With the Raiders’ playoff dreams now gone, the Las Vegas sports betting handle has struggled to gain momentum for the past few months. Football is the most wagered sport each year, which may have hurt the Silver State.
Las Vegas Sports Betting Numbers Have Continuously Declined
Compared to other jurisdictions across the nation, many dream about reaching the same wavelength as Nevada in sports betting. Comparing year-to-date figures, Nevada has failed to exceed their expectations as handles continue to decline.
The trough seems to be a continuous cycle as the Silver State looks to bring the numbers back to normal. The Nevada Gaming Control Board reported a handle of $927 million, which decreased 14.5 percent from last November’s report.
To make matters worse, this was the busiest month since January. The sportsbook operators in the state also failed miserably against the public. Unlike other states in the industry, retail sports wagering plays a big role in the monthly handle numbers. Mobile sports betting accounted for 70 percent of the total handle.
Sportsbook operators in the Silver State combined with having an average hold rate of 4.06 percent. To put that number in perspective, the industry’s average win rate is 7.2 percent.
A 47 percent decrease from November 2021’s record-breaking revenue and taxes of $37.6 million resulted from this drop in Nevada sports betting revenue. Only two states reported better numbers in November 2022, which include New York and New Jersey.
Parlays Hit Left and Right in Nevada
Usually, parlays lead to a plethora of generated revenue, as it’s statistically difficult to win as more legs are added. However, the public did well against the house, as the numbers depict.
The sportsbooks only kept 14.4 percent of money bet on parlays, compared to 54.8 percent last year. Surprisingly, baseball was the sport that drastically affected the numbers, as the hold rate registered to be -17.75 percent. Many bettors sided with the Houston Astros to win the World Series.
Nevada’s monthly sports betting numbers are still strong, but the Silver State can reach the $1 billion territory, especially during the last quarter of the year. However, despite the average betting volume struggling during the last four months, Nevada’s yearly handle is still up about $700 million.
December’s numbers will strongly indicate whether the state breaks the trend to close 2022. NCAA football may come to the aid as conference games are on the calendar.
Las Vegas Could Come Back in 2023
The early portion of the New Year is a good time for states to come back stronger. The first three months will feature events like the National Championship game, Super Bowl, and March Madness.
California will be a nonfactor, as mobile sportsbooks and tribes couldn’t win the majority vote during the midterm elections. Arizona and Nevada will continue to benefit from this move for the next few years.