Nevada gaming revenue cracked the $1 billion mark during May, the fourth time in five months state totals reached the lofty mark. The results were due primarily to healthy increases from casinos in both ends of the state.
The Gaming Control Board said Tuesday gaming revenues in Nevada were $1.044 billion, a 5.2 percent jump over results from May 2017. For the first 11 months of the fiscal year, gaming revenues statewide are up more than 3 percent.
On the Strip, gaming revenue grew 6.3 percent to $581.4 million, accounting for more than half of the state’s overall total. Casinos in Reno saw gaming revenue jump 4.6 percent, while the north shore of Lake Tahoe recorded the state’s largest percentage increase, up 25 percent.
State gaming revenue cracked the $1 billion mark during the first three months of 2018. April gaming revenue was $953.7 million, still, a 7.5 percent monthly increase.
During May, Las Vegas Strip revenues were boosted by a 21.5 percent increase in baccarat revenues and a 5.5 percent increase in slot machine revenues.
Stifel Nicolaus Capital Markets gaming analyst Steve Wieczynski told investors even without high-end baccarat play, Strip gaming revenue would have been up 3 percent.
“On the whole, we believe the Strip gross gaming revenue results came in ahead of consensus expectations,” Wieczynski said.
Deutsche Bank gaming analyst Carlo Santarelli said the baccarat numbers on the Strip were also boosted by an improved hold percentage of 16.5 percent, well above the average of 13.4 percent over the last 12 months.
He added that Strip casinos were playing luckier at slot machines.
“While potentially denomination and mix driven, it appears again that slots have been tightening,” Santarelli said.
Union Gaming Group analyst John DeCree said any “negative sentiment” on Las Vegas should end based on May’s gaming revenue totals.
“If investors were ever looking for a reason to get excited about Las Vegas again, they only need to look at the recent gaming revenue trends,” DeCree said. “For so long, Vegas has been a non-gaming, (revenue per available room), margin story, and the market has lost sight that people actually play slot machines in Las Vegas.”
Clark County in entirety saw gaming revenue jump 5 percent with downtown Las Vegas recording the only substantial negative blip, a decline of 3.4 percent.
Meanwhile, Las Vegas tourism volume grew less than 1 percent in May to 3.63 million visitors, according to the Las Vegas Convention and Visitors Authority. The increase was attributed to the Electric Daisy Carnival music festival, which was held in June a year ago.
The increase in visitation came despite a 5 percent decrease in convention attendance.
The LVCVA said May’s average daily room rate increased 7.4 percent to $133.75 and the revenue per available room was up 7.8 percent to $119.57.
Gaming numbers in Northern Nevada’s Washoe County, which includes Reno and North Tahoe, were up 7 percent.
“We believe underlying demand trends within the Reno market remain strong,” Wieczynski said.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter.
