What goes up must come down.
In February, the Las Vegas Strip and much of Nevada experienced a noticeable drop in gaming revenue compared to the previous year.
According to the monthly report from the Nevada Gaming Control Board, casinos on the Strip reported a win of roughly $690 million.
This marks a significant drop of nearly 14% from February 2024, when the revenue was around $800 million.
Here's an overview of the revenue declines in several key areas across the state.
- Nevada -9.28%
- Clark County -9.66%
- Las Vegas Strip -13.78%
- Downtown -4.91%
For the fiscal year spanning from July 1, 2024, to February 28, 2025, gaming revenue has gone down by 1.14%.
What Caused the Decrease in Revenue in Nevada?
The drop can be partly attributed to the absence of major events like the Super Bowl, which Las Vegas hosted, and the extra day from leap year—both of which contributed to higher revenues in February 2024.
The Super Bowl typically brings significant economic activity to the host city, leading to a temporary boost in various sectors, including hospitality and gaming. However, this can create a difficult comparison for the following year if the event doesn't repeat.
Mixed Signals From January Surge
Interestingly, this downward trend in February (2025) contrasts sharply with the figures from the previous month. In January, the gaming win on the Strip surged by 22% compared to January 2024.
The gaming revenue for that month was nearly $840 million, up from about $686 million the year before. This increase was remarkable as it ended a six-month streak of year-over-year declines in casino winnings on the Strip.
Statewide Figures Show Similar Trends
Statewide, Nevada casinos reported a gaming win of $1.2 billion in February, down approximately 9% from the same month last year.
In contrast, January figures showed a statewide gaming win of $1.44 billion, up 13% from the previous year. This indicates that, while the Las Vegas Strip experienced a significant boost in January, February's performance was unable to maintain that momentum.
Ultimately, Nevada collected $75 million in percentage fees based on the taxable revenue generated in February.
Revenue From Slot Machines on Strip Flat
According to a report by CDC Gaming, Truist, a gaming analyst, reported that slot machine revenue on the Las Vegas Strip remained the same compared to last year. This happened even though the amount bet decreased by 4%, while the percentage of money casinos kept slightly increased.
Revenue from table games dropped by 27% compared to the previous year. This decline was due to a 25% decrease in the amount wagered and a slight decrease in the percentage of money kept. Baccarat earnings on the Strip were $88 million, which was 52% lower than the previous year. This was because the percentage kept was weaker, and the amount wagered was down 31%.
Additionally, the number of slot and table units in operation fell by 4% and 6%, respectively. Despite this, the average daily earnings per unit for slot machines increased by 8%, while for table games, it decreased by 19%. In the local market, slot revenue decreased by 1% because the amount bet was down by 3%, though the rate at which casinos won increased slightly.
Local Markets Show Good Table Game Revenue
There is one bright spot. Revenue from table games in the local market grew by 5% compared to the previous year, even though the amount wagered went down by 9%, as the percentage of money kept by the casino increased significantly.
But the decline in gaming revenue suggests that the gaming industry is experiencing a downturn. This could be due to factors such as changing consumer preferences, economic conditions, or increased competition from other entertainment options.
Fluctuations like this aren't foreign to Sin City, but to tackle these issues, city and gaming industry leaders might need to find new ways to bring in visitors, explore different sources of income, or change how they operate to lessen the impact of the revenue drop.
