In a recent report by the Nevada Gaming Control Board, it was revealed that the gaming win on the Las Vegas Strip took a sharp 15 percent dip in July, marking the first statewide decline in win in four months. The total win for the month of July amounted to $1.3 billion, a significant drop from the previous year’s strong performance of $1.4 billion, which was the second highest monthly win total in history.
Despite this decrease, experts are not overly concerned about the potential for a prolonged downturn in the industry. Michael Lawton, senior economic analyst for the Gaming Control Board, stated, “No, I would not call this the start of any downturn.” He emphasized the challenging comparison to the exceptionally high win total in July of 2023, attributing the decrease to a tough baccarat comp related to hold.
Lawton elaborated on the impact of table hold percentages, noting that this year’s hold of 14.39 percent was significantly lower than last year’s 17.62 percent, which was the highest in nearly 37 years. Particularly noteworthy was the hold in baccarat, reaching 23.52 percent, the highest since June 2003. This disparity in hold rates contributed to the decline in win on the Strip, which fell to $709.3 million.
However, while the Strip experienced a decrease in win, downtown Las Vegas saw a 9.9 percent increase to $71.8 million. Additionally, outlying Clark County, including areas like southwest Las Vegas where the Durango casino recently joined the market, reported a substantial 19 percent increase to $171.2 million.
Other submarkets in Nevada showed varying degrees of volatility in their win percentages. Sparks saw an 11.4 percent decrease from the previous year, while North Lake Tahoe experienced a 14.1 percent increase and South Lake Tahoe remained flat. In Southern Nevada, the Boulder Strip and Mesquite saw gains, but Laughlin saw a decrease in win.
Noting the impact of the calendar on gaming revenue, industry analyst Carlo Santarelli of Deutsche Bank highlighted the difference in weekend days between this year and last. With one fewer weekend day in July 2024 compared to July 2023, the distribution of slot revenue between the two months varied. This shift affected the Strip more significantly than local casinos, with Santarelli pointing out that slot revenue growth for LV locals was driven by a 7.9 percent slot hold.
Furthermore, the closure of The Mirage on July 17 has yet to be fully reflected in gaming statistics, leaving room for further changes in the industry landscape. With these factors in mind, the gaming industry remains dynamic and responsive to the various economic and market influences at play.
