Nevada Gets Mixed News with October Sports Betting Report

The grandfather of legal sports betting states, Nevada, released its October revenue report, which revealed some positive trends but some that could be viewed as troubling for regulators in the state.

Nevada sports betting apps and the state's retail providers combined for the third-best month ever by revenue.

According to the Nevada Gaming Control Board report, October's figures took Nevada over the $2-billion plateau in adjusted gross revenues since the Supreme Court overturned its blanket ban on sports betting in 2018. Nevada is just the fifth state to reach $2 billion in revenue, joining New Jersey, New York, Illinois, and Pennsylvania.

October’s numbers also marked the first time that state providers have eclipsed $60 million in revenues for two straight months.

The good news, though, was countered by the realization that year-over-year handle numbers declined for the second straight October.

Nevada's $815.7-million October handle

Bettors in the Silver State spent $815.7 million with the state's best sportsbooks in October. It represents a slight month-over-month bump from the nearly $811.4 million in September, but, for the second straight October, wagering activity dropped.

October's $815.7 million total is 11.5% lower than the $920.9 million from October 2022 and a healthy drop from the state record handle of $1.1 million reported in October 2021.

So far, the year-to-date Nevada sports betting handle stands at $6.5 billion, 5.7% lower than the wagering activity in the state through the first 10 months of 2022.

Revenue is a different story

The best sports betting sites in Nevada were able to generate $68.1 million in revenues off what was a somewhat disappointing October legal sports betting handle. As mentioned, it is the third-highest monthly revenue total for Nevada sports betting providers, behind only the record $72 million from November 2022 and the $70.6 million from September 2022.

Nevada's October sports betting revenues jumped almost $6 million or 9.3% month-over-month from the $62.3 million in September, which is 20% better than the $56.86 million from October 2022.

The reason for high revenues from an underwhelming handle is that Nevada sportsbooks managed to hold 8.4% in October, which ranks as the sixth-highest win rate for Nevada sportsbooks.

October represented the first time since fall 2021 that Silver State sportsbooks held more than the national average of 7%.

Roughly $4.6 million in taxes was collected from Nevada's net gaming revenues in October, taking the year-to-date tax total to $25.7 million. It is almost $2 million ahead of last year's pace.

Football provides touchdown for Nevada operators

To the surprise of no one, football provided Nevada's best sports betting sites with the bulk of their impressive revenues. Pigskin action, thanks to an 8.8% hold rate, accounted for $48.3 million of the overall $68.1 million revenue total for state sportsbooks.

Revenues from football betting climbed more than 44% year-over-year.

Baseball was a distant second in terms of revenues for Nevada sports betting providers in October. Baseball betting revenue for October came in at just under $9.5 million, off an impressive combined 10.5% hold.

Other sports generated $3.5 million in October revenues, as the tip-off of the NBA season accounted for $3.1 million, and hockey led to $2.2 million in October sportsbook revenue.