Sports Betting Public Continues Roll In Nevada, Which Had Low Hold Rate In February

Year-over-year handle continued sharp improvement, but not revenue
Nevada February 2022 report

Whether they be sharps or squares, the sports betting public continues to have the books’ number in Nevada.

The state’s Gaming Control Board reported that operators totaled just under $30.3 million in sports betting revenue for February as the public fared well against the house in events other than the Super Bowl.

The hold was a shade under 4%, which marked the first time in the post-PASPA era that Nevada books were held under a 5% win rate for three consecutive months — if not including those affected by the COVID-19 pandemic. The hold hit an all-time low of 1.6% in December and bounced back to 4.5% in the first month of 2022.

Handle for the shortest month of the year totaled $764.9 million, which was a decline of 31.2% from January’s record of $1.11 billion but also represented a 38.1% increase compared to February 2021. It was the sixth-highest monthly total seen in the Silver State, which had its run of billion-dollar handle months ended at four.

Month-over-month revenue dropped 39.4% with the hold being more than one-half point lower, while the year-over-year total was a 4.9% decline against a hold that was nearly 1.8 percentage points lower. The state claimed slightly more than $2 million in tax receipts for February, raising the total collected to more than $5.4 million in 2022. That is $265,882 less than in the first two months of 2021.

Books begin making Super Bowl payouts

The NGCB previously reported Super Bowl operator revenue of more than $15.4 million, but overall football revenue for the month totaled slightly more than $11.1 million as bettors began cashing winning tickets on the champion Los Angeles Rams. Overall handle for the sport was $181.9 million, a 36.1% improvement versus the $133.6 million wagered in February 2021.

Basketball took over as the primary driver of handle, accounting for nearly 60% of all action with $456.3 million placed. The house posted a 2.8% win rate, keeping more than $12.5 million. That was a 10.9% improvement on January’s haul of $11.3 million, as the win rate ticked one-half of a percentage point higher.

The $961.1 million wagered on basketball in the first two months of the year is 55.3% higher than the comparable time period from 2021, which augurs well for NCAA Tournament handle that was generated in March for the second-most popular sporting event in the United States.

Hockey represented the third-largest source of operator revenue in February at just over $4 million, the second-highest total reported by the NGCB since it began breaking out numbers for the sport in 2020. The all-time high was close to $5.1 million in September 2020, but the handle that month was $25 million — less than half the $59.5 million wagered in February.

The catch-all “other” category, which includes golf and soccer, generated nearly $3.4 million in revenue from $81.8 million worth of bets. The $153.1 million wagered in the category in the first two months of the year is running 68.3% ahead of last year’s pace when nearly $91 million was bet.

The public continues to enjoy success via mobile betting

The win rate on wagers made online failed to crack 2% for the third consecutive month, with mobile operators collecting less than $9.1 million from close to $512.4 million handle in February for a 1.8% hold. The mobile win rate has never reached the industry standard of 7% in a non-COVID impacted month since the NGCB began releasing specific breakouts in 2020, and it was the fifth time in the last seven months it failed to reach 3%.

The mobile handle represented just shy of 67% of the total amount wagered, the first time since last October it was below 70% of the overall handle. The overall handle of nearly $1.9 billion, however, is 56.3% higher compared to the $1.2 billion wagered through the first two months of 2021.

Photo: Shutterstock


Related Posts