With five months in the books, Nevada’s casino industry is trending toward a third consecutive revenue record-breaking year.
However, analysts caution that Strip casino operators, which account for more than half of the state’s overall revenue totals, have seen their revenue totals boosted by Super Bowl LVIII and other special events.
The Strip’s 3.7 percent revenue jump in May wasn’t fueled by high-end baccarat play, but by slot machines and table games.
According to a report released Thursday by the Nevada Gaming Control Board, Strip resorts reported gaming revenue of $742.5 million in May. The state’s overall gaming revenue was $1.32 billion, a record for the month and up 2.5 percent from the same time last year. May marked the state’s 39th straight month with $1 billion in gaming revenue and the eighth-largest single-month total.
“The upside stemmed primarily from better than expected slot [wagering],” Deutsche Bank gaming analyst Carlo Santarelli wrote in a research report, adding the revenue figure was stronger than forecasted. Strip casinos saw almost $403 million from slot machine revenue.
Baccarat revenue on the Strip declined almost 7 percent to $122.1 million, while wagering fell 2.4 percent to $758.1 million. The Strip saw a handful of concerts and special events primarily in Strip showrooms, although The Rolling Stones performed a concert on May 11 at the 65,000-seat Allegiant Stadium.
The Strip revenue figures came amid Harry Reid International Airport reporting its second highest single-month total ever recorded of 5.2 million in May.
Statewide revenue figures were mixed. Washoe County’s overall total was down less than 1 percent, including a 1 percent dip from Reno casinos but a 2 percent increase from gaming properties in Sparks. South Lake Tahoe casinos saw a 9.5 percent revenue decline.
Elsewhere in Southern Nevada, Laughlin casinos reported a 21.4 percent revenue decrease, based on a calendar anomaly covering the collection of slot machine revenue. For the first five months of the year, gaming revenue in Laughlin is down 6.2 percent.
Statewide gaming revenue through May is up 3.2 percent and the Strip is up 3.5 percent..
The Las Vegas locals market is up almost 6 percent through the first five months of the year, with much of the growth attributed to December’s opening of the Durango Casino Resort in southwest Las Vegas, which helped drive a 12 percent gaming revenue increase in May.
Nevada sportsbooks collected $36 million in revenue during May, up almost 20 percent from a year ago. However, total wagers fell 2.3 percent to $515.1 million. For the year’s first five months, revenue from sports betting is up 5.6 percent while wagering is down 5.3 percent.
Strip resort hotel rates
In a May research report, Truist Securities gaming analyst Barry Jonas suggested Strip resort operators saw “more normalized” hotel bookings in April, May and June, following the “upsized hotel room prices” in the year’s first three months.
Jonas wrote in a research report last week that Strip hotel room rates through August align with 2023’s prices — between $129 a night and $187 a night in August for rooms across nearly 20 properties operated by Caesars Entertainment and MGM Resorts International.
He said July’s closing of The Mirage, which will remove 3,000 rooms from the Strip’s inventory, may provide a reason for operators to increase night room rates starting that month.
“It’s possible we [may] see rates improve for shorter booking windows soon after (the closure),” Jonas wrote.
The story will be updated with the Las Vegas visitor total for May.
