Nevada Casino Revenue Higher by 7.5% in April

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Saturday, June 2nd, 2018 | Written by Adam Brown

Nevada’s casino market generated $953.7 million in April, marking a 7.57% revenue increase compared to the same month in 2017. The Silver State had seen its business fall for four consecutive months following the October 1st Las Vegas shooting, but has now recorded three months of higher year-on-year revenue, according to the Nevada Gaming Control Board.

Strong Slots Showing

In April, Nevada’s gambling industry was given a huge boost after its slot machine segment reported a 10% revenue rise to $658.9 million, while tables games provided a further lift with revenue inching up by 2.4% to $294.8 million. Leading the way in the latter category was blackjack with $94.1m (+8%), followed by baccarat on $65.1m (-17.7%), roulette on $31m (+69%), and craps on $29.9m (-3.7%).

Las Vegas Strip up 5%

The Las Vegas Strip accounts for more than half the revenue produced in the state, and in April the area famed for featuring the largest hotels, casinos, and resorts in the state collected $499.5 million, or 5% more than the same month in 2017. Meanwhile, Downtown Las Vegas saw its gross gaming revenues soar by 15.6% to $60.48 million, while Clark County posted an 8.1% revenue increase overall.

Sportsbook Handle

In April, Nevada’s sportsbook betting handle reached $316 million, resulting in $16.3m in revenue for sportsbook operators. That figure represents an 8.1% increase compared to April of last year, and means Nevada’s sports betting industry has now posted 57 consecutive months of gains.

Basketball led the wagering market with $8.64m in revenue, up by almost double over April 2017, followed by baseball ($6.57m), whose revenue slipped by one-third. Meanwhile, ‘other’ sports fell by one-quarter to $4m, parlay cards shot up 425% to $1m, while race books contributed a further $2.84m, lower by 10% year-over-year.

Visitor Numbers Higher

McCarran International Airport, the primary commercial airport serving Las Vegas, also had some good news to share with its visitor number rising by 3.1% to 4.18 million compared to April a year ago. In 2017, the airport had a record 48.5 million travelers pass through its gates, and this year the impressive pace has continued with 15.8 million people using the airport between January and April, higher by 3% versus the same period last year.

Furthermore, the Las Vegas Convention and Visitors Authority (LVCVA) enjoyed a banner April with the 3.548 million visitors it recorded during the month higher by 0.1% from a year earlier, and marking the first year-on-year increase since May 2017. Amongst the various conferences and tradeshows helping to lift the numbers was Waste Expo with 12,000 people, the National Indian Gaming Association (8,600), and CinemaCon (8,100).

Culinary Union Strike

This year, Nevada has posted three months of $1 billion revenues, with April’s result falling just short of that amount. At the end of May, the 2018 WSOP subsequently kicked-off at the Rio, with the prestigious tournament series last year attracting 121,000 players, as well as millions of visitors from all across the globe. A number of new events have been subsequently added to the 2018 WSOP, making the 78-event tournament schedule the biggest ever held, with the $1 million buy-in Big One for One Drop also making its first appearance in Vegas since 2014.

Although this should historically be the busiest time of year for Nevada, a looming strike by the Culinary Union’s 50,000 strong members has the potential to inflict severe damage on the Silver State’s gambling market. The Culinary Union represents the rights of catering staff at 34 individual casinos, including bar staff, food servers, hotel porters, and kitchen workers. After their contracts expired yesterday, the Union has been trying to negotiate a 4% increase for its members, which has been countered by a 2.8% raise by MGM and Caesars.

The group is also concerned over staff being replaced by improved technology, such as electronic reservation systems, leading to casino employees currently threatening to strike unless their concerns are addressed.

The last strike called by the Culinary Union took place in 1984, lasted a protracted 67 days, and cost Nevada’s gambling industry $100 million in lost revenue. Considering a strike has the potential to cost MGM and Caesars around $10 million per day this time round, these casino operators have a strong incentive to resolve the issue in as timely a fashion as possible.

“One might assume a 10 percent worsening of operating margins due to the use of less experienced and less skilled replacements…to keep the doors open, rooms cleaned, food cooked, and cocktails served, not to mention other factors such as the disruptions to management staff’s regular work,” warned the union.