FanDuel has decided to shutter its PHX Arena retail sportsbook in Arizona, citing poor results.
The arena—home to the Phoenix Suns, a major NBA team – was expected to be a prime location for FanDuel’s retail sportsbook, capitalizing on the energy and crowds of home games.
But the results have been underwhelming. The 7,400-square-foot space hasn’t delivered meaningful returns, despite a heavy investment that included five betting windows and 26 self-service kiosks. Retail operations continue to operate at a loss.
The core issue? Limited foot traffic and waning interest in placing bets in person, as mobile sports betting continues to dominate the market.
Still, FanDuel isn’t pulling out entirely. The venue will now operate as a FanDuel Lounge, where visitors can use kiosks, but staffed betting counters will be eliminated.
Despite this setback, the sportsbook-arena model remains attractive. Betting companies are still pursuing similar partnerships, particularly in states with growing or recently expanded gambling markets.
