- The average hold rate in Nevada averaged 5-7% before 2018.
Since nationwide regulation, sportsbooks now keep 9.7% of every dollar bet. - This increase easily links to parlay promotions and advertising.
- Some states are seeing nearly 70% of their monthly revenue come from parlays.
PHOENIX – In 2024, sportsbooks across the United States reached a national hold rate of 9.681%, marking a dramatic rise from the industry standard just a few years ago. This figure, which represents the percentage of money bettors lose to sportsbooks, highlights how operators are leveraging modern strategies like parlay promotions to maximize profits.
The shift toward higher legal sports betting hold rates has been consistent over several years.
Year | Percentage |
---|---|
2018 | 7.238% |
2019 | 7.006% |
2020 | 7.224% |
2021 | 7.536% |
2022 | 8.101% |
2023 | 9.131% |
2024 | 9.681% |
What once hovered around 6-7% has now approached double digits, with 2024 marking a nearly 34% increase from 2018. This evolution is largely driven by the rapid growth of parlay influence on mobile sportsbook apps.
The Role of Parlays in Boosting Hold Rates
Parlays, which combine multiple wagers into one bet, offer massive payouts for bettors but are notoriously hard to win. These wagers allow sportsbooks to achieve hold rates as high 15% or more, compared to single-event wagers that typically hold between 4-6%.
In states with sports betting, these are often the way sportsbooks create the most revenue. Take Louisiana for example. Since their launch, parlays in Louisiana have accounted for $556,328,700 in revenue of the total $776,616,443 (or 71.6%).
For reference, basketball is the second largest revenue producer for Louisiana sportsbooks at $82,617,605.
Heavy Advertisement Of Parlays
Sports betting commercials often encourage more frequent and impulsive bets, making it easier for sportsbooks to capitalize on recreational bettors. Features like one-click parlay creation tools and boosted parlays further ease of use for users and, by extension, profitability.
“And you don’t need to know everything about every sport… all you need is a feeling and a phone.”
These commercials encourage boosted parlays and or premade parlays, which become the first thing you see when you open the FanDuel app as well.
- With fear of missing out, FanDuel even provides a number for how many people have taken the parlay, what a $10 payout would look like, and offer a half dozen other scrollable options to consider.
And bettors take the bait. Just look at the Colorado sports betting intake for October.
The betting handle shows that parlays accounted for 25.4% of the wagers for the month – almost equal to the NFL betting handle at 28.1%.
However, there is some hope, as bettors are coming around to the information. Even comments on a FanDuel “Hunches” YouTube video show annoyance from the general public.
The increasing hold rate might signal a golden age for sportsbooks, but it raises questions about sustainability and consumer perception. Regulatory changes or shifts in bettor behavior could eventually flatten or reverse the upward trend.
For now, legal sportsbooks are holding almost 10% of action from 2024, making sports betting one of the least player-friendly gamble ideas at a casino.
Hold Rates By Gambling Type
Method | Hold Rate |
---|---|
High Limit Slots | 3% |
6:5 Blackjack (8 Deck) | 3.5% |
Triple Zero Roulette | 7.69% |
Sports Betting | 9.7% |
Penny Slots | 10% |
Keno | 25% |
- At the current rate, sports betting has a worse hold percentage than triple-zero roulette, one of the worst casino games to play as a gambler.
As sportsbooks continue refining their strategies, the hold rate could exceed 10% in the coming years – something that is already happening in over a dozen states with legal sports betting.
If parlay betting advertisements and mobile adoption continue to grow unchecked, operators will grow profitability without user retention in mind – a potential detriment to the long-term health of the industry.
For bettors, the lesson is clear: understand the true cost of convenience. High-payout bets like parlays show the potential for big wins; but, don’t hit as often as one expects. The odds are always in the house’s favor, especially in today’s betting landscape.
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News tags: FanDuel | Hard Rock Bet | hold rate | Louisiana | NFL | Parlay | Revenue | YouTube
After spending time scouting college basketball for Florida State University under Leonard Hamilton and the University of Alabama under Anthony Grant, Michael started writing focused on NBA content. A graduate of both schools, he now covers legal sports betting bills, sports betting revenue data, tennis betting odds, and sportsbook reviews. Michael likes to play basketball, hike, and kayak when not glued to the TV watching midlevel tennis matches.