Nevada posts positive December, calendar year despite Strip woes

Recent data from the Nevada Gaming Control Board, released on January 30, provides compelling insights into the state’s gaming landscape for December and the entirety of 2024. Despite declines on the Las Vegas Strip, the overall gaming industry in Nevada continues to demonstrate positive year-over-year growth.

The December revenue report reveals that gross gaming revenue (GGR) for the month reached an impressive $1.46 billion (£1.17 billion/€1.4 billion), marking a 2% increase compared to the previous year. In total, GGR for 2024 reached $15.6 billion, reflecting a modest increase of 0.55% from 2023. This continues a trend of record-setting calendar years for the Silver State, which is a remarkable recovery following the significant downturn experienced during the COVID-19 pandemic.

Interestingly, these gains were achieved despite persistent declines on the Las Vegas Strip, the economic powerhouse of the state. In December, the Strip reported GGR of $881.2 million, down 2.6% year-over-year, marking its sixth consecutive month of revenue decline.

For the fiscal year-to-date (July 1 to December 31), the Strip has experienced a decline of over 5%, making it the hardest-hit market among the state’s major gaming segments. GGR for the Strip in 2024 totaled $8.8 billion, reflecting a 1% decrease from the previous year.

Baccarat: A Mixed Blessing

Digging deeper into the Strip’s performance reveals that baccarat remains a central focus amid the revenue fluctuations. This game, which pits players against the banker, continues to attract high rollers but also presents significant volatility for casino operators. Despite the overall record revenue for the state, exceptional baccarat holds contributed significantly to this growth in FY24.

However, baccarat revenue on the Strip in December was $197 million, reflecting a notable 10% decrease year-over-year. This downturn contributes to a 15% decline in baccarat revenue over the past three months and a 7% reduction for the calendar year 2024.

In broader terms, table game revenue across Las Vegas fell by 16% in December, culminating in an overall decrease of 5% for the full calendar year compared to 2023, highlighting the challenges faced by traditional gaming segments.

Local Markets Drive Growth

In contrast to the struggles of the Strip, remarkable growth has been observed in downtown Las Vegas (DTLV) and the local markets. This shift represents a significant narrative within Nevada’s gaming sector over the past year.

DTLV posted a GGR of $82.2 million in December, while the locals market saw revenue reach $161.1 million, both achieving year-over-year increases of over 8%. The Boulder Strip and Laughlin also demonstrated exceptional performance, logging gains of 30% and 9%, respectively.

For the fiscal year-to-date, DTLV and the locals market reported a 4% and 9.5% increase, respectively, making them the top performers among all monitored markets by the NGCB. DTLV concluded 2024 with a 10% increase from 2023, while the locals market achieved a remarkable 13% growth during the same period.

The Mesquite market is the only comparable performer, with a fiscal year-to-date growth of 3.5%; however, its overall revenue remains significantly lower than that of DTLV and the locals market.

Reno: Signs of Recovery

To the north, Reno has shown encouraging growth, posting a GGR of $65.8 million in December—a 20% increase year-over-year. This strong performance contributed to Reno finishing 2024 with a 3% uptick from 2023, despite several months of prior losses.

The winter months often cause volatility in these northern markets due to unpredictable weather; thus, stakeholders celebrated a 12% year-over-year increase in GGR for Washoe County as a whole. Notably, the county’s revenue is now precisely flat for the fiscal year-to-date, with totals from the last two years closely mirroring each other.

Additionally, South Lake Tahoe emerged as another Northern winner, posting a GGR of $19.4 million, also up 20% year-over-year.

Sports Betting: A Volatile Landscape

In a less optimistic turn for operators, the fluctuating performance of Nevada’s sports betting market encountered a substantial decline following a robust November. December’s statewide sports betting GGR fell to just under $15 million, representing a staggering 75% year-over-year decrease after a 64% increase the prior month.

Mobile betting, which contributed $12.5 million to the monthly total, also reflected troubling statistics, showing a 54% decrease compared to the same time last year. It’s important to note that Nevada mandates in-person registration for mobile betting, which may deter major operators from gaining a foothold in the market.

Overall, the inconsistent nature of this segment led to a flat GGR of $482 million for the entirety of 2024, amounting to a marginal increase of 0.17% from the previous year.

In conclusion, while the Las Vegas Strip may be facing challenges, the broader Nevada gaming landscape is evolving, with gains in local markets and other regions offering promising opportunities. Stakeholders in the industry must remain agile and responsive to these trends to capitalize on the ever-changing dynamics of the gambling sector.