Nevada casinos experienced a lull in June 2022, with gross gaming revenue (GGR) down 2.4% compared to the same period last year.
Silver State casinos earned $1.24 billion last month, down about $31.2 million from last June. Gross gaming revenue in Clark County, where Las Vegas is located, fell 3.5 percent, while gaming revenue on the Las Vegas Strip fell 1 percent. The northern markets were stronger, with Washoe County-Reno gaming earnings up 12.5 percent to $69 million.
However, the northern market cannot compensate for the losses in the southern region. This is the third month in the past four months that statewide gross gaming revenue has declined year-over-year. Still, Michael Lawton, senior economic analyst with the Nevada Gaming Control Board, isn’t overly concerned.
Gaming revenues in 2021 and 2022 will hit record highs due to a surge in demand from the gaming and travel industries in the wake of the COVID-19 pandemic. It can be seen that this year’s comparison will become quite difficult.
Lawton explained that the state has seen declines in three of the past four months, however, Nevada’s gaming wins still exceed pre-pandemic levels.
Lawton highlighted that last month’s revenue was about 1.24 billion won, an increase of nearly 20 percent from June 2019, equivalent to $204.9 million.
Downtown Downturn
A surprising data point in the NGCB’s June 2023 earnings report is what’s happening in downtown Las Vegas. Gross casino revenue (GGR) on and around Fremont Street fell more than 10 percent to a level of $62.5 million.
Low jackpot rates were the main reason for the decline, although slot machine play grossed $44.7 million since June 2022, down more than 10%. Downtown slot machines had an 8.22 percent win rate in the last month, compared to 9.33 percent the previous month. From June 2022, table game ownership also fell from 9.05% to just under 7.8% last month.
In order to increase the launch of slot machines, Las Vegas Strip casinos have also made corresponding adjustments. According to last month’s figures, about 8% of main street slot machine holdings have risen to 8.6% by June 2022. Still, Las Vegas Strip casinos managed to increase gross slot machine revenue, bringing it to $395.2 million, a 4 percent increase. This is due to an increase in the amount wagered in casinos. At the same time, the sales of machine equipment for slot machines also achieved significant growth, reaching more than US$5 billion, with a growth rate of 12.5%.
The Las Vegas Strip saw a drop in overall casino gaming revenue (GGR) in June, largely due to table games and oddsmakers. Sportsbooks won just $1.8 million, an 83 percent drop in revenue, amid underperforming bettors.
Revenue at Baccaraton the Strip, a game favored by Asian gamblers, fell 29 percent to $99.5 million. Roulette revenue also fell nearly 10%, to $30.7 million.
The lone bright spot on the Las Vegas Strip was Blackjack, where blackjack won a $79 million home, a 22 percent year-over-year premium.
$1B Streak Intact
Lawton noted that Nevada casinos are expected to see a drop in monthly revenue this year compared to last year. After releasing the May revenue report, NGCB officials said the 2022 comparison will be one of the most difficult the state has ever seen.
June remained within 3% of June 2022, and it was also the month when Gross Gaming Revenue (GGR) across the state crossed the 10s again. By June 2023, the state has reached a historic 28-month winning streak of $1 billion in revenue.
Prior to this, the state’s longest record of at least $1 billion in monthly gaming revenue was just eight months, between October 2006 and May 2007.
