The US legal sports betting summer slump seems to have started early and Nevada, “the grand-daddy of betting states”, saw one on the biggest month-to-month declines. The Nevada Gaming Control Board finally released their April figures on Thursday, and they revealed one of the biggest drops, percentage-wise in the nation so far.
Like the rest of the US sports betting industry, Nevada suffered from the lack of NFL, March Madness or any marquee sporting event in April and saw sharp declines as a result. There is a resignation within the industry as a whole that April could just be the start of an extended summer industry slowdown that could last until the start of the NFL season in September.
Crunching the Numbers
This April, Nevada sportsbooks experienced their worst month in terms of their overall handle since July of last year. The sports betting scene in the state took in just $454.7 million during the 31-day period, a 29.1% drop from the $641 million bet in March.
Sports betting revenues obviously followed suit. They dropped 30.8% in April from $39.35 million in March to just $27.24 million last month with a 6% hold. $1.8 million in taxes was generated for state and local coffers from the sportsbooks’ profits, which is also a healthy decline.
Now for Some Good News
The month of May has seen a major retreat in COVID-19 cases in the US and in Nevada itself. With the drop in cases will inevitably come an increase in tourism and a major pent-up demand for destination-resort towns such as Las Vegas and Reno, where the casino scene has the potential to explode.
With an antiquated in-person only mobile betting sign-up procedure still plaguing the state, it is hoped that an uptick in retail betting at Nevada casinos will help Nevada’s overall legal sports betting scene return to its former glory. There may even be a resulting surge in mobile betting action with customers returning to casino floors.
Speaking of Nevada’s mobile sports betting platform, some more good news comes in the form of the state’s uptick in mobile handle percentage. While there was a 23% slide in the amount of bets taken in – from $385,125 million in March to $296,595 million in April, mobile betting accounted for 65.3% of handle in April 2021, up from 60% in March. It is the highest percentage of their overall handle since July 2020 when mobile accounted for 69% of the overall take.
Basketball Still King
Wagering on basketball continued to keep the Nevada legal sports betting platform afloat. $181.1 million of the overall $454.7 million came from basketball – the NBA combined with the Final Four games for the March Madness tournament. Revenues were $8.6 million from basketball. With the NBA playoffs starting in May, hoops are expected to remain the major driver of the Nevada sports betting take.
Baseball was a close second in terms of contributions with $163.7 million wagered and was responsible for an impressive $14.1 million in revenues. Hockey, which is expected to see an uptick with the Vegas Golden Knights currently in the midst of their playoff run generated $45.6 million.
Slipping to #3
Nevada’s reign as the second-most bet-friendly state in the US is over after April’s haul. Their percentage drop was among the highest reported among competing jurisdictions within the US legal sports betting scene.
New Jersey maintained their top-spot with a $748 million handle, Pennsylvania overtook Nevada thanks to a reasonable 14.4% drop in April and a $479.4 million handle, and then came Nevada.
Nevada’s “podium position” within the industry doesn’t appear to be in danger however. There is over $200 million between them and fourth-place Michigan that posted a $274.2 million in bets. Illinois on the other hand, which still has to post their April numbers could approach Nevada’s numbers.
Looking Forward
There is a lot to look forward to in the Nevada legal sports betting industry. June 1 marks the easing of restrictions that have been dragging the platform down.
So, while their platform may not reach near-record handles again until the fall, there is reason for optimism with the Golden Knights expected to make a run in the Stanley Cup Playoffs and the retail sector expected to explode back sooner rather than later.
Summer usually marks the down months for Nevada but 2021’s post-COVID summer has a chance to be special.
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