The Nevada Gaming Control Board reported a 6.9% decrease in statewide gaming revenue for July, marking the first decline in four months. Total winnings dropped to $1.31 billion from $1.41 billion in the same month last year, which had been the second-highest monthly win total in state history.
Michael Lawton, a senior economic analyst at the Gaming Control Board, suggested that the drop was expected given the exceptional performance of July 2023. “No, I would not call this the start of any downturn,” Lawton said, as per Las Vegas Review-Journal. “This was a very difficult comparison as July of ’23 was the second highest win total in state and Strip history.”
He explained that July 2023 had been particularly strong due to an extraordinary baccarat hold rate, which reached 23.52%, the highest since June 2003. This year’s hold rate was lower at 14.39%, contributing to the decline in overall gaming revenue.
The Las Vegas Strip experienced a 15% decrease in gaming win, falling to $709.3 million. In contrast, downtown Las Vegas saw a 9.9% increase, with casinos there earning $71.8 million. Clark County’s outlying areas, including southwest Las Vegas, home to the newly opened Durango casino, reported a 19% rise to $171.2 million.
Durango Casino, Las vegas
Other regions showed varied results. Sparks saw an 11.4% decrease in gaming revenue, while North Lake Tahoe experienced a 14.1% increase. South Lake Tahoe’s revenue remained stable, and in Southern Nevada, while the Boulder Strip and Mesquite showed gains, Laughlin’s revenues declined.
The decline in gaming revenue follows a period of record-setting performance in the fiscal year 2023-24. The July downturn is the first annual drop since March 2024 and the most significant since November 2022. Despite this, Nevada’s gaming industry has maintained a streak of 41 consecutive months with revenues exceeding $1 billion.
July’s gaming activity yielded nearly $95.9 million in state gaming taxes, a slight decrease from the previous year. The state’s online poker industry also saw slower growth, while online casino remains unavailable.
Temporarily closed The Mirage
Besides the tough yearly comparatives, other factors also contributed to the downturn. The temporary closure of The Mirage for renovations, which will transform it into the Hard Rock Hotel & Casino, removed a revenue source from the Strip. Additionally, July 2024 had one fewer weekend compared to July 2023, further impacting the figures.
Looking ahead, historical data suggests that August might see a slight improvement, as the past two years have shown modest gains in August. However, these gains are unlikely to fully counteract July’s decline.
The gaming industry would need strong performances in the final months of the year, particularly November and December, to achieve another record-setting fiscal year.
Original article: https://www.yogonet.com/international/noticias/2024/08/29/76959-nevada-gaming-revenue-drops-69-in-july-recording-its-first-decline-in-four-months
