Nevada is four-for-four in 2019, but not in the right direction.
For the fourth straight month, gaming revenues declined in the Silver State. In April, casinos collected almost $936.5 million from gamblers, a decline of 1.8 percent, according to numbers released Wednesday by the Gaming Control Board.
On the Las Vegas Strip, gaming revenues declined 3.5 percent to $481.8 million during April.
In the first four months of 2019, statewide gaming revenues are down 1.4 percent compared to a year ago. Strip gaming revenues are down 3.3 percent for the first four months of 2019.
Deutsche Bank gaming analyst Carlo Santarelli warned the Strip number could be challenging in May, despite a favorable calendar comparison.
April’s Strip revenue decline came despite casinos collecting $66.8 million in baccarat revenues, a 2.5 percent increase and the game’s first monthly jump since last November. Wagering on baccarat increased 16.8 percent to $639.5 million, but the hold percentage was a disappointing 10.44 percent, said Gaming Control Board Senior Research Analyst Michael Lawton.
However, non-baccarat table game revenues – craps blackjack and roulette – all recorded double-digit declines in April. Slot machine revenue on the Strip was up less than 1 percent.
“On the whole the Strip results were decidedly mixed and likely reflect some impact from the Easter calendar shift,” said Stifel analyst Steven Wieczynski.
The Las Vegas locals market casino had a relatively flat month and Wieczynski remains bullish on the area.
“We continue to believe strength in the local Vegas economy positions the Las Vegas locals segment to produce outsized gross gaming revenue growth, as compared to the U.S. regional average,” he said.
Lawton said April had some bright spots statewide, on the Strip and in Southern Nevada.
Sports betting continued its record pace despite competition from newly launched sports betting operations in seven states. Revenues from sports betting rose 32.7 percent to $21.7 million while wagering increased 3.9 percent to $328.1 million.
Downtown Las Vegas saw a gaming revenue jump of 2.1 percent to $61.7 million during April and for the first four months of the year, the market is up 2.8 percent.
In Northern Nevada, Reno gaming revenues increased 3.2 percent to $48.9 million, ending four straight months of declines.
“Weather improved in the region after negatively impacting February and March,” Santarelli said in a research note.
Still, Reno was an anomaly in Northern Nevada during April. Gaming revenues declined 3.2 percent in Sparks, 16.1 percent in North Lake Tahoe and 12.5 percent in South Lake Tahoe.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter.
