Nevada Falls Out of Top Five with April Handle Reported

The Nevada legal sports betting scene has faced challenges in recent months, impacting some of the top sportsbooks operating retail locations in the state.

The Nevada Gaming Control Board’s report for the second consecutive period indicates a decline in sports betting activity compared to the previous year in April, as well as a noticeable decrease in handle from March. The decrease in handle from March is a common trend nationwide, as the NCAA Men’s and Women’s Basketball tournaments typically drive significant wagering activity during that month. However, the year-over-year decrease in overall sports betting activity in April is considered abnormal.

Although the overall sports betting handles for Nevada sports betting apps and retail providers were underwhelming, revenues have increased month-over-month and have shown significant improvement compared to the first four months of 2023.

$569.2 million handle

In April, bettors in Nevada wagered a total of $569.2 million at the state’s top sportsbooks. Nevada sports betting apps contributed $389.8 million, representing 68.5% of the total amount bet, the highest percentage since August of last year when they accounted for 73.5% of all wagers.

The handle decreased by 27.5% from the $785.2 million reported in March, which was expected, but more concerning is the 5.5% drop from the state’s sports betting handle in April 2023. This marks the second consecutive month of year-over-year decline in overall betting activity in the state.

So far this year, the total amount of sports bets placed in Nevada has decreased by 5.8% to $2.85 billion in the first four months.

Mixed bag results for revenues

In April, Nevada sportsbooks generated $30.8 million in revenue according to the Nevada Gaming Control Board report, attributed to a modest 5.4% win rate for the state’s sports betting providers.

The figure shows a 5.8% decrease compared to the previous year, but there was an unexpected 3.5% increase from the previous month, despite a reduction of over $200 million in wagers. The win rate in March was only 3.8%, significantly impacting profits.

Nevada sportsbook providers have seen a 3.1% increase in revenues so far this year, with a significant contribution from the nearly $112 million in combined revenues generated in January and February.

In April, Nevada sports betting providers paid $2.1 million in taxes, bringing the year-to-date total to $11.7 million. This is $352,000 more than the amount paid at the same time last year.

Revenue issues

Nevada sportsbook profits in April were impacted by two key factors: payouts from retail and sports betting apps were still ongoing from NFL bets two months after the season ended, and the Super Bowl also had a significant impact on sportsbook losses.

Retail sports betting outlets in the state contributed $179.2 million to the overall handle, but their 3.5% hold only generated $6.3 million in revenue. This was an improvement from March’s retail win rate of 1.4%.

In April, Nevada sportsbooks accepted $2.4 million in bets on NFL games and paid out $5.7 million in winnings.

Where they did come from

Basketball was the most popular sport for betting among Nevada residents and visitors in April. The NBA and college basketball games played a significant role in boosting sportsbook activity in the Silver State.

In April, basketball accounted for $222.9 million of the state’s total legal sports betting handle, generating $13.3 million in revenue. Baseball also had a successful month, bringing in $10.7 million in revenue from a handle of $188.9 million.

Despite the early exit of the beloved Golden Knights from the NHL playoffs, hockey proved to be the most successful sport for Nevada’s top sportsbooks in terms of win rate. Sports betting providers held 10.4% on hockey and generated $5.7 million in revenues.