The Nevada Gaming Control Board’s (NGCB) latest Monthly Revenue Report indicates that Silver State casinos have exceeded $1 billion in winnings from gamblers for the 14th month in a row in April. In total, Nevada casinos recorded a gaming win of $1.12 billion in April.
While it’s beneficial to see any growth in Nevada gambling, this could indicate the onset of a slower growth phase. In April, the rise in casino gaming wins only reached 8.57% compared to the same month the previous year. To put this in perspective, the annual increase in gaming wins for Nevada casinos in March was slightly above 22%.
The modest annual increase could indicate a potential slowdown in the major recovery of Nevada’s casinos from Covid-19. It will be a few months before we can confirm this, but high fuel costs and inflation may affect the gambling expenditure of visitors in Nevada.
The gaming win has seen a 46.26% increase for the fiscal year running from July 1, 2021, to April 30, 2022, so far.
Vegas Strip casinos are thriving
The Vegas Strip once more set the pace for all Nevada gaming zones with a gaming win increase of 22.78%. Over the previous fiscal year, there has been an 81.63% surge in the casinos of Vegas Strip.
The increase in wins at casinos on the Vegas Strip compensated for the drop at downtown Las Vegas casinos. There was a -11.37% decrease in gaming wins in April at the second most frequented area in Las Vegas by tourists. Despite this significant slump, the downtown Las Vegas casino win has seen a rise of 38.74% for the fiscal year.
According to the Las Vegas Convention and Visitors Authority (LVCVA), all visitor metrics in Las Vegas have increased compared to 2021.
Visitation and hotel room occupancy have both decreased a bit from 2019 – prior to the Covid-19 pandemic. Nonetheless, the average daily rate for a hotel room in April was $177.12.
The hotel room prices in April have risen by 35.8% compared to the rates in 2019. They have also surged by 62.0% compared to 2021, when the return to “normal” had just started.
The increase affected all Las Vegas hotels, but those on the Vegas Strip may experience the majority of the revenue boost in April. The latest Las Vegas Visitor Profile shows that 62% of visitors chose to stay at a hotel on the Vegas Strip.
Nevada sports betting in April
In April, Nevada sportsbooks saw a total gambling amount of $589.4 million. However, their total win was merely 4.3%, equating to $25.4 million.
The win in April represented a 6.87% drop from March. However, it marked a 23.68% rise compared to April of the previous year.
During the month, mobile devices accounted for 73% of all sports bets placed. From these bets, casinos managed to make a profit of just 2.5%, which amounted to a total of $10.5 million.
Despite the impression that Nevada’s sports betting industry might be struggling compared to larger states that have recently legalized sports betting, it remains robust overall.
Nevada casinos are falling behind for various reasons, despite other states across the country with legal sports betting witnessing a monthly win percentage between 5% and 7%.
Long live the king?
For years, Nevada has been regarded as the capital of sports betting. Although its overall revenue remains robust, it might be losing some of its shine to competitive markets.
A potential explanation for the lower win percentage could be the smaller betting menus compared to other states. This includes not just a decreased number of unique betting options, but also a significantly reduced number of prop bets for games overall.
Individual events at sportsbooks, not just in Nevada, often provide more than 20-30 betting options for a single game, which isn’t uncommon. These regular betting options at sportsbooks, apart from Nevada, comprise a variety of game derivatives, individual player props, and even parlays within the same game.
Betting options with higher margins offered by sportsbooks outside Nevada are boosting their win percentage. Operators such as BetMGM provide a wider variety of betting methods in markets beyond the Silver State.
Las Vegas appears to be losing its status as the sports betting capital of America, seemingly due to the combination of larger pre-game and in-play betting menus.
Dave Tulley from VSiN has compiled data showing that Nevada is the third highest state in terms of money gambled on sports in April.
How other states compare in sports betting
It is anticipated that Illinois will surpass Nevada in sports betting revenue when it announces its figures. It would not be unexpected to see Pennsylvania also leapfrog Nevada next month, particularly with the Philadelphia 76ers and Pittsburgh Penguins participating in the NBA and NHL playoffs, respectively.
With limited betting options and hesitance to offer certain types of bets, like those on the NFL Draft, Las Vegas could potentially transition from being a contemporary competitor to a historical reference for other states.
It isn’t a fair comparison to contrast Nevada’s sports betting revenue with that of other states. Nevada has a distinctive and well-established sports betting market unlike any other in the country.
Revenue from sports betting accounts for a minimal portion of the total casino gaming revenue. Although most sports betting money is generated through mobile devices, this figure could be higher with some modifications to the system.
Revenue from sports betting in Nevada may keep on increasing, but its ranking is expected to decline as sports betting expands in larger states across the country. This state is unique compared to others.
Vegas hot slots
Sports betting is not the main source of income for Nevada casino operators. It is unlikely to ever become the major contributor to their earnings.
According to the revenue report, Nevada casinos earned the most money from slot machines in April, outpacing all other table games and machines.
- Slot machines: $804,123 million
- Blackjack $94.9 million
- Baccarat $51.8 million
- Roulette $39.5 million
- Craps $33.8 million
As mentioned before, to put it in perspective, Nevada casinos made a profit of $25.4 million from sports betting.
The substantial $51.8 million revenue from baccarat in casinos in April, which is a 75.85% increase from March, could indicate that international high-stake players are making a comeback to Las Vegas.
In April, Las Vegas experienced a 46.4% increase in the total number of passengers deplaning compared to last year and nearly the same number as in 2019. Comparing the current statistics with 2019’s provides a more useful perspective on how Las Vegas’ business is faring in relation to the “normal times” prior to the Covid-19 pandemic.
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