Nevada Experiences Sports Betting Slump in April

There are mixed numbers coming out of the Nevada Gaming Control Board April report for Nevada sports betting in April.

While April’s figures are better than the same one-month period last year, the best sportsbooks in the state suffered the predictable, annual, double-digit, month-over-month sports wagering drop-off.

Nevada is far from unique in this April sports betting slump. Every state that has reported their April handle and revenue figures so far has seen a 20% or more drop-off from March to April.

Breaking down Nevada's April handle

On Wednesday, the Nevada Gaming Control Board reported $598 million in bets taken in by the state's retail and mobile betting sites in April. That figure represents an eye-opening 28% drop from the $830.5 million taken in during March, when the NCAA mens and women's basketball tournaments dominated the betting calendar.

That said, 66% or $395.2 million of the overall Nevada April handle came from the best sports betting apps in the state – the highest percentage so far in 2023.

While suffering a sharp month-over-month sports betting drop off, sports wagering activity actually ticked up slightly from the same April reporting period last year. The $598 million is about 2.7% higher than the $582.5 million reported in April 2022. 

What about revenues?

Not surprisingly, sportsbook revenues in Nevada also took a month-over month hit. Betting sites in Nevada reported $32.4 million in revenues in April, down about 26% from the $43.9 million in March. The hold rate for Nevada sportsbooks held steady at 5.3%.

Sportsbook revenues followed the pattern of month-over-month drops and year-over-year increases. $32.4 million in April 2023 revenues is just over $7 million, or about 28% higher than the in profits reported in April 2022.

Just under $2.1 million in taxes were collected from Nevada's legal sports betting providers in April 2023, down about $900K from March, but about $4 million higher than reported in April 2022.

Year-to-date

After the first quarter of 2023, Nevada's sports betting industry is on a slightly slower pace than last year over the same period. Just over $3 billion has been taken in by the Silver State betting sites so far this year, which is about 9% lower than the $3.3 billion taken in by the state's providers over the first four months of 2022.

Revenues for the first four months of 2023, on the other hand, are higher than the same period in 2022, thanks to an overall higher hold rate. $168 million in sportsbook profits has been reported for the first four months of 2023, an impressive 17.8% higher than the profits reported for the first four months of 2022.

As far as tax contributions, the state of Nevada is ahead of last year's pace. $11.3 million in taxes has been paid by the Silver State sports betting providers. That number represents a $1.7 million jump over the same period last year.

Baseball fills the void

No NFL and no college basketball dragged Nevada's sports betting scene down in April, but baseball seems to be at least plugging the leak in the industry's ship. Baseball, typically a lightly bet-on sport, took in $224 million of the state's $598 million handle. That's up nearly 20% from the same period last year and gives Nevada's best betting sites confidence that the summer slump could at least be mitigated by the Boys of Summer.

Basketball contributed $216.3 million to Nevada's April handle and was the state's biggest revenue generator with $15.2 million in sportsbook profits.

Other sports, a category that includes soccer, boxing, MMA, and auto racing contributed $9.9 million in profits off of $84.9 million in bets. Hockey, thanks to the magical run of the Vegas Golden Knights, contributed $66.8 million to Nevada’s April sports betting handle. $3.3 million in revenues came from NHL betting. 

Where it leaves Nevada

The Silver State has had no shortage of competition with regard to their position as a top-three sports betting state in America. But after almost all participating U.S. legal sports betting states have reported their April figures, Nevada remains in a podium position.

The summer months will be characteristically slow, although the retail sector and tourism could buoy Nevada’s bottom line more than in other sports betting jurisdictions. Will Nevada maintain their standing as the third-best sports betting jurisdiction in America? Likely not, but the Silver State does have a couple of advantages throughout the summer months – tourism and the Golden Knights’ Stanley Cup run.