What has happened to the surging baccarat numbers from the past few years? Sure, the decline in Macau is to be expected with the issues surrounding the gaming market there, but Nevada keeps slowly slipping, something which must be changed for Las Vegas to get back on track fully.
The month of February saw baccarat revenue dip $37 million in the state, or a bit over 1 percent. Las Vegas is thrilled to have higher numbers of tourists spending tax refunds and gas savings, but gaming revenue, especially on the strip, is always directly tied to baccarat. Sure, one month here and there you can blame a decline on “bad luck”, but a trend is undeniable.
In addition to China, Taiwan has long produced plenty of baccarat revenue in both Macau and Las Vegas. The currency being tightened has slowed the influx of gamblers coming out the Strip. Previously, when a gambler from Taiwan lost, markers would be settled through various casino marketing offices in Taiwan with local currency. The marketing offices would then send the money to casinos through a service or wire transfer.
When the Taiwanese central bank tightened restrictions and reporting requirements, casinos were helpless, and stuck. Between Nevada, Macau, and Australian casinos, some $100 million is stuck in Taiwan. The fact that future play will more than likely be in U.S. Dollars only, will alienate customers used to playing on credit.
One international group of travelers which has grown significantly in recent years are Brazilians. Higher end patrons from the country prefer baccarat and roulette, but the issue has two major problems. Currently, the vast majority of Brazil tourism in the United States is in Florida. Secondly, the tourism is typically reserved for holidays and special events, with no steady streams, as of yet.
As a growing economic powerhouse, it would behoove the gambling community to find ways to capitalize on the market. Las Vegas will most assuredly get a boost in baccarat revenue when the Chinese-themed Resorts World Las Vegas opens.
