Posted on: September 27, 2024, 01:28h.
Last updated on: September 27, 2024, 01:28h.
Las Vegas received nearly 3.4 million visitors in the previous month, representing a 2.4% year-over-year increase. Despite the rise in visitor numbers, the casinos did not see a corresponding increase in revenue due to a tough calendar and low house win rates.
The Nevada Gaming Control Board reports that gross gaming revenue (GGR) on the Las Vegas Strip in August fell to just under $643.7 million, a 3.5% decrease compared to the same month in 2023.
Casinos in Downtown Las Vegas saw a drop of nearly 9% in GGR to $58.3 million, while the Boulder Strip experienced a decline of approximately 22% to $64.8 million.
Overall, Clark County witnessed a 4.4% decrease in gaming revenue to $980.9 million, with Michael Lawton, the NGCB’s senior economic analyst, attributing part of the decline to calendar effects.
According to Lawton, the volatility seen in downtown and on the Boulder Strip is due to August ending on a Saturday. The timing of slot collections falling into September means the revenue will be reflected in the next month’s filings.
Despite these challenges, August marked the second consecutive month of GGR decline compared to 2023.
Poor Hold
In addition to the calendar effect, Lawton attributed the monthly decline in revenue to gamblers’ luck.
Baccarat, a popular game among Asian high rollers, saw a 34% decrease in GGR on the Strip to $75.7 million. Without baccarat, Strip revenue would have increased by 2.8% year-over-year. The hold rate for oddsmakers on the Strip was a meager 3.7%, with revenue of just $7.4 million.
Similar trends were seen in other major markets like Washoe County and Reno, where statewide GGR for the month decreased by 3.8% to $1.16 billion. Revenue from tables and slots both saw a 3.8% decline, indicating that players had more luck than in the same period last year.
Despite analysts’ expectations of a larger decline, August’s GGR was better than anticipated, with a year-over-year loss of 4.8% according to Deutsche Bank.
The decline in GGR in Las Vegas and Reno overshadowed the positive growth seen in smaller markets, such as Carson Valley, Churchill County, Douglas County South Shore Lake Tahoe, Lyon County, Nye County, Washoe County, and White Pine County.
Room Occupancy, Airport Traffic
Leisure travel was the main driver of the increase in visitor volume in August, with public visitation helping boost the monthly count by 2% despite a slight drop in convention attendance. This resulted in an increase in Clark County’s hotel occupancy rate to 81.2%.
Harry Reid International Airport served over 4.8 million arriving and departing passengers in August, a 5% increase from the previous year. Year-to-date numbers show an overall increase in passenger traffic compared to 2023, with Southwest Airlines leading the market with 14.5 million fliers so far in 2024.