The Nevada December revenue report showed that gross gaming revenue (GGR) totaled $1.46 billion (£1.17 billion/€1.4 billion) for the month, up 2% from last year. For 2024, the total was $15.6 billion, a slight (+0.55%) uptick from calendar year 2023. That represents the fourth consecutive record-setting calendar year for the Silver State, following the drudges of the 2020 Covid pandemic.
But perhaps the most interesting thing about those increases was that they came despite declines from the Las Vegas Strip, the economic driver of the state. In December, the Strip posted $881.2 million in GGR, down 2.6% YoY, its sixth consecutive monthly decline.
For the fiscal year-to-date (1 July-31 December), the Strip is down more than 5%, the most of the state’s major markets. Its GGR total for calendar year 2024 was $8.8 billion, a 1% drop from 2023.
Baccarat, baccarat, baccarat
Looking more closely at the Strip, December’s drop was again attributed in part to a familiar culprit: baccarat. The simple, player-vs.-banker game is popular among high rollers but extremely volatile for casino operators. Exceptional baccarat hold was a primary reason for the state’s record numbers in FY24.
Conversely, baccarat GGR for the Strip was $197 million in December, down 10% YoY. This latest down period means the Strip is -15% on the game for the previous three months and -7% for calendar year 2024.
Beyond that, table game revenue as a whole for America’s gaming capital slid 16% in December. The segment saw an overall decrease last year of 5% compared to calendar year 2023.
Locals, downtown lead the way
Despite the struggles on the Strip, Nevada has had an extraordinary bump from the downtown Las Vegas (DTLV) and the city’s locals market. This shift in revenue generation has arguably been the biggest story of the state’s gaming industry over the last year-plus.
In December, DTLV logged $82.2 million and the locals market logged $161.1 million, both good for YoY gains of over 8%. These were only overshadowed by exceptional months from the Boulder Strip (+30%) and Laughlin (+9%).
For the fiscal year-to-date, DTLV and the locals market are up 4% and 9.5%, respectively. Those are the two best totals of any market tracked by the NGCB. DTLV finished 2024 up 10% from calendar year 2023, with the locals market finishing +13% over the same period.
The only other market close to that performance is Mesquite (+3.5% FYTD), but its revenue pales in comparison to the other two.
Reno sees much-needed gains
To the north, the Reno market saw December GGR of $65.8 million, up 20% YoY. That was enough for the Biggest Little City to finish 2024 up 3% from 2023 despite several months of losses.
The winter months are often volatile for the northern markets due to weather patterns, and stakeholders were glad to see a 12% boost YoY for Washoe County as a whole. Interestingly, that boost brings the county’s GGR up to exactly flat for the FYTD, with the totals for the last two years within $3,500 of each other.
The other big Northern winner in December was South Lake Tahoe ($19.4 million), also up 20% YoY.
Nevada sports betting see-saw swings down again
Unfortunately for operators, the see-saw that has been the state’s sports betting results came crashing down again after a strong November. December’s statewide sports betting GGR was just under $15 million, a 75% YoY tumble after a 64% jump the previous month.
GGR from mobile betting was $12.5 million for the month, down 54% from the same period last year. Nevada is unique in that sports bettors must register in-person for mobile betting, which prevents major bookmakers from entering the market.
Overall, the up-and-down nature of the market made it so that the state finished 2024 with $482 million in GGR, exactly flat (+0.17%) from 2023.
Original article: https://igamingbusiness.com/finance/nevada-revenue-gains-las-vegas-losses/
