The Nevada Gaming Control Board recently released its report on gambling “win” for November of 2008. The final numbers, which are released two months after the time period in question, show a state-wide decrease in gambling revenue of 14.80% year over year, marking the 11th straight month of declining revenues. The last time gaming win increased year over year was in December of 2007.
Nevada gaming revenues amounted to $836 million in November of 2008, dropping nearly 15% from the mark of $982 million during the same period in 2007. The hardest hit area of the state was North Lake Tahoe, which saw revenues plummet by 26.94% year over year to $1.99 million. During the fiscal year to date (July 1st through November 30th), North Lake Tahoe revenues are off 13.56%. Also hit hard was Laughlin, whose gambling revenues fell from $51 million in November of 2007 to $41 million in 2008, a plunge of 18.13%. In the current fiscal year, Laughlin’s “win” is down 11.58%.
The Las Vegas Strip was hit hard by snow in December and, one month earlier, its revenues sank by 16.02% year over year. Casinos including the Bellagio, Wynn, and Caesars Palace raked in a total of $437 million in November of 2008 in comparison to $521 during November of 2007. Fiscal year to date, the Strip’s revenue has fallen from $2.8 billion to $2.4 billion (-14.21%). Meanwhile, revenues in Downtown Las Vegas, which includes establishments such as the Golden Nugget and Binion’s, experienced a modest 1.58% revenue decline year over year. Similarly, North Las Vegas saw its “win” drop by just 1.83%.
Revenue on the Boulder Strip, which includes casinos such as Sam’s Town and Boulder Station, fell by 16.35% to $54 million during November of 2008. Revenues in Mesquite sank by 8.78% and in Reno, which lies in Washoe County, revenues declined by 14.26%. During the fiscal year to date, statewide gambling revenue is down 12.93% to $4.7 billion.
Based on revenues earned by casinos, the State of Nevada collects a fee, which is then used to fund various programs. As expected, fees dropped by a sizable amount: 27.05% year over year. The State collects November’s fees in December. Statewide fee collections have dropped by over 20% during the last two reported months. Nevada most recently reported an increase in fee collections during the month of July, when income from June was taxed.
In October, statewide gambling revenues sank 22.33% year over year. The Las Vegas Strip was once again one of the hardest hit, with “win” dropping 25.77%. North Las Vegas, whose revenues held relatively constant in November, saw its revenue nosedive by over one-third in October of 2008. Statewide decreases in revenue year over year have been as follows during 2008:
December: Will be Released in February
November: -14.80%
October: -22.33%
September: -5.44%
August: -8.10%
July: -12.97%
June: -1.11%
May: -15.17%
April: -5.05%
March: -1.52%
February: -3.93%
January: -4.95%
A recent article by San Antonio News Express columnist Chuck Blount sums up the current economic downturn’s effect on Sin City. He wrote, “A quick search on Expedia.com shows just how desperate things have gotten, as room rates are currently discounted by 50 percent or more across the board. This is to the consumer’s benefit.” Rooms in Downtown Las Vegas had been discounted to as low as $10 per night.
Blount noted that despite casino gambling taking a dive, poker continues to flourish. The 2008 World Series of Poker (WSOP), which is held at the Rio, an off-Strip hotel, attracted the second largest Main Event field ever at 6,844. In addition, total tournament attendance was the highest on record. To help attract attention to the WSOP, event organizers pushed the Main Event final table back until November.
The Venetian, located on the Strip, is currently gearing up for its 25 event Deep Stack Extravaganza, which begins on February 2nd. No Limit Texas Hold’em, Pot Limit Omaha, HORSE, and Omaha High-Low will be a part of the festivities. The Main Event is a $2,500 No Limit Hold’em tournament that begins on Monday, February 23rd.
