Nevada casinos maintain $1 billion winning streak, game sales cool in June
Growth at Nevada casinos slowed slightly in June, with gross gaming revenue (GGR) down 2.4% compared to June 2022.
Silver State casinos earned $1.24 billion last month, about $31.2 million less than last June. GGR in Clark County, home to Las Vegas, fell 3.5%, while Las Vegas Strip gaming revenue fell 1%. The northern market fared better, with Washoe County-Reno gaming revenue rising 12.5% to $69 million.
However, the northern market could not overcome the losses in the inland market. June marked the third month in which the statewide GGR declined in the previous four months compared to last year. But Michael Lawton, senior economic analyst with the Nevada Gaming Control Board, isn’t too worried.
Strong demand for gaming and travel during the COVID-19 pandemic led to record-breaking gaming wins in 2021 and 2022. That's why comparisons this year are difficult, he said.
The state has seen declines in three of the past four months. However, Nevada’s game win totals continue to be higher than pre-pandemic levels,” Lawton explained.
Lawton highlighted that revenue of about 1.24 billion won last month was an increase of nearly 20%, or $204.9 million, from June 2019.
Downtown Downturn
One of the more surprising data points in the June 2023 NGCB revenue report was the performance of Downtown Las Vegas. GGR for Fremont Street and its surrounding area dropped more than 10% to $62.5 million.
Poor win rates are to blame, and while the slot’s token revenue has grown by almost 2% since June 2022, the slot’s GGR of $44.7 million is down more than 10%. The win rate for downtown slot machines last month was 8.22%, compared to 9.33% in June 2022. Table game win rates have also dropped from 9.05% in June 2022 to below 7.8% last month.
Las Vegas Strip casinos have also loosened regulations on slot machines, as slot machine occupancy for the main draw was about 8% last month, compared to 8.6% in June 2022. Las Vegas Strip casinos are still able to increase their slot machine GGR because of the larger amounts wagered on the slot machines. Machinery and equipment grew 4% to $395.2 million, up 12.5% to more than $5.0 billion.
Table games and odds makers contributed to the overall GGR decline in the region in June. Sportsbooks won just $1.8 million in a strong month for bettors, with revenue down 83%.
The Las Vegas baccarat game, preferred by many Asian players, fell 29% to $99.5 million. Roulette fell nearly 10% to $30.7 million. Blackjack was the only bright spot on the Las Vegas Strip, with 21 winning properties worth $79 million, a 22 percent premium over the previous year.
$1 Billion Series Intact
Lawton said Nevada casinos are expected to see year-over-month declines this year. After the May revenue report was released, NGCB officials said the 2022 settlement would be "the most difficult the state has ever faced."
June remained within 3% compared to June 2022, marking yet another national GGR crossing the 10-digit mark. In June 2023, the state posted a record 28th consecutive monthly profit of $1 billion.
Prior to that, the state's longest streak of monthly gaming revenue of at least $1 billion lasted just eight months. This occurred between October 2006 and May 2007.
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Source: www.casino.org
