Only one state – Nevada – was the solitary gaming glitch during August.
Despite a 7.7 percent decline by the nation’s largest casino revenue state, August was a stellar month for the casino industry, according to Reno-based gaming analyst and consultant Ken Adams.
Nationally, the combined video lottery terminal and casino revenue for the 21 states followed by Adams for his monthly Adams Revenue, was up 4.5 percent in August to nearly $3.51 billion.
For the first eight months of 2018, the nation’s gaming revenue is up 3.1 percent to $28.254 billion.
Except for Nevada, every state reported more than a 2 percent increase, Adams said in the Revue, which he produces for CDC Gaming.
“The economy helped, but the gaming industry outperformed the economy,” Adams wrote in the report. “Expanded gaming options in five states is the explanation for the increases in those jurisdictions. For the rest of country, mark it up to the stars and planets falling in line.”
In addition to a favorable August calendar – which had one extra Friday compared to a 2017 – legal sports wagering in New Jersey, Mississippi and West Virginia helped fuel those markets, while new Massachusetts, New York and New Jersey had additional casinos compared to a year ago.
Adams directed much of his commentary toward Nevada, which saw a 12.4 percent gaming revenue decline on the Las Vegas Strip.
He said the Strip was down primarily due to a lack of big events compared to the same month last year, which featured a championship fight between Floyd Mayweather Jr. and Connor McGregor. Adams said August “was not a trend” for Nevada.
“Unless the entire economy goes in the tank, conditions in Las Vegas will still change monthly depending on events,” Adams wrote. “The Strip is dependent on the games played by people attending events in town.”
Nationally, gaming revenue from all states other than Nevada was up 9.7 percent. Adams said the $477 million in gaming revenue produced on the Strip in August was still higher than any other state’s total revenue by a large margin.
“When the Strip is down significantly it affects the numbers for the entire nation,” Adams said. “Without or with Nevada, August was a very, very good month for gaming.”
New Jersey, which included Atlantic City and sports betting at racetracks in the northern part of the state, saw gaming revenue jump 24.1 percent. Mississippi was up 8 percent and New York gaming revenue increased 13.5 percent.
Massachusetts saw gaming revenue grew almost 75 percent, which included the opening of MGM Resorts International’s $960 million MGM Springfield toward the end of the month.
The state now has two casinos, but Adams said they “are not really comparable.” MGM is a full casino located in large metropolitan area, while Penn National Gaming’s Plainridge Park is a racetrack casino with a more remote location.
“Even with the new competition, Plainridge Park was up $1 million to $15.4 million, probably helped by a positive calendar and the enthusiasm for gambling that MGM generated in the weeks leading up to its opening,” Adams wrote. “September will give a better idea of the impact of MGM on Plainridge and the true potential of the new casino.”
Adams also pointed to Louisiana, which saw a gaming revenue increase 8.8 percent. VLT operations, land-based and riverboat casinos, and slot machine-only racetrack casinos, all had a positive month. Only one jurisdiction – Baton Rouge – was down, due in part to legislation that prohibited smoking in casinos.
CDC Gaming distributes the Adams Revenue Revue to premium subscribers.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter.
