Risk Management Tools: Incorporate sophisticated algorithms for fraud prevention
• Retail-Specific Bonus Engine: Enables tailored promotional capabilities

Several key differentiators separate Digitain’s retail solutions from alternatives in the market. The platform’s architecture enables deployment in just 6-8 weeks, faster than the industry average. The multi-channel capability creates seamless integration between retail and online operations for jurisdictions that permit both. 

Customers also enjoy wide market coverage across 65+ sports and 7,500+ leagues, backed by dedicated 24/7 technical support to ensure smooth operations.

Summary and Next Steps 

Despite digital betting’s rapid rise, retail sports betting shops remain strong by offering something screens cannot: real human connections and immediate experiences. In this guide, we have discussed what retail sports betting is, its components, and how to plan and launch your betting shop. 

If you are planning to enter this market, here are your five steps to success:

1. Find locations with the right customer mix and foot traffic
2. Get proper legal advice specific to your region’s betting regulations
3. Compare technology providers (like Digitain) to find the right software
4. Build solid financial projections for initial and running costs
5. Prepare local marketing plans and promotions

Top-performing shops balance smart technology with regulatory compliance and exceptional customer service. Many are now linking retail and digital channels, giving customers a seamless experience whether they bet in-shop or online.

Want the fastest route to market? Connect with established providers like Digitain for product demonstrations and implementation planning. Their technology, industry insight, and support can help reduce setup time and minimise risk, letting you focus on growing your business.