December sealed the deal.
U.S. gaming revenue climbed a surprising 3.8 percent in final month of 2017, helping the industry reach almost $41.2 billion during the year, an increase of 3.7 percent.
Surprising because the calendar favored December 2016, which had one more Sunday than in 2017. Still, Reno-based gaming analyst and consultant Ken Adams said expanded gaming opportunities in New York, Maryland, Kansas, Illinois and South Dakota, fueled the increase.
“The economy also played an important role for the month and the entire year,” Adams wrote in his December 2017 Adams Revenue Revue, which he produces for CDC Gaming Reports.
“The national economy grew 2.6 percent over the last quarter while the jobless rate sank and consumer confidence surged,” Adams added. “It was the preverbal perfect storm and the answer to a gambler’s prayers.”
Adams wrote that states that added new casinos and expanded video lottery terminal operations generated more revenue and accounted for much of the nation’s revenue growth.
For example, Maryland – which benefited from a full year of operations from the MGM National Harbor – saw revenue jump almost 6 percent in December, which was also the state’s second largest month since casinos first opened in 2010.
Illinois gaming revenue rose 10.7 percent in December, thanks to an increased presence of more than 28,000 VLTs throughout the state. Kansas saw gaming revenue climb 17.4 percent and New York was up almost 21 percent. Both states added new casinos in 2017.
New York opened three casinos in 2017 and a fourth, Resorts World Catskills, opened last week.
Expansion, however, did have a downside for other states, such as Rhode Island, which saw revenue decline 3.4 percent in December, due to competition and the reduction of a small number of games.
“The neighboring states impacted by that expansion are still trying to digest the increase in competition,” Adams said. “The narrative for the last month of the year does not vary much from the other 11 months. The states that added casinos and VLTs in 2017 generated more revenue and accounted for the majority of the revenue growth for the month.”
Nevada continued to drive the nation’s gaming revenue total, recording $11.573 billion in 2017, an almost 2.8 percent. Statewide, in December, gaming rose less than 1 percent. Las Vegas Strip revenue declined 3.2 percent in the month.
“There never is a simple explanation to Nevada’s results, but fewer people visiting Las Vegas and a big drop in baccarat revenue go a long way toward explaining Nevada’s December,” Adams wrote.
CDC Gaming Reports distributes the Adams Revenue Revue to premium subscribers.
