Nevada revenue declines in March, led by Strip again

The Nevada Gaming Control Board released data indicating a significant 5% decline in revenue for the Las Vegas Strip, contributing to an overall statewide gaming revenue drop in March. As of April 29, the state reported $1.27 billion in gross gaming revenue (GGR), marking a year-on-year decrease of 1.1%. Thus far in the fiscal year, gaming revenue in Nevada is down 1.14%, compared to a record year in the previous period.

The Las Vegas Strip recorded a GGR of $681.7 million for March, reflecting a concerning 5% decline year-on-year. Excluding January, the Strip has posted year-on-year declines in seven of the last eight months. As we approach the end of the fiscal year, America’s premier gaming destination has seen a 3.35% revenue drop so far.

Interestingly, Clark County exhibited resilience, only down 1.75% overall, bolstered by strong performances from downtown Las Vegas ($85 million, +11.5%) and the Boulder Strip ($86.3 million, +10.2%). The locals market experienced a slight downturn ($162.8 million, -2.5%); however, it remains up 6% year-to-date with over $1.4 billion in GGR. These ancillary markets are thriving, even as the Strip struggles to maintain previous performance levels, proving more lucrative than northern Nevada sectors.

Baccarat Performance Remains Weak

The March revenue decline can be partially attributed to baccarat, a game that typically mirrors market trends. In March, GGR from baccarat fell to $73.3 million, a staggering 34% decrease year-on-year. For the first quarter, baccarat GGR decreased by 3.5% year-on-year, and examining the previous 12 months reveals a troubling 15.6% drop. Additionally, overall table game performance on the Strip has struggled, with GGR down 16.6% to $262 million in March and over 3% for the quarter, signaling an ongoing downturn.

Reno Shines in Northern Nevada

While March was disappointing for many northern Nevada markets, Reno emerged as an exception. The city, known as “The Biggest Little City in the World,” experienced a robust 10% year-on-year increase in GGR, reaching $57.6 million. With a fiscal year total of $573.5 million, Reno currently leads the northern sector with a 1.3% revenue increase.

In comparison to the Strip, Reno’s table games performed well at $10.2 million, up 12.3%. Slot GGR also rose, reaching $47.4 million, more than a 10% increase. Other major northern markets, such as Sparks ($14.9 million, -2%) and South Lake Tahoe ($14.7 million, -7%), did not fare as well, while Wendover remained flat at $25 million.

March Madness Propels Sports Betting

March Madness proved to be a double-edged sword for the industry, as fanfare for the event translated into mixed results. This year’s tournament saw all four No. 1 seeds advance to the Final Four, with Florida claiming victory over Houston. However, statewide sports betting GGR plummeted to $22.2 million, a decline of more than 25% year-on-year, with mobile betting accounting for $15.5 million, which dropped by a striking 40%. Basketball betting alone saw a 24% decrease to $24.5 million.

The Las Vegas Strip performed somewhat better, experiencing a 16.6% decline in sports betting to $7.5 million, with basketball betting featuring a similar drop of 20% to $10.6 million, indicating a broader trend across the state.

Visitor Decline Amid Economic Concerns

The revenue downturn may be overshadowed by a notable decline in visitation, raising concerns for an industry rooted in tourism. Heightened worries about international travel disruptions due to ongoing trade tensions and recession fears are becoming increasingly prevalent.

According to recent statistics from the Las Vegas Convention and Visitors Authority, total visitor volume fell to 3.38 million in March, a decrease of nearly 8% year-on-year. This decline occurred despite a 10% increase in convention attendance and daily room rates rising by 3.9% on the Strip and 3.1% throughout the city.

Harry Reid International Airport recorded 4.84 million passengers, signifying a year-on-year decrease of 4%. However, daily auto traffic from various highways increased by 2%, reaching 135,402 vehicles, illustrating fluctuating travel trends amidst broader economic challenges.