Las Vegas Strip Casino Revenue Down Through Three Quarters After September Disappoints

Casino earnings on the Las Vegas Strip during the first nine months of the year have now decreased by 0. 2% following September's marking of the third straight monthly downturn.

On Tuesday, the Nevada Gaming Control Board published its monthly gross gaming revenue (GGR) report for September. While the overall statewide winnings increased by over 3. 3% to $1. 31 billion, GGR on the Las Vegas Strip dropped by 1. 8% to $727. 6 million.

Once more, baccarat was the reason.

The card game favored by Asian players provided players with greater fortune in September, as the 24 casinos featuring the game on the Strip saw a 40% year-over-year drop in hold. Strip baccarat produced GGR of $88. 5 million, which is nearly $59 million less than September 2023. Last month's baccarat hold was 17% compared to 22% from a year earlier.

“The decline is being driven by difficult hold comparisons,” Michael Lawton, the NGCB’s senior economic analyst, said of the Strip’s struggles.

The losses on the Strip were easily compensated for in downtown Las Vegas and in other areas of Clark County, which typically do not capture a significant portion of the baccarat market. Downtown GGR increased by 33% to reach $91 million, Boulder revenue rose by 19% to hit $80. 4 million, Mesquite win increased by 2% to total $14. 1 million, and the rest of Clark County saw an increase of nearly 16% to $156 million.

Throughout the state, the increase from the previous year was driven by slots, as the machines generated $896. 9 million, reflecting a 10% increase. However, table game winnings fell by approximately 15% to $335. 1 million.

Nevada sportsbooks retained $80. 9 million out of the $764. 6 million bet, resulting in a 30% rise in sports betting revenue.

Baccarat Blunders

July, August, and September represented the first occasion that GGR on the Las Vegas Strip declined for three successive months since this last occurred from March to May 2019. Additionally, September pushed Strip revenue into the negative for the year.

Although concerns exist regarding a slowdown in leisure travel, Lawton claims that baccarat is solely accountable for the GGR decline on the Strip.

"When you remove baccarat from the totals, the Strip is up 3.4%, or $60.8 million, for the quarter, and the state is up 3.3%, or $114.2 million,” Lawton said.

Even with baccarat included, the overall gaming win in the state increased through three quarters of the year. GGR of around $11. 54 billion signifies a 1. 2% improvement from the previous year, or approximately $140 million.

Visitor Volume Improves

In conjunction with the gaming report, the Las Vegas Convention and Visitors Authority (LVCVA) published its executive summary for September. The data indicates that almost 3. 39 million individuals visited Las Vegas last month, which is 1. 6% higher than September 2023.

This growth was driven by conventions, which experienced a 29% rise in attendance to 527,200 attendees. Hotel occupancy rose by 1. 3 points to 83. 9%, although there were fewer hotel rooms available due to the Mirage’s closure in July.

Despite the increase in visitors to the city, the average nightly rates for accommodations on the Strip and throughout Las Vegas decreased by about 3%. Strip rooms averaged $210 while other rooms were priced at $196. Both rates are prior to resort fees and taxes.

Representatives at Harry Reid International Airport stated that passenger traffic decreased by 0. 8% in September, with the airport accommodating approximately 4. 75 million arriving and departing travelers.