The relaunch of Nevada’s gaming industry on June 4th following a 78-day shutdown led to a 45.5% decline in gaming revenues for the month – a marked improvement considering statewide results fell 99.6% in April and 99.4% in May.
Analysts predict the recovery will be slow as the state’s casino industry continues to operate during the coronavirus pandemic.
“Midweek business (in Las Vegas) is soft due to the lack of business travel, which plays a significant role in generating profitability,” Gaming Control Board Senior Research Analyst Michael Lawton said Wednesday, citing recent quarterly reports from several casino operators.
“Without large events that drive visitation and demand like concerts, shows, and athletic events, the ability to fill rooms and increase gaming revenue will be difficult,” Lawton said.
According to figures released Wednesday by the Control Board, Nevada casinos collected $566.8 million from gamblers during the 27 days casinos were open in June, compared to $1.04 billion a year ago. Las Vegas Strip casinos reported gaming revenues of $238.2 million, down 61.3% compared to $616.6 million in June 2019.
Several markets had losses in single digits, such as Reno, where gaming revenues in June of $46.6 million was an 8.5% decrease over 2019.
The small gaming community of Mesquite in eastern Clark County off Interstate 15, saw gaming revenues increase 3.16% percent during the month.
Lawton said the smaller communities depend on drive-in and local traffic, which boosted their performances. Also, some markets had softer comparisons to the 2019 totals.
The pandemic contributed to the first monthly revenue loss by Nevada sportsbooks since July 2013. The books lost $483,000, a decline of 102.9% while wagering was down 75.8% to $78.2 million. The loss was due to the payout of over-the-count football betting tickets on previous games that were cashed-in during June. Retail sportsbooks were closed, along with the casinos, starting March 18.
Nevada casinos are operating under health and safety policies that were implemented by Nevada gaming regulators in response to the coronavirus pandemic. Guidelines include cleaning, social distancing, mandatory masks or facial covering from casino patrons and employees, and reduced capacity protocols.
Less than half of the major Las Vegas Strip casinos reopened on June 4, but other properties reopened later in the month and during July. Still, several notable Strip resorts – Tropicana Las Vegas, The Mirage, Park MGM, Planet Hollywood, and Cromwell, have yet to announce reopening dates.
Lawton said the Control Board is concerned about casinos sustaining their current business levels, saying gaming revenue growth trajectory “appears to be challenged” due to the limited airline flights – including a ban on international travel – that will keep high-end baccarat players away from the Strip.
During June, baccarat wagering on the Strip was down 54.3% and baccarat revenues were off 70.3%.
Results from Nevada’s fiscal year – July 2019-June 2020 – told a different story. Gaming revenues statewide were down 21.7% to $9.3 billion. Results from nine of the months during the fiscal year were under pre-COVID-19 conditions. Strip gaming revenues in the fiscal year declined 23.4%
Las Vegas’s monthly tourism numbers, which are normally released the same day as gaming revenues, were pushed into next week, according to a spokeswoman from the Las Vegas Convention and Visitors Authority.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
