Nevada Gaming Slows Slightly While Visitation Increases Again

In March, Nevada’s gaming revenue exceeded $1 billion for the 25th month in a row. The Nevada Gaming Control Board’s (NGCB) monthly gaming revenue report revealed that casinos across Nevada collectively earned $1.31 billion during the month.

Even though this benchmark was achieved, there was a slight decrease in gaming revenue by 3.18% in March. Nevada casinos made a win of $1.35 billion during the same period the previous year.

Visitation to Las Vegas rose by 9.6% to 3.6 million in March. At the same time, there was a 2.48% decrease in gaming revenue in Clark County. The Vegas Strip experienced a slightly greater decrease of 2.9%.

Despite a slight decrease in gaming revenue and consistent high visitation in March, casino operators including Caesars and MGM Resorts reported unprecedented earnings in the first quarter of the year.

March could represent a temporary dip in Nevada’s gaming revenue. Simultaneously, these results may suggest a potential slowdown in the gaming industry in the future.

The American Gaming Association (AGA) anticipates a decrease in gambling revenue across the nation. However, Nevada’s unique gaming market might not be affected by this trend, suggesting that the report might not apply to the Silver State.

More on Nevada’s gaming revenue in March

According to the NGCB report, Nevada’s gaming revenue in March was marginally lower than that of last year. This marked only the third instance in the past year where Nevada casinos reported a decline in revenue compared to the previous year.

Nevada casinos collectively earned $1.31 billion in gaming revenue, although the financial performance varied among casinos in different parts of the state.

Revenue from gaming in northern Nevada experienced a greater decline than in the southern cities. The gaming revenue of Reno fell by over seven percent. The decline was even more significant in Lake Tahoe, where gaming revenue plummeted nearly 18 percent.

Casinos on the Vegas Strip performed relatively well, garnering $724.6 million. This figure represents a slight drop of 2.9% from the $746.2 million they won in 2022 in the Las Vegas tourist corridor.

Baccarat earnings on the Vegas Strip in March were 50% lower than the previous year. However, excluding baccarat, the gaming revenue of the Vegas Strip in March exceeded that of 2022.

Baccarat, mostly played at upscale casinos, is a game favored by high-rollers. Even though there are fewer baccarat tables compared to games like blackjack, the money wagered can significantly influence the gaming revenue of the Vegas Strip in any given month.

Revenue increased in downtown Las Vegas compared to last year, with the casinos in “old Vegas” earning $87.4 million. This represented a 1.15% rise from the same period in 2022.

A Nevada gaming revenue slowdown seems inevitable

Regardless of the overall economic situation, Nevada is likely to experience a slowdown in gaming revenue. The Silver State has seen a fiery surge in gaming revenue since the height of the COVID-19 pandemic.

The accumulated desire to gamble will ultimately decelerate and the income will stabilize. This doesn’t inherently mean a negative outcome, but the explosive growth of gaming revenue seen each month for the last few years might just cease to escalate.

The Future Conditions Index of the American Gaming Association (AGA) suggests that the gaming industry could face economic difficulties later this year, according to a report.

The Future Conditions Index registered a 97.1 reading in Q1, suggesting a potential decline in real economic activity in the gaming sector over the coming six months at an annualized rate of -2.9%.

Moving forward, the revenue from Nevada casinos might vary from that of the rest of the country. Las Vegas is brimming with events that will attract visitors from both within the US and globally. Most of these visitors are expected to spend their time gambling.

The event calendar, after slowing down in April, is now back in full force in May with music festivals scheduled every weekend.

Memorial Day Weekend usually concludes the month, marking one of the busiest times in Las Vegas as it unofficially ushers in the summer vacation season across the country.

Beyond summer tourism, Las Vegas is set to host eight Raiders games in the latter half of the year, along with the Las Vegas Grand Prix in November. The F1 race weekend could potentially boost Las Vegas’ economy by over $1 billion.

Despite the possibility of a gaming slowdown, casino operators remain optimistic about Las Vegas’s prospects as the year progresses.

March Nevada sports betting report

In March, Nevada saw an 18.8% increase in sports betting revenue from last year, amounting to $43.9 million.

Despite an increase in revenue in March, the total sum wagered by Nevada bettors was less than that of 2022. The $829.8 million bet throughout the month was a decrease of 3.8% compared to the same month last year.

In March, Nevada casinos retained 5.3% of the money that was bet.

The month’s revenue was bolstered by March Madness betting. Gamblers placed bets totaling $655.7 million on basketball during the month. Around 70% of this was wagered on college basketball.

Before the actual 68-team tournament, March Madness starts in Las Vegas. Betting on college basketball kicks off with numerous conference tournaments held in Las Vegas. Leading up to the NCAA basketball tournament, even more tournaments are held across the country.

The initial weekend of March Madness, with its 48 games spread over four days, is among the most hectic periods for Las Vegas sportsbooks.

For the first time in history, the NCAA basketball tournament’s West regional was held in Nevada. In 2028, the Final Four will be hosted by Las Vegas at the Allegiant Stadium.

Tourism in Las Vegas was bolstered in the month due to extra March Madness games and concerts by Taylor Swift. However, even with the influx of tourists, only 64% of all March wagers were accounted for by Nevada’s sports betting apps.

Las Vegas visitation up, and it may not slow

The slight decline in March’s gaming revenue was not because of a shortage of visitors. The Las Vegas Convention And Visitors Authority’s monthly report stated that 3.65 million people visited Las Vegas during that month.

In general, Las Vegas saw a 9.6% increase in visitors compared to last year, but a 1.1% decrease when compared to 2019 (pre-Covid-19 pandemic). The rise was bolstered by 771,000 convention attendees in Las Vegas, a significant 56% upsurge from the previous year.

Hotel operators value these visitors as they pay premium midweek prices, unlike leisure travelers who seek less expensive rooms than those available on weekends.

In March, 88.3% of hotel rooms in Las Vegas were occupied. The subsequent 7.7% rise in occupancy once again drove up room prices.

In March, the average cost of hotel rooms in Las Vegas increased by 30.7%, reaching $213.25 per night.

During earnings calls of several casino operators, representatives from Caesars, MGM Resorts, among others, indicated a positive future outlook. High advanced bookings are being maintained by large events that are planned for the summer and extending into the fall.

The Raiders will host eight regular season home games when the NFL season commences in September.

U2’s eagerly awaited limited run at the MSG Sphere is set to commence in late September and extend into October. Following this, the inaugural Las Vegas Grand Prix is scheduled to occur on the weekend subsequent to Thanksgiving in November.