Nevada residents were more excited about getting back to the casinos in July than tourists.
The Gaming Control Board said Wednesday casinos statewide collected $756.8 million in gaming revenue during the month – the state’s first full month of casino operations following a 78-day closure in an effort to slow the coronavirus pandemic.
The figure was a 26.2% decline from the $1.024 billion produced in July 2019. The Strip was down 39.2% to $330.1 million, while Reno saw gaming revenues decline 10.2% to $51.5 million.
However, three markets with casinos that cater primarily to local residents – the Reno-area community of Sparks, and the balance of the county areas in Northern Nevada’s Washoe County and Southern Nevada’s Clark County – all reported revenue increases compared to a year ago.
Strip casinos, however, still need some help if they are to get back to the pre-COVID-19 results.
The Strip’s July numbers were boosted by the Fourth of July holiday weekend and the reopening of additional resorts, including Aria, Mandalay Bay, and Bally’s Las Vegas.
During June, which only had 26 days of operations, casino revenues on the Strip declined more than 61% compared to a year ago. Statewide, casino revenues declined 45.5% during June, which followed two straight months of better than 99% drops during the state’s shutdown.
Control Board Senior Research Analyst Michael Lawton said July’s sequential increase over June, “exceeded our expectations.” However, the Strip’s figures accounted for 79.3% of the state’s total decline during the month.
“This illustrates the challenges this market is facing and will continue to face due to limited air travel, no mid-week convention business, and the lack of large-scale events and entertainment options,” Lawton said.
Downtown Las Vegas faces a similar challenge when Strip visitation is off. Downtown gaming revenues declined 20.6% in July following a 55.6% drop in June. One prominent downtown casino is still closed – Main Street Station – while the market is hoping for a bump in late October when developer Derek Stevens opens the casino and restaurants for privately-held Circa Resort Casino. The property’s 500-plus hotel rooms will open in late December.
There are still several properties on the Strip that have remained closed in August – Cromwell, Oyo Hotel and Casino, Palms Resort, Park MGM, Planet Hollywood, The Rio, and Tropicana Las Vegas. MGM Resorts International is reopening The Mirage on Thursday.
Macquarie Securities gaming analyst Chad Beynon told investors Wednesday that commentary from casino operators and expectations point toward a slow rebound to a more normalized environment.
“Las Vegas, a destination market, is not seeing the bounce-back that regional properties across the U.S. have seen to date,” Beynon said. “Our checks into Vegas are mixed with near-term demand muted but online searches into hotel rooms on the Strip only down in the high-teens year-over-year.”
The Las Vegas Convention and Visitors Authority plans to release July visitation numbers for Las Vegas and Southern Nevada on Thursday.
Strip casino operators are hoping for a boost in visitation through the Labor Day holiday weekend, starting Sept. 4.
During July baccarat play, which often highlights Strip gaming results, had a 22.7% decline in revenues while wagering on the high-end game was off 38%.
Sports wagering turned positive in July after June contributed to Nevada sportsbooks’ first monthly revenue loss in seven years. Sportsbooks collected $6.3 million in revenues – down 40.2% – on wagers of $163.6 million, a 30.6% drop. Mobile sports wagers accounted for 69% of the total.
The NBA, NHL, and Major League Baseball didn’t resume their seasons until late in July.
Through the first seven months of the year, Nevada gaming revenues are down 43.4%. The Strip is down 46.7%, and downtown Las Vegas is off 42.2%. Washoe County gaming revenues have declined 34.8%.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
