Sportsbooks in Nevada recorded more sports wagers than the previous year, reaching a total of over $5 billion.
The UNLV Center For Gaming Research reports that since 2010, Nevada sports bettors have increased their annual wagering on sports.
In 2018, a record-breaking amount exceeding $5 billion was wagered by Nevada sports bettors. This marked not only the highest amount ever wagered in Nevada but also a significant victory for casinos that year. However, this is just the start.
The Nevada Gaming Control Board (NGCB) reported that casinos raked in over $300 million, a surge of over 20 percent from 2017, setting yet another record for the state of Nevada.
How Nevadans bet on sports in 2018
In some respects, it was a standard year for sports bettors in Nevada. As usual, football attracted the highest amount of money wagered compared to any other sport.
- Football: $1,813,416,000
- Basketball: $1,509,121,000
- Baseball: $1,026,863,000
In 2017, football and basketball saw an increase in betting money in Nevada. However, baseball was the only major sport that experienced a decrease in wagered money compared to the previous year. The amount of money bet on baseball in 2018, which was $1,026,863,000, was lower than the amounts in both 2016 and 2017.
The NGCB could potentially consider separating some of the previously smaller sports from the “other” category. The Vegas Golden Knights and UFC are contributing to the increase in money bet on “other” sports. A record amount of money, $566,804,000, was bet on “other” sports in Nevada.
Parlays are more popular than ever
Both sportsbook operators and customers are fond of parlays. Winning multi-game wagers is more challenging for bettors. Nevertheless, in Nevada in 2018, there was a whopping $95,129,000 placed on parlays. This represents a significant 33 percent surge from the $62,923,000 bet on parlays in 2017.
Betting on riskier parlays is a favorite pastime for recreational sports bettors due to the possibility of a larger win from combining multiple games into one wager. Stories of $2 parlays turning into thousands of dollars are often shared with excitement by the media.
As sports gambling receives increasing acceptance from the national media countrywide, the number of such bettors is expected to rise. The more publicized big wins become, the higher the chances that novice bettors will gamble in hopes of winning their own jackpots.
The wagered amount on parlays is expected to keep rising in Nevada as well as in new sportsbooks nationwide.
How sportsbooks won money in 2018
In 2018, operators of Nevada sportsbooks won $301,048,000. Their winnings from each of the big three sports in 2018 exceeded those of the previous year.
- Football: $102,458,000 (+33.24 percent)
- Basketball: $99,602,000 (+13.92 percent)
- Baseball: $47,133,000 (+28.03 percent)
In 2018, sportsbooks saw a decrease in their winnings from “other” sports, largely due to the Vegas Golden Knights. Their earnings amounted to only $28,907,000, which is a 10.74 percent drop from the previous year.
Nevada operates a reasonably efficient sports betting market. The mix of savvy and casual sports bettors ensures that sportsbooks frequently offer balanced lines and odds. However, this doesn’t imply that sportsbooks earn an equal amount across all available sports.
In 2018, operators of sportsbooks won varying percentages from the bets placed in the top three sports.
- Football: 5.65 percent
- Basketball: 6.6 percent
- Baseball: 4.59 percent
- Parlay: 24.08 percent
- Other: 5.1 percent
The sportsbooks in the state won a higher percentage of bets in each of the three major sports. The only sports category where they didn’t secure as much winning percentage in 2018 was the ‘other’ category. The win rate of sportsbooks in this category fell from 7.56 percent in 2017 to 5.1 percent in the previous year, largely due to the Vegas Golden Knights.
Looking ahead
This year is expected to be the first where other U.S. states start to reduce Nevada’s lead in sports betting. Despite being one of the fastest growing states, Nevada’s overall population remains relatively small compared to other states in the U.S.
If New Jersey or Pennsylvania exceed Nevada’s betting handle, it should not be surprising. After all, New Jersey is home to almost nine million people while Pennsylvania’s population stands at 12 million.
Nevada, with its modest population of 3 million, could potentially be overshadowed. However, it possesses something unique that other states don’t. Approximately 42 million tourists visit Las Vegas alone, a factor that undoubtedly keeps the Silver State competitive.
Certain operators of Nevada sportsbooks will persist in advocating for new rules allowing customers of mobile sports wagering apps to register for these apps without needing to visit a casino. This is expected to boost the amount of individuals placing bets on sports in the future.
