Sluggish quarter doesn’t worry experts
In Nevada, year-over-year gaming revenue for April fell less than 1 percent statewide, the third month of decline since the beginning of the year. The Las Vegas Strip enjoyed a 3.2 percent increase in gaming revenues, thanks in large part to high-end baccarat play. Much of the action came from the April 12 championship boxing match between Manny Pacquiao and Timothy Bradley at the MGM Grand Garden.
Nevada casinos generated $852 million in gaming revenue in April, down from $854.3 million in April 2013, the Gaming Control Board reported. Strip casinos generated $463 million in gaming revenue, compared to $448.6 million in the same month last year.
Without baccarat, Strip gaming revenue would have declined 3 percent, according to the Las Vegas Review-Journal. Stifel Nicolaus Capital Markets analyst Steven Wieczynski told investors the game “disproportionately benefited the operators with established Asian sourcing channels.”
“Baccarat play, in particular, tends to be event-driven and marquee boxing fights tend to bring high rollers into town,” Union Gaming Group analyst Robert Shore told investors.
In April, Strip casinos collected $90.4 million from baccarat, up 40 percent. The total amount wagered on baccarat was $645.3 million, an increase of 19.8 percent. Without baccarat, Strip table game revenue was down 0.5 percent to $136.6 million, while table game wagering increased 1.1 percent to $1.1 billion. Slot machine revenue was down 4.4 percent to $235.9 million and wagering fell 2.6 percent to $3.2 billion, the Review-Journal reported.
J.P. Morgan gaming analyst Joe Greff the company “maintains our positive outlook for the Las Vegas Strip and believe the overall recovery will continue as 2014 progresses.”
