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Gaming revenues decline 9.3 percent in August
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LAS VEGAS REVIEW-JOURNAL
Updated: Oct. 8, 2009 | 4:35 p.m.
Maybe Monty Python was correct.
Despite August becoming the 20th straight month that Nevada’s gaming revenues have declined, Wall Street discovered a few “bright side of life” moments in what has become a steady pattern of continually dismal numbers.
“We are encouraged by the August results after a somewhat disappointing July,” CBRichard Ellis research analyst Jacob Oberman told the real estate firm’s investors.
Casinos collected $847 million from gamblers during August, a 9.3 percent decline compared with the $934.1 million won in August 2008, according to numbers reported Thursday by the Gaming Control Board.
On the Strip, results were equally depressing. Gaming revenues were $449.6 million in August, a 9 percent decline compared with $494 million collected in the same month a year ago.
Analysts, however, found positive aspects in a month many predicted was going to be poor.
JPMorgan gaming analyst Joe Greff told investors a 9 percent decline on the Strip wasn’t bad, given that gaming revenues experienced double-digit declines six out of the previous seven months.
“All in all, we think results, which showed sequential improvement, were in line with expectations,” Greff said.
He credited baccarat play in August, which saw a 48.6 percent increase in revenues and a 45.1 percent increase in the amount wagered, as a key. August marked the fourth consecutive month of year-over-year growth in baccarat revenues.
Without baccarat, gaming revenues would have dropped 19 percent on the Strip, said Frank Streshley, the control board’s chief of the tax and license division. He said $1 billion was wagered on baccarat in August.
“That’s Chinese New Year-type numbers,” Streshley said.
Meanwhile, Susquehanna gaming analyst Robert LaFleur said the 9 percent decline on the Strip was an improvement over the past 12 months, which had an average decline of 15 percent.
“This was also the first month since February, where we saw slot machine win had less than a double-digit decrease,” LaFleur told investors. “Baccarat has been relatively strong the past couple months, which should benefit Wynn Resorts, Las Vegas Sands Corp. and MGM Mirage’s Bellagio."
Streshley agreed that a 9.3 percent statewide decline and 9 percent Strip decline were better than expected. He said the three summer months -- June, July and August -- had combined declines of 11.9 percent statewide and 11.6 percent on the Strip.
“Nothing was much different from a year ago,” Streshley said. “There were no special events in August, plus unlike a year ago, when Labor Day fell on the last two days of August, this year’s holiday fell entirely into September.”
Statewide, gamblers wagered $9.1 billion on slot machines, a decline of almost 17 percent, and $3.5 billion on table games, a 3.7 percent decrease.
The win from slot machines, $549.1 million, was off 8.3 percent, while table game revenues were $268.8 million, an 11.1 percent slide.
For the first eight months of 2009, state gaming revenues are down 12.85 percent from 2008 while Strip gaming revenues are off 13.6 percent.
All but two areas of Clark County reported revenue declines, from a low of 3.8 percent downtown to a high of 21.5 percent in Mesquite.
North Las Vegas, fueled by the November opening of Aliante Station, reported gaming revenues of $22.1 million, a 21.9 percent increase compared with $18.1 million a year ago.
The Boulder Strip, which includes Henderson, saw a boost from the March opening of M Resort. Gaming revenues in August were $63.4 million, a 21.5 percent increase compared with $52.2 million in August 2008.
“We’re seeing market shifts,” Streshley said.
Gaming taxes collected based on the August gaming revenues were $49.7 million, a decrease of 9 percent compared with $54.6 million collected a year ago.
Revenue results were equally bad throughout the state with jurisdictions reporting double-digit declines of between 10.6 percent (balance of Elko County) and 28.9 percent (South Lake Tahoe). Washoe County hit 26 straight months of declining gaming revenues.
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.
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I think the most telling stat is the money spent on slots was down 17% but the take was only down 8.3%, therefore the machines are 2X times as tight as a year ago. So my guess is they're probably 4X as tight as they were 2 years ago and they wonder why people are staying away in droves ? We used to come out 3 to 4 times a year but no more, we already committed to the Santa run and the marathon for December but that's going to be the last trip for a long time. There's too many other choices now where you can get a better deal and don't have to travel across the country. Consolidation by the corporations has led to the downward spiral. The corporate bean counters have killed the golden goose. Good Luck !
Why do they STILL compare figures to years previous? They think we are stupid..do it month to month..Everyone knows that we really tanked this year and it started heavy with layoffs this year and last fall....why compare to other numbers? I totally agree with "ex-gambler" !!
The consumer is broke. Those that have jobs are living paycheck to paycheck or trying to build some reserves to weather the storms and the rest are unemployed. How is the economy to improve when big business themselves are guilty of cutting jobs and creating insecurity amongst the remaining eemployees? Las Vegas casinos are getting their just dessert in laying off their main source of income.
I think the big box resort operators on the strip will continue having trouble meeting whatever profits goals they had in mind for the place so long as they continue down the path they chose before the big recession.
You know like paid visitors from hollywood such as rap stars, tatoo artists & hollywood queens are only filling the hotels with the occasional whale and a whole bunch of trouble making hangers on who are essentially broke and have no money to spend when they get here
The average visitors who do show up with some real money to spend are simply ignored.
9%? Ha! It's more than that. When you spend a thousand dollars and don't hit a four of a kind, what do you expect? They give away 40 cars in a month at the Station Casinos instead of loosening the machines so that people will stay and have fun. The casinos are greedy and it is catching up to them. Make the machines like they were in the 80's instead of building big elaborate rooms that no one stays in except to sleep and they wouldn't be going bankrupt.
It's Gary Lovemans fault because of the felonious asbestos thing; too many tight penny machines; not enough 10/6 JoB BFD VP; too much 6-5 Blackjack; any other cliches I'm missing?
I do wish the R-J would run the graphic that shows the different areas and their individual numbers.