Nevada’s gaming industry experienced a second consecutive month of revenue decline in August, with analysts attributing the dip to bad timing and a run of luck favoring the players. According to the Nevada Gaming Control Board, the state’s total gaming win for August reached $1.16 billion, marking a 3.8% decrease compared to the same period last year.
While gaming win declines are typically driven by a variety of factors, this particular month saw several contributing elements, including calendar quirks and lower hold percentages on key table games like baccarat. The full results have been published in the Nevada Gaming Revenue and Collections official press release(pdf).
Michael Lawton, senior economic analyst for the Nevada Gaming Control Board, explained for Las Vegas Review-Journal that the timing of slot collections at the end of August played a significant role in the revenue dip. Because August ended on a Saturday, the collections that would have typically been recorded in the month were instead shifted to September’s filings. This delay distorted the overall results for August, making the numbers appear worse than they were.
Additionally, the Las Vegas Strip saw a sharp decline in baccarat performance. Lawton noted that total win on the Strip, excluding baccarat, actually increased by 2.8% or $15.5 million. The low baccarat hold, however, contributed to an overall Strip gaming win decline of 3.5% to $643.7 million. Across the state, Clark County also experienced a 4.4% dip in gaming win, while downtown Las Vegas reported an 8.8% decline.
Baccarat Hold Percentage Impacts Results
Table game performance, particularly baccarat, was a key factor in the overall decline. Joe Greff, a gaming analyst with J.P. Morgan, pointed out that the hold percentage for baccarat in August was much lower than in the previous year. The Las Vegas Strip saw a baccarat hold of 10.5% in August, compared to 17.8% in the same month last year.
These lower-than-average hold percentages reduced the win amounts for casinos, contributing to the monthly decline in revenue. However, Greff emphasized that this was largely a result of timing and luck, not a reflection of broader trends.
Mixed Results Across Southern Nevada
While most Southern Nevada submarkets saw declines in August, Mesquite was a notable outlier. The Mesquite gaming market reported a 10.2% increase in gaming win, reaching $14.4 million. Lawton attributed this growth to favorable calendar comparisons, with more weekend days in August 2023 compared to the previous year, as well as successful promotional campaigns.
On the Boulder Strip, however, gaming win took a sharp dive, falling 21.8% to $64.8 million. Lawton explained that the Boulder Strip was particularly affected by the timing of slot collections, which were delayed into the next reporting period.
Strong Tourism and Air Travel Numbers
Despite the gaming revenue decline, August was a positive month for Las Vegas in terms of visitation and tourism. The Las Vegas Convention and Visitors Authority (LVCVA) reported that visitation increased by 2.4% year-over-year, with 3.4 million people visiting the city in August. Occupancy rates also saw a small increase, reaching 81.2%, while the average daily room rate rose 11.7% to $175.44.
Kevin Bagger, head of the LVCVA’s research team, highlighted the influence of key events like Labor Day weekend and the Def Con convention, which contributed to higher weekend occupancy rates. “Weekend occupancy reached 90.2 percent, up 0.4 points, supported by Labor Day weekend and the presence of the Def Con convention during the second weekend of the month,” Bagger said.
Air travel also showed strong growth, with Harry Reid International Airport reporting a 5.1% increase in passengers for the month. This brings the total for 2024 to a record pace, with 4.8 million passengers arriving and departing from the airport in August.
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Johnny K. 2024-09-28 11:58:27
