Per Nevada Gaming Control Board data, the state achieves $2 billion in adjusted gross revenue, joining an elite group. October’s $68.1 million contribution underlines offshore sportsbooks‘ success, affirming Nevada’s robust sports betting industry and its positive trends.
Silver State Strikes Gold
The state that is home to North America’s gambling mecca, Las Vegas, now joins New Jersey, New York, Illinois, and Pennsylvania as the fifth state to surpass the $2 billion mark in adjusted gross revenues (AGR).
October was the month that pushed Nevada over that milestone with a reported $68.1 million in adjusted gross revenue, which was the third-highest AGR in the state’s history, trailing only the $71.9 million in November 2021 and $70.6 million in September 2022.
October’s hold, or win rate, was nearly 8.4%. The over $68 million in AGR was nearly 20% more than last October, and 9.3% higher than the previous month, which is another telling statistic that the sports betting industry is alive and well in the Silver State.
Nevada’s hold has historically had a difficult time meeting the industry standard of 7%, but October’s hold not only eclipsed that figure but did so for the second straight month and the first time in four years, when the bar was set north of the standard in September and October 2019.
Handle Drops
Although the hold and adjusted gross revenue numbers had tongues wagging, a bit of sobering news came in the form of October’s handle, which dropped for the second straight year. A total of $815.7 million in wagers was accepted, which slumped over 11.5% compared to last year and was much lower than the $1.1 billion wagered in October 2021.
But because the hold was so strong it propelled the revenue to greater heights, which is why a lower handle yields higher profits. October’s numbers were a microcosm of the state of sports betting in Nevada this year as you will see.
The first 10 months of this year show a total handle of $6.5 billion which is down 5.7% from the same period last year. Yet, because of stronger holds, the revenue has increased nearly 8% to $381.3 million. And while that is good news for the operators, the slumping handles are cause for concern as the sportsbooks rely on volume to make their margins.
Another beneficiary of the increased holds is the state of Nevada, which collected nearly $4.6 million in October alone, which added to the $25.7 million in total sports betting taxes thus far in 2023, almost $1.9 million ahead of last year through the first 10 months.
October Top 10 Handles
- New York $2.02B
- New Jersey $1.29B
- Pennsylvania $829M
- Nevada $815.7M
- Massachusetts $571.8M
- Michigan $551.1M
- Maryland $483.1M
- Tennessee $443.8M
- Indiana $429.7M
- Louisiana $308.6M
As we can see above, New York still leads the way as the most fertile soil in the nation for sports betting, while New Jersey trails a distant second. Nevada is creeping up on Pennsylvania while a little powerhouse, Massachusetts, also posts impressive numbers.
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