Nevada revenue down in February after Super Bowl departure

February 2023 marked a challenging month for Nevada’s gaming sector, witnessing a significant decline in revenue, largely influenced by the absence of the highly anticipated Super Bowl.

Data from the Nevada Gaming Control Board, released on March 31, revealed that the state experienced a gross gaming revenue (GGR) of $1.21 billion (£936.5 million/€1.12 billion) for the month—an approximate 9% drop compared to the $1.34 billion reported in February of the previous year. The striking decline can primarily be linked to the Super Bowl’s absence, which generated an estimated economic impact of $1 billion for the region in 2022.

For the fiscal year to date, Nevada’s overall gaming revenue has decreased by 1.1% year-on-year. In stark contrast, January 2023 yielded $1.43 billion, making it the second-highest monthly total in history.

Every market segment registered declines, particularly the iconic Las Vegas Strip. The Strip, widely recognized as America’s gambling capital, reported $690.3 million in GGR for February, reflecting a sharp 14% decrease year-on-year. This downturn raises concerns about the sustainability of the Strip’s record-setting post-COVID recovery, as revenues are currently down by more than 3% for the fiscal year.

Even districts traditionally buoying the state’s performance, such as downtown Las Vegas and the locals market, experienced revenue stagnation in February. Downtown Las Vegas recorded a 5% decline, amounting to $72.4 million, while the locals market remained flat, garnering just under $144 million. Despite this, the locals market has posted a 7% increase for the fiscal year, with downtown having a smaller increase of 1.8%.

Baccarat Performance Dips Significantly

Baccarat remains a crucial driver for the Strip’s revenue. February GGR from baccarat fell to $87.5 million, marking a dramatic 51.5% year-on-year decrease and a stark contrast to January’s performance of $214.2 million. This variable performance in the baccarat segment has influenced overall revenues negatively, reflecting a broader trend of volatility seen over the past three months.

The total GGR from Strip table and card games also witnessed a significant decline, down 26.5% to $308.4 million. While downturns in table games often observe compensatory gains from the slot machine sector, February’s slot revenue remained stagnant at $381.9 million.

In addition to the Super Bowl’s absence, several macroeconomic factors may have hindered the region’s performance. Notably, U.S. President Donald Trump initiated trade tariffs on imports from Canada and Mexico—key markets that funnel tourists into Las Vegas. While these tariffs may not directly deter consumer travel, the heightened tensions stemming from the trade conflict could have influenced potential visitors’ travel decisions. Furthermore, last February benefitted from the occurrence of a leap year, which included an extra day of revenue-generating opportunities.

According to the Las Vegas Convention and Visitors Authority, the city attracted 2.97 million visitors in February, a nearly 12% decline year-on-year. The authority described this dip as a challenging comparison to last year, particularly considering the Super Bowl’s impact and the additional day provided by the leap year. Additionally, convention attendance fell by 19.5%, and average daily room rates dropped by 25%.

Northern Markets Stabilize After January Surge

The northern gaming markets experienced a correction in February, following a robust January. Revenues in Washoe County, Elko County, and the Carson Valley all declined, with South Lake Tahoe facing the largest individual market drop of $17.6 million, equating to a 17% decline. The persistent winter weather in northern Nevada often contributes to fluctuating year-on-year results.

Reno’s revenue dipped 6.4% to $56.2 million, down from $67 million the previous month. Despite the decline, Reno remains flat for the fiscal year, outperforming other northern markets. Nearby Sparks demonstrated resilience, with only a 1% decrease for the fiscal year, despite a 2.65% dip in February revenue.

Sports Betting Maintains Relative Stability

Statewide, sports betting generated GGR of $41.3 million in February, reflecting a decline of just under 14% from the previous year. Among this total, mobile betting accounted for $22.9 million, representing a minor 3.4% drop year-on-year.

Notably, fluctuations associated with sports betting revenues are common within the Nevada market, and the small decrease in mobile betting was a positive outcome for state sportsbooks, particularly in the absence of a major event like the Super Bowl. Specifically, the Strip contributed more than half of the state’s overall sports betting GGR, totaling $24.1 million—a reduction of only 2% compared to last year. The mobile betting segment on the Strip accounted for $9.5 million, also down 2% year-on-year.