Published on: January 9, 2025, 03:45h.
Last updated on: January 9, 2025, 03:45h.
In November, Nevada casinos and gaming establishments raked in $1.1316 billion from players. This reflected a 4.2% decrease compared to the previous year, marking the second consecutive monthly revenue decline for the state’s gaming industry.
The Nevada Gaming Control Board stated that the state’s slot machine establishments and table game locations experienced a slowdown in play despite the excitement of the Las Vegas Grand Prix.
Slot machines generated around $810.6 million statewide, while table games, sports betting, keno, and bingo contributed $505.9 million to the total revenue.
The decline in overall gross gaming revenue (GGR) on a year-over-year basis was mainly attributed to the decrease in slot machine winnings, which dropped by nearly 7%. Revenue from table games, sports betting, keno, and bingo remained relatively stable.
Challenges Faced
The inaugural F1 Las Vegas Grand Prix in November 2023 attracted wealthy enthusiasts from Europe who indulged in high-stakes gambling at renowned casinos such as Wynn, The Venetian, and others along the Strip. The subsequent F1 event in 2024 did not generate the same level of excitement and interest.
Michael Lawton, the NGCB’s senior economic analyst, acknowledged the challenging comparison with the previous November. He also mentioned that the reporting of weekend play in December due to November ending on a Saturday affected the results.
Lawton stated, “Our numbers in Southern Nevada were lower than expected, given the lesser attendance at the Formula One event compared to the prior year. If not for the timing of slot machine revenue, the state would have seen a year-over-year increase.”
On the Las Vegas Strip, gaming revenue in November declined by 3.9% to $788.7 million. Table games, favored by the affluent F1 demographic, experienced a more than 5% drop in winnings, with craps and baccarat being the main contributors to the decline.
However, gaming revenue in areas outside the Strip and the F1 venue performed better.
Locations such as North Las Vegas (up 6% to $24.5 million) and Mesquite (up 9% to $16.4 million) saw an increase in gaming revenue. Elko outside of Clark County experienced a 5% rise to $33.7 million, while Sparks was up 8% to $15 million.
Nevertheless, other major markets witnessed a decline in GRR similar to Las Vegas. Douglas County, home to South Shore Lake Tahoe, reported a 20% decrease to $14.4 million due to a fire incident in late October. Washoe County, where Reno is located, saw a 6% drop in revenue to $76 million.
LVCVA’s Perspective
The Las Vegas Convention and Visitors Authority (LVCVA), a key organizer of the Las Vegas Grand Prix, highlighted the positive economic impact of the 2023 race, amounting to $1.5 billion. The event also drew 145K unique visitors to the city.
Despite local businesses expressing concerns over the race’s impact, the LVCVA defended the success of the 2024 event. They cited a slight improvement in November visitation numbers, with 3.31 million individuals visiting Las Vegas, up 0.6% from the previous year.
One factor that negatively impacted visitor volume was a decrease in convention attendance by 8%, as reported by the LVCVA, whose role is to maintain a vibrant convention scene in Las Vegas throughout the year.