Nevada’s Gaming Revenues Reach 16-Month Low in August

Four Percent Decline in Statewide Revenue

Revenues from the Las Vegas Strip fell by 3.5 per cent, totaling $643.7 million, while downtown Las Vegas experienced an 8.8 per cent drop to $58.4 million. One of the most substantial declines was recorded on the Boulder Strip, where revenues plummeted by 21.8 per cent to $64.8 million.

A key factor contributing to this decline was the timing of the month’s end.  Michael Lawton, Senior Economic Analyst for the Nevada Gaming Control Board, explained: “A lot of the volatility is the result of the month of August ending on a Saturday. Slot drop and count schedules are property-by-property decisions. The individual properties can determine when they want to drop, count and record the slot revenue on a cash or accrual basis. In individual markets, where certain properties “move the needle” more than others, when the month ends on a weekend day, the “roll-over” of the slot drop can have a significant impact on the totals reported during the month.”

Across Nevada, slot revenue dropped by four per cent to $798.3 million. Baccarat, often a key driver of high-end revenue, fell by a notable 34.3 per cent to $76.3 million. However, blackjack revenues rose by 6.9 per cent to $105.9 million, and roulette showed a 22.9 per cent increase, reaching $49 million.

Industry Experts Remain Optimistic About Non-Gaming Revenue

Despite the overall downturn in gaming revenues, there remains optimism for Las Vegas, particularly for non-gaming revenue. Chad Beynon, Senior Analyst for Gaming, Lodging & Theatres at Macquarie, noted: “We remain positive on the non-gaming outlook in Vegas, given strong group travel and events, but slowing leisure travel could lead to a more competitive promotional environment and hurt Vegas margins. Additionally, comps in the fourth quarter and first quarter become increasingly difficult as we lap F1 and Super Bowl, respectively.”

The recovery of revenue per available room (RevPar) in August aligns with prior projections, reflecting positive growth in room rates for the third quarter. Beynon also highlighted that group bookings for the rest of 2024 and into 2025 show mid-single-digit growth, which is expected to contribute to the ongoing recovery of non-gaming sectors in Las Vegas.