Sports Betting Slide Hits Nevada But Optimism Looms

The annual summer legal sports betting slide in the US market seems to have started early. After all, once the Super Bowl and March Madness are over, there really isn't a marquee sports betting event until the kickoff of the NFL season. Nevada is the latest jurisdiction to report a dip in handle and revenues in April but unlike others, there is a huge sense of optimism in the state's wagering sector that the Silver State will possibly experience a mini renaissance instead of a widespread slide.

The Nevada Gaming Control Board released their April sports betting numbers Friday, and they revealed a larger slide than others within the industry. While most analysts expect a prolonged slump for the entire US legal sports betting industry, there is a belief in Nevada that the relaxation of COVID rules and the impending tourist season could actually provide a spark for a sector hard-hit by the coronavirus pandemic.

Deep Dive Into Nevada's April Figures

Sportsbooks in Nevada reported a disappointing $454.7 million handle for April, which represents a significant 29.1% drop from the $641 million taken in during March. Not only is it one of the worst percentage drops among competing jurisdictions within the US scene but it is also represents the worst month the state's sports betting industry has had since July 2020.

Revenues from the diminished handle are just as bad. They slipped an eye-opening 30.8% to $27.24 million in April from the $39.35 million that sportsbooks made in March. The hold-rate came in at 6% and the tax revenue generated off the profits was an underwhelming $1.8 million.

The only tangible uptick in the Nevada legal sports betting industry has been their mobile betting platform which was responsible for a respectable for-the-state 65.4% of the overall handle. Mobile apps contributed just $296.595 million in April, down 23% from March's $385.125 million however.

Hoops Reigns

Not shockingly, it was basketball that carried Nevada's legal sports betting industry in April, and should continue to do so throughout May, when the playoffs started, and games started to carry a whole lot more significance. Hoops was responsible for $181.1 million of the overall $454.7 million April handle in Nevada, and $8.6 million of the $27.24 million in profits.

The usual summer-staple baseball ranked second in terms of gambling dollars taken in with $163.7 million and $14.1 in revenues while hockey thanks to the Golden Knights' impressive season contributed $45.6 million to the Nevada handle.

Positive Signs

The big news the last couple of weeks not only in the US legal sports betting space but also in society is the impending relaxation of the COVID-19 rules. As we move back to "normal", so too will the return of tourism levels in Las Vegas and Reno. The tourism sector was especially hard-hit by COVID-19 and hopes are that hotels will be full, and casinos being packed in Nevada this summer.

With that return of normality should come an uptick in retail betting numbers to the Nevada scene. The state has stuck with an in-person sign-up procedure for their mobile platform which has hurt with casinos forced into a limited capacity. Maybe Nevada's mobile apps will see an uptick in action too once throngs of customers return to casino floors.

The State of the State

Nevada's sports betting slide was more pronounced than most, which forced the state to slide from second to third place on the list of bet-friendly states. Pennsylvania overtook Nevada in April thanks to their $479.4 million handle and New Jersey easily maintained their status as the King of the Bet-Friendly states with a $748 million April handle.

Illinois, one of the up-and-coming legal sports betting state has yet to report their April figures and could approach Nevada's third place numbers. That said, The Silver State is expected to maintain their somewhat disappointing bronze-medal position.

So, while Nevada sportsbooks are looking toward September when the NFL returns to action, some insiders are hopeful that a summer of tourism will provide a spark to the Nevada legal sports betting scene.

June 1, when restrictions are relaxed looms large for the Nevada sports betting scene. It will be interesting to see just what pent-up demand brings to the Nevada scene.