It seems like a year has passed since Nevada’s Governor, Steve Sisolak, instructed all casinos to shut down in an effort to curb the spread of coronavirus in the state. However, it was not even two months ago. Despite being open for half of March, the gaming revenue for Nevada during that month does not present an appealing picture.
Looking ahead, April is set to be even more challenging as casinos were shut for the entire month. Only four sportsbook apps and a single poker website were active for that month.
March Gaming Revenue
The Nevada Gaming Control Board’s monthly report revealed a dramatic drop in Nevada’s gaming revenue in March, falling nearly 40% to $618.1 million. This is a significant decrease from the $1.022 billion recorded the same time last year.
The Vegas Strip took the hardest hit, with gaming revenue for its casinos plummeting by 45.6% to $299.9 million. In contrast, downtown Las Vegas casinos experienced a lesser decline in gaming revenue, dropping by 25.9% from the previous year to $43.45 million.
Sports Betting Crushed
March Madness’s first weekend typically makes March one of the most profitable months for Nevada sportsbooks. The Nevada Gaming Control Board does not differentiate between college and professional sports, which makes it challenging to determine the exact amount wagered on the college basketball tournament. However, anecdotal evidence suggests that the total betting on the entire NCAA basketball tournament is usually on par with the Super Bowl.
The cancellation of all major professional sports, including the NCAA basketball tournament, significantly impacted sports betting. The sports betting turnover in March was just above $141 million, a drastic drop from $596 million, the total state sports betting turnover in 2019.
The amount of money bet decreased, and Nevada sportsbooks only garnered $1.5 million from those wagers. ESPN reported that this is the lowest earnings for Nevada sportsbooks in March since 1993. In general, Nevada sportsbooks saw a decline of over 95% in their winnings compared to the record-breaking earnings during last year’s March Madness.
Mobile sports wagering made up nearly 63% of the sports wagering handle in March, showing an increase from slightly above 50% in February. This is a positive development.
Non-traditional sports impact on sports wagering revenue
The Nevada Gaming Control Board’s approval of new sports such as table tennis (ping pong) and esports for betting has gained significant attention. These new sports are classified under the “other” category in the Nevada gaming revenue report for sports betting.
Legal Sports Report stated that “other” sports made up $21.2 million of the wagers placed in March. It is expected that this will comprise the majority of all sports wagers in Nevada once the gaming revenue for April is reported.
Looking Forward
Gaming revenue in Nevada suffered a decline in March, with expectations of a more significant drop in April. All casinos in Nevada were closed throughout the month. The only betting options available in the state were through four sportsbook apps and WSOP.com.
Governor Sisolak is set to unveil his ‘Roadmap to Recovery’ plan on Thursday, which is expected to detail when Nevada casinos can reopen. This could mark the beginning of a comeback for gaming revenue starting in May.
As we previously reported, starting from May, the Westgate Superbook app will accept bets. This will provide the opportunity for thousands more sports betting account holders to place bets on any available current and future sports events.
