I’m a sports bettor and try to keep up on how the legal sports betting industry is doing in Vegas (and all of Nevada). When sportsbooks win that means people are losing. I’d much prefer sports bettors win so I’m conflicted about good revenue reports for casinos.
With that being said, I feel conflicted to see that last year was a record year for sports betting with almost $4 billion was wagered on sports throughout Nevada.
According to Nevada Gaming Control Board, a record $3.9 billion wagered on sports in 2014. Books won $227 million on a hold of 5.82%.
— Jason Logan (@CoversJLo) January 30, 2015
Record amounts of money being wagered it great for the sportsbook operators but it doesn’t tell the whole picture. Sports betting is still a very small, but growing, piece of gaming revenue in Vegas casinos.
Sportsbook As Percentage of Revenue for Big Vegas Casinos (Source: UNLV Gaming).
- 2014: 1.3%
- 2013: 0.9%
- 2012: 1%
Sports betting generates a slightly larger percentage of revenue in Downtown Vegas Casinos (Source: UNLV Gaming).
- 2014: 2.2%
Revenue from sports betting has been helped by increased sports betting menus and mainstream acceptance. There was a day when you’d never hear mainstream media mention point spreads or other betting options. That’s no longer the case.
Sports betting revenue is on the upswing and it will be interesting to see how casinos in Vegas adopt. There’s a limit to how much money sports bettors and fans will spend on parties for major events like the Super Bowl (list of parties/prices).
Then again, maybe there isn’t a limit and revenue from these parties is what will keep sports betting alive for casino operators.