Recent numbers released by the Nevada Gaming Control Board reveal that the state’s gambling industry is still struggling to bounce back from the effects of the Covid-19 pandemic.
The numbers reveal that Nevada casino operators generated £631.93 / $821.1 million in revenue in September. This represents a 22.38 per cent drop compared to last years figures where the state’s casino operator revenue numbers amounted to £820 million / $1.06 billion.
These recently released figures also reveal that this is the fourth consecutive month that the gambling state has experienced at least a 22 per cent year over year revenue drop. Nevada’s casinos were allowed to reopen its doors early in June, which resulted in a 45 per cent statewide revenue dive. This massive drop was attributed to the slow reopening schedules of many of the state’s casinos but since then, almost all of the state’s casino properties are up and running. Despite this, year over year revenue drops have been consistently between 22-26 per cent over the three months after June.
The figures further reveal that the Las Vegas Strip was hit the hardest with a 39.14 per cent decrease in revenue. This drop in revenue is identical to its previous July and August numbers. The drop highlights the depressed state of the tourism industry as the lack of customers in hotels, casinos and convention centres has adversely affected the Strip’s casinos. As it stands, many of the Strip’s casino owners don’t see the business climate changing any time soon and many have adapted adjusted operating hours and capacity to compensate.
More notably, one of the Strip’s famous operators, Las Vegas Sands, has announced its mulling over the sale of its Las Vegas properties. Though it has confirmed that it is in very early discussions over the sale of its properties, nothing can be confirmed as of yet. This comes after the Sand’s recent earnings call where it revealed that its USA properties’ revenue has experienced a massive 60 per cent drop. As for other parts of the state, Clark County made up for the majority of the state’s revenue numbers but its revenue was still down 26.9 per cent year-over-year. Downtown Las Vegas’ revenue dropped by 21.46 while North Las Vegas’ numbers didn’t fare too well revenue drops of 26.74 per cent.
Northern parts of the state where casinos are much less reliant on tourism have shown better results with positive revenue numbers. Reno and Sparks’ revenue numbers were a positive 3.09 and 7.07 per cent year over year increase respectively. South Lake Tahoe’s casinos have notably been the best performing earners with revenue of £19.09 / $24.8 million, a hefty 36.32 per cent increase from its £14 / 18.19 million earnings year over year.
Gaming markets outside Nevada that cater to locals such are seeing positive revenue growth. One notable state is New Jersey. The state’s gambling market has seen notable revenue growth due to its online gambling market. To contrast the two, Nevada only has online sports betting and poker, while New Jersey has all online casino and betting options.