Forget the numbers. February was a weak month for the U.S. gaming industry
Reno-based gaming analyst and consultant Ken Adams said without Nevada’s results during the month – which accounted for nearly one-third the national total – February would have shown a marked decline.
Adams said February was the first month in recent history new casino openings and expanded video lottery terminal markets did not produce the revenue increases to drive up the national figures.
Total gaming revenue nationwide, which covers 21 states with commercial casinos and VLTs, was $3.361 billion during February, Adams wrote in his monthly Adams Revenue Revue, which he produces for CDC Gaming Reports.
The overall 2 percent increase was helped by Nevada’s $1.018 billion month, a 7.7 percent increase that an 82.5 percent increase in baccarat totals on the Strip.
“(Baccarat) pushed the Strip totals up and thus the whole state of Nevada and even the nation,” Adams said.
In looking at the overall totals – 11 of the states had gaming revenue declines in February – Adams said the nation’s economy is becoming “less stable” that it was in 2017.
“Interest rates are going up, oil is over $60 a barrel, and the stock market is shaky,” Adams wrote. “Walmart (stock), my bellwether indicator, was down 15 percent in February after a year of steady price increases.”
Still, Adams said the economy seems to be growing “in general.” Unemployment is low and customer confidence surged in February to its highest level since November 2000.
“The overall picture may not look as bright as it did last year, but it is a long way from being dark,” Adams said.
In addition to Nevada, New York’s casino VLT revenue increased 8.2 percent to $199.9 million. Illinois’ casino and VLT revenue grew 6.5 percent to $220 million.
New York, Adams said, benefitted from having one additional casino in February – Resorts World Catskills – and VLT revenue increased. Illinois casinos had a horrible month – a 7.1 percent decline, but VLT revenues grew 14 percent.
“The VLTs in the state are the root cause of declines in casino revenues,” Adams said. “Some hope does exist. Spring and warmer weather are coming and the growth in VLTs has slowed somewhat.”
The largest single-state decline was in Indiana, which saw casino revenue fall 8.7 percent. Both Atlantic City and Colorado casino revenue were off more than 6 percent.
CDC Gaming Reports distributes the Adams Revenue Revue to premium subscribers.
