Strip leads declines as Nevada gaming revenue slips again in March

Overall, the state posted $1.27 billion in March gross gaming revenue, a 1.1% decrease year-on-year. For the fiscal year to date, Nevada gaming is down 1.14% from this point last year, which was a record for the Silver State.

The Las Vegas Strip posted GGR of $681.7 million for the month, down 5% YoY. Excluding January, the Strip has now posted YoY declines in seven of the last eight months. As we enter the last stretch of the fiscal year, America’s gaming capital is down 3.35% to this point.

Despite the Strip’s decline, Clark County overall was only down 1.75% thanks to strong months from downtown Las Vegas ($85 million, +11.5%) and the Boulder Strip ($86.3 million, +10.2%). The Las Vegas locals market had a down month ($162.8 million, -2.5%), but is still up 6% year-to-date with over $1.4 billion in GGR.

These ancillary markets have done well for the southern half of the state as the Strip struggles to match its record performance in previous years. Downtown, the locals market and Mesquite are all having better fiscal years than any of Nevada’s northern sectors.

Baccarat results continue to lag

The Strip’s March decline was in part attributable to baccarat and, generally speaking, the game’s performance is typically in line with the market overall. In March, the Strip posted baccarat GGR of $73.3 million, down more than 34% YoY.

For the first quarter of the year, GGR from the game is down 3.5% YoY, but zooming out to the previous 12 months, that figure drops to -15.6%. Aside from just baccarat, table game performance overall for the Strip has been unlucky.

For March, Strip table game GGR was down 16.6% to $262 million. For the quarter, the sector is down more than 3% and more than 7% for the previous 12 months.

Reno leads the way for the north

March was by and large a forgettable month for the northern Nevada markets, with the exception of Reno. The Biggest Little City saw a 10% YoY jump to $57.6 million. With $573.5 million in GGR for the fiscal year, Reno is up 1.3% to this point, the best of any major northern market.

In comparison to the Strip, Reno had a great month for table games ($10.2 million, +12.3%). The market’s slot GGR of $47.4 million was also up more than 10%.

Other major markets in the north were mostly down, such as Sparks ($14.9 million, -2%) and South Lake Tahoe ($14.7 million, -7%). Wendover, the second-highest grossing northern sector behind Reno, was flat for the month at $25 million.

Sports bettors win big on March Madness

This year’s March Madness results were bemoaned by the entire industry, as favourites came through in a big way. All four No 1 seeds advanced to the Final Four for the first time since 2008, with Florida ultimately beating Houston to claim the national title.

For Nevada, statewide sports betting GGR was $22.2 million, down more than 25% YoY. Mobile betting accounted for $15.5 million of that, down 40%. Basketball betting specifically came in at $24.5 million, a 24% drop.

The Strip fared somewhat better, dropping just 16.6% to $7.5 million. Basketball results were similar to the state overall, dropping 20% to $10.6 million.

Visitation down as trade war, recession fears linger

For Las Vegas (and Nevada overall), the revenue results are perhaps less concerning than the decline in visitation. As a city and state built on tourism, fears of how international travel might be upended due to escalating trade wars and fears of a subsequent recession are top of mind.

According to the latest data from the Las Vegas Convention and Visitors Authority, total visitor volume was 3.38 million in March, down almost 8% YoY. This came despite a 10% increase in convention travel and daily room rate increases both on the Strip (3.9%) and the city overall (3.1%).

Harry Reid International Airport welcomed 4.84 million passengers, a YoY decrease of 4%. Daily auto traffic from all highways was 135,402, up 2%.

 A 5% slide for the Las Vegas Strip contributed to an overall statewide revenue decline in March, according to data from the Nevada Gaming Control Board published yesterday (29 April).