Numbers speak for themselves, and if you're tracking the revenue figures for the Las Vegas Strip, you might be puzzled. The Nevada Gaming Control Board released its gross gaming revenue (GGR) report for September, revealing a decline for the third consecutive month.
According to a report from CDC Gaming, Wall Street and analysts are becoming cautious about Las Vegas's outlook through early 2025 due to the declining revenue on the Strip. Sin City hasn’t seen numbers like these since the first quarter in 2019.
Strip revenue for the year is down 0.2%, but Chad Beynon from Macquarie told investors not to worry about. He’s attributing September's nearly 2% revenue drop to one fewer weekend day and a 40% decrease in baccarat revenue among the 24 Strip casinos.
The Asian-favored table game proved luckier for players in September. Strip baccarat generated $88.5 million in gross gaming revenue, nearly $59 million less than September 2023. The baccarat hold decreased to 17% from 22% a year earlier.
Not All of the Las Vegas Gaming News is Bad
But it’s not all doom and gloom when you look at the overall picture.
The CDC Gaming report noted that Barry Jonas, an analyst at Truist Securities, highlighted a 1.6% rise in visitors to Las Vegas.
Despite a 0.8% decline in passenger traffic at Harry Reid International Airport in September, Jonas observed a 3% increase in drive-in customers, with a similar uptick at the Nevada-California border.
This influx seems to favor slot machines, as slot revenue surged by 11%, with a 3% rise in handle and a nearly 9% slot hold.
Nevada Gaming Numbers Up Overall
There’s even better news when you look at the numbers from around The Silver State.
New numbers from the Nevada Gaming Control Board show state gaming revenue increased by more than 3% in September, reaching more than $1.3 billion compared to last year. However, the fiscal year showed a 2.6% revenue decrease last month.
In Southern Nevada, Downtown Las Vegas revenue soared by 33%, outperforming the Strip, which declined by nearly 2%.
Boulder Strip's revenue rose by 19%. Reno's gaming revenue in the north increased by 12%, while revenues fell by nearly 15% and 19% in North and South Lake Tahoe, respectively.
The state also collected over $99 million in fees from September's revenue, a 32% increase from last year.
Analysts Awaiting the Presidential Election
According to some analysts, the revenue decline on the Las Vegas Strip is influenced by various economic and political factors, leaving many in a 'wait-and-see' state regarding the presidential election and broader economy. Concerns about inflation, taxes, and other issues are at the forefront. Analysts anticipate that after the election, there will be a clearer picture of when Strip revenues might begin to recover.
