Sports Betting Takes a Hit in July in Nevada

Sports Betting Takes a Hit in July in Nevada

On Tuesday, the Nevada Gaming Control Board released its monthly handle numbers for July. Silver State is one of the major markets in the industry, but sportsbooks witnessed a significant decline from May due to the summer slowdown.

Nevada Bookmakers’ July Results Weren’t as Strong

Sports betting throughout the industry hasn’t been as strong as the only major sport that is in season is the MLB. Bookmakers in Nevada combined for a total handle of $419.4 million in July, which noted a new monthly low in 2022.

Compared to June’s $490.6 million, this was a steep drop of 14.7 percent, and this continuous drop started in May. It was the first time in nine months that the state’s 179 sportsbooks’ handles dropped consecutively.

However, if one is looking for some positive news in the Silver State, the individual could look towards comparing the year-over-year figures. The handle numbers in July 2022 were up approximately $10 million from July 2021’s $409.7 million, which meant that the handle increased a modest amount of 2.3 percent.

Sportsbook operators in Nevada struggled to put up a fight against the public as the results heavily favored the bettors. Many factors played into this.

Nevada’s Revenue Numbers Plummet for the Month

Sportsbook operators that conduct business in the Silver State were only able to generate $16.2 million. The revenue numbers dropped by 51.3 percent from July 2021’s $33.3 million. When comparing the win rates, the rate went down from 8.1 percent last year to about 3.9 percent this year.

Putting the numbers in context, the national average in terms of hold rate is slated at seven percent. One of the biggest reasons for this major drop in revenue numbers was the NBA and NHL being in season last year due to the global pandemic.

Both leagues were showcasing their respective playoffs during that period. The playoffs ended in June this year, bringing the schedule back to somewhat normal.

This led to fewer options for bettors across the state for July. Also, mobile sports betting in Nevada isn’t as big as other huge markets in the industry, as the online market made up 65.2 percent of the total handle.

However, the online win rate was a bit better than the retail locations, as mobile sportsbooks registered an average hold of 5.3 percent. Furthermore, despite not having popularity like other major leagues, baseball results favored the house.

The sportsbooks were able to collect $19.1 million thanks to a hold rate of 6.9 percent. As a whole, the industry will look forward to the results in August and the last quarter of the year.

Will the Numbers Be Better in August and Beyond?

The industry’s most popular sportsbook will make its debut in the state as it will set up a retail location at Fremont Casino. The company will make its return after daily fantasy was halted years ago.

Nevada’s sports betting handle and revenue numbers are expected to go up in August with the help of the NFL preseason. The numbers are also expected to skyrocket during the last quarter of the year.

Author: Max Hunt