Nevada Gambling Revenue Sees Sharp Decline In MayRevenue Fall Hurts Big Gaming Company Shares |
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The Nevada Gaming Control Board announced today that state gaming revenue had fallen by roughly 10 percent in May based on year-over-year comparisons. In 2011, casinos statewide brought in $984 million. This year, their take plummeted to $885.1 million.
Strip casinos were hit the hardest, falling from $580.4 million to $475.1 million, accounting for all of the decline. Elsewhere, other gaming markets in Nevada did their best to offset the losses. Laughlin reported a dramatic increase of 20 percent, while the Boulder Strip reported a more modest increase of 7 percent.
Table games continue to be the biggest problem for Strip casinos and slot machines now make up nearly 70 percent of statewide revenue.
As a result of the decline, Nevada will take only $51.9 million in gaming tax for the month of May, which represents a 24 percent fall.
The news also affected major casino stocks. MGM Resorts International (NYSE: MGM), Las Vegas Sands (NYSE: LVS) and Wynn Resorts Ltd. (NASDAQ: WYNN) all dropped by about 4 percent. Caesars Entertainment Corp. (NASDAQ: CZR) fell by over 13 percent.
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