October Brings in Mixed Results for Nevada as the Monthly Handle and Revenue Numbers Go in the Opposite Directions Compared to a Year Ago
There was a pair of mixed results when the Nevada Gaming Control Board released its October monthly numbers. The revenue numbers showed a sharp increase, while the handle numbers plummeted when compared to October 2021.
October 2022’s Numbers Experienced the Inverse Effect
Sportsbook operators in the Silver State combined to register a handle of $920.8 million for the month, which noted a decline of 16.3 percent from October’s $1.1 billion handle. Regardless of the results, the numbers were still solid for the month.
Looking at the results from another angle, it could be hard to see why the handle dropped a decent amount for the month. According to the Las Vegas Convention and Visitors Authority’s visitation report, visitation was up by 7.3 percent from last year, which translates to more than 3.6 million more people coming to the state.
However, there is one factor that could help decipher the situation as the football category took a major hit. The biggest decrease in the handle was in football by $179.8 million. In October, $607.4 million was bet on college football and NFL games, which is $121.9 million less than last year’s $729.3 million.
The Las Vegas Raiders have also struggled mightily, as the team had high expectations going into the season. The Raiders are currently 4-7 and have a tough wall to climb, as the Los Angeles Chargers have somewhat found their stride the last few weeks and have a record of 6-5. The Kansas City Chiefs are one of the favorites to win the Super Bowl again, as they have a 9-2 record.
All other major sports categories, not including baseball, have dropped more than 10 percent in regards to their monthly handle from a year ago. Basketball was the next category to decline by a 28.6 percent margin when looking at the year-over-year figures.
Revenue Numbers Posted Solid Results
Despite the lower average betting volume, operators put up better results against the public. Online and retail bookmakers combined to bring in $56.9 million in gross revenue in October 2022, which noted a solid 17.7 percent increase.
The hold rate was much better than a year ago, as the numbers were higher by nearly 1.5 percentage points. The win rate jumped from 4.9 percent to 6.2 percent. Still, this is way below the industry’s average win rate of 7.2 percent.
Additionally, October was the second consecutive month in which revenue exceeded $50 million, following September, which saw $70.6 million in revenue. The state was able to collect $3.8 million in tax receipts for the month.
October Was Still a Win for Vegas
A handle of attaining over a billion dollars is tough to achieve in any given month. New York was able to achieve that in September after a tough summer slowdown which affected its numbers for both July and August.
It will be interesting to see how strong markets like Nevada close out the year, with November’s results on the way as the industry enters its last month of 2022.
