The Nevada Gaming Control Board (NGCB) revealed Tuesday that the state’s casinos and taverns experienced a summer slowdown in gross gaming revenue (GGR). The board reported that July’s gaming win decreased to $1.306 billion, with the Las Vegas Strip being the primary contributor to the downward trend. Gaming win on the Strip fell 15%, marking the first statewide GGR year-over-year monthly decline in four months. In July 2023, casino revenue had exceeded $1.4 billion, making the recent $1.3 billion figure nearly 7% lower than the previous year’s benchmark.
One significant factor in the decline was the Strip casinos loosening their slot machines, which resulted in poor hold rates across various machines, from nickel slots to those requiring $100 bets. The slot win rates across Nevada dropped to single digits. Furthermore, table hold rates also fell, from nearly 18% in July 2023 to below 15% last month.
Michael Lawton, the NGCB’s senior economic analyst, pointed out that July 2023 was a challenging month to replicate, as the $1.404 billion won that month represented a record high in Nevada’s extensive gaming history. Despite inflationary pressures and a jittery economy raising concerns among some analysts, Lawton emphasized that the July report should not be seen as a sign of an industry downturn. “I would not call this the start of any downturn,” Lawton assured the Las Vegas Review-Journal. “This was a very difficult comparison, as July 2023 was the second-highest win total in state and Strip history.”
While slot win drove the record gaming win in July 2023, the performance of these machines in July 2024 was notably weaker.
The overall picture for July was marred by a disappointing performance on the Strip, which is the backbone of Nevada’s gaming industry. GGR along S. Las Vegas Blvd. decreased by 15% to $709.3 million. Nonetheless, there were some positive signs as Clark County slightly offset the Strip’s losses with a 10% rise in downtown casino revenue to $71.8 million. Overall, the county reported a GGR of $1.118 billion, reflecting a more than 7% year-over-year decline.
Table win, along with revenue from sports betting, keno, and bingo, plummeted 30% on the Strip to $290.5 million. Oddsmakers retained just $10.2 million of the bets wagered, a 7% drop, on a poor hold of 6%. Strip slot revenue was down less than 1% to $418.8 million.
Despite these setbacks, statewide GGR remains up 3% over the past 12 months, although revenue has fallen almost 1% over the past three months of May, June, and July.
Compounding concerns, a recent study by WalletHub, a personal finance website, indicated that nearly three in four US adults feel inflation is cutting into their discretionary spending. The study revealed that 74% of workers are frustrated with higher costs, and two-thirds reported that financial strain has impacted their Labor Day plans. “Even though inflation has subsided, Americans are facing substantially higher airline ticket prices, hotel rates, and gas prices in comparison with those before the pandemic,” said Jim Lee, a College of Business professor at Texas A&M.
Traditionally, Las Vegas is a popular destination for the federal holiday weekend that honors the American workforce. The Las Vegas Convention & Visitors Authority predicts 331,000 people will visit Southern Nevada over the long weekend, a 3.4% increase from the previous year.
