July 2024 marked a notable downturn in Nevada’s gaming income, with the state experiencing its first decline in 4 months. According to the Nevada Gaming Control Board’s report launched on August 28, the overall gaming win for the month was $1.31 billion, reflecting a 6.9% lower in comparison with July 2023. This decline follows a very sturdy efficiency in July 2023, which recorded one of many highest month-to-month win totals in Nevada’s historical past at $1.41 billion.
The Las Vegas Strip Leads the Decline
The Las Vegas Strip, a serious contributor to Nevada’s gaming income, noticed a major 15% drop in its gaming win, falling to $709.3 million. This decline was primarily attributed to a difficult comparability with the earlier yr. Michael Lawton, a senior financial analyst with the Gaming Control Board, defined that July 2023 had been exceptionally sturdy on account of an unusually excessive baccarat maintain price, which stood at 23.52%, the best since June 2003. In distinction, the maintain price in July 2024 was 14.39%, contributing to the general decline in gaming income.
Despite the lower on the Strip, different areas of Nevada confirmed different outcomes. Downtown Las Vegas casinos skilled a 9.9% enhance in gaming win, reaching $71.8 million. Similarly, Clark County’s outlying areas, together with the lately opened Durango on line casino in southwest Las Vegas, reported a 19% rise in income, totaling $171.2 million. Conversely, Sparks noticed an 11.4% lower in gaming income, whereas North Lake Tahoe reported a 14.1% enhance, and South Lake Tahoe’s income remained secure.
Factors Contributing to the Downturn
The decline in July’s gaming income comes after a interval of record-setting efficiency in the fiscal yr 2023-24. While the drop is notable, Lawton emphasised that it shouldn’t be considered as the start of a protracted downturn. “This was a very difficult comparison as July of ’23 was the second highest win total in state and Strip history due to a very difficult baccarat comp related to hold,” Lawton said.
Other components additionally performed a task in the income decline. The momentary closure of The Mirage for renovations, because it transitions into the Hard Rock Hotel & Casino, eliminated a major income supply from the Strip. Additionally, July 2024 had one fewer weekend in comparison with the earlier yr, additional impacting the figures.
Despite these challenges, Nevada’s gaming trade has proven resilience, sustaining a streak of 41 consecutive months with revenues exceeding $1 billion. July’s gaming exercise generated practically $95.9 million in state gaming taxes, although this was a slight lower from the earlier yr.
Looking Ahead: August and Beyond
As Nevada strikes into the ultimate months of 2024, the gaming trade will want sturdy performances, notably in November and December, to realize one other record-setting fiscal yr. Historical information means that August would possibly see a slight enchancment, because the previous two years have proven modest positive aspects throughout this month. However, these positive aspects is probably not enough to completely offset the decline noticed in July.
Tourism and leisure proceed to play a vital function in driving gaming exercise. Despite the decline in gaming income, July noticed vital occasions that attracted guests, together with performances by Garth Brooks, Lady Gaga, Kevin Hart, and Mariah Carey, in addition to the Copa America quarterfinal match at Allegiant Stadium.
However, the Las Vegas Convention and Visitors Authority (LVCVA) reported slight decreases in key tourism indicators. Visitation dropped by 0.4%, conference attendance decreased by 6.9%, and site visitors on highways into Las Vegas fell by 1.5%. On the opposite hand, passenger boardings at Harry Reid International Airport elevated by 2.3%, marking the fourth highest in the airport’s historical past.
As the yr progresses, the gaming trade can be carefully monitoring these tendencies to evaluate their influence on Nevada’s general financial efficiency.
Source:
Nevada sees first drop in gaming win in 4 months, reviewjournal.com, August 28, 2024.
