Nevada Gaming: Vegas Strip Declines as State Revenues Rise

Nevada’s overall gaming revenue experienced a modest uptick in September, reaching $1.31 billion—up from $1.27 billion during the same month last year—despite a continuing downturn on the Las Vegas Strip. According to data from the Nevada Gaming Control Board, revenues on the Strip fell 1.8%, dropping from $741.2 million to $727.6 million. This marks the third consecutive month of revenue decline for the iconic Strip, highlighting a challenging environment for its high-profile casinos.

Divergent Revenue Trends

The decline on the Strip stands in stark contrast to the robust growth observed in other areas of Las Vegas and across Nevada. Downtown Las Vegas, for instance, experienced a significant revenue boost of 33%, increasing from $68.3 million to $91 million. Local casinos also reported strong performance, with a 15.2% rise in revenues, reaching $259.6 million.

The Boulder Strip showed particular strength, with revenues climbing 19.3% from $67.4 million to $80.4 million. North Las Vegas remained stable, though it saw a slight decrease in revenue from $23.4 million to $23.1 million.

Michael Lawton, a senior economic analyst at the Gaming Control Board, noted that the timing of revenue collection may have influenced these regional increases. He explained that some revenue from the end of August, which fell on a Saturday, rolled over into September, potentially skewing the figures. “Combining August and September presents a clearer picture,” Lawton stated, emphasizing the importance of context when analyzing monthly revenue changes.

Baccarat’s Impact on the Strip

A key factor contributing to the Strip’s revenue decline was a significant drop in baccarat revenue, which fell dramatically by 37%. The hold percentage for baccarat also decreased from 21.8% to 17.1% compared to the previous year. Overall gaming win on the Strip dropped by 16%, even as slot winnings saw an 11.4% increase, indicating a degree of resilience within that segment.

While baccarat struggled, the increase in slot revenue suggests that players continue to find value in these games, helping to mitigate some of the losses experienced in table games. The overall decline in baccarat was not sufficient to overshadow the gains made in other areas, particularly in the local markets.

Visitor Numbers and Economic Activity

September's varied revenue figures occurred during a month packed with major events, attracting nearly 3.4 million visitors to Las Vegas—an increase of 1.6% over the previous year. High-profile events, including the Canelo Alvarez vs. Edgar Berlanga boxing match, major college football games, P!nk's Summer Carnival concert, and the iHeartRadio music festival, contributed to this influx of visitors. Additionally, the debut of UFC 306 at the MSG Sphere added to the excitement.

This increase in tourism translated into improved hotel and convention metrics. Hotel occupancy rates reached 83.9%, a rise compared to the previous year, with notable gains during both weekends and weekdays. Convention attendance surged by 29%, aided by significant events like the Workday Rising and MINExpo trade shows.

Conclusion

As Nevada's gaming revenue reflects a nuanced picture of the state’s gaming landscape, the contrasting fortunes of the Las Vegas Strip and other regions underscore the evolving dynamics within the market. While the Strip faces challenges, particularly with declining baccarat revenues, other areas of Nevada are capitalizing on growth opportunities. The influx of visitors and successful events suggests a potentially optimistic outlook for the state's gaming industry as it navigates these shifts.