Recession Continues to Batter Nevada CasinosRevenue Numbers Plummet |
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Oh, the difference one year makes.
After a record month of success for the Nevada gaming industry in October 2007, the Gaming Control Board announced on Wednesday that Nevada had its single worst gaming revenue drop in state history. Revenue was down more than $260 million, or 22.3 percent, in October 2008.
“In October, we saw huge declines in the stock market, unemployment began spiking up, and consumer confidence and spending were at all-time lows,” said Frank Streshley, a senior research analyst for the Gaming Control Board.
October marked the 10th consecutive month gaming revenues have declined. The $905 million Nevada casinos brought in was the lowest total for a single month since April 2005.
“It’s disheartening because we have learned that the gaming industry is not recession-proof,” Gov. Jim Gibbons told the Las Vegas Review-Journal. “Consumers are not spending, and we are in a national economic slowdown. Lower gaming revenues are not a surprise.”
The Las Vegas Strip has been hit even harder. Its October totals were down 25.8 percent. For the year, The Strip is down 8.7 percent. Gaming revenue is down 8.3 percent in the state overall.
Nearly every aspect of the industry is seeing fewer consumers. Statewide, there is a 13.7 percent drop in slot wagering and a 17.9 percent decline in table games. On The Strip, those numbers are worse — a 17.6 percent decline in slots and a 20.5 percent fall in table games. Baccarat revenue is also down on The Strip — a glaring 63 percent from October 2007.
While the economic times are still uncertain, Streshley believes December’s figures — which will not be released until February — might be helped out, thanks to the Dec. 22 opening of Encore by Wynn Resorts. Encore cost approximately $2.3 billion.
“It’s opening during a difficult time period, but these types of major additions often give the market a lift,” said Streshley.
While the overall casino revenue numbers are dire, it is likely that the state’s poker rooms have not seen such a decline. As reported last month, most poker rooms are stable or even slightly ahead compared to last year.
Andy Rich, the poker room manager at Harrah’s, the Flamingo, and O’Sheas, credits the fact that players can lose less and spend more time at a table as a major reason for this relative stability.
“You can lose a lot less in poker than in blackjack,” said Rich.
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