Despite hardships, Nevada gaming revenue remains strong
Nevada’s gaming revenue remained stable in May 2023, with the state’s casinos generating $1.298 billion in gross gaming revenue (GGR). This marks the 27th consecutive month that Silver State casinos have cumulatively won more than $1 billion. Prior to this unprecedented streak, Nevada's longest run of 10-digit GGR lasted just eight months, from October 2006 to May 2007.
Pent-up demand due to COVID-19 is believed to be the reason for the record in the first place. But long after life returned to normal, the rally continued.
Michael Lawton, senior economic analyst for the Nevada Gaming Control Board, said that while the state’s monthly revenue reports may be down compared to last year, the gaming industry remains stable.
GGR's profit in May 2023 was US$1.298 billion, a year-on-year decrease of 0.84%. However, compared to May 2019, this represents an increase of 38%. March's GGR also represented a year-over-year decline in sales.
The state has seen declines in two of the past three months. Over the next year, each monthly comparison will be compared to either the highest monthly total for that particular month or the second-highest total for that particular month,” Lawton explained.
“Certainly, the solutions will be the most difficult the state has ever faced,” Lawton continued.
National slot machine revenue in May was $877.8 million. Table gaming and sports betting totaled $411.2 million. While prizes for slot machines and table games were down compared to May 2022, oddsmakers fared better, with retention rates as high as 5.7%. The amount on the books was about 30 million won, while the actual amount was more than $527.4 million.
Strip Mixed Bag
The Las Vegas Strip is Nevada's most important market for gaming, with GGR in May 2023 of $715.9 million. While down more than 2% year over year, it was up 15% from April.
Gross gaming revenue for casinos in Clark County, which includes the Las Vegas Strip, topped $1 billion again, hitting $1.11 billion. Clark County posted its 11th straight month of profits of at least $1 billion in April, when county profits totaled $994.9 million.
The Las Vegas Strip has benefited from a surge in visitors, with nearly 3.5 million visitors arriving at the destination last month, according to the Las Vegas Convention and Visitors Authority (LVCVA). Compared to May 2022, this is an increase of 1.5%.
The increase in attendance is due to the continued return of conferences. Last month's conference attendance increased 16 percent to about 453,900 visitors.
John DeCree, senior gaming analyst at CBRE Equity Research, said the meetings market still has a long way to go.
“Convention attendance remains 12.8% below May 2019, with plenty of room for recovery,” DeCree said. “Occupancy on the Las Vegas Strip increased 150 basis points year over year to 87%, but was still 520 basis points below the same month in 2019, likely reflecting the disparity in convention attendance.”
Record Year
With just one month left in Nevada’s 2022-23 fiscal year, it’s shaping up to be the best 12 months ever for the state’s gaming industry. GGR totals $13.9 billion from July 2022 to May 2023, an increase of nearly 4% over the state’s fiscal year 2021-22 performance.
Nevada casinos attracted $14.84 billion in players in 2022, capping a record year for the world's richest gambling market.
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Source: www.casino.org
