By Dan Behringer for LVSportsBiz.com
What a difference two years makes.
Two years ago, with Nevada casinos shut down because of the coronavirus, the Nevada Gaming Control Board reported statewide gaming win of a mere $5.8 million for May 2020. The numbers were the lowest reported since 1983.
But new numbers released Thursday illustrate a dramatic turnaround for the state’s casinos with gaming win totaling $1.3 billion — a 5.7 percent increase from the $1.2 billion reported for May 2021.
Gaming win, sometimes referred to as gross gaming revenue, is the amount that casinos net from gaming before costs and expenses. It’s widely considered a reliable barometer of the health of the casino industry.
The gains for May 2022 were particularly impressive on the Las Vegas Strip, which recorded a win of $732 million, up 11.6 percent from the $655 million won in May 2021. Downtown casinos won nearly $79 million, up about 5.3 percent from the $75 million in May 2021.
“This month’s total win amount represents the highest May total gaming win recorded all-time for the state and the Las Vegas Strip,” Michael Lawton, senior economic analyst for the Control Board’s administration division, said in an email.
“Gaming win on the Las Vegas Strip benefited from special events and baccarat win amounts,” he said. “Additionally, the Strip was lifted by strong demand for travel which saw Harry Reid International Airport record its third-busiest month all-time in May 2022.”
Lawton noted that baccarat win of $131.5 million was up $25.6 million or 24 percent. Baccarat drop of $770.8 million was up $283.5 million or 62 percent. However, the win percentage on baccarat was 17 percent vs. 22 percent a year ago.
Lawton noted that the state has recorded 15 straight months of gaming win that top $1 billion. He attributed that to several factors, including consistent demand for gaming-related activities by customers with established savings from the government’s economic stimulus.
“Additionally, the state continues to benefit from growth in leisure travel due to several signature special events that occurred during the first five months of the year. Some of these events included the NFL Pro Bowl, the NHL All-Star Game, NCAA college basketball tournaments, NASCAR weekend … and multiple concerts at venues throughout Las Vegas,” Lawton said in the email.
While the Strip and downtown Las Vegas fared well, other areas of Clark County were off slightly:
— North Las Vegas, down 5.1 percent.
— Laughlin, down nearly 3 percent.
— The Boulder Strip was down about 0.50 percent, Mesquite was off a fraction and the “balance of the county” was down about 1.5 percent.
Across Nevada, other areas were also down in May.
— Washoe County was down 4.8 percent.
— South Lake Tahoe was down 13.7 percent.
But Elko County was up 8.6 percent, and the Carson Valley area was up 1.4 percent.
Lawton said that the comparisons will become more difficult, and he expects the rates of growth to decelerate for the remainder of the year.
Notably, gaming win for the fiscal year that ended on May 31 is up 41 percent.
Lawton further noted that the demand for travel has not been affected by higher prices for gasoline “although some softness in certain market segments has been noted primarily on the lower end.
“In the short term, historically rising gas prices have not correlated with lower gross gaming revenues as consumers have been able to spend through the higher prices, However, we understand that if these prices sustain, demand could be pressured,” he said in the email.
Las Vegas gasoline prices averaged about $5.49 a gallon on June 30, according to AAA’s fuel gauge report.