What is Retail Betting? A Comprehensive Guide From Key Markets to Business Startup

What is Retail Betting? A Comprehensive Guide From Key Markets to Business Startup

Share this article

Retail betting may seem like an old-school approach in a world dominated by digital platforms but, as evidence shows, it remains a lively and profitable part of the global gambling sector. For many, the buzz of a busy betting shop, the thrill of physically placing a bet and the shared anticipation as the crowd watches a live event unfold is an experience that simply cannot be replicated online. 


This guide explores the world of in-person betting opportunities, offering insights into the countries where it is thriving and new technological advancements, as well as a step-by-step guide to launching your own operation. If you’re drawn to real-world betting action, there’s much to discover about traditional land-based betting. Let’s dig deep to see how retail betting can still pack a punch in 2024 and beyond!


Retail Betting: What It Is And How It Works


At its core, retail betting refers to wagering that takes place in physical locations, such as high-street betting shops, brick-and-mortar casinos and bingo halls. While online betting has surged, traditional betting outlets continue to offer a tangible experience that some bettors still prefer. It provides a social, hands-on approach typically involving cash transactions, making it ideal for those who enjoy interacting in person while placing their bets.


With this business model, the process for bettors and operators is straightforward. Customers walk into a physical location, typically a betting shop, and review available odds before placing their bets at a counter. Advanced retail bookmakers may also offer a self-service betting terminal, providing operators and users with greater autonomy. 


Bets are frequently placed using cash or card, and winnings are paid out in the same manner, usually instantly. With this type of betting operation, management needs to ensure a fast and efficient flow to maximise profitability. This is especially true during major sporting events, where having knowledgeable staff with efficient systems can make all the difference.


Retail betting offers various types of betting options to suit different player preferences.


Fixed odds betting is the most popular and common, where bettors know their potential winnings up front based on predetermined odds. This type of betting is very profitable due to its simplicity, which is why it is a standard option for almost all operators.


Pool betting involves multiple bettors contributing to a shared pool, with winners splitting the total pot. This model is highly appealing for sports like horse racing, where it can generate larger payouts.


Parimutuel betting is similar to pool betting but typically focuses on horse or greyhound racing, where all bets are placed into a pool, and odds fluctuate based on betting activity. It is less predictable but offers higher returns when betting against public sentiment.


For land-based betting operators, each type brings distinct opportunities to attract varying customer preferences and demographics, which, in turn, increases both profitability and user engagement.


How On-site Betting Differs from Online Betting


A fundamental difference between retail and online betting is the requirement for a physical presence. Unlike online betting, which can be accessed remotely from anywhere, retail betting occurs in land-based locations. This provides a more traditional and tangible experience that many bettors find appealing. It also allows for social interaction, creating an in-person community atmosphere.


The customer experience is also different. On-site betting offers a personalised service, creating an environment of trust and engagement. In contrast, while convenient and private, online betting lacks the intimacy and immediacy of face-to-face interaction.


Payment methods can be different, too. Brick-and-mortar betting venues are typically cash-based, which appeals to players who prefer the simplicity and security of handling physical money. Online betting, meanwhile, deals with digital transactions like e-wallets, cryptocurrencies and bonuses, which can be challenging for some bettors.


Finally, the regulatory environment for retail betting is often more straightforward. While online betting may face stricter regulatory scrutiny in some countries, betting shop activity tends to operate under established local laws. This provides stability and clarity for both operators and players, enhancing the overall experience and trust in the system.


Why Some Players And Operators Prefer Traditional Betting Experiences


It is worth noting that many players prefer retail betting for its tangible, real-world experience. Watching the action unfold on-site, typically with other bettors, brings excitement that is hard to replace. Another major draw is the social interaction. Physical betting operations offer the chance to engage with fellow bettors and interact with staff in a way that online platforms simply cannot. Personalised service is another key factor. Players can receive immediate advice or clarifications directly from staff, making the experience more tailored and trustworthy. 


From an operator's perspective, over-the-counter betting operations offer several practical advantages over online platforms. First and foremost, it allows direct engagement with the customer base. Operators can provide immediate support and build stronger relationships. Ultimately, this enhances customer loyalty. Retail establishments also offer a tangible brand presence, helping operators stand out in a crowded market and reinforce trust through face-to-face transactions. 


For ambitious operators, one of the most significant benefits of over-the-counter betting is its ability to open cross-selling opportunities, where staff can introduce other products and services, such as in-house promotions or additional gaming products. From an operational viewpoint, retail operators can directly monitor and manage the flow of bets, cash handling, and customer behaviour in a physical setting. This offers a degree of operational oversight that is more difficult to achieve online.


Advantages And Disadvantages Of Physical Betting Operations


While land-based betting provides a significant number of unique benefits compared to online sports betting, it is important to appreciate that online betting also offers many significant advantages. Each model has strengths and weaknesses, so operators should carefully weigh up both options. Below is a comparison of the key advantages and disadvantages of retail betting.


Advantages:

  • Tangible brand presence
  • Opportunity for cross-selling products
  • Better fraud and compliance control
  • Promotes brand loyalty
  • Facilitates immediate problem-resolution
  • Builds trust through face-to-face interaction and transactions
  • Direct observation of customer behaviour
  • Greater operational management and control
  • Ability to create unique in-store experiences
  • Strengthens local market relationships
  • Fast in-person customer support


Disadvantages:

  • Higher operating costs (rent, staff wages, utilities)
  • Limited geographic reach compared to online platforms
  • Dependent on physical location footfall
  • Requires ongoing physical infrastructure maintenance
  • Vulnerability to local economic conditions

Retail Betting by Country


While detailed profitability data may not be readily available for every country, the following list of the top 12 most profitable betting nations reflects the general trends seen in retail betting markets worldwide, ranked by estimated profitability potential.


The following ranking considers profitability factors such as strong gross revenue, favourable taxation, low operating costs, and growth potential. 


Top 12 Countries Where Land-based Betting is Most Profitable





United Kingdom


The UK’s established gambling culture, high GDP per capita, and extensive network of betting shops contribute to strong profitability. High-street betting remains popular despite online competition, driven by regulated markets, favourable taxation, and a solid infrastructure. Therefore, the potential for high returns is high, supported by a mature and loyal customer base.


  • Solid gross revenue from retail betting.

  • Well-established systems with a long-standing betting culture.

  • Relatively favourable taxation for operators.


Italy


A long-standing tradition of gambling and well-regulated market conditions supports Italy’s thriving land-based betting sector. With over 7,000 betting shops nationwide and high consumer engagement, the market offers significant profitability potential. Low entry barriers and diverse betting options add to the appeal for operators.


  • A high volume of walk-in betting transactions.

  • Large market size with a strong consumer demand.

  • Solid infrastructure for retail betting shops.


South Africa


Retail betting is rapidly expanding in South Africa due to rising disposable incomes and a growing interest in sports betting. Legal frameworks support a flourishing market with relatively low operational costs. High market engagement and a large population of sports enthusiasts create a profitable environment for retail operators.


  • Growing over-the-counter sector with lower operating costs.

  • High demand for sports betting (esp. football and horse racing)

  • Favourable exchange rate for international operators.


Spain


Spain’s high profitability potential in physical betting operations is fuelled by a formidable cultural acceptance of gambling and a structured regulatory framework. With nearly 3,000 licensed betting venues, operators benefit from well-established consumer demand and favourable tax conditions, making it an attractive market for retail operations.


  • High gross revenue from sports betting, particularly in football.

  • Strong demand in a regulated and growing market.

  • Relatively low operational costs and supportive legislation.


France


France’s sophisticated gambling infrastructure, coupled with a large, affluent population, ensures high profitability for in-person betting. Legal stability and a wide array of betting options attract a loyal customer base. The French government’s supportive stance on regulated betting boosts operator confidence and profitability.


  • High consumer spending on venue-based wagering.

  • Strong acceptance and long-established retail network.

  • A well-regulated market with some tax advantages.


Greece


Greece’s high-street betting market thrives on high consumer demand and an established network of licensed betting agencies. Low competition from online alternatives and robust regulatory oversight enhance profit potential. The country’s potent tourism sector further contributes to a steady influx of bettors.


  • Growing profitability in retail betting due to increasing demand.

  • Favourable regulations with easier licensing processes.

  • High betting volumes, particularly in football.


Portugal


Portugal’s traditional betting market is notable for high consumer engagement and supportive regulations. The government’s focus on maintaining a balanced gambling environment, combined with relatively low operational costs, provides profitable opportunities for operators looking to establish or expand their presence.


  • Profitable on-site betting due to enthusiasm for sports betting.

  • Favourable tax rates and relatively low costs for betting shops.

  • Rapidly growing demand for in-person betting options.


Kenya


A young, tech-savvy population and strong sports culture drive Kenya’s booming brick-and-mortar betting market. The lack of strict regulatory burdens and relatively low operating costs create a fruitful ground for high profitability. Rapid market growth and consumer demand make it an attractive destination for retail operators.


  • Lower operating costs compared to European markets.

  • Rising demand for sports betting with an engaged audience.

  • Favourable taxation and regulatory framework.


Nigeria


Nigeria offers immense potential for profit with its large, youthful population and increasing interest in sports betting. Regulatory frameworks are evolving, but the market remains lucrative due to high consumer demand and relatively low operating expenses, making it a hotspot for expansion in traditional betting outlets.


  • Highly profitable due to sturdy demand and low operating costs.

  • A growing market with increasing consumer interest in football.

  • Favourable regulatory framework with low barriers to entry.


Australia


Australia’s well-developed gambling market, coupled with high disposable income and strong betting culture, makes it highly profitable for retail operations. Favourable taxation and a regulated environment provide stability, while diverse betting options drive consistent consumer interest and returns.


  • High betting volumes with resilient consumer demand.

  • Relatively lower taxation compared to online betting markets.

  • Profitable betting shops, especially where engagement is high.


India (Selected States)


Venue-based wagering is the only legal option in certain states, creating a captive market with high profitability potential. A large, sports-enthusiastic population, combined with evolving legal frameworks, provides a lucrative environment for operators willing to tackle regulatory complexities and invest in market expansion.


  • High profitability in states where on-site betting is legal.

  • Low operating costs and high demand, especially in cricket.

  • Opportunity for high-margin growth in retail betting states.


Colombia


A favourable regulatory framework and a rising middle-class support Colombia’s growing land-based betting market. The country’s recent liberalisation of gambling laws has created new opportunities for operators. Low competition and high demand make Colombia a promising market for profitable in-store ventures.


  • Strong profitability in retail betting due to growing demand.

  • Favourable licensing regulations for foreign operators.

  • Stable infrastructure + growing trust in licensed betting shops.



Countries Where Retail Betting is the Only Legal Option


ASIA


Cambodia: Online operations are banned. Retail casinos are allowed.

India (selected states): Strict regulations limit online gambling.

Myanmar: No online licences issued. Only retail is allowed.

Nepal: Online betting is prohibited; retail betting is the only option.

Saudi Arabia: Very strict; no online betting permitted at all.

Turkey: No legal online betting for local operators.

UAE: Online betting banned. Only select retail activities are allowed.

Vietnam: Online betting heavily restricted. Retail limited and regulated.


AFRICA


Algeria: Online betting is largely prohibited.

Benin: Online sports betting remains unregulated.

Botswana: Online betting lacks a clear regulatory framework.

Cameroon: Online sports betting has not been formally regulated.

Chad: Online sports betting is not legally defined.

Ethiopia: Online sports betting remains illegal and unregulated.

Gabon: Online betting lacks a clear regulatory framework.

Ghana: Online sports betting is not fully regulated.

Kenya: Regulation favours retail over online betting.

Liberia: Online betting lacks a legal framework.

Malawi: Online betting regulations are unclear or restrictive.

Mali: Online sports betting is largely prohibited.

Morocco: Online sports betting is heavily restricted.

Namibia: Online sports betting remains largely unregulated.

Nigeria: Strict control over online betting operations.

Rwanda: Online sports betting remains primarily prohibited.

Senegal: Online betting is largely restricted or unregulated.

Sierra Leone: Online sports betting is not allowed.

South Africa: Online betting heavily restricted and regulated.

Tanzania: Online sports betting is largely prohibited.

Uganda: Online sports betting regulations are unclear or restrictive.

Zambia: Online sports betting faces stringent restrictions.

Zimbabwe: Online betting is restricted.


OCEANIA


Papua New Guinea: Retail betting legal. Online betting not regulated.


EUROPE


In Europe, there are no specific countries where retail sports betting is the only legal option. However, heavy regulations and restrictions apply in some countries.


Poland: Restricted. Retail betting is significantly more prominent.

France: Restricted. Only a limited number of online licences are issued.

Greece: Physical betting operations significantly more prominent.

Portugal: Retail is more prominent due to high taxes and costs.


AMERICAS


In the Americas, there are a few regions where retail sports betting is the only realistic legal option, mainly due to restrictive online betting laws.


USA (selected states): Individual state laws apply.

Cuba: Specific retail activity allowed. Online gambling is banned. 

Argentina (selected provinces): Unregulated in some provinces.

Venezuela: No clear regulations for online betting.

Paraguay: Online betting unregulated. Retail betting legally allowed.


The Growth of Online Betting and Its Impact on Betting Shops


The growth of online betting has undoubtedly transformed the gambling scene over the last decade, yet retail betting remains a resilient force. Despite the convenience and widespread adoption of online platforms, many players still prefer the traditional experience offered by brick-and-mortar venues. This trend is supported by greater social interaction, the need for a tangible experience, and the trust that retail environments provide. 


‘Retail betting is evolving, not disappearing’


According to a 2023 survey by the Gambling Commission, 34% of UK bettors still choose retail venues for their bets. Retail operators are adapting by integrating digital elements into their offerings, such as self-service betting terminals and in-shop digital screens, creating a hybrid model that enhances the overall betting experience. As Richard Watson, Executive Director of the Gambling Commission, said: “Retail betting is evolving, not disappearing, and continues to hold its own unique place in the market.”


Future Outlook for Retail Sportsbook Operations


From the perspective of technical innovation and advancement, the future of retail betting looks promising as new technologies are reimagining the traditional experience. Self-service betting terminals (SSBTs), for instance, are enhancing convenience, allowing customers to place bets without queuing. At the same time, in-store digital screens offer live odds and engaging visual content to attract and inform sports bettors. Modernisation like this streamlines the betting process and creates a more engaging environment. 


Furthermore, there has been much discussion regarding hybrid models that combine retail and online operations in recent years. The overriding idea is that future bettors will be able to deposit cash in retail locations for their online accounts, blending both physical and digital experiences. This approach expands payment options and integrates in-person and remote betting into one convenient whole, making in-person betting more accessible and appealing in an increasingly digital world. As the industry continues to evolve, expectations are that retail betting will remain a key sector in the sports betting industry by adapting to new technologies and consumer preferences.


How to Start a Retail Betting Business


Starting a high-street betting business should be a structured process that covers legal, operational, and strategic considerations. A strong foundation begins with securing the necessary licences, choosing an optimal location, and partnering with credible technology suppliers for betting software, hardware and services. Here’s a comprehensive guide to the essential steps involved:


Step 1. Understand Legal Requirements
Research and understand all local and national regulations related to retail betting operations in the targeted region to ensure that your operation meets all licensing criteria and compliance obligations.


Step 2. Obtain a Gambling Licence
Apply for the necessary licences to operate legally. The process varies by jurisdiction but invariably involves demonstrating financial stability and adherence to regulatory standards.


Step 3. Choose the Right Location
Select a high-traffic area with good visibility to attract foot traffic. Consider proximity to complementary businesses (bars, restaurants, supermarkets) and demographics to maximise engagement.


Step 4. Partner with a Credible Software Provider
Select a reputable sports betting software provider to partner with. A reputable supplier will provide betting technology that is reliable, compliant, and scalable to maximise customer satisfaction and operational efficiency.


Step 5. Develop a Business Plan
Create a detailed business plan outlining your operational strategies, marketing approach, financial projections, and competitive positioning to guide your business development and secure funding if necessary.


Step 6. Design and Fit Out the Premises
Create a welcoming and engaging environment with comfortable seating, clear betting counters, and visually appealing digital displays to enhance the customer experience. SSBTs can also be incorporated for public convenience and operational efficiency.


Step 7. Hire and Train Staff
Employ knowledgeable and professional staff to assist customers, provide advice, and maintain operational efficiency. Comprehensive training ensures consistent service quality and regulatory compliance at all times.


Step 8. Implement Security Measures
Invest in reliable security systems, including CCTV and secure payment processes, to protect customers, staff, and your business from potential security threats and fraud.


Step 9. Market Your Business
Develop and execute a marketing strategy to attract and retain customers. Utilise local advertising, promotions, and digital channels to raise awareness and build your brand presence.


Step 10. Monitor Compliance and Performance
Regularly review operations to ensure adherence to regulatory requirements and business performance goals. Along the way, make adjustments as needed to maintain compliance and profitability.


Take the Leap into Profitable Retail Betting!


Are you ready to take the leap into land-based betting? From advanced self-service betting terminals to sophisticated betting software, Altenar offers the tools you need to thrive. Book a demonstration today and discover how our bespoke technology can help you get started and excel in competitive markets.




Previous Next

Related articles

  • Sportsbook feature guide: Betting Insights

    Sportsbook feature guide: Betting Insights

  • The Bet Builder Boom - Where They Are Gaining Traction and Why

    The Bet Builder Boom - Where They Are Gaining Traction and Why

  • Sportsbook features guide: Improved Bet Acceptance

    Sportsbook features guide: Improved Bet Acceptance

  • Sportsbook features guide: Toto

    Sportsbook features guide: Toto

  • Tailored for Engagement - How Altenar’s Regional Sportsbook Layouts Elevate User Experiences Globally

    Tailored for Engagement - How Altenar’s Regional Sportsbook Layouts Elevate User Experiences Globally

  • Sportsbook features guide: Rewards System

    Sportsbook features guide: Rewards System

  • Essential Guide to Turkey’s Gambling Laws and Regulations - What You Need to Know

    Essential Guide to Turkey’s Gambling Laws and Regulations - What You Need to Know

  • Sportsbook features guide: Betslip Boost

    Sportsbook features guide: Betslip Boost

  • Understanding Gambling Laws and Regulations in Germany

    Understanding Gambling Laws and Regulations in Germany

  • Malta Tech Talks return for fifth edition

    Malta Tech Talks return for fifth edition

  • Sportsbook features guide: Bet Mentor

    Sportsbook features guide: Bet Mentor

  • Sportsbook features guide: Bet Boost promo tool

    Sportsbook features guide: Bet Boost promo tool

Fill out the form and we’ll be in touch as soon as possible

Follow 3 simple steps to fill out the form

  • 1

    Details

    Step 1
  • 2

    Contacts

    Step 2
  • 3

    Info

    Step 3

Choose enquiry and fill details

1 / 3
Enquiry Type

This form collects your data so that we can correspond with you. Read our Privacy Policy for more information

  • 1

    Details

    Step 1
  • 2

    Contacts

    Step 2
  • 3

    Info

    Step 3

Contact info

2 / 3
How can we reach you?

This form collects your data so that we can correspond with you. Read our Privacy Policy for more information

  • 1

    Details

    Step 1
  • 2

    Contacts

    Step 2
  • 3

    Info

    Step 3

More information you want to tell us

3 / 3
How did you hear about us?
Region of Operation

This form collects your data so that we can correspond with you. Read our Privacy Policy for more information