Nevada Gaming Industry Posts Yearly Gains

LAS VEGAS, NV — Nevada’s gaming industry continues to show resilience, posting positive year-over-year (YoY) gains for both December and the full calendar year of 2024, despite ongoing challenges on the Las Vegas Strip. According to the latest data from the Nevada Gaming Control Board (NGCB), the state’s gross gaming revenue (GGR) for December totaled $1.46 billion, a 2% increase from the same month last year. For the full year, GGR reached $15.6 billion, marking a slight increase of 0.55% over 2023 and setting a fourth consecutive record-breaking year for the state’s gaming sector.

However, the overall gains were not mirrored on the Las Vegas Strip, the state's most iconic and high-revenue market. In December, the Strip recorded $881.2 million in GGR, a 2.6% drop from 2023, marking its sixth consecutive monthly decline. This downturn has been a key point of concern, particularly as the Strip has historically driven the majority of Nevada’s gaming revenue. Year-to-date, the Strip is down more than 5% compared to the same period last year, with a 1% drop in GGR for the calendar year 2024.

 

Baccarat Woes Weigh on Strip’s Performance

The decline on the Strip can be largely attributed to a slowdown in baccarat, the high-stakes game beloved by high rollers. While baccarat has historically been a major revenue driver for Nevada, its volatile nature means that big swings are often observed. December's baccarat GGR was $197 million, a 10% decrease from the previous year, continuing a recent trend of declining revenue from the game. For the calendar year 2024, baccarat revenue on the Strip is down 7%, and the segment has seen a 15% dip over the last three months.

The baccarat downturn was part of a broader decline in table game revenue, which dropped 16% in December. Overall, the Strip’s table games saw a 5% drop for the entire year. This underperformance has contributed to the Strip’s overall decline, but other parts of Nevada have more than made up for the losses.
Locals and Downtown Markets Thrive

The biggest success story for Nevada’s gaming industry has been the continued growth of the local market and downtown Las Vegas (DTLV). December was another strong month for these markets, with DTLV posting $82.2 million in GGR, a robust 8% increase from December 2023. The locals market, which includes suburban casinos, recorded $161.1 million, also up 8% YoY.

This trend has been particularly noteworthy over the last year, as the locals market has outpaced the Strip in terms of overall growth. For the fiscal year-to-date (FYTD), DTLV is up 4%, and the locals market has increased by 9.5%. Both markets finished 2024 with even stronger totals, with DTLV increasing by 10% and the locals market surging by 13% compared to the previous year.

The Boulder Strip (+30%) and Laughlin (+9%) were also standout performers in December, adding to the momentum for Nevada’s non-Strip markets. While Mesquite (+3.5% FYTD) has seen more modest growth, it remains a key contributor to Nevada’s overall success.
Reno Sees Positive Gains

To the north, the Reno market rebounded strongly in December, posting $65.8 million in GGR, a 20% increase from the same month in 2023. This strong performance helped Reno end 2024 with a 3% overall increase from 2023, marking a welcome turnaround after several months of losses earlier in the year.

The weather-dependent nature of northern markets like Reno often causes fluctuations in monthly results, but the December boost was a much-needed win for the area. Washoe County, which includes Reno, saw a 12% boost in GGR YoY, bringing its FYTD totals to nearly flat compared to the previous year. Additionally, South Lake Tahoe saw a similar 20% increase in GGR for December, further strengthening the northern region’s overall performance.

Volatile Sports Betting Market

On a less positive note, Nevada’s sports betting market continues to show extreme volatility, as evidenced by the significant drop in December’s results. The state recorded $15 million in sports betting GGR for the month, a staggering 75% decrease from the previous year, after a 64% increase in November. Mobile sports betting, which represents a significant portion of the market, also saw a steep decline, down 54% YoY to $12.5 million.

The decline is especially notable given the state’s long-standing history of being a major hub for sports betting. Nevada’s sports betting laws are unique in that bettors must register in person before placing mobile bets, a regulation that has prevented major national sportsbooks from fully entering the market. As a result, the state’s sports betting market has been characterized by swings rather than consistent growth. Despite the dramatic drop in December, Nevada’s sports betting market finished 2024 nearly flat, with $482 million in GGR, up just 0.17% from the previous year.

While Nevada’s gaming industry continues to thrive overall, the disparities between the Las Vegas Strip and other markets in the state are becoming more pronounced. The Strip, once the crown jewel of Nevada’s gaming revenue, is facing challenges that may require a reassessment of its reliance on high-roller games like baccarat. Meanwhile, the locals market and downtown Las Vegas continue to outperform, offering a more stable source of growth.

The volatility in sports betting also remains a concern. While sports betting has been a major growth area for many states, Nevada’s market seems to be caught in a cycle of sharp fluctuations. Operators may need to adjust to this instability or push for regulatory changes to attract more sustained business.

 

Despite the struggles on the Strip, Nevada has had an extraordinary bump from the downtown Las Vegas and the city’s locals market.

 

Conclusions & The Future

Overall, 2024’s results indicate that while Nevada’s gaming industry has recovered from the effects of the 2020 COVID-19 pandemic and is reaching new record highs, there are significant challenges to navigate. The state’s ability to adapt to these changes—whether by addressing the Strip’s downturn or managing sports betting’s volatility—will be key to maintaining its status as one of the premier gaming destinations in the world.
Conclusion

Nevada’s gaming industry has posted positive year-over-year growth for both December and 2024 as a whole, but challenges persist, particularly on the Las Vegas Strip and in the state’s sports betting market. The Strip’s decline in baccarat and table game revenue, combined with the unpredictable nature of sports betting, highlight the need for diversification in the state’s gaming strategy. Meanwhile, the continued growth of the locals market and downtown Las Vegas signals that Nevada’s broader gaming landscape is evolving. As the state moves forward, the balance between these markets will be crucial to maintaining its gaming dominance.