Four straight months: Nevada gaming revenues jump 6.8% in September, LV Strip up 7%

Wednesday, October 30, 2019 8:00 PM

September’s gaming revenue totals in Nevada didn’t only represent the state’s fourth consecutive monthly increase of 2019.

The $1.059 billion collected by casinos during the month – a 6.8% increase compared to a year ago – was the highest revenue total ever collected during September, eclipsing the record set in September 2007, according to the Gaming Control Board.

Also, the month marked the fifth month in 2019 that the state recorded $1 billion in gaming revenue, and the third time in the last four months Nevada hit the mark.

After beginning the year with five consecutive monthly decreases, Nevada’s overall gaming revenue total is up 1.4% for the first nine months of 2019.

The Las Vegas Strip, which accounted for more than half of the state’s overall gaming revenue figure, saw its numbers increase 7% to $584.2 million. Analysts said the positive results bode well for the rest of 2019.

“September’s results on the Strip exceeded our expectations, with the out-performance largely driven by lucky VIP hold,” Macquarie Securities gaming analyst Chad Beynon told investors in a research note. “We believe the fourth quarter will continue to see underlying strength in the market, with operators seeing near-record convention schedules.”

Control Board Senior Research Analyst Michael Lawton credited the Strip’s increase to a 2.1% jump in overall amount gambled during the month.

“Strip slot trends are very positive, with eight consecutive increases to win followed by seven consecutive increases to volume,” Lawton said. “Calendar year to date, slot win is up 4.2% and volume is up 3.3%.”

Stifel Financial gaming analyst Steve Wieczynski said slot machine wagering was “often a good barometer for the overall health of the Strip’s mass (market) gaming business.”

Also, baccarat revenue on the Strip grew 55% to $107 million, based primarily on a hold percentage of 20.2%. The total amount wagered on the game declined 20% during the month.

“Excluding baccarat, Strip win would have decreased 0.05%,” Lawton said. “Baccarat results remain choppy at best, as volumes have decreased in three of the last four months, but win amounts have done the opposite due to improved hold percentages.”

Tourism numbers also grew in September, with more than 3.475 million visitors coming to Southern Nevada during the month, an increase of 0.5% from a year ago, according to the Las Vegas Convention and Visitors Authority. The figures were boosted by 4.9% increase in convention attendance during the month. The average daily room rate in Las Vegas was $137, up 0.6% and revenue per available room jumped 1.7% to $121.

Downtown Las Vegas casinos recorded the state’s largest revenue increase during the month, 19.9%, to $65.9 million. For the calendar year, the downtown market is up 6.3% over 2018 and has only recorded two monthly declines in 2019.

Lawton said slot revenues downtown grew 27.5% in September but that the increase largely reflected the time frame in which game revenues are reported.

Sports betting remained a focal point in the month. The state’s sportsbooks collected $52.1 million in revenue, a decline of 7.6% from a year ago. The amount wagered was $546.2 million, down 4.4% from last year. However, Lawton said the figure was the eighth highest volume total all time and the third highest September total in Nevada history.

The September figure also bested New Jersey’s sportsbook market, which took in $445.4 million in wagers during the month.

In the Las Vegas locals markets, which includes casinos in North Las Vegas, the Boulder Strip (which includes Henderson) and casinos in unincorporated areas of Clark County, gaming revenues grew a combined 9.6% in September, and roughly 3% in the quarter that concluded at the end of the month, according to Union Gaming Group analyst John DeCree.

“This growth trajectory is fairly consistent with our overall expectation for continued low-single-digit growth in locals gaming win,” DeCree said in a research note.

The results weren’t positive throughout the state; Reno gaming revenue fell 4.2% to $55.3 million. Lawton blamed a poor hold percentage on table games in the market, although the amount wagered increased.

For the first nine months of the year, Reno’s gaming market has declined 1.9%

Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter.