Commercial
Hold Percentage
Definition
Hold percentage is gross gaming revenue expressed as a percentage of handle over a period: the margin an operator actually kept from sportsbook or casino activity. At land-based casino tables it is usually measured against drop instead.
Key takeaways
- Hold percentage is GGR divided by handle, the realised margin on betting or gaming activity over a period.
- Sportsbook hold combines the pricing margin built into odds with how results break, so major upsets pull it down.
- Unusually high hold can draw regulatory attention to pricing, while unusually low hold can signal adverse results or a trading problem.
Why it matters
Hold percentage is the efficiency read on betting activity. For sportsbook, hold reflects the combination of pricing margin (the structural overround built into odds) and how outcomes break for the operator (favorites winning is generally good for the operator; major upsets are generally bad). Casino hold reflects the house edge embedded in game RTPs combined with volatility-related variance in any given period.
Investor and regulator scrutiny of hold percentage has increased as the sector has matured. Unusually high hold percentages can signal player-unfavorable pricing or product design that may attract regulatory attention. Unusually low hold can signal a major event outcome going against the book, or operationally a trading or risk management issue. Hold percentage normalisation across markets is one of the standard diagnostics in operator performance analysis.
Frequently asked questions
What's a typical hold percentage in sports betting?
Varies dramatically by market and operator. US sports betting hold percentages have stabilised in the high single digits to low double digits in mature markets. European hold percentages on similar product are typically lower because of competitive pricing pressure.
Does hold relate to RTP in casino?
They're inversely related. RTP (Return to Player) is the long-run percentage of stakes returned to players. House edge or hold percentage is the complement. A 96% RTP slot has a 4% theoretical hold; realised hold over short periods varies with volatility.