To put it mildly, 2020 was an odd year. However, even in the face of a worldwide pandemic, Nevada has continued to march forward. So, how has the Silver State performed? A glimpse into the monthly gaming revenue can provide some answers.
To start with some positive news, the Nevada Gaming Control Board’s report for November reveals that casinos set a new record for earnings from sports betting.
Here’s the less than ideal news: All other types of gaming revenue have experienced a decrease from one year to the next. Overall, the state reported a total of $771.2 million in gaming revenues, marking a 17.75% decline compared to November 2019. While this isn’t great, it’s not disastrous.
However, this is devastating for the Vegas Strip.
Gaming revenue takes big hit along Vegas Strip
The Vegas Strip is experiencing more significant impacts compared to the Vegas locals markets and other regions of the Silver State.
Gaming revenue on the Strip in November amounted to just under $349.8 million, marking a decrease of 32.46% from the previous year. And this is merely the start.
The Vegas Strip has seen a 38.53% decrease in gaming revenue over the past 12 months.
To compare, the revenue in downtown Las Vegas saw a slight increase from last year due to the opening of the casino at Circa Resort. The November revenue, which amounted to $52.99 million, represents a modest 1.74% increase from the previous year.
In general, the gaming revenue in downtown Las Vegas has decreased by only 29.23% in the last 12 months.
On the other hand, gaming revenue in Washoe County, where Reno is situated, only dropped by 3.21% in November and 20.29% annually. Although this is not a positive development, it’s decidedly less severe than the situation on the Vegas Strip.
Las Vegas visitation way down
Nevada is a state composed of various regions that rely on diverse customer bases. Even distinct areas of Las Vegas attract different types of customers.
The Vegas Strip is essentially a different entity. While Nevada residents are spread out across the state, the Strip depends greatly on tourists.
Air travel impacts the Las Vegas gaming market in the US like no other. The Las Vegas Convention and Visitors Authority reports a 54.5% decrease in visitation to Las Vegas for the year.
The number of passengers concluding their flight in Las Vegas has decreased by 56.6% year over year. However, Las Vegas casinos and gaming revenue have a potential saving grace in the form of regional drive-in traffic.
According to estimates by the LVCVA, there has been a year-on-year decrease of approximately 12.3% in automobile traffic to Las Vegas.
The longer it takes for a coronavirus vaccine to reach critical mass, the ongoing downtrend for the Vegas Strip could persist.
Another record-breaking month for sports betting
In November, Nevada casinos gained $61.8 million from sports betting, marking an impressive increase of 99.28% compared to the same period last year. This means that the winnings from sports betting for casinos almost doubled this year in comparison to the previous year.
In Nevada, the total sum of money bet on sports was $609.6 million, which is less than 1% lower than the previous year.
Nevada sportsbooks have an extra Sunday in November to thank this year, compared to last year. They can also express gratitude towards football bettors who lost a record $56 million. In total, Nevada sportsbooks claimed 10.14% of all bets.
To compare, sportsbooks in Nevada won 6.43% of bets in October. A record handle last month boosted sports betting in Nevada.
Nevada sports betting revenue greater than table games
In Nevada, November was a significant month for sports betting, marking an unusual time when casinos made more money from sports bets than table games.
Outside of casinos, video poker and slot machines can be found at locations such as bars, taverns, supermarkets, and more. As expected, their earnings in November once again outperformed all other gaming income.
- Slot Machines: $528.1 million
- Sports Betting: $61.8 million
- Blackjack: $58.1 million
- Baccarat: $42.0 million
- Craps: $26.9 million
- Roulette: $14.2 million
The month’s revenue is not entirely unexpected. It is often observed that locals prefer betting on slots and sports as these can be enjoyed outside a casino.
To put it in perspective, in November, 56.4% of all sports wagers were made through mobile devices. This eliminates the need to visit a physical casino when you can easily place bets using sports betting apps from the comfort of your home.
Visitors inside casinos often engage in table games such as baccarat, blackjack, craps, and roulette. This year, the earnings from baccarat have notably declined due to the absence of international high-stakes players on the Vegas Strip.
Expect the trends to continue
Regrettably, it seems that coronavirus is not disappearing in the near future. The introduction of various vaccines has been slower and less successful than anticipated. The recovery process for Las Vegas, along with the rest of Nevada, might also be sluggish.
Casinos were shut down for almost two months starting from the middle of March earlier this year. The shutdown was enforced to help curb the spread of coronavirus. There is uncertainty whether casinos will close again in 2021, but it is probable that capacity restrictions will stay in place.
At present, properties can only operate at 25% capacity. An increase in gaming revenue cannot be expected until there is a rise in the number of permitted machines and table positions. Furthermore, a significant number of tourists will continue to avoid air travel until they have access to a vaccine.
2021 might not be as terrible as 2020. However, it doesn’t seem like it will begin on a high note.
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